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Trade war

Trade war hastens key Apple supplier Pegatron's shift from China

Rising labor costs also spur move to Southeast Asia

People in Shanghai try out this year's new iPhones. Lackluster demand for the devices has added to the worries of Apple suppliers.   © Reuters

TAIPEI -- Large-scale iPhone assembler Pegatron said on Thursday that it would speed up efforts to relocate production to Southeast Asia from China, where trade tensions add a further reason to reconsider new capacity investments.

"We are going to do it with or without tariffs imposed under Section 301 [of the U.S. Trade Act]," Pegatron Chief Financial Officer Charles Lin said in a teleconference, referring to the company's shift away from manufacturing in China. "The intensifying trade tension accelerates our decision to do it."

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