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Trade war

Trade war drives Asian manufacturing out of China

Southeast Asia and Mexico emerge as favored hubs for Panasonic, TCL and others

A worker inspects a circuit board at factory in Vietnam. Southeast Asia has become a more important link in the supply chains of multinational manufacturers.   © Reuters

KYOTO/TOKYO -- Japanese motor supplier Nidec said on Oct. 23 that it will move some production out of China, joining Panasonic and other companies, including Chinese ones, in an exodus to Southeast Asia and Mexico over concerns that U.S. tariffs will undercut the competitiveness of the Made-in-China model.

Kyoto-based Nidec will transfer production of power-steering motors for cars, in addition to components for household air conditioners, to Mexico, investing about 20 billion yen ($178 million) to double its capacity in the country by March. These products are subject to 25% tariffs imposed by U.S. President Donald Trump's administration.

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