Companies prepare to move production out of China

A number of OEMs are seeking to move part of their production from China, Nikkei reports.

Motivation is not just a tariff but a rise in labor costs in China.

Among the companies that plan such moves are Acer, Asustek, Lenovo, HP, Dell, Microsoft, Sony, Nintendo and Amazon.

Companies that have already relocated production from China are Foxconn, Quanta Computer and Inventec.

Recently, Apple’s suppliers reported that Apple had asked them to cost 30% of their iPhone production from China.

The recent rapprochement between President Trumpa and Xija at the G20 in Osaka has not stopped the uncertainty caused by the trade war.

Before the trade began, the increase in production costs in China resulted in the fall in overseas production orders in China,

According to analysts QianZhan, the electronics trade, both import and export, grew from $ 10 billion in 1991 to $ 1.35 trillion in 2017.

Advert