TECH Technology heavyweights deny report they'll shift production out of China

TECH

Technology heavyweights deny report they'll shift production out of China

Global Times

00:59, July 05, 2019

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(Photo: VCG)

Multinational technology companies that are rumored to join an electronics-sector exodus from China amid trade woes said their commitment to the China market remains strong when contacted by the Global Times on Thursday. 

"The report by the Nikkei Asian Review on Wednesday was inaccurate and does not reflect Microsoft's manufacturing plans in China. Unless you hear from us directly, we have no active plans to withdraw any manufacturing from China," a Microsoft spokesperson told the Global Times.

The Nikkei report claimed that Microsoft is among a host of global consumer electronics makers looking to shift substantial production capacity out of China.

US personal computer giants HP and Dell, which are rumored planning reallocation of up to 30 percent of their notebook production out of China according to the Nikkei report, also shrugged off the exodus rumor. 

"HP has a diverse global supply chain to help us mitigate risks wherever possible. As a matter of policy, we do not comment on rumors or speculation about future plans," HP said in a statement sent to the Global Times.

"HP shares industry concerns that broad-based tariffs harm consumers by increasing the cost of electronics. We are actively monitoring the situation and will continue to work with government officials to advocate for the best interests of customers, partners and consumers," the world's top PC maker said in the statement.

Data from market research firm IDC showed that HP held 23.2 percent of the global PC market in terms of shipments in the first quarter of the year, followed by Lenovo with 23 percent and Dell with 17.7 percent.

"Currently, we have no information about it, and don't comment on [the report]. There are no changes in our company strategy," Dell, the No.3 PC maker, said responding to the report.

Chinese PC magnate Lenovo, which was listed in the Nikkei report as "also evaluating plans to shift," joined the denials.

"Lenovo has no plans to move its manufacturing out of China," the company said in a statement sent to the Global Times.

In a sign of its continued commitment to the market, Lenovo announced in May a $300 million investment in a new smart manufacturing facility in Shenzhen, South China's Guangdong Province. 

"As a global company, operating in 180 markets around the world, Lenovo is well-positioned thanks to the geographic balance of our business and manufacturing footprint that combines both in-house and outsourced manufacturing capabilities," read the statement.

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