asian firms shuffle production around the region as china tariffs hit - air purifier manufacturer

by:Yovog     2023-03-26
asian firms shuffle production around the region as china tariffs hit  -  air purifier manufacturer
SEOUL/TOKYO (Reuters)-
A growing number of Asian product manufacturers, from memory chips to machine tools, are moving production from China to other factories in the region with the support of the United States. S.
President Donald Trump has imposed tariffs on Chinese imports.
Including SK Hynix (000660. KS)
Korea and Mitsubishi Electric (6503. T)
Toshiba Machinery Co. , Ltd. (6104. T)and Komatsu (6301. T)
A company representative from Japan and others familiar with the plan told Reuters that Japan has begun planning production operations since the first tariff drop in July and that the shift is now underway.
Other computers such as Taiwan computers
Kebao Electronics (2324. TW)
LG Electronics in Korea (066570. KS)
If the trade war continues or deepens, contingency plans are being developed.
Due to the sensitivity of the issue, the company representative and other sources requested anonymity.
Quick response to the USS.
Tariffs are possible because many large manufacturers have factories in multiple countries and can transfer at least a small amount of production without building new ones.
Some governments, especially those in Taiwan and Thailand, are actively encouraging companies to move jobs from China.
The United States imposed a 25% tariff on $50 billion Chinese
On July, the second round of 10% tariffs will take effect next week, covering China's exports of $200 billion.
The latter rate will jump to 25% at the end of the year, and Trump has threatened to impose a third round of tariffs on $267 billion (£204 billion)
This will bring all Chinese exports to the United States into the tariff regime.
Tariffs threaten China as a low
Cost production base, and quick attraction
Over the past few decades, the growing Chinese market has attracted many companies to build factories and supply chains in China.
SK Hynix, which produces computer storage chips, is working to move production of certain Chip Modules back to South Korea from China. Like its U. S.
Competitor Meiguang technology is also moving some memory
Chip work from China to other Asian regions, SK Hynix has carried out some chip packaging and testing in China, these chips themselves are mainly made elsewhere.
"There are some Chinese-made DRAM module products that are exported to the United States," said a source directly familiar with the situation, referring to the widely used Dynamic random.
Access the memory chip.
"SK Hynix plans to bring DRAM module products to South Korea to avoid the impact of tariffs.
"Most of SK Hynix's production will not be affected because China's dominance in computer and smartphone manufacturing makes it the largest market for DRAM chips," the source added.
Toshiba Machinery Co. , Ltd (6104. T)
The company said it plans to shift production in the United States. S. -
Binding Plastic Forming machines from China to Japan or Thailand in October.
These machines are used to make plastic parts such as car bumpers.
"We decided to move some of our products from China because of the impact of tariffs," a spokesman said . ".
Meanwhile, Mitsubishi Electric says it is shifting production in the United States. S. -
Binding machine tool for metal processing from the manufacturing base in Dalian, Northeast China to the Japanese factory in Nagoya.
In Taiwan, an executive at Compal, a laptop maker who declined to be named, said the impact of the trade war has been limited so far, but the company is looking at its options.
"We can also use facilities as an alternative in Vietnam, Mexico and Brazil," the person said . ".
"It's not easy because most of our products are in China;
No other country can replace it at present.
Small companies are also exploring their options.
A source with direct knowledge of the matter said Korean medical device maker IM Healthcare is looking at moving to Vietnam or South Korea if trade conflicts intensify.
SK Hynix declined to comment.
A spokesperson for Compal and IM healthcare could not be reached immediately.
Some Asian governments hope the United States will give a boost in its economy and strategy. S. -China conflict.
In Taiwan, the government is actively encouraging companies to move production overseas, promising last month to speed up existing "South-to-south policies" to reduce economic dependence on China by encouraging companies to move their supply chains to Southeast Asia.
Taiwan's economic ministry official, William Liu, told Reuters that the trade war was "a challenge and an opportunity" for Taiwan ". ruled island.
He pointed out that Taiwan relies on China as an export market, but at the same time, companies that transfer their business to China may increase employment opportunities.
Thailand also hopes to benefit from the "technology and investment flows that leave China during the trade war", Thai Secretary of State Kante samsoban said
Total Eastern Economic Corridor (EEC)
The Thai office is coordinating a $45 billion project to attract investment in the country.
Last month, the European Economic Community invited delegates from about 800 Chinese companies to visit the eastern industrial hub, and the China Investment Commission conducted seven roadshows in China this year to attract investors.
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