More than 50 companies reportedly pull production out of China due to trade war

[Foggy_Bottom]

The pace of companies moving production out of China is accelerating as more than 50 multinationals from Apple to Nintendo to Dell are rushing to escape the punitive tariffs placed by the U.S., according to the Nikkei Asian review.

The trade war between the U.S. and China has dragged on for more than a year with 25% tariffs placed on $200 billion of Chinese goods. President Donald Trump is still threatening to slap duties on another $325 billion of goods. In wake of the intensifying battle, more and more companies announced plans or are considering shifting manufacturing from China.


American personal computer makers HP and Dell could move up to 30% of their notebook production in China to Southeast Asia, Nikkei reported. Apple has asked its major suppliers to assess the cost implications of moving 15% to 30% of their production capacity from China to India, according to an earlier report from the Nikkei.

Japan’s Nintendo is also going to pull a portion of its video game console production from China to Vietnam, according to Nikkei.

Not only are foreign companies rethinking its production location, a handful of Chinese companies are also leaving China. Chinese multinational electronics company TCL is moving its TV production to Vietnam, while Chinese tire maker Sailun Tire is transitioning its manufacturing line to Thailand, Nikkei reported.

The prolonged trade battle seems to be taking a toll on the Chinese economy. Data on Monday showed its economic growth slowed to 6.2% in the second quarter — the weakest rate in at least 27 years.

Trump claimed the slower growth is evidence that China is losing the trade war as the country faces an exodus of companies.


“The United States Tariffs are having a major effect on companies wanting to leave China for non-tariffed countries. Thousands of companies are leaving. This is why China wants to make a deal,” Trump said in a twitter post on Monday.

https://www.cnbc.com/2019/07/18/mor...production-out-of-china-due-to-trade-war.html

 

[GHALIB]

The pace of companies moving production out of China is accelerating as more than 50 multinationals from Apple to Nintendo to Dell are rushing to escape the punitive tariffs placed by the U.S., according to the Nikkei Asian review.

The trade war between the U.S. and China has dragged on for more than a year with 25% tariffs placed on $200 billion of Chinese goods. President Donald Trump is still threatening to slap duties on another $325 billion of goods. In wake of the intensifying battle, more and more companies announced plans or are considering shifting manufacturing from China.


American personal computer makers HP and Dell could move up to 30% of their notebook production in China to Southeast Asia, Nikkei reported. Apple has asked its major suppliers to assess the cost implications of moving 15% to 30% of their production capacity from China to India, according to an earlier report from the Nikkei.

Japan’s Nintendo is also going to pull a portion of its video game console production from China to Vietnam, according to Nikkei.

Not only are foreign companies rethinking its production location, a handful of Chinese companies are also leaving China. Chinese multinational electronics company TCL is moving its TV production to Vietnam, while Chinese tire maker Sailun Tire is transitioning its manufacturing line to Thailand, Nikkei reported.

The prolonged trade battle seems to be taking a toll on the Chinese economy. Data on Monday showed its economic growth slowed to 6.2% in the second quarter — the weakest rate in at least 27 years.

Trump claimed the slower growth is evidence that China is losing the trade war as the country faces an exodus of companies.


“The United States Tariffs are having a major effect on companies wanting to leave China for non-tariffed countries. Thousands of companies are leaving. This is why China wants to make a deal,” Trump said in a twitter post on Monday.

https://www.cnbc.com/2019/07/18/mor...production-out-of-china-due-to-trade-war.html

better china mends it's ways .

 

[Samlee]

These Companies Were Moving Out Anyway.Trade Wars Just Accelerated The Process.

Pakistan Should Take Advantage Like Other Countries In Terms Of Increase FDI Employment Opportunities and Exports

This Is What I Have Been Saying All Along

https://defence.pk/pdf/threads/something-better-than-oil.619969/

 

[Yaseen1]

These companies only able to move 30 percent out of china and unable to move out remaining 70 percent so it is success of china but u.s public will get nothing from it as they are not returning back to u.s .It will benefit vietnam and other 3rd world countries where their factories are shifting and u.s will face same trade deficit like they faced with china as these countries will again follow china and copy u.s products to develop their own brands based on knowhow from u.s companies.u.s will keep crying forever and their end is near.Space created by these companies ouster will promote chinese companies to fill this gap and chinese companies and new startups will replace them

 

[Nan Yang]

Quote.
The consultancy studied how China and the world are linked through trade, capital and technology. It found that the increasing importance of Chinese consumers in supporting growth means manufacturers in the country are selling more to domestic consumers, and less to the world.

As a result, China exported just 9% of its output in 2017 — down from 17% in 2007, according to the McKinsey study. That shows China has become more self-reliant and less exposed to the rest of the world, the research found.

 

[DoTell]

So, when will China collapse?

 

[Globenim]

I can swear I read the same headline 10 years ago just without the whole "due to the trade war" damage control.

 

[Three_Kingdoms]

Flow of Direct Investment Into China Continues to Grow Despite Trade Tensions
By Zeng Jia and Zhao Runhua / Jun 14, 2019 06:49 PM / Economy

https://www.caixinglobal.com/2019-0...to-grow-despite-trade-tensions-101427103.html

Beijing's Central Business District. Photo: VCG

Inflows of foreign direct investment (FDI) to China grew last year despite a continued global decline, a recent United Nations report shows.

The country ranked second internationally in terms of 2018 incoming FDI, which increased 3.7% year-on-year to a record $139 billion and accounted for over 10% of the global total, according to the 2019 World Investment Report by the U.N. Conference on Trade and Development.

Meanwhile, global FDI inflows declined for the third consecutive year to $1.3 trillion. The U.S., with $252 billion worth of FDI inflows, remained at the top of the list despite a 9% decline. Worsening trade relations between China and the U.S. took their toll on inflows from the U.S. to China, which dropped from $10 billion to only $6 billion in 2018.

One major factor in the continued growth in FDI for China was the government’s loosening of foreign ownership limits in the manufacturing sector, which significantly boosted FDI in fields that accounted for 30% of the country’s total inflows last year, according to the report.

Additionally, even amid trade tensions, global investors set up 70% more new companies in China last year.

 

[hiseen]

So when will China ask you American father to avoid collapse?