Asian companies are increasingly taking their manufacturing operations out of China to escape the impact of the White House’s tariffs on Chinese imports, Reuters reports.
Companies such as Korean chipmaker SK Hynix, Komatsu, and the electrical goods arms of Toshiba and Mitsubishi are carrying out relocations first planned in July when the first wave of tariffs was introduced by the Trump administration, sources told Reuters.
Many companies in the high-tech manufacturing industry will have factories throughout the Asia-Pacific region, and so can move easily shift parts of their production capacity to other countries when required.
The US’ tariffs, which have targeted China’s tech industries in response to what is perceived as unfair trade practices and theft of intellectual property, may threaten China’s role as a hub for low-cost production, which has been eroding amid higher wages and competition from Southeast Asian nations.
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