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Coronavirus

Multinationals reroute supply chains from China -- for good?

Komatsu, Daikin and Asics shift operations elsewhere

Employees work on the production line of a robot vacuum cleaner factory in Shenzhen. Wage increases have bitten into the competitiveness of China, the world's factory.    © Reuters

TOKYO/NEW YORK -- With China's supply chains cut off by the coronavirus outbreak, multinational companies are moving production outside the country or looking for alternative sources for parts.

While these are simply stopgaps to get operations back online, enterprises will be evaluating whether the new destinations offer more competitive costs than China, where wages continue to climb.

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