Daily Management Review

More than 50 companies are leaving China due to trade war


More than 50 companies, including Apple and Nintendo, have announced or are considering plans to move production from China to avoid US duties, according to Nikkei Asian Review.

American manufacturers of personal computers HP and Dell can transfer up to 30% of their production of laptops from China to Southeast Asia.

Apple previously asked its main suppliers to assess financial implications of the transfer from 15% to 30% of production capacity from China to India.

Meanwhile, the Japanese Nintendo is going to move part of the game consoles production from China to Vietnam.

Several Chinese companies are also leaving the country.

TCL, a Chinese electronics manufacturer, is shifting TV production to Vietnam, while Sailun Tire, a Chinese tire manufacturer, is moving its production line to Thailand.

The prolonged trade war seems to be affecting the Chinese economy.

China's GDP in the second quarter grew by only 6.2% in annual terms, at a minimum rate of at least 27 years, after increasing by 6.4% in the first quarter.

Heads of the United States and China agreed to resume trade negotiations during the meeting at the end of June. However, the parties have not set any deadlines for achieving progress on the transaction. The lack of agreement between the two largest economies in the world continues to create uncertainty for companies and investors.

source: asia.nikkei.com