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Trade war

Apple weighs 15%-30% capacity shift out of China amid trade war

Tech giant asks suppliers to review costs in Southeast Asia and Mexico

China has been the production base on which Apple's global success has been built. (Nikkei Montage / Reuters)

TAIPEI -- Apple has asked its major suppliers to evaluate the cost implications of shifting 15% to 30% of their production capacity from China to Southeast Asia as it prepares for a fundamental restructuring of its supply chain, the Nikkei Asian Review has learned.

The California-based tech giant's request was triggered by the protracted trade tensions between Washington and Beijing, but multiple sources say that even if the spat is resolved there will be no turning back. Apple has decided the risks of relying so heavily on manufacturing in China, as it has done for decades, are too great and even rising, several people told Nikkei.

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