Published: Sat, June 23, 2018
Money | By Wilma Wheeler

Foxconn calls Trump's trade war a tech war

Foxconn calls Trump's trade war a tech war

One of his complaints with Chinese law is the amount of overtime that factory workers are allowed to take.

Gou, however, said that was normal practise in other parts of the world, and stressed that Foxconn's biggest challenge now was not labour but US-Chinese tensions that threaten to upend the global supply chain.

President Trump won't allow China to prey on US technology any longer, White House National Trade Council Director Peter Navarro told FOX Business on Wednesday.

Terry Gou, Foxconn's chairman, made the remarks at the manufacturer's annual shareholder meeting, according to Bloomberg and Reuters.

Mexico retaliated against the move two weeks ago while Canada said it would place tariffs on U-S exports from July the first. Legally, workers can not work over 60 hours in a week in many Chinese regions, but workers get paid 1.5 times for overtime or weekend hours, so many workers want to take those shifts.

The billionaire chief of Foxconn Technology Group, the main iPhone assembler for Apple and the builder of Echo and other devices for Amazon, argues that China's "unreasonable" restrictions on overtime hours hurts his workers and the company's competitiveness.

China's commerce ministry accused the United States on Thursday of being "capricious" over bilateral trade issues and warned that the interests of us workers and farmers would ultimately be hurt by Washington's penchant for brandishing "big sticks". Foxconn received billions in state and local aid in exchange for a promise to create jobs. "The trade war is not about trade, but it is a tech war, and it is a manufacturing war". "Right now during the low season we are following China's regulations, and in the peak season we are following USA regulations".

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