China says only small number of firms moving supply chains out of the country

​Only a small number of companies are moving supply chains out of China, a commerce ministry official said on Tuesday, amid signs that some firms are shifting production to other countries as the U.S-China trade war drags on

Only a small number of companies are moving supply chains out of China, a commerce ministry official said on Tuesday, amid signs that some firms are shifting production to other countries as the U.S-China trade war drags on.

The problem shouldn’t be overstated, Chu Shijia, a department director at the ministry, said at a media briefing.

In recent years, some Chinese manufacturers had already started to relocate capacity to countries such as Vietnam and Cambodia, due to high operating costs at home. The Sino-U.S. dispute is now pushing more to follow suit, especially makers of low-tech and low-value goods.

Some Chinese companies had concerns initially when the trade frictions started, but now they have found some ways to cut costs and to minimize the impact, Chu said.

Source: Reuters 

Posted on : 02 July 2019
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Last Updated : Friday 13th December 2019