CHINA-ECONOMY: APPLE ASKS MAJOR SUPPLIERS TO SHIFT 15-30% OF PRODUCTION CAPACITY OUT OF CHINA

The Nikkei Asian Review reported on June 19, that Apple has asked its major suppliers to weigh the costs of moving 15% to 30% of their production capacity from China to Southeast Asia as it preps for a fundamental restructuring of its supply chain.  Although Apple’s request was triggered by the ongoing trade tensions between the U.S. and China, multiple sources said that a resolution of the trade dispute may not change Apple’s decision. Several sources told Nikkei that Apple thought the risks of relying so heavily on China have become too great, with a lower birthrate, higher labor costs and the risk of overly centralizing its production in one country being key factors.







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