HP and ASUS Move Some Production Back to China
Electronics makers HP and ASUS are returning part of their production to China. Rising component costs are reportedly squeezing profits even more than US tariffs.
Electronics manufacturers HP and ASUS are moving part of their production back to China, according to the Latvian news site Kursors.lv. The main reason is rising component costs, which are reported to put more pressure on company profits than the customs tariffs introduced by the United States. The shift marks a turn in supply chains that were reorganised in recent years because of US–China trade relations.
What came before
Trade relations between the United States and China deteriorated significantly in recent years. Many electronics makers responded by shifting production to countries such as Vietnam, Thailand and India.
What is changing
The latest information indicates that some companies are starting to restore production capacity in China. Rising component costs are said to be putting greater strain on profitability than tariffs.
The source text is available only in part, so it is unclear how much production is being moved, which factories are affected, or over what timeframe.
