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Microsoft says it won't be quitting China

(Image credit: Image Credit: StockStudio / Shutterstock)

Microsoft is denying recent news reports that it is moving manufacturing out of China because of the country’s whole trade war with the States.

The Nikkei Asian Review recently reported that a handful of US companies, including Microsoft, Dell, HP and Amazon were mobbing their supply chains out of China, and into neighbouring countries and countries in the southeast Asia (Taiwan and such).

The report claimed there were multiple reasons for such a move, including rising labour costs, but also the US – China trade war which has seen the US recently ban its companies from doing business with Huawei (but later partially reversed the ban).

Reaching out to Microsoft, Tom’s Hardware learned that this report was unsubstantiated and that the company would not be moving anywhere, especially not parts of its Xbox manufacturing process (which was originally reported to be moving into Thailand and Indonesia).

However, not everyone seems to be in the same boat as Microsoft. When HP was asked to discuss the report, the company told Tom’s Hardware it won’t discuss rumours, but that it “shares industry concerns that broad-based tariffs harm consumers by increasing the cost of electronics."

The US – China trade war has been going on for quite some time now, with the US first almost destroying ZTE (forcing it to pay $1 bn in fines and completely change its C-suite), and then turning its attention towards Huawei which it considers a threat to national security.

China has banned the sales of certain iPhone models in the country.