BIG MULTINATIONAL COMPANIES MOVING OUT OF CHINA…

Almost a quarter of German companies operating in China planned to relocate production from the country in 2019, according to a report by the German Chamber of Commerce in China. For example,

Adidas has halved its Chinese manufacturing since 2010, with much of the production moving to Vietnam, and pledged in July last year to cut all ties with suppliers implicated in a report that uncovered forced labour being used in some factories.

Like Apple, Adidas also felt the impacts of Vietnam’s rising COVID-19 infection rate, which has stalled production since mid-July and is expected to cause losses of up to $600 million (£431m) during the latter half of 2021. Adidas also saw its sales plummet on Chinese ecommerce giant Alibaba after the company took a stand against the treatment of Uyghurs in the Xinjiang region. In April, sales dropped 78% compared to the same period in 2020, according to Morningstar Inc.

Source: https://www.lovemoney.com/galleries/98705/big-multinational-companies-moving-out-of-china?page=6

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