The majority of exporters have already made efforts to shift at least some production operations out of China as threats from the US-China trade war impact their businesses, according to a survey by UBS.
Around 37% of the 200 export manufacturers polled said that they have transferred production in the past year, while another 33% plan to do so in the coming six to 12 months, Caixin reports.
The companies planning a move said that they will shift at least 30% of their production capacity overseas, largely to countries like the US, Hong Kong, Japan and Taiwan. Southeast Asia was a less popular destination, the survey showed.
“Although higher tariffs are on hold and business sentiment may have improved following the Xi-Trump G20 meeting, we expect trade war related uncertainties to linger and hurt manufacturing capital expenditure in 2019,” UBS analysts wrote in the report.