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News

Foxconn Shareholder Suggests iPhone Production Be Moved Out Of China

Last updated: Jun 22, 2019 11:05 pm UTC
By Samantha Wiley
Foxconn

Terry Gou, Foxconn shareholder and founder has sent a message to Apple- move their iPhone production from China to Taiwan.

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Recently, Terry stepped down as the company’s chairman in order to be eligible to run for presidency in Taiwan. Apple has been facing increasing import tariffs from the Trump administration, so much so that the Cupertino-based firm is considering moving up to 30 percent of their total production outside China.

Foxconn

Apple has sent a letter to Robert Lightizer, US Trade Representative regarding the 25% tax on all Apple products. Trump’s stance on the tariffs is that Apple should move all their production back to the U.S., to which Apple replied that it isn’t beneficial nor feasible. Moreover, the move can make the company less profitable and pay less taxes.

Terry’s announcement may have a potential political backlash. Tensions that run from the Chinese and Taiwanese government may run higher, since China considers Taiwan as part of their territory.

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