Nikkei: Nintendo to move Switch output to Vietnam as China tariffs loom

[ggx2ac]

Link: https://asia.nikkei.com/Business/Co...witch-output-to-Vietnam-as-China-tariffs-loom

Nintendo will shift some production of its Switch console to Vietnam from China, Nikkei has learned, as the Washington-Beijing trade war threatens to cast a shadow over the hit gaming device.

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Same manufacturers, different location:

Currently, almost all Switches are manufactured in China by contract manufacturers including Hon Hai Precision Industry, also known as Foxconn. Their Vietnamese facilities will take over part of that work possibly within a few months.

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There's not much other new info as this is already known to be caused by the 25% tariffs planned to be imposed by Trump on China.

A reminder that it confirms from this thread where production is moving to since before it only stated SEA and not specific countries.

 

[capnjazz]

I thought other electronic manufacturing companies are also moving their factories out of China to avoid paying the tariffs. As long as this doesn't affect PS5 prices, I don't mind.

 

[ASaiyan]

But will #GamersRiseUp against The Donald now?

 

[Inugami]

I thought other electronic manufacturing companies are also moving their factories out of China to avoid paying the tariffs. As long as this doesn't affect PS5 prices, I don't mind.

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Going to depend on whether Vietnam can get the materials in vast enough quantities and for just as cheaply while also maintaining the sheer volume of output.

Spoiler

it can't

Prices are going to go up, but still less so than staying in China with the tariffs... probably.

 

[SinCityAssassin]

I thought other electronic manufacturing companies are also moving their factories out of China to avoid paying the tariffs. As long as this doesn't affect PS5 prices, I don't mind.

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Several larger manufacturers are looking into it, Vietnam's manufacturing force is not comparable to China's, but they're cheap enough.

 

[SwordsmanofS]

Not for nothing, but this was an inevitable outcome regardless of Donald Trump or any tariffs put up. Labor costs in China have been steadily rising for several years now, and many companies have been looking to move manufacturing operations to other areas for a while. Such as Vietnam, the Philippines, even Mexico.

Trump's tariffs are just giving them the excuse and motivation to do it now rather than later.

 

[Ac30]

Not for nothing, but this was an inevitable outcome regardless of Donald Trump or any tariffs put up. Labor costs in China have been steadily rising for several years now, and many companies have been looking to move manufacturing operations to other areas for a while. Such as Vietnam, the Philippines, even Mexico.

Trump's tariffs are just giving them the excuse and motivation to do it now rather than later.

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Some Chinese manufacturers are even outsourcing to Vietnam now or hiring Vietnamese labour heh

 

[iceatcs]

First, everything was "made in Hong Kong", then "China" and so on.

 

[famikon]

Some Chinese manufacturers are even outsourcing to Vietnam now or hiring Vietnamese labour heh

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Yes.

Also, I know that a lot of clothing that have label "Made in China" are actually from North Korea.

 

[Fredrik]

Bad idea since Trump has already acknowledged that companies are moving to Vietnam and he wants similar tariffs there.

 

[Joco]

Bad idea since Trump has already acknowledged that companies are moving to Vietnam and he wants similar tariffs there.

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Yup this move seems shortsighted. Trump is going to slap tariffs on whatever country these companies move to.

From this article:

Is it Vietnam's turn in Donald Trump's barrel? In a rambling interview last week with Fox News, Trump unexpectedly blasted Vietnam, a growing American partner in Southeast Asia and the host of Trump's highly anticipated but ultimately failed summit with North Korean leader Kim Jong Un in February. Vietnam is "almost the single worst abuser of everybody," Trump declared in response to a question about imposing tariffs on the country, adding that "a lot of companies are moving to Vietnam, but Vietnam takes advantage of us even worse than China."

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The next console launches are going to be very interesting if these tariff shenanigans are still in effect.

 

[Karan S'jet]

It's funny how quick companies are to take action when something is hurting their costs, but if it's anything else - like worker health at the factories or environmental considerations of the production process or proper accountability about where their rare minerals come from - it's simply impossible to do anything about it.

 

[Fredrik]

Yup this move seems shortsighted. Trump is going to slap tariffs on whatever country these companies move to.

