Manufacturers Move Supply Chains Out of China

U.S. manufacturers are shifting production to countries outside of China as trade tensions between the two countries stretch into a second year.

Companies that make Crocs shoes, Yeti beer coolers, Roomba vacuums and GoPro cameras are producing goods in other countries to avoid U.S. tariffs. Apple Inc. also is considering shifting final assembly of some of its devices out of China to avoid U.S. tariffs.

The moves add up to a reordering of global manufacturing supply chains as U.S. companies prepare for an extended period of uneven trade relations.

Executives at companies moving operations out of China say they expect to keep them that way because of the time and money invested in the moves.

The biggest beneficiaries of the moves have been other countries in Asia where production costs are low, such as Vietnam, India, Taiwan and Malaysia. Many of those countries have recorded sharp increases in exports, although there have been allegations that some of the added traffic came from goods made in China that were routed through those countries without significant alterations to avoid tariffs.

Source: Wall Street Journal