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HP, Dell and Microsoft look to join electronics exodus from China

TAIPEI/HONG KONG/CHONGQING -- Global consumer electronics makers HP, Dell, Microsoft and Amazon are all looking to shift substantial production capacity out of China, joining a growing exodus that threatens to undermine the country's position as the world's powerhouse for tech gadgets.

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asia.nikkei.com
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DarXyde878d ago

With Foxconn being a company based in Taiwan, I can't imagine this will end well.

I guess there's always Singapore. Totally expecting next gen consoles to be up there in price unless they have more manufacturing options.

Sophisticated_Chap877d ago

Vietnam is also another option. I'm also sure that Japan is still a major manufacturer of goods too.

877d ago
xX-oldboy-Xx877d ago

Malaysia makes many of Sony's 2nd tier products, the high-end stuff is manufactured in Japan.

rainslacker877d ago

The "truce" isnt guaranteed to last, so most electronics makers will look for other places to make their products. Korea and India being two big places now. All the tariffs do is move the wealth to other countries, not bring it into the us. The government will get more money from tariffs, but it means less spending power for the consumers, so it actually redistributes the wealth instead of doing anything productive for the American economy.

rainslacker877d ago

It's not good to lose business, but realistically, Foxconn does have plants outside China, so they can still get the work and the products wouldn't fall under the tariffs, unless its specified that it's not just a manufacturing tariff.

This kind of thing would be a temporary set back for the Chinese government, and I think it's probably more a power play on trump's part. Maybe coupled with whatever hes doing to try and get companies to make their products stateside. This works for American companies, but a lot of things which are made in China are global products, so such things are just more annoying doe foreign companies that sell products in america.

+ Show (1) more replyLast reply 877d ago
Cobra951878d ago

"Speaking with Nikkei Asian Review, one supply chain executive said:'The industry consensus is to move an average of some 30% of production out of China depending on how important the US market is... Everyone needs to come up with a plan.'"

Good! The tariffs are working. They sting at first, but then we find other places to make our stuff. If China wants to keep making our stuff, they need to play ball, on a level field.

S2Killinit878d ago

If there is one thing trump has done right, its the tariffs because it was long overdo. It doesnt matter whether this was in the works regardless of who was in the office, he still deserves props for taking on china’s unfair business practices.

chiefJohn117877d ago (Edited 877d ago )

No the hell it wasn't, do you have any clue how many people went out of business and laid off because of it? Gtfoh

877d ago
omegaheat877d ago

If it's been going on for so long, my only question is why was the issue not addressed before? He's an awful president, but he does deserve credit for this achievement. But there's really no surprise here. Trump's entire life has revolved around money. It's all he really cares about. If only he could have put the same energy into uniting our country instead of dividing it.

jukins878d ago

You want them to play ball while they're holding trillions of our debt in their hands? China is already experimenting with selling our debt.

And I'm gonna assume you know what happens to our dollar should any large portion of our debt be sold off. We need to be more responsible at home before playing hard ball. The only people who are suffering is us. Ask our farmers who had to get bailed out because this trade war if playing hard ball is worth it. Ask car dealerships how much their sales went down.

And when all these companies move to different countries for manufacturing you think they wont be targeted next? It's a dangerous game were playing and China isnt hurt one bit but Americans are gonna feel it.

BlackTar187878d ago

You're misguided. Of course they're is hard times in the beginning the infrastructure and such doesn't show up overnight. You'd rather get stuff for a little bit cheaper and instead enrich another country cause poor them have to deal with some hard times as things change.

If you actually believe China isn't hurt one bit you're delusional and don't understand how things work.

Even on the most basic dummy level taking money from a country and in mass amounts will never benefit it over time....... see America.

877d ago
rainslacker877d ago (Edited 877d ago )

How is it working? All these companies are doing is looking to move their production to other countries, and it can cause products that are still made in China to coat more for us, the consumer. The government gets their cut, while the us consumer ends up with less spending power. As prices with tariffs go up, other products go up in price, because they're still cheaper, and they know people will pay it if they want something.

All this is doing is redistributing the wealth. Not creating jobs, or making our economy stronger. It would lead to more runaway inflation than just finding better ways to get American companies, or even foreign companies, to invest in building jobs for making their own products here.

starchild877d ago

It's true, China got away with unfair trade for far too long. I advocate free markets and trade, but it needs to be on fair terms. It's good that someone is doing something about it.

