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Rise in protectionism will be tough on 2017 global economy, says Foxconn tycoon Terry Gou

He also reiterates plan to invest in US$7 billion American plant two days after Donald Trump vows to make ‘America First’ priority of protectionist agenda

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Terry Gou, the chairman and chief executive of Foxconn,. Photo: Simon Song
Lawrence Chungin Taipei

Taiwan’s billionaire consumer electronics tycoon Terry Gou predicted global economic development would be tough this year because of the rise of protectionism and also reiterated his plan to invest more than US$7 billion in a plant in the US.

“While it is difficult to have a clear analysis of the economic outlook for this year, due to looming uncertainties, three factors can be seen as clues,” the founder of Foxconn Technology Group said.

“First, the rise of protectionism is inevitable,” Gou, whose company is the world’s largest contract assembler of consumer electronics, including Apple iPhones and iPads, said at a company event in Taipei on Sunday.

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“Secondly, the trend of politics serving the economy is clearly defined, and thirdly, the proportion of real economy [concerned with actually producing goods and services] is getting increasingly bigger.”

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His comments came two days after US President Donald Trump vowed in his inaugural speech to make “America First” one of the priorities of his protectionist agenda, which would include distancing the United States from the Trans-Pacific Partnership agreement backed by his predecessor Barack Obama, and making US friends and allies pay for their security currently aided by Washington.
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