The impact of COVID-19 pandemic has alarmed many multinationals companies for the impact of the ongoing trade conflict. Manufacturing plants have been looking for an alternative to shifting operations out of China. For instance, the U.S. and Korean firms are exploring for a way out to an exit from the Chinese market and possibly Uttar Pradesh, India may be their next destination to invest. Japan has already injected ¥243.5 billion to its economic support package as a helping hand to the manufacturer for shifting their plants out of China. Besides, Korea has shown its interest to invest in India. Tech giants including Apple, Google and Nintendo are a few of the companies shifting production out of China. All these companies have started moving out of China as early as in the mid-2019.
1. Apple has been looking for the possibilities to move 30 per cent of its production from China to Southeast Asia. 2. Steve Madden, which ships the bulk of its footwear and handbag, is moving its production line out of China. 3. Intel Corp. the company is reviewing to explore the possibilities to move its production unit out of China.4. Nintendo, the Japan-based video game company, has rerouted its production out of China to Vietnam.5. Google has moved its Cloud motherboards production from China to Taiwan and Malaysia.6. Hewlett-Packard and Dell plan to direct a major portion of the manufacturing of the personal computer to Southeast Asia.South Korea’s Samsung Electronics makes Vietnam as a new home to the manufacturer. Since the fourth round of new tariffs on virtually all goods shipped from China, the decision taken by the U.S.government is yet to uncover, companies prepare for the worst. And, India may become one of the choices for many investors to set up their production line.