The US-China trade war led several US-based Companies to turn to other amicable alternatives. Google, the giant search Company, was also forced to stop its further business strategies in the Chinese market. Currently, there is a feeling of volatile relations between China and the USA.
Google of Alphabet Inc has already started shifting the hardware business away from China. The well-known Google hardware includes server motherboard and Nest thermostat.
Donald Trump, President of the United States of America, has finalized regulations for Global Trade and Manufacturing. As per the rules, foreign and domestic Companies have to spin around the production from China. Likewise, the Chinese government and people of Beijing have compressed growth of American Companies. These range from Ford Motor Co. to FedEx Corp that serves the world’s maximum consumers.
Google’s Hardware Products:
In 2015, the Nest Learning Thermostat was on display in San Francisco in the USA. Currently, Chinese sources producing Nest thermostats and server hardware have been moved to Taiwan and Malaysia.
The motherboards are categorized based on the printed circuit board assembly. These motherboards are charged around 25% of tariff when directly imported to the USA. Yet, the server racks as a whole are not affected at all. Most of the US-bound servers are assembled in Mexico. Otherwise, there are the USA-based local Companies that assemble too.
Google is well-known for manufacturing and selling the server hardware at a high tariff. Google builds its own data centers in the USA and outside in other global places. These computing hubs help in the process of searching. Google also offers productivity tools that are based on cloud services platform. Google offers the most powerful and world’s largest mobile platform. This platform provides user-friendly services ranging from mapping to web search.
News on Migration of Products:
The American officials pointed out that the Chinese-made motherboards are unsafe due to a security breach. However, Google did not mention any disputes during the discussion with suppliers. According to anonymous sources, Google moved the USA-bound motherboards to Taiwan and Malaysia. As a result, it has helped Google Company to save tariff of around 25%.
Moves Taken by Giant Companies:
Several Companies of the USA had familiarised using Chinese cheaper labor for manufacturing end-products. Most of these American Companies used Chinese people as alternative methods for bulk production. Also, there are several reputed Taiwanese contract manufacturers of world-class electronics. These include Apple’s partner named Foxconn Technology Group since 2018. The team at Foxconn Technology Group has supplied to the accelerated demands of the client’s request. On Tuesday, 11th June 2019, Foxconn Technology Group, one of the biggest iPhone assemblers of Apple announced. It is ready to shift manufacturing outside China before 25% tariff is charged by the end of this month. According to Foxconn Technology Group, it has manufactured more than enough iPhones for US-bound outside China. However, Apple has not yet decided on shifting away from China.
Latest News of Google:
Around March, the CEO and team at Google announced. The Company has been expanding its boundaries in other places such as Taipei islands. Google has also hired new employees on the same spot. However, Google has not commented on any manufacturing diversion that might be incorporated.
Comparing Google with Other US Tech Companies:
Google easily move server motherboards out of China. The giant Company acquires the components only. However, rival US tech Companies (Amazon.com Inc., Facebook, Microsoft Corp., etc) find it difficult. Those Companies operate on giant data centres. They generally purchase hyper-scale complete server racks from their suppliers. Companies Facebook and Microsoft are also looking to move some part of their production away from China.
The Fate of Google’s Hardware:
Google’s hardware production in China is not so popular compared to the production of Apple. Google as the US search giant earns advertising revenues from the USA. Also, Google has gone through court consumers and corporations in No, 2 Economy of the world. This has been through artificial intelligence tools including censored search service.
Relationship of Google and Huawei Technologies Co.:
Huawei Technologies Co., the Chinese Company banned from business with all US-based Companies for using spying equipment. The team at Huawei Technologies Co wants to develop a rival Android operating system. Google cannot provide Android updates to Huawei’s Smartphone. Google would grant a temporary license valid until 19th August 2019 and reconsider it further. According to a spokesman of Huawei Technologies Co., the team would use HiSilic products to substitute all banned American components where possible.