Google, Amazon and Microsoft look to move production from China, reports says

President Donald Trump and Chinese President Xi Jinping may have agreed to a trade war truce at the G20 Summit in Japan, but tech companies are still worried.


China News Service/Techhnews

President Donald Trump called for a tariff on Chinese-produced goods back in May, and the Chinese government threatened to put a tariff on US goods in retaliation. This caused concern in the tech industry. Although the president says he and Chinese President Xi Jinping agreed to a truce at the G20 summit in Japan on Sunday, many major tech companies are reportedly still looking to move their manufacturing elsewhere.

Amazon, Google, Hewlett-Packard, Dell, Sony, Nintendo, Asus,  Lenovo and Microsoft are some of the companies planning to move production of their products away from China, according to a report Wednesday from Nikkei Asian Review Wednesday. The tech companies already have, or will, begin producing some of their respective electronics in other Asian countries such as Taiwan, Vietnam, Indonesia and Thailand, according to the report.

A spokesperson for Lenovo said the company has no plans to move and in May it announced a $300 million investment in a new smart manufacturing facility in Shenzhen, China. HP says it doesn’t comment on rumors or speculation but is “actively monitoring the situation and will continue to work with government officials to advocate for the best interests of customers, partners and consumers.”

In June, Apple reportedly began preparations to move 30% of its iPhone production out of China. Although CEO Tim Cook said he’s not worried about tariffs, Apple did send a letter to the Office of the United States Trade Representative saying tariffs would affect how much it could contribute to the economy.

Amazon, Google, Dell, Sony, Nintendo, Microsoft, and Asus didn’t immediately respond to requests for comment. 

Originally published July 3, 7:22 a.m. PT.
Update, 9:38 a.m. PT: Adds comments from HP and Lenovo.

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