China says only small number of firms moving supply chains out of the country

Only a small number of companies are moving supply chains out of China, a commerce ministry official said on Tuesday, amid signs that some firms are shifting production to other countries as the U.S-China trade war drags on. The problem shouldn't be overstated, Chu Shijia, a department director at the ministry, said at a media briefing.

In recent years, some Chinese manufacturers had already started to relocate capacity to countries such as Vietnam and Cambodia, due to high operating costs at home. The Sino-U.S. dispute is now pushing more to follow suit, especially makers of low-tech and low-value goods. Some Chinese companies had concerns initially when the trade frictions started, but now they have found some ways to cut costs and to minimise the impact, Chu said.