Asia Business Channel

China-US trade war – US companies make plans to leave China

 

Japanese publication, the Nikkei Asia Review has published a report that a variety of American technology companies, including Amazon, Dell, Google, HP and Microsoft are planning to move production from China and that they are looking at various Asian countries as possible new locations for their electronics production.

This follows a call by Terry Gou, President of Foxconn to Apple in late June to consider moving its production from China to Taiwan. Nikkei had also reported on Apple shifting production from China last month and said that the company was planning to move 15 ~ 30% of its iPhone production from China in order to limit their exposure in the ongoing China – US trade wars.

According to the Nikkei report, here’s a breakdown on what might get moved:

Amazon    
E-readers & Smart speakers           Relocate to:      Vietnam
     
Dell    
Notebook computers           Relocate to:      Philippines / Taiwan / Vietnam
     
Google    
Smart speakers           Relocate to:      To be determined
     
HP    
Notebook computers           Relocate to:      Taiwan / Thailand
     
Microsoft    
Game consoles & smart speakers           Relocate to:      Indonesia / Thailand


ChinaUSTradeWar2
Apple has faced an informal boycott by Chinese citizens of its products 

The speculation about Apple shifting production from China after Guo from Foxconn said: “I am urging Apple to move to Taiwan,” and another Foxconn Executive, Young Liu, said that the company has the manufacturing capacity to produce all US-bound iPhones outside of China.

Apple manufacturers phones, laptops, and tablets in China and had asked the Trump administration in June to exclude its products from US Tariffs. Apple has also been singled out as a symbol of America and is facing an informal boycott of its products, especially its phones, by Chinese citizens.

Sony, Microsoft, and Nintendo also wrote a joint letter to the US government in June asking that game consoles be left off any tariff lists because of the "disproportionate harm" tariffs would cause to US consumers and business.

 

 

Notebook computers
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