Post by Jorge Guajardo

Tariffs were yesterday’s reason for relocating supply chains. Export bans are today’s, and in that scenario, Chinese owned manufacturers are at a disadvantage once the world realized how the PRC imposed an export ban on Nexperia chips due to a dispute in a foreign operation. “Zhang said it is unlikely that major customers would change their supply chain strategies quickly, due to the high cost of doing so. Customers have so far not asked for Longcheer to build products in America. And even with higher tariffs, exporting from China could be more cost competitive if, for example, a customer needs to fly many engineers out to Vietnam.”