The U.S.-Chinese Trade War Now Is Disrupting the Tech Industry
The U.S.-China trade war has been going off and on in a tit-for-tat escalation for more than a year. Only now, over the past couple of weeks, has it been having severe effects on the tech industry. Here are some of the companies that have been affected.
The biggest smartphone manufacturer in China, and the second biggest in the world (behind Samsung), Huawei has become one of China’s biggest, most powerful, and dangerous tech companies. Over the past year, Huawei has been under investigation by the U.S., German, U.K., and Canadian governments due to national security and corporate espionage concerns. There has been speculation by the U.S. government that Huawei has tried to infiltrate its U.S. tech industry competition. On May 15, 2019, U.S. President Trump signed an Executive Order to place Huawei on an American blacklist preventing it from trade with any U.S. companies.
Google owns Android, which Huawei uses on all of its smartphones. Google erans billions of dollars from this. However, some people will buy Google’s Pixel smartphones instead of Huawei’s smartphones. Sadly, Google overall will be losing billions in annual revenue from Trump’s recent Executive Order.
Apple has not been affected from Huawei losing its Android license. However, Chinese technology manufacturer Foxconn produces all of Apple’s IPhones in factories located in China. Due to Trump’s 2019 tarifs on Chinese imported goods, Apple either will have to raise prices on IPhones, find new contract manufacturers in countries other than China to replace Foxconn, or suffer lower profit margins on their most profitable product line. Whatever the case, the trade war has not been good for Apple.
BBK Electronics (owns OnePlus, Vivo, Oppo, and RealMe)
This Chinese tech titan owns Oppo (the fifth largest smartphone brand worldwide), Vivo (the sixth largest smartphone label worldwide), smartphone brand OnePlus, and their newest smartphone label RealMe. When you combine these four behemoth smartphone brands, BBK is the second largest mobile tech company in China and the third biggest in the world. If Trump were to sign an Executive Order against BBK, the U.S.-China trade war would reach a very challenging and even more damaging new phase for the global tech industry.