China: HP Also Leaves the Country

Hewlett-Packard, an American multinational corporation that manufactures personal computers and other electronic products, is finalizing the relocation of its subsidiaries and production bases from China to some other Southeast Asian countries. The exodus began in January 2024, when Thailand was chosen by company executives as “the main location for opening new assembly plants.” HP announced that a project to produce personal computers with artificial intelligence will be implemented in Thailand.

Another country chosen by Hewlett-Packard is Singapore, where the company is hiring engineers and assembly line specialists who are gradually being transferred to HP’s research and design center in Taiwan. As part of the cancel policy toward China, which the US considers “a dangerous and unfair competitor,” many other US companies have announced their intention to move their factories out of China. In addition, the situation is exacerbated by fears of military conflict between Beijing and the island of Taiwan. According to Japan’s Nikkei news agency, for years HP has “relied on its Chinese value chain,” but now, because of “US bans on exporting high-tech and innovative chips to China, Hewlett-Packard will also follow similar actions by Dell, Apple, and Microsoft.”

In recent years, Thailand has made an important evolution from a tourist center to an industrialized country. On August 7, South Korean automaker Hyundai announced that it would “invest $28 million to produce electric vehicles and batteries in Thailand.” Hyundai is seeking to improve its competitiveness in the race with Chinese manufacturers, the leaders that currently dominate electric vehicle markets in Southeast Asia. In this context, Hyundai has already started moving car assembly plants to Bangkok and some other areas of Thailand.

The South Korean manufacturer risks clashing with big names in the Chinese auto industry such as BYD and Great Wall, which have been producing electric cars in Thailand for some time and exporting them to many markets around the world. Thailand’s factories account for 55% of all electric vehicle sales in Southeast Asia.