Employing more than 1 million people, Foxconn’s export market includes both the United States and China.
On Friday, Hon Hai Hon Hai Precision Industry Co Ltd, also known as Foxconn, stated the tariff war between the United States and China is more of a tech war than a trade war.
This tech war is the biggest challenge the Taiwanese company is now faces.
“The biggest challenge we’re facing is the U.S.-China trade war. In terms of how we manage and adapt, this is something all our high-level managers are making various plans on,” said Foxconn’s Chairman Terry Gou at its AGM without going into the details of the plans under consideration.
“What they are fighting is not really a trade war, it’s a tech war. A tech war is also a manufacturing war,” said Gou.
The company employs more than a million workers and its clients list includes Apple Inc.
Analysts have warned, the Sino-U.S. trade war is likely to disrupt global supply chains, which will have a cascading effect on the tech and auto sector and will act as a drag in the growth of the global economy.
Incidentally, both the United States and China are Taiwan’s top export markets.
Gou, who recently celebrated Foxconn’s 30 years of doing business in China, said on Friday he has no plans on retiring in the next 5 years, which he described as being “important”.
Earlier this month, China Labor Watch, a U.S. watchdog, criticized Foxconn for harsh working conditions in its factories.
On Friday, Gou stated, harsh working conditions, including lengthy overtime, were products of Chinese law.
With regard to the current year, Gou stated it was necessary to be mindful of uncertainties especially the pace of the rise in interest rates and inflation while the Chinese economy continues to grow as it makes room for “structural adjustments”.