As things heat up between the US and China and pandemic production problems….
Apple is diversifying it’s supply paths….
Apple started production of the iPhone 13 in India earlier this year, and the expansion by Foxconn in the country is part of Apple’s goal to further diversify its supply chain. The new production facility is all part of Foxconn’s commitment to continued investment in India and part of the government’s efforts to strengthen the local market.
In recent years Apple has stepped up efforts to expand its supply chain to sources and suppliers outside of China and into India, Vietnam, and other countries. Apple’s supply chain has experienced a turbulent past three years due to the global health crisis and geopolitical conflict….
European Countries are also leaving China….
In a June survey conducted by the European Union Chamber of Commerce in China, 23 percent of Western firms said they were considering moving operations away from the country, while 50 percent reported that business in China had become more politicized in 2021 than it had been in previous years.
In its 2019 survey, in contrast, the European Chamber reportedthat European companies had an “increasingly firm commitment … toward the mature and vibrant Chinese market.” But today, “every company that I speak to at the moment is engaged in rethinking their [China-focused] supply chains,” Tony Danker, the director-general of the Confederation of British Industry, told the Financial Times last week. “Because they anticipate that our politicians will inevitably accelerate towards a decoupled world from China.”
Part of this is pandemic pressure. China’s zero-COVID policy has snarled supply chains and left factory workers locked in their dorms—and shows no sign of ending anytime soon. China’s demographics have also meant a shrinking pool of potential workers, and as the country has climbed into the middle ranks of global income, labor has become more expensive. But Beijing’s growing aggressiveness toward the West and its insistence on maintaining ties with Moscow have also left executives nervous that they could be caught on the wrong side of global conflict. The Chinese Communist Party’s insistence on ideological purity doesn’t help, with party cells now mandatory in foreign companies.
“The only thing predictable about China today is its unpredictability, and that is poisonous for the business environment,”…..
China might not wanna be getting Taiwan as reason it loses even more economic gas when it comes out of the pandemic