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  • - From Apple phones to Nintendo consoles,

  • many of the products Americans love, are made in China.

  • But is that about the change?

  • The country has long been

  • the world's manufacturing powerhouse

  • because it has the raw materials

  • and cheap workers to power supply chains.

  • For years companies, especially tech giants,

  • like Apple and Dell have relied on Chinese factories

  • to assemble their products.

  • Because of the ongoing trade dispute between the US

  • and China and escalating terror threat

  • from the Trump administration.

  • Many manufacturers have started to lay up plans

  • to shift some of that production elsewhere.

  • In a recent survey of 250 companies operating in China,

  • 40% have said that they are considering

  • or have relocated manufacturing facilities

  • outside of the country.

  • Analysts expect there could be more

  • if the trade dispute escalates.

  • Here are three cases that can tell us why companies

  • are looking to move out of China.

  • First, tariffs.

  • This is one of the biggest concerns

  • for any company that is importing made in China products

  • into the US.

  • In May the US increased import tariffs to 25% from 10%

  • on $200 billion of Chinese goods.

  • The Trump administration is also planning to place tariffs

  • on an additional $300 billion of Chinese imports.

  • If this new round of tariffs kicks in,

  • it would cover electronics like smartphones, laptops

  • and video game consoles, which are almost entirely

  • imported from China.

  • Companies like Nintendo want to limit the impact

  • of these US tariffs on Chinese made electronics.

  • For years, the Japanese company needed low contract

  • manufacturers in China to assemble its video game hardware.

  • That's because video game platform owners

  • tend to sell hardware to thin profit.

  • So it's not the console that brings in the big bucks.

  • It's the revenue from games.

  • If Nintendo had to pay a 25% tariff

  • to import its Chinese made consoles into the US,

  • that thin profit would be decimated.

  • So Nintendo has said it's shifting production to

  • Southeast Asia to limit that impact.

  • The company has started producing the Switch

  • and two new models there.

  • Companies are also realizing

  • that they can't put all their eggs in one basket.

  • With a lingering trade dispute between China and the US,

  • many companies might also have to think

  • about diversified production locations.

  • One example is Apple.

  • The company relies and hundreds of thousands of workers

  • and its deep network of suppliers in China

  • to crank out iPhones.

  • People familiar with the matter

  • said Apple is now asking suppliers to consider

  • shifting the final assembly elsewhere.

  • The company declined to comment.

  • Luckily one of Apple's contract manufacturers Foxconn,

  • says it's ready to move.

  • The company says it has about 25% of his manufacturing

  • outside the mainland

  • and it's factories around the world

  • can keep churning out sufficient quantities

  • of Apple products.

  • Some companies are worried about being swept up

  • in the political tit for tat between China and the US.

  • Case in point, Huawei.

  • U.S hit the Chinese telecom giant with an export ban

  • shortly after trade talks collapse last month,

  • which barred many American companies

  • and beyond from doing business with the company.

  • China responded by saying it will create its own list

  • of foreign entities seen as damaging

  • to Chinese companies national interests.

  • Manufacturers are also worried about increased roadblocks

  • that Chinese authorities may put up,

  • like increased regulation, customs delays

  • or greater scrutiny.

  • Before negotiations collapsed,

  • both countries were discussing ways to make it easier

  • for foreign companies to invest and operate in China.

  • But now the talks are at stalemate

  • Chinese officials have warn there could be consequences

  • if companies move.

  • It's been a long year of trade negotiations

  • between Washington and Beijing

  • and a deal likely won't come anytime soon.

  • Companies like Apple and Nintendo

  • are seeking out alternative locations for production.

  • While, other companies sit it out,

  • hoping that a deal will come.

  • Either way, it's expensive for companies.

- From Apple phones to Nintendo consoles,

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Apple, Nintendo and Huawei: The Future of 'Made in China' | WSJ

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    joey joey に公開 2021 年 05 月 27 日
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