Consumer electronics makers are all looking to shift production out of China

Global consumer electronics makers HP, Dell, Microsoft and Amazon are all looking to shift substantial production capacity out of China, joining a growing exodus that threatens to undermine the country’s position as the world’s powerhouse for tech gadgets. HP and Dell, the world’s No 1 and No 3 personal computer makers, which together command around 40 per cent of the global market, are planning to reallocate up to 30 per cent of their notebook production out of China… Microsoft, Google, Amazon, Sony and Nintendo are also looking at moving some of their game console and smart speaker manufacturing out of the country… The moves will be a blow for China’s electronics exports, which have powered the country’s decades-long growth. China is the world’s biggest producer of PCs as well as smartphones… However, many tech companies have been hit hard by the trade conflict, whichhas seen tariffs slapped on $250 billion worth of Chinese imports into the US while the threat of another round remains… The moves are sparking concerns over job losses in China and the country’s economic growth, which has already hit its slowest pace since 1990… Even if Washington and Beijing resolve their long-running dispute, the shifts mean that China will face growing competition as an electronics production base, say experts. 
 
Cheng Ting-Fang, Lauly Li, Coco Liu and Shunsuke Tabeta (Nikkei staff writers)

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