From this article:



The next console launches are going to be very interesting if these tariff shenanigans are still in effect.

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Looking at it from outside the US makes it seem completely bonkers what Trump is doing, he obviously want all manufacturer to produce everything in the US and that's a nice dream I guess, but he obviously don't realize how far things has gone in the electronics industry. There is no way the prices won't go up if the move eventually happens. Either you get increased prices when stuff gets sold in the US, because of the tariffs, or you'll get increased prices everywhere on the globe, if the production gets moved to the US.

 

[Deleted member 36708]

But will #GamersRiseUp against The Donald now?

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Gamers are not that united.

 

[Dingens]

Not for nothing, but this was an inevitable outcome regardless of Donald Trump or any tariffs put up. Labor costs in China have been steadily rising for several years now, and many companies have been looking to move manufacturing operations to other areas for a while. Such as Vietnam, the Philippines, even Mexico.

Trump's tariffs are just giving them the excuse and motivation to do it now rather than later.

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pretty much
if anything, it just sped-up the process.

 

[Ac30]

Bad idea since Trump has already acknowledged that companies are moving to Vietnam and he wants similar tariffs there.

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Trump will be out of office before he gets around to that, whether that's 2020 or 2024. It's been 2.5 years since he started beefing with China and talks are going nowhere so far

 

[SinCityAssassin]

Yup this move seems shortsighted. Trump is going to slap tariffs on whatever country these companies move to.

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If he's just gonna be that sort of numbskull then it shouldn't really matter where they move to now does it. By that logic, it's not gonna end till he gets everyone manufacturing in the US, which he can't. Not that that's the situation anyways.

 

[Karan S'jet]

Trump's plan isn't to bring manufacturing jobs to the US and you're being naive if you're falling for this -

His administration and the US more generally is instilling a trade war with China in an attempt to subdue and threaten the country to make better deals that benefit the US oligarchy. it's basically like a big bully with a huge military and economy trying to bully other countries to do its bidding. It's basically economic imperialism at work and has nothing to do with manufacturing jobs in the US.

 

[boris_feinbrand]

I expect a lot of electronics slave labour to be moved out of China.

 

[Ganondolf]

I guess US stock comes from Vietnam and the rest of the world's stock comes from china?

 

[T002 Tyrant]

So long as I can still feel the misery of child labour in the mines and high suicide rates from my electronic devices I think I'll be fine with the move from Vietnamese child labour and "practically slave labour" factory workers.

Seriously though what a depressing world where we all accept this shit because we're used to relatively cheap electronics. We're all as guilty as each other.

Anyway, no price hike in my Switch Pro, hooray!

 

[Dingens]

Trump's plan isn't to bring manufacturing jobs to the US and you're being naive if you're falling for this -

His administration and the US more generally is instilling a trade war with China in an attempt to subdue and threaten the country to make better deals that benefit the US oligarchy. it's basically like a big bully with a huge military and economy trying to bully other countries to do its bidding. It's basically economic imperialism at work and has nothing to do with manufacturing jobs in the US.

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not to mention, to seriously cripple an upcoming economic rival. It's nothing new, not in history and not even for the US.

 

[Candescence]

Eh, this was gonna happen at some point, the tarrifs are just accelerating the process.

Trump's plan isn't to bring manufacturing jobs to the US and you're being naive if you're falling for this -

His administration and the US more generally is instilling a trade war with China in an attempt to subdue and threaten the country to make better deals that benefit the US oligarchy. it's basically like a big bully with a huge military and economy trying to bully other countries to do its bidding. It's basically economic imperialism at work and has nothing to do with manufacturing jobs in the US.

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Which oligarchy is that again? The same big businesses that Trump is annoying by reducing their profits due to the tariffs? You are overthinking this. It's populist nonsense just like the wall - stuff Trump thinks will win votes regardless of the actual effectiveness of the methods used to achieve the stated goals involved. Trump is weird in that though he is a lying scumbag, there are a few key issues he pitched to voters that he seems to be absolutely sticking to his guns on - economically antagonizing China, the Wall, and not starting another war.

