July 3, 2019

HP, Dell & Amazon Join Manufacturing Exodus Leaving China

Though China wasn't the only Asian nation where manufacturing activity slumped last month, according to a slate of almost unilaterally disappointing PMI readings released earlier this week, the tend over the past year is increasingly clear: The trade war is President Trump's to win, as more tech companies resolve to move at least some production outside of the mainland.

And in the latest warning to Beijing that the trade war is having a real, and perhaps irreversible, impact, Nikkei Asian Review reports that HP, Dell and Amazon are joining the wave of consumer-electronics manufacturers who are planning to shift production elsewhere.

The burgeoning exodus, which also reportedly includes a half-dozen Apple suppliers (most notably Foxconn), Nintendo, Sony and others is threatening China's status as the global manufacturing hub.

HP and Dell, the world's No. 1 and No. 3 laptop manufacturers, who are responsible for a combined 40% of the world's production, are planning to shift 30% of their production elsewhere.

Lenovo Group, Acer and Asustek Computer are also evaluating plans to shift production elsewhere. And Amazon is planning to shift at least some of the production for its Kindle e-reader and Echo assistant. For all of these companies, the focus would mostly be on products bound for the US.

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