People's Daily: "Samsung's Withdrawal from China's Home Appliance Market Is Not an Escape"

The People's Daily, the official newspaper of the Chinese Communist Party, analyzed that Samsung's partial withdrawal from its home appliance business in China is not an escape, but rather a change in the investment structure in China.

In a commentary released on the evening of May 7, the People's Daily stated, "Samsung's withdrawal from the home appliance business in China does not signify a 'flight' of foreign-invested companies; instead, it is the result of a strategic shift by the company and the advancement of Chinese industry."

Samsung Electronics Seocho Building. Photo by Yonhap News Agency

The commentary also noted, "As China expands its openness, optimizes its business environment, and strengthens innovation-driven development, more foreign companies will open a new chapter in global industrial chain cooperation."

The People's Daily further analyzed Samsung Electronics' performance and growth rates by business segment for the first quarter of this year. It highlighted that while operating profit in the semiconductor division surged 47.82 times year-on-year, profits in the display and home appliance divisions dropped by 33.3%. The outlet commented, "As a global electronics industry giant with diverse businesses spanning semiconductors, display panels, mobile phones, and home appliances, Samsung's strategic emphasis on each segment will be adjusted in line with changes in the global supply chain." The commentary added, "Samsung's decision to withdraw from the Chinese home appliance business can be seen as a rational and normal strategic adjustment, reallocating corporate resources to more competitive business segments."

The article also pointed out that as of the end of last year, Samsung's cumulative investment in China exceeded 55 billion dollars, and that this year, a new medical device production line was added at its Suzhou plant, indicating "profound changes are taking place in Samsung's investment in China."

The People's Daily also noted that about 20% of foreign investment in China last year was in scientific research and technology, marking seven consecutive years of growth. It is unusual for the People's Daily, the Communist Party's official publication, to publish a commentary analyzing foreign companies' strategies. Some observers interpret this as reflecting concerns that foreign companies' business contractions could be perceived as a trend of decoupling from China or a withdrawal of foreign capital.

Recently, Samsung Electronics announced on its Chinese website that it will stop selling home appliances such as TVs, monitors, washing machines, vacuum cleaners, and refrigerators in mainland China. However, it will continue its businesses in mobile phones, semiconductors, and medical devices.

This content was produced with the assistance of AI translation services.