Over the past decades, China has managed to become the world’s biggest hub for manufacturing for some of the biggest tech giants in the world. The reason behind that particular boom was manifold. Cheap labor was abundant in the country and in addition to that, there was a willingness among vendors to make it work for some of the world’s biggest tech companies. Some of the biggest tech manufacturers like Apple, HP, Microsoft, and Dell, among others, found it worthwhile to move their manufacturing process to China. It worked brilliantly for all these years but eventually things had to change.
After all, the fact that China provided this key service to the world’s biggest companies also provided the country with leverage over the biggest tech corporations in the world. Hence, it later dawned on many that it was perhaps time to create alternative manufacturing hubs so that a single nation could not become too dominant. In a new development, that would definitely come as a big blow to China, some of the biggest companies to have moved to manufacture to the country like Microsoft, Dell and HP have decided to move a large part of their operations out of the country. The move is by the three tech giants could have far-reaching consequences on China’s status as the world’s biggest tech manufacturing hub.
It could be a massive blow for China since HP and Dell are currently the 1st and 2nd biggest computer manufacturers in the world. The two companies have a combined share of 40% of the entire personal computer market at a global level. The bulk of their production was done in China, but now the companies have decided to move 30% of their production out of the country. It is believed that these moves are directly related to the current trade war between the United States and China and many believe that the Trump administration is trying to hit some of the most lucrative businesses in the country in order to hurt it.