Daily Management Review

Asian tech giants to transfer production from China because of Trump tariffs


South Korean SK Hynix and Japanese Mitsubishi Electric, Toshiba Machine Co. and Komatsu began to plan transfer of production back in July, when they were hit by the first duties, and now these plans are being implemented, representatives of companies and other sources familiar with the situation told Reuters.

ITU Pictures
ITU Pictures
Other companies, such as the Taiwanese computer manufacturer Compal Electronics and South Korean LG Electronics, are working on alternate options in the event that the "trade war" continues or intensifies.

A quick reaction to American duties is possible because many large companies have production capacities in several countries and can transfer at least a small part of the production without building new plants. Some governments, especially in Taiwan and Thailand, are actively encouraging companies to transfer production from China, counting on an economic and strategic impetus from the US-China conflict.

SK Hynix, the manufacturer of memory chips, is working on the transfer of part of the production from China back to South Korea. His American competitor Micron Technology is also shifting some operations from China to other Asian countries.

Due to the significant impact of duties, Toshiba Machine Co plans in October to shift part of the production of equipment for the manufacture of plastic components, such as automobile bumpers, from China to Japan or Thailand.

Meanwhile, Mitsubishi Electric is partially transferring the production of equipment used for metal processing from its production base in Dalian, in the northeast of China, to the Japanese plant in Nagoya.

US fees threaten China's status as a low-cost production base, which, along with the attractiveness of the fast-growing Chinese market, has prompted many companies to build factories and create supply chains in the country in the last few decades.

Recall, on Monday, the 10% US duty on Chinese goods to the amount of $ 200 billion begins to act.

At the same time, US President Donald Trump did not rule out the possibility of imposing additional duties on Chinese goods worth $ 267 billion.

source: reuters.com

Science & Technology

UK trials new breathing aid developed by Mercedes Formula One

Uber sues Los Angeles authorities over user data collection

Google Introduces New Coronavirus Website

WHO Warns That The Youth Are ‘Not Invincible' To The Novel Coronavirus

Chinese software company learns to recognize 95% of masked faces

World's largest retailer to use 5G for medical services

SpaceX Receives Approval To Create Research & Manufacturing Facility In Los Angeles

JPMorgan: Transition to e-money will be based on blockchain

Tesla In Advance Talks With CATL For Using Lithium Batteries

Financial giants and US government turn to quantum computers

World Politics

World & Politics

Aerospace Consortium To Build Ten Thousand Ventilator In Britain

US Ambassador To UK Holds China Responsible For Global Spread Of Coronavirus

China to lift quarantine in Wuhan on April 8

British Government Hires Former Nestle’s Executive For ‘War Room’ Food Security

Canada, Australia refuse to send athletes to Olympics 2020

Plans For A Possible Delay Of Olympics Being Formulated By Tokyo Organizers: Reuters

Maduro says Venezuela will receive UN assistance to fight coronavirus

2 Million Masks For Coronavirus Crisis In Europe Donated By Jack Ma