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As concerns grow over security and resilience in international supply chains, Tesla has told its suppliers to start building components and parts outside of both China and Taiwan by as early as next year – that’s according to reports from Nikkei Asia.
It has been reported that six supply chain executives confirmed that suppliers of components such as printed circuit boards, displays and electronic control unit systems for models sold outside of China have been asked to look outside of the Greater China region when it comes to manufacturing.
The request cited rising geopolitical tension and the risks associated with this tension as the reason for such action. As the US presidential election draws closer, the trade relationship between the US and China continues to be under the spotlight.
In March 2024, Logistics Manager reported that Republican candidate and former president Donald Trump’s stance on increasing tariffs on the import of goods from China has already prompted global logistics companies to plan ahead and reduce their reliance on Chinese manufacturing.
Current US president Joe Biden has also made his stance on trade with China clear, announcing action to “protect American workers and businesses from China’s unfair trade practices”. Read more
Source: LOGISTICS MANAGER
