Daily Management Review

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


09/24/2018


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

Tech giants face stricter government regulation in the US

Nestle's Head: Veggie meat is new megatrend

Huawei may introduce Android replacement in August

Are US high-tech investors causing brain drain in Europe?

'Russia's Google' Yandex Was Hacked By Western Intelligence For Spying: Reuters

Reuters: Chinese hackers were stealing data from IT giants for years

China's first solar power molten salt plant sets record

WSJ announces imminent start of Boeing 737 MAX flight tests

Study: Machine learning is five times more harmful for the environment than a car

Would Singapore Be The First One To Bring Lab Grown Shrimps To The Global Market?

World Politics

World & Politics

France announces new tax for air fares

Europe Concerned Over Iran Move To Breach Uranium Enrichment Cap

Singapore To Build ‘$296 Million’ Smart Next-Gen Army Training Centre

No More Sales Of E-Cigarettes In San Francisco?

US ‘Hell-Bent On Hostile Acts’ Even After Trump-Kim Agreement, Says North Korea

Italy avoids EU sanctions for high national debt

Trump allocates 4.6 bln to help migrants

Iran Says Trump’s Belief That US-Iran War Would Be Short Is “An Illusion”