According to the Wall Street Journal, Apple is working to increase production of its products outside China in order to reduce reliance on the nation.

CHINA-ECONOMY

The Chinese national flag is displayed in front of an Apple store.

AFP via Getty Images

According to the Journal, Apple has told some of its China-based assemblers of its ambitions.

Political tensions between Beijing and New Delhi could make it difficult for Apple's Chinese contract manufacturers to set up shop in India, though the company is reportedly eyeing Vietnam or India as countries to ramp up production in.

China has long been the hub for Apple production, with factories there making more than 90 percent of the company's major products, according to the Journal.

Forbes asked Apple if it had something to say.

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The country of China has implemented strict lockdowns that confine residents to their homes for long periods of time due to a Covid resurgence. The nation's zero Covid policy has put it at odds with Western countries approach of largely living with coronaviruses, and led to criticism over whether the lockdown measures are necessary or even humane. Supply chain backups have been caused by its Covid approach, especially for products moving through the highly populated port city of Shanghai. Western companies have stepped up efforts to distance themselves from China because of the country's reluctance to condemn Russia's invasion of Ukraine and the internment of Uyghurs.

Big Number

$8 billion. The company said in a second-quarter conference call that supply chain shortages caused by China's Covid policies could cause Apple's sales to tank.

Apple looks to increase production outside of China.

Appledependence on China shows in $8 Billion Supply-Chain

The Lockdown Lesson in Shanghai was successful for American entrepreneurs.