The famous Western companies leaving China
Famous firms pulling out of the People's Republic
As the US-China trade war rumbles on and relations between other liberal democracies and Beijing deteriorate due to everything from intellectual property (IP) theft to human rights violations in Xinjiang and the eroding away of Hong Kong's autonomy, many globally-renowned companies are deserting China. Coronavirus-related sales slumps and supply chain disruption, as well as rising production costs, have also hastened the exodus. Click or scroll through the gallery for 29 famous firms partially or completely pulling out of the People's Republic. All dollar amounts in US dollars.
Nike
Apple
Though the bulk of Apple's manufacturing will remain in China, the tech giant has been encouraging its suppliers, which include Taiwanese firm Foxconn plus Delta Electronics and Pegatron, to move up to 30% of iPhone production from China. Foxconn, for instance, is investing up to $1 billion (£762m) to expand a plant in India, while other contract manufacturers are setting up in Vietnam, Thailand and Indonesia. Apple is also planning to have 30% of its classic AirPods produced in Vietnam instead of China, while a “significant number” of iPads are set to be produced in Vietnam as of mid-2021, according to Nikkei.
Samsung Electronics
American companies aren't the only ones beating a retreat from China. South Korea's Samsung Electronics shut its remaining smartphone factory in the country in 2019, reportedly turning the city in which it was based into a ghost town. Further closures were announced last year, with Samsung ceasing production at its last PC plant in China in August, instead moving operations to Vietnam, and the company also shuttered its only TV factory in the country in November.
LG Electronics
Adidas
Puma
Adidas' German arch-rival Puma is shifting production away from China as well. The company, which makes more than a quarter of its products in the People's Republic, is keen to diversify its manufacturing base and supply chains, not to mention avoid US tariffs by producing more of its running shoes, sportswear and other products in Bangladesh, Cambodia, Indonesia and Vietnam.
Zoom
Sharp
Hasbro
Kia Motors
Hyundai Motor Group
Hyundai Mobis
Stanley Black & Decker
With the US-China trade war showing no sign of abating, a number of well-known American companies are reshoring, including Stanley Black & Decker. The industrial tools and household hardware maker permanently closed its factory in Shenzhen in November after it had been in operation for 25 years. Growing competition and rising labour and land costs were cited as reasons for the closure. Stanley Black & Decker had also planned to open its brand new 425,000-square-foot, $90 million (£68.5m) factory in Fort Worth, Texas by the end of 2020, although there has been no confirmation as to whether the plant is up and running yet.
Dell
As relations between the US and China worsened and the trade conflict intensified, Dell quietly moved production and supply chains away from the People's Republic. In fact, the Nikkei Asian Review reported in 2019 that the Texas-headquartered tech company was planning to shift up to 30% of its notebook production out of China.
HP
That same Nikkei Asian Review report cited anonymous sources stating that Dell competitor HP was also planning to relocate 30% of its notebook production away from China. The reasoning behind both moves was to avoid the punishing US tariffs on tech products produced in the People's Republic for the US market.
Google/Alphabet
Google is more or less blocked in China, but the search engine's parent company Alphabet still produces hardware products in the country, although perhaps not for much longer. As supply chains have become disrupted, the tech behemoth has moved manufacturing of its flagship Pixel smartphone to Vietnam and will reportedly produce various smart home products in Thailand rather than the People's Republic, while production of its Cloud motherboards and Nest products has relocated to Taiwan and Malaysia.
Microsoft
GoPro
Even before COVID-19 disrupted supply chains and the US-China trade war turned even uglier, American action camera company GoPro had relocated much of its US-bound manufacturing away from China to Mexico, a nearshoring move that was announced back in December 2018.
Intel
Though Intel remains confident in the Chinese economy and is strongly committed to operating in the country, the Silicon Valley-based semiconductor chip maker has followed many US companies by shifting the manufacturing and assembly of some of its wares from the People's Republic to Vietnam. Intel’s CEO Bob Swan also wrote to then-President-Elect Joe Biden in November, outlining the necessity of a “national manufacturing strategy” to “ensure American companies compete on a level playing field” in response to the likely scenario of China dominating the semiconductor chip production industry in the next decade.
Sony
Nintendo
In the same year, Nintendo moved some production of its Switch console from China to Vietnam but, like Sony, the Japanese video games company said the move has nothing to do with the US-China trade war and was more about diversifying its manufacturing options and avoiding putting all its eggs in one basket.
Under Armour
Steve Madden
Old Navy/Gap
Companies are not only relocating their manufacturing operations away from China, but many foreign retailers have decided to bow out of the country altogether. They include Gap sub-brand Old Navy, which shuttered all of its 10 stores and concessions in China in March 2020, planning to focus its attention on the North American market instead.
Superdry
Space NK
The New York Times
The New York Times decided to move part of its Hong Kong office to Seoul, South Korea, in response to Beijing's controversial security law which came into effect in June last year, which curtails freedom of speech in the Special Administrative Region. According to the US news outlet, the law "unsettled news organisations and created uncertainty about [Hong Kong's] prospects as a hub for journalism".
Naver
Quanta Computer
Taiwan's Quanta Computer is the world's third biggest electronics manufacturing services company and a major supplier of data centre servers to US tech firms such as Google and Facebook. The company opted to pivot production away from China and moved some of its manufacturing from the country to a new $500 million (£383m) plant in the Taiwanese municipality of Taoyuan in 2019.
Now read about the companies richer than entire countries
Comments
Be the first to comment
Do you want to comment on this article? You need to be signed in for this feature