Foxconn's biggest challenge is US-China trade conflict

Trump trade war a ‘symptom of paranoid delusions’ – Chinese media

Trump trade war a ‘symptom of paranoid delusions’ – Chinese media

Foxconn, the world's largest electronics contract manufacturer and a major Apple (APPL) supplier, defended its $10 billion investment in the US amid the trade dispute between the USA and China. In other words, other clients were contributing more to Foxconn's top line.

President Donald Trump on Monday said Washington would hit $200 billion of Chinese imports with 10 percent tariffs if Beijing retaliates against his previous announcement to target $50 billion in imports. He accused China of stealing United States intellectual property, a charge Beijing denies. "Right now during the low season we are following China's regulations, and in the peak season we are following USA regulations".

"The war between China and the U.S.is not a trade war- it's a technology war, as well as a manufacturing war", said Gou at the meeting.

He did not elaborate on what kind of plans were under consideration. "The trade war is not about trade, but it is a tech war, and it is a manufacturing war".

He also argued that Foxconn should be governed by US regulations since the majority of its customers, from Apple to Amazon, are American.

"The woes the (Trump) administration is inflicting on Chinese companies do not simply translate into boons for USA enterprises and the US economy", it said.

Foxconn, which as China's largest private employer keeps about a million on its payroll, has drawn fire for years over practises such as allowing overtime to soar during the peak season, when it sharply ramps up production to get devices to market in time for the holidays.

Shareholder adviser Hermes EOS urged Foxconn to provide more details to investors about succession planning for senior executives and consider separating the chairman and chief executive roles.

Foxconn Chairman Terry Gou said on Friday the U.S. Gou on Friday said issues such as lengthy overtime were products of Chinese law.

For 2018, Gou said it was necessary to be mindful of the uncertainties of inflation and the pace of interest rate rises, adding that the Chinese economy continues to be affected by "structural adjustments".

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