Japan firms move production out of China – NHK WORLD

Japan firms move production out of China – NHK WORLD

japan-firms-move-production-out-of-china-–-nhk-world

Increasing numbers of Japanese businesses are moving their production capabilities out of China as trade disputes between the United States and China intensify.

US President Donald Trump announced on August 1 additional tariffs that would make almost all imports from China subject to additional tariffs beginning in September if the measure goes into effect.

Japanese firms that export their products manufactured in China to the United States are moving their production facilities out of China to avoid the tariffs.

Ricoh has switched production of most of its multifunction printer-copiers for the United States to Thailand, while Chinese factories make products for Japan and Europe.

Nintendo had been manufacturing most of its Switch game machines in China but began production in Vietnam this summer. The Vietnam plant could be used to make the US-bound products.

Sharp Corporation announced a plan to build a factory to manufacture liquid crystal displays and air cleaners in Vietnam.

Sharp officials say they will consider moving US-bound production to Vietnam depending on how the US-China trade war progresses.

Also, Mitsubishi Electric has decided to produce in Japan some of its semiconductors and industrial machines bound for the United States.

Industry analysts say more companies are likely to follow suit.

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