It is very hard to move that manufacturing process and supply chain out of China without making it more pricey. China got everything they need.
It will take decades to those other countries fulfil what China is offering _Today_
It will take decades to those other countries fulfil what China is offering _Today_
But when Apple began making the $3,000 computer in Austin, Tex., it struggled to find enough screws... In China, Apple relied on factories that can produce vast quantities of custom screws on short notice. In Texas, where they say everything is bigger, it turned out the screw suppliers were not.
After creating months of delay, Apple ended up ordering the screws from China. Eventually, Apple found a supplier in Texas that could produce 28,000 custom screws, although they weren’t the exact screws needed nor in the right quantity, according to the NYT. And they were delivered over 22 trips, often in a Lexus driven by the maker’s owner.
https://www.nytimes.com/2019/01/28/technology/iphones-apple-...
"37 percent have moved production out of China in the past 12 months, while 33 percent plan to move in the next 6-12 months."
https://money.usnews.com/investing/news/articles/2019-01-17/...
I would be surprised if even 3% of aggregate production has moved out of China.
That being said, China might be missing out on a more significant portion of future production because of uncertainties (trade war).
Let’s see....China is a export focused economy. Last year their stock crashed 30%. Their currency crashed 10%. The luxury sales in China crashed 30-70%, depending on sectors. New car sales fell 6%. There were discounts of 30% for new real estate projects in Golden September.
Yup, 30% of factories moving out of China seems possible