Labor shortages occur almost once every year in China. Acer chairman JT Wang pointed out that the company's investment in Chongqing will help resolve issue, claiming that all Acer's supply chain partners will be there, indicating that upstream component suppliers are expected to start moving their production lines into inland China.

Hewlett-Packard (HP) was the first major notebook vendor to invest in Chongqing with partners including Foxconn Electronics (Hon Hai Precision Industry), Quanta Computer and Inventec, all participating. With Acer following suit, and Dell and Lenovo are also investing in nearby Chengdu, Sichuan province, where both Chongqing and Chengdu are located, has already become a new notebook production center, alongside Kunshan and Shanghai.

Wang pointed out that if the labor shortage issues within the supply chain do not get resolved, the company's goal of achieving further growth will be obstructed, since all upstream players from assembly to chassis makers are facing shortage of labor and increasing labor costs. With Acer and HP's decision to move their production lines to inland China, which is closer to Europe, a new ecosystem that is changing both the supply chain and channels is already forming.

Wang noted that the railroad in Chongqing is a transportation solution that lies between sea and air in terms of both cost and time. He believes that with the railroad from Chongqing to Europe, shipments will only require less than two weeks to arrive at their destination.

In addition to Chengdu, Lenovo has also recently revealed plans to invest in Wuhan since the location already has several upstream component makers in production currently, while Wistron also plans to establish a software subsidiary there to support Lenovo.