HP & Dell Exit China, Lenovo Refuse To Comment
Three weeks after Acer CEO Jason Chen revealed to ChannelNews that Acer was considering a move away from manufacturing PC’s in China, US Companies HP and Dell have said that they are moving 30% of their product out of the Communist Country.
The move is designed to try to avoid escalating tariffs on US bound goods with brands such as Microsoft, Sony and Nintendo looking to also move production.
The Company facing major price hikes is Lenovo who are a Chinese Company with major market share in the USA.
These technology Companies are moving away from China following U.S. President Donald Trump’s efforts to use punitive tariffs to negotiate friendlier trade terms.
Alphabet’s Google has already shifted much of its production of U.S.-bound motherboards to Taiwan, averting a 25% tariff, Bloomberg News reported last month.
“HP shares industry concerns that broad-based tariffs harm consumers by increasing the cost of electronics,” a spokesman said in a statement. “We are actively monitoring the situation and will continue to work with government officials to advocate for the best interests of customers, partners and consumers.”
A Dell spokesman noted that it has a global supply chain and said the company continuously explores “alternative sourcing, production, and logistics strategies to best serve our customers.”
A Lenovo representative said the Nikkei report was inaccurate, without elaborating.
An Acer spokesman referred to CEO Jason Chen’s comments to ChannelNews in May that his company planned to finalize a production plan for U.S.-bound products later this year and is open to all options.
Representatives for Microsoft, Amazon, Sony, Nintendo weren’t immediately available for comment. Asustek (ASUS) spokesman Nick Wu declined to comment.
Bloomberg said that Taiwanese contract manufacturers that make most of the world’s electronics, including Apple partner Foxconn Technology Group, have since 2018 accelerated the shift out of China at their clients’ behest.
Foxconn said last month it has enough capacity to make all iPhones bound for the U.S. outside of China if necessary, although Apple has so far not asked for such a shift.