Trade war forces China to seek alternatives beyond US

Local tech companies quietly seek non-American suppliers for key components

20180706N Huawei US Tech Reliance main

Huawei still makes a third of its $30 billion procurement from U.S. sources. 

CHENG TING-FANG, Nikkei staff writer

SHANGHAI/TAIPEI -- Chinese companies are quietly turning to European, Asian and domestic chip suppliers for non-U.S. alternatives, as billions of dollars-worth of tariffs imposed by Washington and Beijing on each other's products come into effect.

"The message we learn clearly from our Chinese customers recently is that [if they have the choice,] they are eager to diversify from buying from U.S. suppliers," a manager at German-based chipmaker Infineon Technologies told the Nikkei Asian Review. "They are really taking the rising political tension and risks into consideration."

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