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Politics forcing irreversible shift of supply chains; FANGs to see severe correction as competition grows

The Edge Singapore
The Edge Singapore12/27/2019 07:00 AM GMT+08  • 9 min read
Politics forcing irreversible shift of supply chains; FANGs to see severe correction as competition grows
SINGAPORE (Dec 27): With the US-China trade war having dragged on for nearly two years now, the global supply chain, particularly in electronics manufacturing, is being reconfigured. This trend will be irreversible, regardless of what US President Donald
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SINGAPORE (Dec 27): With the US-China trade war having dragged on for nearly two years now, the global supply chain, particularly in electronics manufacturing, is being reconfigured. This trend will be irreversible, regardless of what US President Donald Trump says, according to veteran fund manager Wong Koi Hoi of APS Asset Management.

Even if manufacturers stay put in China, they will be looking for other locations if they are building new capacity. “They cannot subject their companies to such huge political risks. Trump’s successor may do the same thing,” Wong, founder and group chief investment officer of the firm, tells The Edge Singapore.

“You don’t want your viability to be influenced by political decisions, which can be made just like that. So, especially for manufacturing companies making products in China to export to the US, they have this fear that the levies, tariffs on their products will increase.”

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