Microsoft Walks the Fine Line with China

August 13, 2019

US President Donald Trump is daily criticized by US news outlets. One of the latest criticisms is how Trump is handing trade negotiations with China. Trump’s take is that he is fighting for a better trade agreement that does not take advantage of the US, while his opposition says he wants more money in his pocket and is screwing everything up for the US economy. As a result of the Chinese-US trade conflict, rumors circulated that many companies would take their manufacturing jobs elsewhere; among them was Microsoft.

ITProPortal states that the rumor is false in their story, “Microsoft Says It Won’t Be Quitting China.” Microsoft was not the only company that was believed to withdraw from China; Amazon, HP, and Dell were also on the list that would move their factories to southeast Asian countries. The US-China trade war was not the only reason these companies were going to leave. Raising labor costs was a big issue.

Microsoft will stay in China and continue to have its factories manufacture Xbox parts. However, the other companies on the list might leave:

“When HP was asked to discuss the report, the company told Tom’s Hardware it won’t discuss rumors, but that it ‘shares industry concerns that broad-based tariffs harm consumers by increasing the cost of electronics.’”

The trade war affected technology company Huawei, believed to be a threat to national security, and ZTE was almost destroyed.

China is a hard country to abandon. Even if the labor costs go up, nothing can beat the amount of people to market products to and there never is a labor shortage.

Whitney Grace, Augustk 13, 2019

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