The number 2 PC behind Lenovo is making a strong decision and diversifying its supply chain. In addition to China, HP is targeting three additional countries for production of his laptops.
More and more manufacturers are announcing such measures.
A global trend
HP, which has helped make the city of Chongqing a major center for laptop production since 2008, no longer wants to depend mainly on the Middle Kingdom. The brand is talking with several suppliers to transfer a significant part of its laptop production from China to Thailand, Mexico and, ultimately, Vietnam.
This relocation to Mexico is part of HP’s strategy to more effectively meet the needs of its main market, North America. Several suppliers are already established in Thailand, the choice of the South Asian country seems logical. Recently, Dell launched a much more radical campaign to exclude Chinese chips from its products. The company has also committed to significantly reducing its use of electronic components from China.
For its part, HP does not want to break ties with the second world power. “ China is a very important part of our global supply chain, and we remain deeply committed to our operations in Chongqing », Assured a spokesperson for the company to Nikkei Asia. For several months, Apple has also been relocating the production of some of its devices from China to India, or even Vietnam.
The repercussions of Sino-American tensions
Companies, particularly American ones, are trying to depend less on China for their supply chain. The reason is the intensification of geopolitical tensions between the Asian country and the United States, against the backdrop of a trade war.
It is also necessary to take into account the increase in manufacturing costs and labor in the Middle Kingdom. The country’s zero-COVID policy last year also highlighted the limits of its manufacturing system, creating major riots at Foxconn, Apple’s leading supplier.
Source : Nikkei Asia
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