Google is planning to move out its Pixel smartphone production plant from China to Vietnam, according to the report from Nikkei Asian Review, a globally-acknowledged economic and political herald from Japan. The Herald further reports that Google has decided to make this move due to rising labor costs and strict tariffs introduced because of escalation in US-China trade war. In order to facilitate its Pixel smartphone production in Vietnam, Google has taken over an old factory of Nokia in the northern Bac Ninh province of Vietnam. This factory left by the European mobile giant will soon be used to manufacture Google Pixel smartphones in Asia.
For the Vietnamese workforce, this isn’t an issue since they have the idea about smartphone manufacturing by working for Samsung, Google smartphone rival and one of the world’s most well-known smartphone makers. Samsung has been operating in various parts of the country for more than a decade now. Google will move out most of its products that are designated specifically for the US market due to the rising tensions between the United States and China recently.
U.S. President Donald Trump tweeted last week that he will instruct every US company to move their operations out of China and seek other alternatives. The US-China trade tirade kick started last year, and since then, it has escalated to a point where manufacturers and suppliers in both countries are finding it hard to see a common ground for trade.
It can be safely expected that unless a framework is not reached upon, this on-going US-China trade war will see many notable firms from both countries change their ground operations – maybe for long this time. After almost a year-long tirade between the two superpowers, the tit-for-tat method employed by the heads of the state of both countries is constantly shaking the world’s major business and tech arena.