The number of companies pulling their production out of China is significantly increasing. To clarify, there are more than 50 companies moving out of China. Between them Apple, Nitendo and Dell are rushing since they want to avoid US punitive tariffs.
American personal computer makers of HP and Dell has moved 30% of their note book production. They move the production to Southeast Asia. Besides, Apple has also asked its major supplier to assess their moving cost. They have moved 15% to 30% of their production to India.
Japan’s Nintendo also plans to follow the move. They are going to pull a portion of its video game console production. Nintendo plans to move it to Vietnam, according to Nikkei.
Not only the foreign companies, but a handful of Chinese companies moving out of China. For instance, multinational electronics company TCL. They plan to move their TV production to Vietnam. At the same time, Chinese tire maker Sailun Tire also plans the same act. They are transitioning their manufacturing line to Thailand.
Read more: US and China Agree on Tentative Trade Truce Ahead of G20
US-China Trade War
The trade war between US and China has been going on for more than a year. 25% tariffs placed on US$ 200 billion of Chinese goods. Moreover, President Donald Trump is still threatening to increase the tariff on another US$ 325 billion of goods.
The intensifying battle triggers more companies announcing their move. Many of them plan to shift their manufacture from China.
The prolonged trade battle gives a serious effect on the Chinese economy. Data on the early July showed China’s economy growth slowed to 6.2% in the second quarter. The number is the weakest rate in the last 27 years.
The lost on China convinced Trump that China is losing the war. That is supported by many companies’ statement that they leave China for non-tariffed countries.
