Google, Microsoft, Amazon, Dell, HP and other technology giants are running away from China

It seems that the trade war between the United States and the Middle Kingdom is far from over, despite the recent surprising moves from Donald Trump.

After the G20 summit, during which the US president met with the Chinese leader Xi Jinping, we learned that Donald Trump’s administration lifted the ban on trade with Huawei, so that such corporations as Facebook, Google, Qualcomm, Intel and Microsoft could continue their agreements with this producer, but … the biggest players in this industry are not going to risk similar or even worse situations in the future.

First, we heard about the fact that Apple intends to transfer part of its production outside of China, and now Amazon, Dell or HP may also take a similar step. For although there is a moment of peace, the new tariffs imposed by the US government on telephones, laptops or game consoles imported from China may translate into a significant increase in prices in the United States, which the largest technological concerns want to avoid, and not without significance are still rising production costs in the Middle Kingdom.

One of the methods of avoiding both situations is to transfer production outside of China, and the route is being sifted by another Dell, which launched a pilot program assuming taking 30% of its production from that country. Green grasses are also looking for HP, which targets 20-30% of production outside of China, and that both companies delivered in 2018 a total of 70 million laptops (of which the vastness was produced in China), the local authorities have something to fear . And what direction are they going to take?

Most companies look to other Southeast Asian countries like Vietnam, Taiwan, Indonesia and Thailand. Already, it is already said loudly that the first of them will be transferred by Google, Nest, Amazon of its Kindle and Echo series, and Nintendo announced a cheaper variant of the Switch console some time ago. Other giants like Microsoft, Google, Sony, Lenovo, Acer, Asustek, Quanta Computer, Inventec and Foxconn, which will produce some of the iPhones for Apple in India, are also available on the languages. In short, if all these producers take away some of their production from China, the situation on the spot will be very uninteresting. Will they be able to react in time? Time will tell.

Eric

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