Foxconn chief: US-China dispute over tech, not trade

Foxconn Chairman Terry Gou, second from right, prepare to cut a giant cake at an event to celebrate Taiwan-based contract manufacturing giant Foxconn's 30th anniversary of its first investment in Shenzhen, south China's Guangdong province Wednesday, June 6, 2018. The head of Taiwan's Foxconn, which assembles Apple iPhones and other tech products, says Washington's dispute with China is over technology rather than trade. (AP Photo/Kelvin Chan)
Workers walk past a giant cake to celebrate Taiwan-based contract manufacturing giant Foxconn's 30th anniversary of its first investment in Shenzhen, south China's Guangdong province Wednesday, June 6, 2018. The head of Taiwan's Foxconn, which assembles Apple iPhones and other tech products, says Washington's dispute with China is over technology rather than trade. (AP Photo/Kelvin Chan)
Foxconn Chairman Terry Gou, center, prepares to cut a giant cake at an event to celebrate Taiwan-based contract manufacturing giant Foxconn's 30th anniversary of its first investment in Shenzhen, south China's Guangdong province Wednesday, June 6, 2018. The head of Taiwan's Foxconn, which assembles Apple iPhones and other tech products, says Washington's dispute with China is over technology rather than trade. (AP Photo/Kelvin Chan)
Workers cut a giant cake to celebrate Taiwan-based contract manufacturing giant Foxconn's 30th anniversary of its first investment in Shenzhen, south China's Guangdong province Wednesday, June 6, 2018. The head of Taiwan's Foxconn, which assembles Apple iPhones and other tech products, says Washington's dispute with China is over technology rather than trade. (AP Photo/Kelvin Chan)

SHENZHEN, China — The CEO of Taiwan's Foxconn, which assembles Apple iPhones and other products for tech companies, said Wednesday that Washington's dispute with China is over technology rather than trade.

Terry Gou's comments at an event celebrating the anniversary of Foxconn's first investment in mainland China follow Beijing's threat to scrap trade deals with Washington if President Trump's tariff hike on Chinese technology products goes ahead.

"This is not a trade conflict but rather a competition and comparison of technology," said Gou in a video shown in the event.

Foxconn Technology Group, also known as Hon Hai President Industry Co., is the world's biggest contract manufacturer of smartphones, computers and other technology products and is trying to develop its own brands.

Gou said he planned to take part in a groundbreaking ceremony at the end of June for a $10 billion factory that Foxconn is set to build in Wisconsin, but he and other executives said nothing else about the company's plans there or other initiatives outside China.

The White House renewed its threat last week to impose 25 percent tariffs on Chinese technology-related goods in response to complaints Beijing steals or pressures foreign companies to hand over technology. It is due to release a list of products on June 15.

The Chinese government warned Sunday it would scrap deals to narrow its trade surplus with the United States by purchasing more American soybeans and other goods if Trump's tariffs went ahead.

In the video, Gou said the "U.S. is significantly ahead of China" in areas such as jet engines and semiconductors.

"If China is to catch up, allow me to speak frankly, it must be in the areas of manufacturing technology, design and manufacturing technology," he said. "They are the real economy."

Foxconn is trying to develop beyond its roots as a low-cost assembler of products and become an advanced manufacturer and bigger player in the global supply chain.

The company says its Wisconsin factory will make liquid crystal display panels for use in computers, TVs and self-driving cars.

___

Associated Press video journalist Dake Kang contributed to this report.

Must Read

Tesla's Autopilot system under scrutiny in fatal...

Sep 15, 2016

Tesla faces new scrutiny in China about its vehicle Autopilot system after state television...

Asian stocks markets retreat after Wall Street...

Dec 23, 2016

Most Asian stock markets have declined in thin trading ahead of the Christmas holiday after Wall...

China says some factories have violated anti-smog...

Jan 3, 2017

China's environmental ministry says an unspecified number of companies have violated measures meant...

DEA opens shop in China to help fight synthetic...

Jan 6, 2017

The U.S. Drug Enforcement Administration plans to open a new office in southern China and, at...

McDonald's sells China business in deal worth up...

Jan 9, 2017

Fast-food giant McDonald's is selling a controlling stake in its China business to a group of...

Sign up now!

Advertisement