The US-China conflict continues to alter the market. The latest news, however, is not about Huawei, as we have seen in recent days, but about Google. In reality, the Mountain View business would shift the manufacturing of hardware systems from China, avoiding the tasks that Donald Trump has decided on.
In specific, some Nest products (particularly thermostats) and server-dedicated hardware would have been shifted by Google. Many parts are already manufactured in nearby Taiwan (or Malaysia), such as the motherboard portion, not in China. This enables Google not to bear responsibilities of 25 percent.
Bloomberg also claims that, after moving the manufacturing of motherboards from China, the spying opportunities discussed in latest months would not be affected just as the issues associated with responsibilities. In specific, as indicated, it would be the "problem" motherboards and not the entire shelves that would not presently be impacted by the rises.
The Chinese government would have tightened controls on U.S. firms in reaction to the responsibilities imposed by Trump, making the trading scenario hard. This could force not only Google, but other U.S. firms to abandon China as a manufacturing site and migrate to other nations like Taiwan, Vietnam, India or Mexico (or even return to the U.S.).
Since Google's presence in China is pretty minimal, their departure won't trigger a huge impact.
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