A woman works in a workshop in Lianyungang, China, where plastic packaging products are made.
Stringer | Reuters
The pace of China's shift in production is accelerating as more than 50 multinational companies, from Apple to Nintendo and Dell, seek to escape US-imposed punitive tariffs, according to the Asian Nikkei study.
Trade The war between the US and China has been going on for more than a year. 25% of customs duties are levied on Chinese goods worth US $ 200 billion. President Donald Trump is still threatening to impose tariffs on another $ 325 billion in goods. In the aftermath of the intensifying struggle, more and more companies announced plans or are considering relocating production from China.
According to Nikkei, American PC manufacturers HP and Dell could shift up to 30% of their notebook production in China to Southeast Asia. According to a previous report from the Nikkei, Apple has asked its key suppliers to assess the impact of a shift of 1
Also, Japan's Nintendo will lose part of its production capacity from video game consoles from China to Vietnam, Nikkei said.
It is not only foreign companies that are rethinking their production location; even a handful of Chinese companies are leaving China. Chinese multinational electronics group TCL is moving its TV production to Vietnam, while Chinese tire maker Sailun Tire is moving its production line to Thailand, Nikkei said. Monday's data showed that economic growth slowed to 6.2% in the second quarter – the lowest rate for at least 27 years.
Trump claimed that the slower growth is proof that China is losing the trade war as the country faces an exodus of corporations.
"US tariffs have a big impact on companies that want to leave China for non-tariff countries, and thousands of companies are leaving the country, so China wants to make a deal," Trump said in a Twitter post on Monday.
] – Click here to read the original story from [Nikkei Asian Review] .