According to the South China Morning Post , exhausted by the two years of US-China trade war, worried about the consequences of the Covid-19 epidemic and the deteriorating US-China relations, many American companies are actively seeking New supply outside China.
Qima’s survey showed that 95% of US businesses were planning to eliminate Chinese suppliers because of the current unrest. Meanwhile, nearly 50% of companies in the European Union (EU) plan to immediately transfer supplies.
In fact, since July 2018, a number of US companies have been looking for new alternatives to China. However, the survey shows that US businesses’ demand for sourcing outside of China soared when the US-China relationship changed from "bad" to "extremely bad".
"We support our customers, mainly US businesses, to find alternative sources of supply during the past two years. The US-China tensions escalate and the epidemic accelerates that trend," the South China Morning Post said. quoted by Simon Archer Perkins, Managing Director at ET2C International .
Julien Brun, Director of CEL Consulting in Ho Chi Minh City, said big companies like Apple, Samsung and Nintendo have stepped up production shift from China to Vietnam. However, this is not easy for small businesses, especially at the present time.
"Many businesses want to move production out of China, but may have difficulty finding suppliers. In addition, infrastructure issues are bottlenecks," said Brun.
According to Qima’s survey, US businesses are exhausted due to taxes and disruptions caused by the Covid-19 epidemic in China. In May, the US Chamber of Commerce in Shanghai said 74.9% of its members complained that U.S. and Chinese sanctions taxes had a negative impact on their businesses.
Big companies like Apple, Samsung and Nintendo have stepped up production shift from China to Vietnam. Photo: @alixrezax.
Meanwhile, more than 40% of US businesses have been or are considering relocating their manufacturing facilities outside of China.
A Pew poll in March found that 66% of Americans have a bad view of China, up from 47% in 2017. Hans Till, a supply chain search consultant in Hong Kong , revealed He received more requests from American companies.
However, Till experts said changing the supply chain is not easy. "Not many companies have a vision to work on in the long term. You can’t change the supply chain overnight," he said.
