Siemens wants to reduce its dependence on China

Siemens is exploring options to diversify its supply chains in Southeast Asia in an effort to reduce its dependence on China. About it in an interview Financial Times said Judith Wiese, director of personnel and sustainable development of the concern.

“This is a very diverse region, but it has a lot of potential, and since there is a lot of talk in the world about the US and China in terms of diversification, it is very interesting for us,” said Judith Wiese. According to Ms. Wiese, Siemens is considering Indonesia, Vietnam, Thailand and India as options for building new plants.

Now China is the largest sales market for the German concern in Asia and the second largest foreign market after the USA. In 2021, 13% of the group’s sales came from China.

Siemens is far from the first international company to announce plans to move production outside of China. Many technology corporations have also reported this before, including Apple, Samsung, Microsoft, Google and Amazon.

There are several reasons for the mass exodus of technology companies. The first of these was the COVID-19 pandemic, which provoked a mass closure of factories in China for quarantine. The second reason is political. The trade war that began between China and the United States during the presidency of Donald Trump has resulted in increased import duties on both sides, restrictions on the export of American technology, and increased pressure from the Chinese authorities on foreign business. At the same time, given the position of China and the United States in the global economy, it is clear that it affects not only Chinese and American companies.

Read more about the mass exodus of companies from China – in the material “Kommersant” “The IT industry is fleeing China”.

Kirill Sarkhanyants