As US-China relations deteriorate, iPhone manufacturer Foxconn will transition to the automotive industry.

It is most known for producing more than half of Apple’s devices, including the iPhone and iMac, but it also works with companies like Microsoft, Sony, Dell, and Amazon.

It has prospered for years on a strategy developed by multinational firms, where things are designed in the US, produced in China, and then sold all over the world. That is how it developed into the huge consumer electronics company it is today from a modest component manufacturing company.

However, Foxconn finds itself in an unfortunate situation – stuck between the world’s two biggest economies, the exact ones that have driven its rise up until this point. As global supply chains adapt to soured relations between Washington and Beijing.

Trade and the conflict in Ukraine are only two of the numerous issues that the US and China disagree on. The largest potential flashpoint, though, is Taiwan, where Foxconn is based.

positioned at the center

Long a contentious subject, “reunification” promises made by Chinese leader Xi Jinping have upended the uneasy status quo. Under President Joe Biden, the US has been more outspoken about its support for Taiwan in the event of an attack.

Although the White House has reiterated its position that it retains diplomatic relations with Beijing and not Taipei, certain US voices have breached China’s red line and called for independence.

With US Secretary of State Antony Blinken visiting China this weekend, there are expectations for a thaw. However, there are also concerns of a conflict; according to one US general, it may occur as soon as the following few years.

Shihoko Goto, the deputy director for the Asia program at the Wilson Center in Washington, DC, stated that “the United States and China are engaged in what we see as strategic competition.”

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