GoPro to shift camera production from China amid trade conflict

By MarketsFOXBusiness

GoPro getting cold feet over possible sale: Sources

FBN’s Charlie Gasparino discusses whether GoPro will sell and what JPMorgan is advising the company to do.

GoPro will shift some of its camera production out of China amid an escalating trade conflict between Beijing and the U.S., according to a press release Monday.

Continue Reading Below

The company said it would stop producing U.S.-bound cameras in China by the summer of 2019. GoPro will still manufacture camera bound for international destinations in China.

"Today's geopolitical business environment requires agility, and we're proactively addressing tariff concerns by moving most of our US-bound camera production out of China," said Brian McGee, executive vice president and CFO of GoPro. "We believe this diversified approach to production can benefit our business regardless of tariff implications."

The U.S. government slapped tariffs on $250 billion worth of Chinese-made goods earlier this year. President Trump has sought to achieve trade parity between the two nations and crack down on intellectual property theft and other corporate malpractice. The Chinese government has responded with retaliatory measures.

More on this:

Trump and Chinese President Xi Jinping agreed to a 90-day truce on the trade conflict earlier this month. However, the arrest last week of a top executive from Chinese tech firm Huawei further inflamed tensions.

GoPro CFO Brian McGee said that the company’s ownership of production equipment used to make its cameras ensures that the decision will be “relatively low cost.”

The company is set to showcase its new “Hero 7” line of cameras at CES in Las Vegas starting on Jan. 8.

What do you think?

Click the button below to comment on this article.