The sports trackers company Fitbit leaves China to move its production to other countries. By 2020 it will have stopped manufacturing entirely in the country due to tariffs.
The trade war between China and the United States continues to rage. If we have already seen how there are manufacturers that leave the country completely Because the tariffs made it too expensive to manufacture, Fitbit is now joining. In an announcement aimed at their investors, they have confirmed that they will stop all production from China immediately.
From now on the production will go to other countries. They haven't said anything about which countries will have the production chain, but right now there are many factories around the world with enough industry capacity to handle Fitbit's orders. Of course, prior investment for training and equipment.
The trade war takes another production
The press release is concise and gives little information. They simply announce that they have started the process to transfer production to other countries, without saying which or which ones. The factory that got the contract is sure to be applauding. It is highly unlikely that production will go to the United States, which is the main contributor to the trade war. Labor is very expensive and does not leave as much profit margin as other countries with cheaper and less regulated labor.
At the moment it is all speculation and it is hoped that within a few weeks they will clarify this. The amount of money involved in modifying the logistics chain and how much it will save is not known. But it is one more example that this trade war is not helping anyone and ultimately the United States and China are losing the most for not wanting to make proper trade agreements.
Source PocketNow
