The main high-tech players are currently looking for other countries to manufacture their devices.
US companies affected by tariffs on products from China
Last May, President Donald Trump demanded the establishment of tariff on Chinese products. The response of the Chinese government was not long in coming since it threatened to impose a tariff on US products.
After Huawei, it is now American technology companies that are impacted by the trade war between the United States and China. While the US and Chinese presidents agreed to a truce at the G20 summit in Japan, many big tech companies would still be looking for relocating their production.
Part of the production transferred out of China
Thus, Microsoft, Amazon, Dell or HP, which depend on the Chinese workforce, have chosen to transfer part of their production to other countries such as Taiwan, Vietnam, Indonesia, and Thailand.
According to Nikkei, HP and Dell want to transfer 30% of their laptop production to other Southeast Asian countries while Microsoft plans to move some of its Xbox console production. For its part, Apple could relocate 30% of its iPhone production out of China and Amazon will also relocate part of the production of Kindle and Echo speakers.
Other companies that plan to move the manufacture of their products beyond the Chinese borders include Asus, Google, Lenovo, Nintendo or Sony. These companies are abandoning China because US authorities are currently imposing a 25% tariff on goods worth $ 200 billion. Rising tariffs could lead to higher fees for laptops, smartphones and gaming consoles, with the effect of higher prices for the consumer, and a reduction in margins for manufacturers.
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