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HP Refutes Rumors and Allegations of Relocation Away from China.
On Thursday, HP strongly denied recent foreign media reports suggesting that the company is planning to relocate a significant portion of its personal computer production away from China. The company emphasized its ongoing dedication to its operations and market presence in China.HP China addressed the rumors reported by Japan’s Nikkei Asia, which claimed that HP aims to move over half of its PC manufacturing out of China due to “geopolitical risks.” The Nikkei report indicated that HP is setting an internal goal to produce up to 70 percent of its notebooks outside China and is developing a design hub in Singapore and a production facility in Thailand.
HP China responded by calling these claims “unfounded,” and reiterated that China remains a vital component of its global supply chain. “We remain committed to China and our China operations, recognizing the crucial role they play in our international network,” HP China told the Global Times. “As part of our routine operational procedures, we continually engage in scenario planning to enhance the agility and resilience of our supply chain to meet the evolving needs of our customers.”
The company’s stance highlights China’s strategic importance in its global supply chain, despite ongoing discussions about supply chain diversification. Analysts note that HP’s operations in China are integral to its business strategy, underscoring the country’s role as a key market for multinational corporations.
According to Shanghai-based Jiemian News, HP’s PC manufacturing in China remains pivotal for delivering high-quality products and services globally. The company is actively optimizing its supply chain strategies to improve resilience and better serve its customers worldwide.
As the second-largest PC manufacturer globally, trailing only Lenovo, HP’s PC shipments in 2023 reached approximately 52 million units, according to IDC. Despite speculation about a possible production shift, China continues to be a crucial hub for HP’s global operations.
Guancha.com reports that HP and its suppliers have established a comprehensive supply chain network in China, with Chongqing emerging as a leading global PC export center.
The Chinese government remains committed to creating a favorable business environment and welcomes investment from global companies. Chinese Foreign Ministry Spokesperson Mao Ning affirmed earlier that China continues to be a prime investment destination due to its resilient economy, reform policies, and vast market potential.
China’s status as a top investment location remains unchanged, emphasizing the enduring significance of the Chinese market for global businesses, Mao stated.
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