Google is ‘cutting’ off one of its last links with China

Of all the major US tech companies, Google is one that has very limited presence in China. And amidst the escalating US-China trade war, it looks like the Mountain View-based tech giant is set to snap one of its last remaining links with China. According to a report by Nikkei, Google is working with a partner in Vietnam since this summer to move out production of Pixel phones from China. The report suggests that Google is converting an “old Nokia factory in the northern Vietnamese province of Bac Ninh to handle production of Pixel phones.”
With the trade war between US and China showing no signs of closure, a lot of tech giants are pondering moving certain facilities out of China. As for Google, the Nikkei report states that with shifting production of Pixel phones to Vietnam would help it combat high Chinese labour costs and the rise in tariffs.
The report also says that not just Pixel phones but Google may consider production of its smart speakers out of China as well. The focus, however, is on Pixel phones as moving to Vietnam is seen as a driver for growth in the global smartphone market.