China’s supply chain under scrutiny amid report HP shifting more PC production overseas

United States-based personal computer giant HP said it remains committed to its operations in China after denying a report that it was shifting more production outside the world’s second-largest economy, which sparked fresh scrutiny of the mainland’s manufacturing supply chain.

HP – the world’s second-largest PC vendor behind Lenovo Group, according to research firm IDC – told Chinese tabloid The Global Times that Nikkei Asia’s report on Wednesday about the company’s “most aggressive shift of production away from China” was false.

“In China, HP’s PC manufacturing business remains pivotal,” HP said in a statement cited by Global Times, which is under the Chinese Communist Party mouthpiece People’s Daily. “To further enhance the resilience of the supply chain, we are actively optimising our strategy and increasing our flexibility to better serve our global customers and meet their diverse needs.”