Although the trade war between the United States and China is officially suspended, because the leaders of both countries were to explain the most sensitive issues, producers do not intend to risk it.
After the G20 summit, at which the American president met with Chinese leader Xi Jinping, it was announced that the Donald Trump administration lifted the ban on trade with Huawei, which had previously hit the US blacklist. This meant that the existing partners of the group, such as Facebook, Google, Qualcomm, Intel or Microsoft, could continue to work with him, but as it soon turned out, some of them began to develop a contingency plan for similar situations in the future.
We soon learned that Apple, Amazon, Dell or HP intend to move at least part of their production outside of China, and all because of the new tariffs imposed by the US government on telephones, laptops or game consoles imported from this country and ever increasing production costs in the Middle Kingdom. A similar path was also followed by Nintendo with the production of the new Switch and Google console model in the context of intelligent home solutions from Nest – and now it turns out that the American giant is also looking for new factories for its Pixel smartphones. As previously assumed, the company’s goal is other South Asian countries, more specifically Vietnam.
According to recent reports, Google intends to sell 8-10 million Pixel smartphones this year, which is why it is strongly interested in the factory previously owned by Nokia, which is located in the Vietnamese province of Bac Ninh. This one is to be turned into a modern center for ambitious hardware and, according to Nikkei, the relevant work has already begun – it is a good place because Samsung also made its smartphones here, so the crew on site should be well adapted to the needs of the company. By the way, we also find out that Google wants to ultimately transfer all its production of Google Home smartphones and smart speakers outside of China, but we do not know any specific dates.
For example, according to the latest plans, Pixel 3A will be partially produced in the new factory in Vietnam before the end of the year, and the speakers will most likely have the inscription Made in Thailand. Despite this, Google is still heavily relying on Chinese production for most products best streaming. It is there that new technologies will be developed, and initial production will take place, because, according to one of the local sources: – American companies know that if they want to be serious when it comes to hardware production, they cannot abandon the huge Chinese market. The goal will therefore be to diversify production, which will slightly offset losses from the rising costs of Chinese production.