Daily Management Review

Foxconn: There's a technological war between the US and China


06/22/2018


Taiwanese company Foxconn, the world's largest contract manufacturer of electronics, said that the US and China are a technological, rather than trade war, reports Reuters.



"The biggest problem we face is the "trade war" between the US and China. As for how we manage and adapt, all our top managers are making different plans," said Foxconn chairman of the board Terry Gou at the annual general meeting.

He did not specify what kind of plans are being considered.

"Their war (the US and China) is not really a "trade war", it's a technological war. A technological war is also a production war," Gou said.

Foxconn is officially known as Hon Hai Precision Industry Co Ltd. The company employs more than 1 million employees, among its customers is Apple Inc.

On Monday, US President Donald Trump said that he instructed the US trade representative to prepare a list of Chinese goods worth $ 200 billion, in respect of which additional duties of 10% may be imposed.

This happened after the State Council of China approved introduction of an additional duty of 25% on 659 names of American goods worth about $ 50 billion.

In turn, Beijing's actions were a response to the introduction of US duties at a rate of 25% on imported products from China for $ 50 billion.

The US accused China of stealing US intellectual property. Beijing denies this accusation.

Analysts warn that the "trade war" between the two largest economies in the world can disrupt the supply chain for the technological and automotive industries. These sectors largely depend on components supplied by third-party manufacturers, such as Foxconn.

The US and China are the largest export markets of Taiwan.

Gou noted that it is necessary to remember the uncertainty about inflation and the interest rate increases, and that the Chinese economy is still affected by "structural adjustments." 

source: reuters.com






Science & Technology

Nestle's Head: Veggie meat is new megatrend

Huawei may introduce Android replacement in August

Are US high-tech investors causing brain drain in Europe?

'Russia's Google' Yandex Was Hacked By Western Intelligence For Spying: Reuters

Reuters: Chinese hackers were stealing data from IT giants for years

China's first solar power molten salt plant sets record

WSJ announces imminent start of Boeing 737 MAX flight tests

Study: Machine learning is five times more harmful for the environment than a car

Would Singapore Be The First One To Bring Lab Grown Shrimps To The Global Market?

Apple Patents A ‘Foldable Screen’ For Creating Foldable iPhones

World Politics

World & Politics

France announces new tax for air fares

Europe Concerned Over Iran Move To Breach Uranium Enrichment Cap

Singapore To Build ‘$296 Million’ Smart Next-Gen Army Training Centre

No More Sales Of E-Cigarettes In San Francisco?

US ‘Hell-Bent On Hostile Acts’ Even After Trump-Kim Agreement, Says North Korea

Italy avoids EU sanctions for high national debt

Trump allocates 4.6 bln to help migrants

Iran Says Trump’s Belief That US-Iran War Would Be Short Is “An Illusion”