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Firms Caught In Trade War Mull Moving Out Of China

Firms Caught In Trade War Mull Moving Out Of China
Written by Vincent Wilmot

Several China based firms are mulling about moving out of the country to manage the ongoing trade war with US that has made their current business models unviable. The latest to join the bandwagon of large business firms is Taiwan based Advantech the largest industrial computer manufacturer in the world. Its executive director Chaney Ho announced that to avoid tariff of 40 percent on its products it will boost production of its units in United States. The trade war between US and China has led to both nations imposing tariffs on each other’s goods and everyone is hoping that the issue will get resolved when representatives from both sides will meet this week in Washington.

As per an informal meeting between heads of both nations last year they have to strike a deal for resumption of amicable trade relations by 1st of March else the US will impose more tariffs. Advantech which makes industrial PC’s that are used in hospitals, factories and infrastructure firms has splits its manufacturing units equally between China and Taiwan from which these products are sent for final assembly to plants in United States and Europe.

But due to ongoing row around 40 percent of its goods were affected by US tariffs enforced in 2018. A recent survey by UBS bank showed that around 200 manufacturing firms are planning to move out of China during this year due to the trade war while around 37 percent had already moved out of during late 2018. Foxconn will increase investment in India and Vietnam while Pegatron will set up production units in Vietnam, Indonesia and India. According to executive director Asian Trade Center in Singapore if both US and China are not able to resolve their issues by March then supply chains would shift fast and even the few remaining companies are likely to jump ship.

About the author

Vincent Wilmot

Vincent Wilmot has been working with us for 2 years and with his hard work and efforts has earned the position of Senior Content Writer in a short span. He handles the content and news reporting of Business world; right from the latest trends, to mergers & acquisitions, to news and much more. In spare time, Vincent likes to go play with the share market numbers along with enjoying trekking and hiking with his friends.

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