Foxconn and Pegatron reportedly planning to expand to Mexico to avoid the trade war

nanoguy

Posts: 581   +8
Staff member
In brief: Several Asian manufacturers looking to diversify supply chains have partially shifted production lines to India, Vietnam, and Taiwan. This trend started as a result of the US-China trade war and only accelerated during the coronavirus pandemic, with Mexico as the next hot property.

The trade war between China and the US over the last two years has spurred tech giants like Apple, Google, Amazon, Microsoft, Sony, Lenovo, Dell, and HP to look for alternative manufacturing locations. Tariffs on electronics made in China are hurting their bottom lines, and OEMs also want to be prepared for any future economy-busting pandemics like Covid-19.

Most companies favor shifting production to other Asian countries like Vietnam, Indonesia, Taiwan, Thailand, and India. Others like Nintendo, Apple, and Amazon have already started making accessories and lower-end products outside of China. At the same time, India is poised to become a manufacturing hub for higher-end products thanks to increased efforts to build the necessary infrastructure.

According to a Reuters report corroborated by El Economista, at least two Asian manufacturing companies are planning to expand to a different location closer to the US. Foxconn and Pegatron, who are among Apple's largest supply chain partners, plan to build new iPhone factories in Mexico. Both manufacturers are negotiating with lenders. They are expected to make their decisions by the end of the year. Foxconn already operates five factories in Mexico producing things like TVs, set-top boxes, servers, and medical equipment.

Overall, the plans are part of a trend dubbed "near-shoring," where manufacturing giants are scrambling to move production closer to the end market. The US government has been looking into ways to encourage this behavior by offering incentives for firms that move production to the US, Latin America, or the Caribbean. These efforts have produced little effects so far, with Foxconn looking to start small at its Wisconsin factory by building robotic coffee houses and ventilators.

Image credit: Reuters

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toooooot

Posts: 1,300   +612
I remember a story where Chinese crooks traveled to USA to steal unique corn crops so that a Chinese scientists could attempt to reproduce them.One of them was caught on business and imprisoned if I remember it correctly.
The important lesson is, China does this globally, sucking any little piece of tech and anything else they can copy and sell back to the country where they stole it.
And honestly, the last twenty years of our presidents and politicians deserve to be called criminals for simply watching this happen. Thanks Obama, Bush and the rest of their cursed bunch.
If anything, every last item imported from China must be stopped at the border, inspected for infringement and simply arrested without letting them appeal the decision.
Maybe then, their crooked government will finally stop encouraging their companies to stealing things they have did not make.
 

Uncle Al

Posts: 7,478   +5,981
The original purpose of trade embargo's was the equalize the "price" of goods entering the US but that has long since been abandoned for more political purposes and it started long, long before presidents of this or even last century. Earlier those products had to pay the tariff's BEFORE entering the country so the cost was paid by the producer. Today's tariff's are paid after arrival so they are paid by the consumer. It is doubtful that any action by the US or other countries will ever impact the way China does business .... they have been at it for far too long and now days it's considered just a way of life.
 

mbrowne5061

Posts: 1,619   +919
I remember a story where Chinese crooks traveled to USA to steal unique corn crops so that a Chinese scientists could attempt to reproduce them.One of them was caught on business and imprisoned if I remember it correctly.
The important lesson is, China does this globally, sucking any little piece of tech and anything else they can copy and sell back to the country where they stole it.
And honestly, the last twenty years of our presidents and politicians deserve to be called criminals for simply watching this happen. Thanks Obama, Bush and the rest of their cursed bunch.
If anything, every last item imported from China must be stopped at the border, inspected for infringement and simply arrested without letting them appeal the decision.
Maybe then, their crooked government will finally stop encouraging their companies to stealing things they have did not make.
And aside from "china", nothing you said has anything to do with the article at hand.
 

psycros

Posts: 3,197   +3,393
The original purpose of trade embargo's was the equalize the "price" of goods entering the US but that has long since been abandoned for more political purposes and it started long, long before presidents of this or even last century. Earlier those products had to pay the tariff's BEFORE entering the country so the cost was paid by the producer. Today's tariff's are paid after arrival so they are paid by the consumer. It is doubtful that any action by the US or other countries will ever impact the way China does business .... they have been at it for far too long and now days it's considered just a way of life.
The buyer ends up paying the tariff either way. Its long past time the US focused on getting all production of goods consumed back into the free world. The Chinese people are the only ones who can fix their country and the harder it is for them to make a parasitic profit from stolen western tech, the more pressure that puts on the PRC regime.
 

candle_86

Posts: 539   +444
The buyer ends up paying the tariff either way. Its long past time the US focused on getting all production of goods consumed back into the free world. The Chinese people are the only ones who can fix their country and the harder it is for them to make a parasitic profit from stolen western tech, the more pressure that puts on the PRC regime.
Agreed the best thing we can do for the Chinese people is to send China into a free fall economically. People tend to revolt when they're hungry.
 
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