Apple, Honda and Mazda Consider Shifting Supply Chains Away from China

Apple, Honda, Mazda and other top companies are reportedly working to shift their supply chains away from China.

According to the Japanese newspaper Sankei, automaker Honda is considering building a parallel supply chain outside China to reduce its dependence on the country. Japanese automaker Mazda is also considering moving production out of China. In Mazda’s previous quarterly report, the company recorded an operating loss of $115 million due to production snags caused by China’s COVID restrictions.

Apple is also investing in manufacturing outside China. According to Bloomberg, Apple will start producing iPhones in India two months after the devices are first released in China.

The companies’ decision follows a June survey by AmCham China and AmCham Shanghai, which found that 25 per cent of foreign service companies and 20 per cent of foreign manufacturers are considering scaling back their investment plans in China.

Apart from the COVID-19 lockdown which has reduced the production capacity of several companies in China, intensifying tensions between China and the U.S. is also pushing companies to consider relocating production from China.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

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