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Why Nintendo, Google and others may want to move some manufacturing out of China

on June 14, 2019, 10:30 am MDT

New York (CNN Business)China has long been the world's manufacturing powerhouse. It has the suppliers, the assembly lines, the workers, the expertise. Companies, particularly technology giants like Google, depend on China to assemble their products.

Now, a year into a trade war provoked by a tough new stance by the United States, including costly tariffs, some companies are starting to look elsewhere.

Nintendo (NTDOF) and Google (GOOGL) are reportedly seeking alternative locations to make some of their products.

Google, which already has a significant presence in Taiwan, now plans to shift some manufacturing of its Nest thermostats and server hardware out of China to avoid tariffs, according to a report from Bloomberg, citing people familiar with the matter. And the Wall Street Journal reported that Nintendo is moving some production of its Switch video game consolesfrom China to Southeast Asia, citing people who work on the company's supply chain.

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