HP, Microsoft, Dell and more to shift production out of China

Tech companies plans have not changed despite the truce that was struck between the US and Chinese premieres at last weekend’s G20 summit in Osaka, Japan.

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HP, Microsoft, Dell and more to shift production out of China
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Tech companies plans have not changed despite the truce that was struck between the US and Chinese premieres at last weekend’s G20 summit in Osaka, Japan.


Consumer electronic giants such as Dell, HP and Microsoft etc. are contemplating to shift production out of China. These companies are joing the league of their competitors to nudge the Chinese’s position as the world’s powerhouse for tech gadgets.

According to Nikkei Asian Review, HP and Dell that have a hold of about 40% of the global market are planning to relocate up to 30% of their notebook production out of China. Other companies such as Google, Amazon, Microsoft, Nintendo and Sony are looking at moving their game console and smart speaker manufacturing units out of the country. Lenovo Group, Asustek Computer and Acer are also planning to make the shift.


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The Fortune said that many companies are leaving China due to the 25% fees levied by the U.S. on up to $250 billion worth of goods imported from China. This has forced manufacturers to either up by the additional costs or pass it onto the consumers. But now, to avoid losing consumers, companies are opting to shift production outside China. A survey by the American Chamber of Commerce (AmCham) and its Shanghai-based counterpart revealed that about 40% of 250 surveyed firms said they were ‘considering or have relocated manufacturing facilities outside of China’.

Reports say that tech companies plans have not changed despite the truce that was struck between the US and Chinese premieres at last weekend’s G20 summit in Osaka, Japan.


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Hannah Anderson, a global market strategist at J.P. Morgan said businesses moving out of China predates the current trade dispute. “Higher tariffs might have accelerated some of those plans that were already in place, which is certainly something that I am seeing and hearing when I talk to CEOs, but very few companies hadn’t thought that far ahead alread,” Anderson said.

 

Meanwhile, Apple is also looking at the cost implications of moving up to 30% of its smartphone production. The move will definitely make a negative impact on China’s economic and the Asian giant will not be very happy about it.


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HP, Microsoft, Dell and more to shift production out of China
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Tech companies plans have not changed despite the truce that was struck between the US and Chinese premieres at last weekend’s G20 summit in Osaka, Japan.
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The Policy Times