China's days as world factory are done, says iPhone maker Foxconn

The Chinese market that has been ruling the world trade for years now seems to lose its power because of the trade war. According to media reports, a major supplier to Apple and a few other technology giants is planning to slit its supply chain between the Chinese market and the U.S., while adding that it is about time that China lost its status as factory to the world.

According to Hon Hai Precision Industry Co. Chairman Young Liu, the main base of production for gadgets from iPhones to Dell desktop and Nintendo Switches is losing focus from China and is shifting to the outside market. The proportion outside the country that was 25 percent in last June has now increased to 30 percent making it clear that the trade market is changing rapidly.

"Ratio will rise as the company — known also as Foxconn — moves more manufacturing to Southeast Asia and other regions to avoid escalating tariffs on Chinese-made goods headed to U.S. markets," Liu said.

“No matter if it’s India, Southeast Asia or the Americas, there will be a manufacturing ecosystem in each,” Liu said, while adding that China will still play a major role in Foxconn’s manufacturing empire, but the country’s “days as the world’s factory are done.”

The rift between Beijing and Washington is a major reason why manufacturer are shifting their production outside China. Liu last year said that Apple's highest priced product, the iPhone, can also begin its production outside China if tension continue to intensify.

Meanwhile, Foxconn has been prepping to expand its operations in other countries including India, leading the iPhone maker to grow its reach in a country of 1.3 billion people.

Chinese rivals, on the other hand, are also turning out to be a threat. Local electronic title Luxshare Precision Industry Co. is set to be the first Chinese homegrown iPhone assembler after its July deal with Wiston Crop to buy an Apple handset production plant from the.

China's influence has been significantly effected after President Donald Trump issued an executive order banning U.S. residents from doing business with Chinese firm Tencent Holding Ltd.'s WeChat