Of the largest technology companies from the United States are closing branches in China amid trade war, writes the Nikkei.
According to the newspaper, which refers to research company Trendforce, find a new place to base their production and research facilities outside of China do computer manufacturers Dell and HP, Internet giant Amazon (which produces, among other things, the Kindle reader and digital assistant Echo), as well as a manufacturer of gaming consoles Nintendo, the IT giant Microsoft, the manufacturer of electronics Sony and Google.
Most of them consider as alternative sites of Vietnam, Thailand, Indonesia or Mexico. However, manufacturers of servers and data centers, Quanta Computer, Inventec and Foxconn Technology looking and the Czech Republic. The publication drew attention to the behavior of the Apple, which the authors call “slow”. The company begins to think about leaving China just now and is going to move about 30 percent of the units in the production of smartphones.
The main and most obvious reason for the relocation of the interviewed economists call a trade war between the US and China. She both countries impose duties on the products of each other, and production in China becomes unprofitable for companies focused on the U.S. market. About 47 percent of Dell sales and 40 percent of deals HP falls on US.
However, experts point out, there are other reasons. Among them, the rise in the cost of labor in China and rising political risks and slowing growth in the country. Thus, the trend will continue, even if the President of the United States Donald Trump and Chinese President XI Jinping will be able to negotiate and conclude a comprehensive trade agreement.
Read more •••