US tech giants plan to move production out of China

New Delhi: In yet another fall-out of the ongoing US-China trade war, tech giants like HP Inc, Dell, Microsoft, and Amazon are considering to move “substantial production capacity out of China”, threatening the country’s position as the world’s technology powerhouse.
According to a report in Nikkei Asian Review on Thursday, HP and Dell who make notebooks in the Chinese cities of Chongqing and Kunshan are both looking to move up to 30 percent of their laptop production out of the country.
Microsoft may move some Xbox gaming console production while Amazon could shift production of its Kindles and Echo speakers.
“Other PC makers like Lenovo Group, Acer and Asustek are also exploring production outside of China,” said the report.
The new US tariffs would hike local taxes on laptops, smartphones and game consoles, adding significant costs for the companies that would eventually be passed on to the consumers.
“Multiple sources said the situation was still too uncertain while rising costs in China were also prompting manufacturers to examine alternatives,” the report added.