China is feeling the pain of trade conflicts and disputes as many Western companies begin moving their production elsewhere. Over the past 25 years, China greatly benefitted from foreign companies relocating their production to the country, which helped China become the second-largest economy in the world. Now, as Beijing’s political decisions increasingly impact the economy, these companies look for greener pastures elsewhere.
In the 1990s, Chinese economic growth surged as the world’s biggest companies relocated their production to the country. The previously backwards economy took off, fuelled by massive tax revenues, a strong labor market, and massive foreign investment. The West provided China with millions of jobs across the country, as well as actively invested in staff training and infrastructure development. As a result, China became the second-biggest economy in the world. When the increasingly self-assured Chinese government became embroiled in trade conflicts, foreign manufacturers such as Apple have begun to shift production elsewhere.
The US corporation is in talks with Vietnam to produce Apple Watch and MacBook in the country, as Apple strives to diversify production away from China. The company began test production of Apple Watch in Vietnam and prepares to launch MacBook production as well. Vietnam is considered to be Apple’s biggest manufacturing hub outside China, where products such as iPad tablets and AirPods earbuds are assembled.
