With the ongoing trade conflict between the United States and China, major tech companies are planning to move their production out of China. Although there’s been a truce between both the nations, with the United States notably allowing China’s Huawei to once again do business with suppliers in the country, major tech companies are still concerned over the growing uncertainty.
Nikkei is reporting that HP, Dell, Microsoft, Google, Amazon, Sony, and Nintendo are planning to move parts of their hardware production from out of China to other Southeast Asian countries:
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Following the tariff of 25% on imports from China to the United States placed by the U.S. government, there’s been a ton of uncertainties for businesses in both the economies. The growing threat of further tariffs has pushed U.S. tech companies to look at other nations as alternatives to China, with companies like Apple and Foxconn already starting mass-production of the iPhone in countries like India.
The recent truce is obviously promising, but that doesn’t necessarily eliminate the chances of any future conflicts between the countries. Thus, tech companies are trying to secure a safe future by thinking long-term and moving away from China. But with China’s economy relying heavily on the manufacturing of phones and computers, it’s probably going to take a major hit.
skane2600
<p>The key point is that production will continue to be done in places with cheap labor costs and no jobs will be brought back to the headquarter countries. </p>
skane2600
<blockquote><em><a href="#439525">In reply to Pbike908:</a></em></blockquote><p>I don't see any value in "getting the attention of the Chinese". Of course getting attention has been Trumps "business" for many years even if his actual businesses suffer as a result.</p>
skane2600
<blockquote><em><a href="#439548">In reply to lvthunder:</a></em></blockquote><p>Well, thanks for making up my opinions for me. </p>
skane2600
<blockquote><em><a href="#439605">In reply to lvthunder:</a></em></blockquote><p>Huh? You simply strawmanned me with positions I didn't take. Nothing you said addressed the question of the value of getting China's attention. You indirectly stated your concerns/beliefs about China, but to the degree that they are accurate, the value would lie in actually stopping those practices, not merely getting China's attention. Other than a trade war Trump started, nothing has changed.</p>
skane2600
<blockquote><em><a href="#439607">In reply to Markld:</a></em></blockquote><p>As I've said before mere claims aren't facts.</p>
Stooks
<blockquote><em><a href="#439536">In reply to skane2600:</a></em></blockquote><p>Loooooooong before Trump the Chinese trade deals needed to be addressed. After WWII China got sweet deals because of many reasons, war damage, economic standings compared to the US etc…etc…etc. </p><p><br></p><p>About the time of Bush Sr, these trade deals should have been redone as China had climbed way past the reasons the deals existed.</p><p><br></p><p>Trump did it, like him or not, but he pushed this forward, something that needed to be addressed at least 10 years ago.</p>
skane2600
<blockquote><em><a href="#439707">In reply to Stooks:</a></em></blockquote><p>Yes, Trump is doing <em>stuff</em>, but has he solved any problem?</p>
skane2600
<blockquote><em><a href="#439726">In reply to Waethorn:</a></em></blockquote><p>When you use the word "then", it implies a conclusion based on previous statements. What statements I previously made supports your conclusion?</p>
PeterC
<p>It takes years to move production lines and component supply lines successfully. Some capacity is always possible but not much in terms of percentages compared to existing manufacture numbers…</p>
dontbe evil
<p>Except apple of course</p>