​Especially due to rising tensions with the US, China is no longer a viable country to manufacture there and then export to the rest of the world, says the head of Japan’s Kyocera. The company is one of the main suppliers of chip components, but it says it will open factories in Japan to stop relying on China.

The restrictions imposed by the US on the Chinese, so that they no longer have access to advanced American technology, will make the Chinese PR more unsuitable for manufacturing there and then exporting to all corners of the world, says Hideo Tanimoto, head of Kyocera.

“Everything is fine as long as you sell in China what you make there, but the economic model of manufacturing in China and exporting abroad is no longer sustainable,” said the head of Kyocera, quoted by the Financial Times.

“It’s not just that wages have risen in China, it’s also important what’s happening between the US and China. “No matter what happens, it’s becoming increasingly difficult to export from China to certain regions,” says Tanimoto.

Kyocera Corporation is headquartered in Kyoto and employs 60,000 people.

The company has a 70% share of the global market for ceramic components used in semiconductor manufacturing equipment. Kyocera has also been hit by US sanctions on China, so high-tech components from American companies no longer end up in Chinese factories.

Many technology companies have decided to open factories outside China to reduce their dependence on the world’s largest manufacturer. But this is a long transition, and it will not be easy for countries such as Thailand or Vietnam to accept a permanent part of the production.

Sources: Fortune.com, Financial Times.

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