HP, Dell, other tech firms plan to shift production out of China

--Microsoft, Alphabet, Amazon, Sony and Nintendo are also looking at moving some of their game console and smart speaker manufacturing out of China

Several major US-based technology companies are planning to

shift substantial production out of China, spurred by a bitter trade war
between Washington and Beijing, the Nikkei reported on Wednesday, citing
sources.

Personal computer makers HP Inc and Dell Technologies are planning

to reallocate up to 30pc of their notebook production out of China, according
to the Nikkei.

Microsoft Corp, Alphabet Inc, Amazon.com Inc, Sony Corp and

Nintendo Co Ltd are also looking at moving some of their game console and smart
speaker manufacturing out of the country, the Nikkei added.

US President Donald Trump and Chinese President Xi Jinping

struck a truce at last weekend’s Group of 20 summit in Japan, paving the way
for a restart in trade talks after months of stalemate.

However, the companies are not likely to alter their plans

of moving some of their production out of China as they also face higher
operating costs in the country.

In June, Apple Inc asked its major suppliers to assess the

cost implications of moving 15pc-30pc of their production capacity from China
to Southeast Asia as it prepares for a restructuring of its supply chain,
Nikkei had reported last month.

HP, Dell, Amazon, Microsoft and Google did not immediately

respond to a Reuters’ request for comment.