Trade war: 56 companies leave China

Trade war: 56 companies leave China

Agency News

As the pressure of trade war with US intensified, around 56 companies have left China.

According to a study by Nomura, a Japanese financial group, around 56 companies relocated their production out of China between April 2018 and August 2019.

Out of 56 firms, 26 relocated to Vietnam, 11 went to Taiwan and eight to Thailand. However, only three went to India and two to Indonesia.

As the ongoing trade dispute between China and the US continues to escalate, tariffs are making exports from China more and more expensive for US importers. Many firms have been doing their sums and looking for new locations to re-locate manufacturing operations. For many companies, the plan to relocate has already existed for a while. Costs in China were already trending up for some time.