U.S. Companies Shifting Production Out Of China Amid Trade Tensions
A growing number of American companies are moving their production operations outside of China amid growing trade tensions with the U.S.
Apple is said to be shifting 30% of its production out of China and into Southeast Asia. Nikkei Asian Review reported that failing trade talks between the U.S. and China pushed the decision to relocate production lines.
The White House is currently pursuing another round of tariffs on approximately $300 billion worth of Chinese imports. This is in addition to the tariffs already placed on $250 billion worth of shipments.
Most companies that have decided to move production outside of China are relocating to either Southeast Asia or Mexico. GoPro, Hasbro and Steve Madden are among the companies making the shift.
Trade talks could potentially resume at the upcoming G20 summit in Japan. President Donald Trump and President Xi Jinping are expected to meet, each accompanied with trade deputies.
As the U.S. and China navigate current trade tensions, more and more US companies are hedging their bets and relocating production elsewhere.