Google could abandon China's production

Google would intend to abandon some hardware manufacturers in China, which would allow it to expand its business and minimize the impact of tariffs.

Devices such as the Google Pixel Smartphone and Google Home Voice Activated Assistant are currently being manufactured in the country.

However, the United States and China are engaged in a trade dispute in which President Donald Trump has imposed tariffs on products made in China.

Google China

According to a Japanese publication NikkeiGoogle has begun converting an old Nokia plant in northern Vietnam – the same area used by Samsung to develop a supply chain over the past decade. This will allow him to call on a group of skilled workers to produce phones.

Nikkei Google plans to increase smartphone shipments up to ten million by the end of the year, nearly double the figure from last year. The new facility would give the company a greater capacity to achieve this goal.

Google would not be the first major US technology company to abandon its production in China. Tariffs have been a catalyst for change, but rising labor costs have also raised concerns.

Apple plans to transfer between 15 and 30% of its production to other countries, among which India, Indonesia, Malaysia and Mexico are among the candidates. However, it would take several years to even move some of the production out of China given the complexity of the ecosystem that is established there.

Google's relatively small operation means it could move more production faster.

Via Nikkei