The list of technology equipment manufacturers moving their chains out of China continues to grow despite the previous “truce”.
Global consumer electronics manufacturers such as HP, Dell, Microsoft and Amazon are seeking to move most of their manufacturing capacity out of China. With the participation of these names, the ‘migration’ is threatening the status of the world’s leading powerhouse producing technological equipment.
HP and Dell, the world’s No. 1 and No. 3 personal computer manufacturers, together accounting for about 40% of the global market, are planning to reallocate 30% of laptop production from China. Quoc, the source of the Nikkei Asian Review said.
Microsoft, Google, Amazon, Sony and Nintendo are also considering moving some of the game console and smart speaker manufacturing out of China. Other leading PC makers such as Lenovo Group, Acer and Asustek Computer are also considering.
The tech companies’ plan was fueled by a trade war between Washington and Beijing, despite a truce between U.S. President Donald Trump and Chinese President Xi Jinping at the Group Summit. 20 in Osaka. Many sources said the situation was still too precarious. At the same time, rising costs in China have also made manufacturers want to consider alternatives.
The decision of some of the world’s largest computer and gaming brands to shift production – mainly products for the US market – is similar to the consideration of adjusting production of technology firms. other. Apple is calculating the cost implications of moving 30% of smartphone production out of China. In other places, server manufacturers, networking products and some electronic components are leaving China, with the usual reason being at the request of American customers.
These moves will have a significant impact on China’s electronics exports, which have contributed to decades-long growth. The country is currently the world’s largest PC and smartphone manufacturer.
According to data provider at QianZhan, China’s total electronics import-export turnover soared 136 times to US $ 1,350 billion in 2017, from just over US $ 10 billion in 1991.
However, many technology companies have been affected by the trade conflict, after tariffs on $ 250 billion worth of Chinese imports and other potential threats in the future.
Server companies such as Quanta Computer, Foxconn Technology and Inventec have all moved a number of product lines from China to Taiwan, Mexico and Czech to avoid the threat of additional tariffs and ease customer concerns. goods related to US national security risk complaints.
Server companies have moved several product lines from China to Taiwan, Mexico and the Czech Republic to avoid the threat of additional tariffs and ease customer concerns related to risk complaints. US national security.
“After the tariffs on Chinese goods went into effect on September 24, we started manufacturing servers outside of China in October.”, CEO of a Taiwan server manufacturer said.
The situation is raising concerns about job losses in China and the country’s economic growth, which has been the slowest since 1990.
“The US will probably feel some of the negative effects from the change as products may be more expensive. But China will feel the rest because the economy will have to prepare for slower growth and a lot of work. people need to find a job elsewhere “, Darson Chiu – Economist at Taiwan Economic Research Institute said.
HP and Dell, which sold a total of about 70 million laptops globally last year, mostly made in Chongqing and Kunshan, the world’s two largest laptop production clusters. But Chongqing is losing its shine to manufacturers. A local government official told Nikkei that HP has lowered its production forecast for 2019 to less than 10 million laptops, which is roughly half the output from two years ago.
“Soaring production costs in China have led to a drop in global orders. Now, the uncertainty associated with the trade war is further catalyzing.”The official said.
HP has planned to transfer about 20% to 30% of its output outside of China. The company is considering building a new supply chain in Thailand or Taiwan. The production change may start as early as the end of July to September, but it is still possible to change.
Dell has begun to ‘test drive’ laptop production in Taiwan, Vietnam and the Philippines. Sources say the company wants to avoid a collapse from the trade war but is also concerned about the shortage of workers and rising costs in China.
* Source: VnExpress