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Microsoft Denies It Will Move Production Out Of China

Microsoft has denied that it’ll be moving production of its tech products out of China, following a report that the rising US-China trade tensions had spurred the potential move. Last week, the Nikkei Asian Review said Microsoft, along with Amazon, Google, Hewlett-Packard, Dell, Sony, Nintendo, Asus and Lenovo, would start manufacturing products in other Asian countries such as Taiwan, Vietnam, Indonesia and Thailand.

The trade war escalation could see increases in tech product pricing, with China saying back in May that it would impose a 25% tariff on US goods in retaliation against President Donald Trump’s plan to increase tariffs on products imported from China. Analysts have forecast the cost of iPhones to increase by up to 14% as a result — though Apple CEO Tim Cook said in June he’s not expecting that.

“The reporting from Nikkei Asia Review on Wednesday was inaccurate and does not reflect Microsoft’s manufacturing plans in China in any way,” a Microsoft spokesperson told CNET in an emailed statement Monday night.

A Lenovo spokesperson last week said it too has no plans to move. In May, Lenovo had announced a $300 million investment in a new smart manufacturing facility in Shenzhen, China.

HP said it refuses to comment on rumors and speculation, but last week the company said it’s “actively monitoring the situation and will continue to work with government officials to advocate for the best interests of customers, partners and consumers.”

Amazon, Google, Dell, Sony, Nintendo and Asus didn’t respond to requests for comment.

Nikkei had also previously reported in June that Apple is similarly considering moving between 15% and 30% of all iPhone production out of China and has asked its major suppliers to weigh up the costs.―CNET

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