TRADE FIGHT AFFECTS PC

The ongoing trade fight between the US and China has become worse and worse as time goes by. Most recently China has been pressuring local business to get rid of Windows and use domestic operating systems etc. At present the global supply chains are very complex and the moves by China are not going to be easy. Depending the material supply can come from a wide range of places.

Many government agencies already use Lenovo desktop machines, but they contain US-made Intel chips and Korean-made Samsung storage. Analysts at China Security estimate between 20 million and 30 million individual pieces of equipment will need replacing. Software is likely to prove even more difficult as it is very labor intensive to write. 

There are presently 4 Lenovo computers in the studio. The machines are used for a range of purposes. There is also a MacBook which is used for development as well as testing games and business software.

Huawei has its own mobile operating system and they are spending an additional $1.5 billion to improve its capabilities. Huawei also needs developer support if it’s going to become a viable alternative to Android etc.

US suppliers like Dell, HP and Microsoft could lose as much as $150 billion a year. Dell has already complained about the disruption of the supply chain. Rest of the industry has remained comparatively quiet.

Consumers in China are struggling as food prices have risen by 19.1% driven largely by the African Swine Fever that has caused widespread damage to the pork industry. The virus causes a haemorrhagic fever with high mortality rates in domestic pigs; some isolates can cause death of animals as quickly as a week after infection. The trade fight means US sales of pork are not available to Chinese consumers.