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.