Thanks to Trump?
More Than 50 Companies - (Like Apple) - Rush To Pull Production Out Of China
More than 50 global companies including Apple, Nintendo and Dell are rushing to pull production out of China amid the country’s trade war with the United States.
U.S., Japanese, Taiwanese and even Chinese manufacturers are moving out of the country in fear of a prolonged trade conflict, including those who make personal computers, smartphones and other electronics, Nikkei Asian Review reported Thursday.
“We need permanent measures to avoid the risk of tariffs and be eligible for U.S. government procurement,” Kiyofumi Kakudo, CEO of computer maker Dynabook —which makes almost all of its notebook PCs in China — told Nikkei.
“Although the fourth round of U.S. tariffs has been temporarily shelved, we cannot tell what will happen nor when,” Kakudo continued.
Apple is considering moving 15% to 30% of its iPhone production out of the country and will begin trial production of its AirPods to Vietnam. Nintendo also plans to move a portion of its game system production into Vietnam.
“The possibility of the world market dividing into China and non-China is growing,” Japan Research Institute senior economist Yuji Miura told Nikkei.
Other foreign companies are using the shift into Vietnam as an opportunity to move to China at a more affordable price. In June, China began alleviating restrictions on foreign investment in fields such as oil and gas, among several others.
Tesla is moving its newest plant to Shanghai and will start hiring as soon as next month.