That being said, it's also a case of right for the wrong reasons - China has been indulging in obscene amounts of protectionism and the theft of technology and whatnot, along with flagrantly disregarding basically every WTO rule in the book. They are just as bad, if not worse than Trump. (I absolutely hate Trump, but I despise the Chinese Communist Party so, so much more.)

 

[Deleted member 37917]

It's funny how quick companies are to take action when something is hurting their costs, but if it's anything else - like worker health at the factories or environmental considerations of the production process or proper accountability about where their rare minerals come from - it's simply impossible to do anything about it.

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Yep. Capitalism, which is quite literally burning the planet right now.

 

[Kouriozan]

I'm surprised they could shift production that quickly to be honest.

 

[Sidewinder]

I'm surprised they could shift production that quickly to be honest.

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If you grab them by the purse, everything is possible, it's like magic!

 

[Deleted member 9584]

I wonder if the Switch Mini was supposed to be a thing by now but all these manufacturing nonsense is holding it up.

 

[Piston]

Yup this move seems shortsighted. Trump is going to slap tariffs on whatever country these companies move to.

From this article:



The next console launches are going to be very interesting if these tariff shenanigans are still in effect.

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A shortsighted move might be all they need. They may be betting on tariffs being lifted if Trump is not re-elected in November 2020.

 

[mrfusticle]

Eh, this was gonna happen at some point, the tarrifs are just accelerating the process.


Which oligarchy is that again? The same big businesses that Trump is annoying by reducing their profits due to the tariffs? You are overthinking this. It's populist nonsense just like the wall - stuff Trump thinks will win votes regardless of the actual effectiveness of the methods used to achieve the stated goals involved. Trump is weird in that though he is a lying scumbag, there are a few key issues he pitched to voters that he seems to be absolutely sticking to his guns on - economically antagonizing China, the Wall, and not starting another war.

That being said, it's also a case of right for the wrong reasons - China has been indulging in obscene amounts of protectionism and the theft of technology and whatnot, along with flagrantly disregarding basically every WTO rule in the book. They are just as bad, if not worse than Trump. (I absolutely hate Trump, but I despise the Chinese Communist Party so, so much more.)

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Big business is not one monolithic whole .. Of course there are parts being badly affected by the tariff war.. Just not the parts he's in bed with.

Also, if you think the motivation is "populist nonsense" you're under-thinking things.

 

[Prattle]

I thought other electronic manufacturing companies are also moving their factories out of China to avoid paying the tariffs. As long as this doesn't affect PS5 prices, I don't mind.

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Several larger manufacturers are looking into it, Vietnam's manufacturing force is not comparable to China's, but they're cheap enough.

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As long as you can get the product of some ones hard labour cheap it doesn't matter. Fuck the Chinese father having to tell his family he has to take redundancy.


The west needs to take some responsibility.

The neoliberal optimism industry is out of control. The lives of people in these countries will not be improved if the corporation's just leave if the price gets too high.

Imagine trying to get women an equal wage these countries to make life better for the inhabitants!

Life would get worse, 'please t-shirt maker pay the women equal pay! We have made it law to make life better!' says a country.

'we're outta here!' says the t-shirt manufacturers.

No one's life improves. Except for maybe the westerner with the cheap t-shirts and electronics.

 

[mrfusticle]

Yep. Capitalism, which is quite literally burning the planet right now.

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Under-regulated capitalism.

The reason they can move so quickly is because this is business critical.. Slave wages and environmental concerns are not.
The fault is with governments and regulators not making it impossible to be profitable using such unethical, inhumane and planet-destroying means

 

[Golvellius]

The next console launches are going to be very interesting if these tariff shenanigans are still in effect.

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For Europeans, the US tariffs shouldn't matter at all though, right?

 

[flyingman]

But will #GamersRiseUp against The Donald now?

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majority of gamers not from usa

 

[GaussianMultivariate]

I wonder if the Switch Mini was supposed to be a thing by now but all these manufacturing nonsense is holding it up.

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Interesting point. I always felt the most pressing deadline for then must be November, when the new Pokemon game is out. They probably want to have the hardware in the street before, or perhaps at the same time, the game releases. Or maybe they're putting off the Mini to launch it along with the game as a strategic decision.