Earlier in May, U.S. President Donald Trump proposed a tariff for imported goods from China. Shortly afterwards, the Chinese government threatened to impose higher taxes on US goods in response. Although the proposals didn’t go into effect, Huawei found itself included in the United States Entity list shortly afterwards that resulted in unrest in the tech industry of both countries for last couple of weeks. Interestingly, the U.S. President stated that he and Chinese President agreed to a truce following their meeting during G-20 summit in Japan. However, a number of major tech companies are reportedly still looking to move their production away from China.
Nikkei Asian Review reported that Amazon, Google, HP, Dell, Lenovo Sony, Nintendo, Asus and Microsoft are some of the major companies planning to move their manufacturing plants away from China amid increasing tensions between two countries. The report claimed that these companies already have or will move their productions to other Asian countries such as Japan, Thailand and Taiwan in the near future.
This latest news comes just days after reports claimed that Apple started to reallocate 30 percent of its smartphone productions to other countries as increased tariff in China would force Apple to increase iPhones’ prices that might significantly hurt the company’s already dwindling hardware business. While Apple CEO Tim Cook said that the increased tariff wouldn’t hurt the company at the time, Apple went on to write a letter stating how increased tariff would hurt Apple’s contribution to the U.S. economy in the coming years.