In a recent Technology newsletter from the Wall Street Journal, a panel of reporters and editors had a discussion on the growing number of Western tech companies that are saying “ABC” — anything but China
WSJ China tech reporter and editor, Liza Lin, discussed this trend with TNB producer, Julie Chang. Here’s their conversation:
Julie Chang: So Liza, before companies moved only the assembly of products outside of China. Now it sounds like they’re shifting whole factories there. Is that right?
Liza Lin: Yeah, so Julie, I think we’re seeing two different things happening here with the supply chain shift from China.
– The first thing we’re seeing is companies moving the assembly of their products outside of China. To give you some background, the shift in supply chains from China isn’t an entirely immediate or recent phenomenon. Supply chains have been gradually migrating since the first Trump Administration. Following the pandemic, there was a significant wave of companies relocating due to China’s COVID lockdowns, which caused production stalls in various products, from iPhones to cars.
– What’s particularly important this time around is that it’s not just the assembly of products that are moving; it’s the supply chain supporting that assembly that’s also relocating. For instance, if you’re making electronics, think about components such as sensors, power electronics, and printed circuit boards—these are crucial parts of consumer electronics such as laptops. All these factories are moving out of China as well. According to an analyst report, these moves essentially make the relocation in supply chains away from China much more permanent and irreversible due to heavy upfront investments in machinery and parts. The second wave is really driven by geopolitical tension and friction.
Julie Chang: Interesting. So it’s a broader shift beyond just assembly lines.
Liza Lin: Exactly. This shift is indicative of a more strategic and long-term reconfiguration of supply chains. Companies are taking substantial steps to ensure their production processes are less dependent on China. The initial migrations were just the assembly processes, but now entire factories that produce essential components are being relocated. This development underscores a more definitive move away from China, influenced by various factors, including geopolitical tensions and the need for greater supply chain resilience.
Last updated: December 26th, 2025