877d ago
blacktiger877d ago

You are a lose. USA & CHINA are acting for us as long as we are brainwashed. As long we do pay cheque to pay cheque then its all good,

877d ago
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ElementX878d ago

China has horrible pollution and bad working conditions. It's unfortunate so much manufacturing has moved there, companies do it to save money because the labor is cheap. I would pay more for products produced in areas with better regulations, but supply chains have to be switched around and that doesn't happen quickly.

jukins878d ago

Lol you're wrong about the cheap labor. So. Very wrong. Beleive it or not chinas workers have the skills necessary to make our electronics and such. That widely available skill set just isnt available anywhere else. Electronic assembly is delicate. Its not just an assembly line with a bunch of sweaty underage workers. As I said it requires skill to be able to assemble electronics at a mass level that China provides it's not about the cheap labor

Shane Kim878d ago

Haha, so you mean that US and Europe don't have the technological capabilities as China? Get a grip. All that technology comes from Europe (not all of it) and USA. The reason China is expanding is because of cheap labour and 16 hour shifts.

BlackTar187878d ago

It is available anywhere you can train them and set up infrastructure.

It's almost hilarious you though cheap labor isn't the majority of reason along with resources of course but you remove the cheap and bad conditions of these workers and no one will stay in China.

gerbintosh877d ago

What about the past reports of being forced to sleep at the factories and foxconn workers committing suicide at the fsctory. Yep, these Chinese workers have it so good they are killing themselves

877d ago
jukins877d ago (Edited 877d ago )

Guessing you guys know more than Tim cook and other CEOs?

https://www.inc.com/glenn-l...

Lol you guys are so smug. . . So ignorant yet so full of yourselves. Soo since all of you fortune 500 CEOs know better than Tim cook can I get your companies listing on the stock market? Lol all you guys know or think you know is everyone uses China for cheap labor it's stupid and ignorant.

I mean honestly these corps are investing billions upon billions in these devices and yall just think there gonna throw a bunch of untrained bodies at the product? Lmao still funny how ignorant you all are

rainslacker877d ago (Edited 877d ago )

It's not so much the labor as it is the additional costs involved with setting up shop elsewhere. Plus there is a lot of oversight over industry in developed nations. China is pretty polluted from all its industry. That kind of thing levies heavy fines in the us and most of europe....if you're even allowed to operate.

But, in the us, employers also have to pay a portion of the tax, and many jobs have additional benefits they have to maintain. Cost of factories is high, and the specialty skilled labor to keep it operating, like electricians or machine engineers, are extremely well paid due to demand and available talent pool. In fact, America is facing a severe shortage of skilled labor for trade jobs like electricians, mechanics, engineers, or plumbers. So much so that the cost for them is probably going to double in the next 10-15 years.

Most circuit boards nowadays are also built by machine. It's usually hooking all the pieces together which is fine by the workers, and outside some things, most of that is made to be simple and can usually be done on an assembly line paradigm. Same as how individual parts in a car may not be simple, but putting them together isnt that hard if you only have one or two tasks.

BlackTar187877d ago

You are actually with a straight face implying that the education or training to do this work is something only the Chinese can accomplish? You are right about one thing they can do it with egregious human rights issues so on that the US can't compete at that specific skill.

plmkoh877d ago

Yeah typical brainwashed down voting your comment. You are right, China is the only country that provides the largest quantity of balance between a pathway for a young skilled labour workforce, high technology manufacturing and direct logistics for rare earth metals used in these tech products.

If you want facts you just look at the latest outcry on Tesla making LCD screens for the cars. Even they are not dumb enough to leave behind a supply chain making LCD screens from factories that are generation 8 to 11. The only other countries that can match these plants are Japan and Korea but they are increasingly divesting out switching to OLED.

Keep drinking the cool aid people.

TopherMan877d ago

http://www.chinadaily.com.c...

The minimum wage in China just increased to $322 a month. That is $1.80 in a 40 hour work week. If you want to believe that nonsense about skills from Tim Cook then go right ahead. Companies were always attracted to China's low cost labor. The rise in costs in China is the reason why companies are looking to leave. Apparently all those skills in China are not irreplaceable at all.

jukins876d ago

Just want to thank the 1 or two logical people who actually know that China has an abundance of skilled technical workers. Like even when a fortune 500 CEO says as much somehow someway people still find a way to deny it. Thanks and for the rest of you (not really) know it alls keep drinking that kool aid . . .

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rainslacker877d ago

I'd pay more for products so long as that product is better made. I'm not interested in giving the us government a rather large excise tax for my products. I already pay income and property tax. Sales tax. And a tariff is nothing more than another cost tacked on. By the end of it all, more than half my income is going towards taxes.

If I want to spend that much, then I at least want what socialist countries get for the same tax rates.

2ndhandcorn877d ago

Thailand make hardrives and utes to good standard just build on high ground lol.

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