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

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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.

2 COMMENTS

  1. Getting out of China would adversely effect those companies as China now has established a strong technical and industrial base. Coupled with 3 trillion dollar trade surplus China can be a very potent adversary to all those companies. No body can beat China in price war now. It is better for those companies to stay put in China and benefit from made in China stamp than to compete from out side China.

  2. Pak could approach those US companies who have been FORCED out from their preferred Chinese market base & shown the benefits of production in Pakistan.

    1- adjacent to Chinese market, so low cost transport.
    2- No easy Trumpanzee political chimpanry making political capital of anti-Chinese antics.
    3- English speaking & globalised capitalist experience
    4- No political problems between China-Pak to disrupt.

    I wonder if the GORILLAS & CHIMPS of Pak diplomatic corps & chambers of commerce have thought about that?

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