The US tariff war, the pandemic and supply chain issues are forcing manufacturers to rethink their manufacturing strategies in China. Despite receiving the nickname of the factory of the world, China's position is threatened due to the increasingly sharp political situation. Ming-Chi Kuo, a leading analyst now predicts that Apple will manufacture until between 25-30% of their products will be manufactured outside of China within 3-5 years from now.
MacBook production will begin in China while iPhone production in India will be further enhanced through Tata Group's collaboration with Pegatron or Winstron. As much as 80% of iPhone production in India is for the local market. But this can be further enhanced by the needs of the United States market for example being met by factories outside of China. In the future, products for the Chinese market will only be manufactured in China and vice versa for the global market.
Relations between China and the United States have become increasingly strained this year after the speaker of the U.S. House of Representatives, Nancy Pelosi, visited Taiwan. Pelosi's flight from Kuala Lumpur to Taiwan became the most tracked flight in the history of 24 radars. President Biden also promised to provide assistance to Taiwan if they are attacked by China.