Dell Moving Factories Out Of China [Dell Computers Moving $25 Billion In Labor, Equipment From China To India, Citing Environment Concerns, Western Companies Bailing On China?]

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India’s Prime Minister, Manmohan Singh, told the Indian press that Dell chairman Michael Dell assured him that Dell was moving $25 billion in factories from China to India. Dell is the second company to flee China this week, joining Google. Although it might appear that the two are leaving for different reasons, they may not be.

Dell has reportedly said that they were leaving China in search of a “safer environment with [a] climate conducive to enterprise.” Mr. Singh, in the same newspaper article where he revealed that Dell was moving $25 billion in parts and equipment to India, also said that Michael Dell was looking for a country “with security of a legal system.”

Dell joins Google, who shut down most of their Chinese operations this week after concerns over censorship as well as a security incident between China and Google. Google said that numerous other US companies, including tech companies, faced cyber-attacks from China – it’s possible Dell was among them (but completely conjecture on my part). Between the strict censorship on Google, and now Dell implying that China isn’t conductive for business, it seems that some western companies are getting fed up with the cost of doing business in China.

Dell currently has one factory in India. Michael Dell previously said publicly that “India is a great place to be in” and that “It is growing faster than China for us.” No word on when you can expect Dell to start closing Chinese factories or opening new Indian ones. Such a change probably won’t affect Dell’s product availability too much.