The US-China trade war results in Apple moving the production of its iPad and MacBook to Vietnam from now on

Political tensions between China and America have gotten worse since last year. Famous apps like TikTok have also been facing a hard time because of these tussle between the two countries, and now Apple has also made a new decision. As per Reuters, Apple has requested Foxconn to move the assembly of iPad and MacBook from China to Vietnam now. Although it is not known which models of iPad and MacBook will be assembled in Vietnam from now on, the Taiwanese manufactures are all set to comply with Apple’s request from next year. As per reports, the new production lines will start coming online anywhere from January to June 2021.

Foxconn has already planned to shift almost 30% of the assembly and production of iPad and MacBook from China to Vietnam and has decided to invest around $270 million in the production cost in Vietnam.

China is in a difficult spot trade and business-wise. Donald Trump and his administration alleged ByteDance, TikTok’s parent company for the intrusive collection of American users’ data, and as per them, this data was then forwarded to the Chinese government. ByteDance fought against these allegations but the US government pushed forward ultimatums and threats of banning the app and its updates in the US if the company did not sell off its US operations to an American investor. ByteDance agreed and even started talking to various interested parties like Microsoft, Walmart, SoftBank, etc. But before anything could happen, the Chinese government changed its policies regarding the trade of technology and apps. This new set of requirements brought on some more hurdles in ByteDance’s deal for TikTok with some American investors, and that put more strain on the Chinese American already stinging ties.

Now, Donald Trump’s government also used some international trade tariffs and tools to make China and some other countries change their policies and previous trade agreements with America. They were constantly asked to not do such things because that will affect the American businesses also and the prices of various products will also rise, but they did not pay much heed.

A few months ago, Foxconn’s chairman claimed that China, which was once the hub of manufacture and production, its days as a working factory are over as American companies like Apple will be shifting their production lines from China soon. And now, that is exactly what’s happening.

Whether it is good for Apple or bad, only time can tell. It surely is bad for China!

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