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HP, Dell, Other US Tech Firms Reportedly Plan to Shift Production Out of China

HP, Dell, Other US Tech Firms Reportedly Plan to Shift Production Out of China

HP and Dell are planning to reallocate up to 30 percent of their notebook production out of China, according to the Nikkei.

By Reuters | Updated: 3 July 2019 18:12 IST

HP, Dell, Other US Tech Firms Reportedly Plan to Shift Production Out of China

Several major US-based technology companies are planning to shift substantial production out of China, spurred by a bitter trade war between Washington and Beijing, the Nikkei reported on Wednesday, citing sources.

Personal computer makers HP and Dell Technologies are planning to reallocate up to 30% of their notebook production out of China, according to the Nikkei.

Microsoft, Alphabet, Amazon.com, Sony, and Nintendo are also looking at moving some of their game console and smart speaker manufacturing out of the country, the Nikkei added.

US President Donald Trump and Chinese President Xi Jinping struck a truce at last weekend's Group of 20 summit in Japan, paving the way for a restart in trade talks after months of stalemate.

However, the companies are not likely to alter their plans of moving some of their production out of China as they also face higher operating costs in the country.

In June, Apple asked its major suppliers to assess the cost implications of moving 15%-30% of their production capacity from China to Southeast Asia as it prepares for a restructuring of its supply chain, Nikkei had reported last month.

HP, Dell, Amazon, Microsoft, and Google did not immediately respond to a Reuters' request for comment.

© Thomson Reuters 2019

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