China has long been the world’s manufacturing powerhouse. It has the suppliers, assembly lines, workers and the expertise. Companies, particularly technology giants like Google, depend on China to assemble their products.
However, a year into a trade war provoked by a tough new stance by the United States, some companies are starting to look elsewhere.
Google now plans to shift some manufacturing of its server hardware out of China. Also, the Wall Street Journal reported that Nintendo is moving some production of its video game consoles from China to Southeast Asia.
This comes after a senior executive at Foxconn said that the company has enough capacity to make all USA bound iPhones outside of China. Apple has not said it is looking to move manufacturing.
A spokesperson for Nintendo did not confirm or deny that it would be shifting manufacturing away from China.
Most components that make up the Nintendo Switch console are manufactured in China. So to help keep costs down for consumers, it helps to assemble products in close proximity of where those parts are manufactured.