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Foxconn calls Trump's trade war a tech war

by on22 June 2018

It is our biggest challenge

Foxconn says the US and Chinese governments are engaged in a technology war, not a trade war, describing the spat as its most significant challenge.

For those who came in late, President Donald (Prince of Orange), Trump said Washington would hit $200 billion of Chinese imports with 10 percent tariffs if Beijing retaliates against his previous announcement to target $50 billion in imports. He accused China of stealing US intellectual property, a charge Beijing denies.

Foxconn's Chairman Terry Gou told the assembled throngs at the company’s annual general meeting that the outfit's biggest challenge the company facing is the US-China trade war.

“What they are fighting is not a trade war, it’s a tech war. A tech war is also a manufacturing war... In terms of how we manage and adapt, this is something all our high-level managers are making various plans on.”

He did not elaborate on the kind of plans under consideration.

The fear is that a trade war could disrupt supply chains for the technology and auto industries - sectors heavily reliant on outsourced components such as those supplied by Foxconn - and derail growth for the global economy. The United States and China are Taiwan’s top export markets.

Shareholder adviser Hermes EOS urged Foxconn to provide more details to investors about succession planning for senior executives and consider separating the chairman and chief executive roles.



Last modified on 22 June 2018
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