PC maker HP refutes allegations of relocation away from China, reiterating commitment to Chinese market

US PC maker HP on Thursday refuted foreign media reports alleging the company was relocating half of its personal computer production away from China, emphasizing the company is committed to Chinese market operations. 

"We remain committed to China and our China operations, and the important role they play in our global supply chain. As part of our standard operating procedures, we regularly engage in scenario planning, exploring various options to ensure we are enhancing the agility and resiliency of our global supply chain to meet the evolving needs of our customers," HP China told the Global Times on Thursday.

The remarks came after Japan's Nikkei Asia reported that HP is looking to shift more than half of its personal computer production away from China, amid concerns over "geopolitical risks." HP has set "an internal goal of eventually making up to 70 percent of its notebooks outside of China," and is setting up a "backup" design hub in Singapore and "betting big on building a production hub in Thailand," the Nikkei report said, citing sources.

The allegations by Nikkei Asia have been dismissed by HP China as "unfounded." 

The US' leading PC maker said that China remains a crucial and integral part of its global supply chain, and the company reaffirmed its steadfast commitment to continuing its operations and growth in the country.

In light of the ongoing discussions about supply chain diversification, HP's stance on its operations in China underscores the country's importance as a strategic market for multinational corporations, analysts said.

HP's PC manufacturing business in China continues to play a significant role in delivering high-quality products and services to the global market, and the company is continuously optimizing its strategies to enhance the resilience of its supply chain and better serve its customers worldwide, the Shanghai-based Jiemian News reported, citing the company's statement. 

HP is the world's second largest PC maker, trailing only Lenovo. 

HP's PC shipments in 2023 totaled around 52 million units, making the company one of the leading players in the industry, the Research firm IDC said. Despite the speculation surrounding a potential production shift, HP's presence in China remains significant, with the country serving as a key supply hub for the company's global operations.

According to a report from guancha.com, the company and its suppliers have built an extensive supply chain network in China, with Southwest China's Chongqing Municipality emerging as the leading global hub for PC exports.

The Chinese government has expressed firm commitment to fostering a business-friendly environment, welcoming investment by global businesses.

China has become a synonym of the best investment destination, and that the "next China" is still China, Chinese Foreign Ministry Spokesperson Mao Ning said earlier, regarding reports indicating that foreign companies were considering relocating their supply chains away from China.

The reason why China is the place for the global business community lies in the strong resilience, ample potential and strong vitality of Chinese economy, the fundamental national policy of reform and opening-up and the huge Chinese market, Mao said.