Nintendo confirms partial switch of production out of China

Nintendo is to move part of the production of its bestselling Switch gaming console away from China, it emerged on Tuesday.

The Japanese gaming company is looking to diversify manufacturing sites and will move elements of the production process to Vietnam this summer, a spokesperson told Reuters.

The spokesperson insisted the move was aimed at diversifying risks, however, and not at escaping tariffs.

China and the US are set to relaunch talks this week intended to end an increasingly bitter trade war between the two countries. But with no obvious indication that Washington and Beijing will be able to agree terms imminently, tariffs – both those already imposed and the threat of further hikes – remain a serious concern. A number of companies rely heavily on China as a manufacturing base and as a core consumer market, and the spat is already weighing on the global economy.

Last month, Chinese firm Foxconn, the specialist electronics manufacturer, said it would be able to move production aimed for the US out of China at short notice if needed. Foxconn is one of Apple’s key manufacturing partners, producing iPhones in Zhengzhou, China, although so far it is believed the tech giant had not requested a shift in manufacturing.