Foreign media: The new trend in the future of science and technology is “Non-Made in China”

The Chinese themselves are talking about the new reality in the state of the world now and post Wuhan Outbreak of COVID-19 / SARS-2 Covid-19. The following is translated from Mandarin:

“In the new situation of the US-China trade war and the Chinese Communist Party’s pneumonia pandemic, regardless of the attractiveness of mainland China, global electronics manufacturers are actively seeking to diversify their supply chains and reduce their dependence on a certain country.”

(STR / AFP)

Three years ago, manufacturing small electronics in China was taken for granted. In the era of the trade war and the spread of the Chinese Communist Party virus (Wuhan pneumonia), the layout of production chains around the world has undergone fundamental changes. American media reports that a new trend in the future of science and technology is: Non-Made in China.

According to Bloomberg, in the new situation, regardless of attractiveness, global electronics manufacturers are actively seeking to diversify their supply chains and reduce their dependence on a certain country.

Thirty years ago, Taiwanese manufacturers responsible for assembling most of the world’s small electronics products have moved to China. These manufacturers have never been so anxious. The global small electronics industry is facing a huge shock.

The trade war between the United States and China last year was ups and downs, with several twists and turns, and the trade pattern was gradually changing. Now, the outbreak of the Chinese Communist Party’s pneumonia plague has accelerated the formation of a new trade pattern, and even business people are openly discussing the transfer and reorganization of the industrial chain.

Today, Taiwanese high-tech company executives are discussing how to choose the best manufacturing location outside mainland China. They like Vietnam. Taiwan is a home, but it is considered too expensive, mainly because Taiwan’s wages are relatively high.

On the earnings release conference call, analysts are increasingly asking companies how to shift production locations to avoid U.S. tariffs on Chinese products. At the beginning of Trump’s presidency, executives sidestepped the problem they didn’t want to stimulate Beijing. But recently, they have publicly discussed the details of the transfer from China, and it now seems that this trend is inevitable. To avoid risk, everyone hopes not to be left behind.

Simon Lin, chairman of Apple’s iPhone assembler Wistron Capital, even boldly told analysts last week that by 2021, his company’s capacity outside China will reach 50%. In the past seven days, two other Taiwanese assemblers also announced the news of further increasing production capacity outside China.

The Chinese Communist Party’s pneumonia plague is speeding up such operations. Eric Tseng, chief executive of Taipei-based Isaiah Research, said some companies have been delaying their supply chain transfer decisions, waiting for a solution to the Washington-Beijing trade dispute. “But the new crown virus (CCP virus) can endanger people’s lives. Now, many companies have accelerated their withdrawal (mainland).”

Moving the supply chain is not easy, and Apple said that the troubles caused by the Chinese Communist Party’s pneumonia have no immediate plans to withdraw from China. In late February, CEO Tim Cook said: “We are talking about some adjustments in detail, not some kind of strategic change.”

Despite this, Foxconn started producing older iPhones in India last year, a move that seems to herald a growing interest in Apple to increase its presence in the world’s largest smartphone market (India), after China. Whether they choose India, Vietnam or any other country, it is becoming clear that electronics manufacturers are gradually moving away from mainland China.

在美中贸易战和中共肺炎大流行的新形势下,无论中国大陆吸引力如何,全球电子制造商都在积极寻求供应链的多样化,并减少对某个国家的依赖。(STR / AFP)

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