According to Wall Street Journal sources, Apple will work with Quanta Computer Inc., out of a factory near Shanghai. That facility is close to other Apple suppliers, which could help the company lower its shipping costs, and manufacturing labor costs in China are still much lower than those in the US. Apple has a long-standing relationship with Quanta, which makes MacBooks and Apple smartwatches at its other facilities.
The decision to move Mac Pro production to China comes even as trade tensions between the Trump administration and China escalate. The proposed 25 percent tariffs on imports from China would affect all of Apple’s major devices. The company has asked suppliers to study shifting assembly of some products out of China, and Foxconn said it could produce US-bound iPhones outside of China if necessary.