Impact of Trade War on Xiaomi's New Subsidiary in USA

Context of international business.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
Brief description of US - chain trade war...................................................................................4
Business analysis.........................................................................................................................5
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Xiaomi is Chinese electronic organization founded in 2010 by Lei Jun in Beijing, they
make and invests in mobile applications, bags, smartphones, laptops, earphones, fitness bands,
trimmers and many other products (Greeven & Wei, 2017). It is youngest firm on fortune global
500 list, they released their first smartphone in 2011 and continuously gained revenue as well as
market share in china that help to become nation’s biggest smartphone organization. Xiaomi is
the world’s fourth largest smartphone producer, lead in largest market, India and biggest market,
China. It developed board range of customer electronic goods, including smart home device
ecosystem. In china, Malaysia, Singapore and India organization has 15,000 workers. They
expand their business many nations effectively including Philippines, Indonesia and South
Africa. Recently company named one of the qualified candidates for virtual bank licenses in
Hong Kong (Lun & Yazdanifard, 2014). They introduced Xiaomi Mi 9 phone which come with
new technology that is fingerprint scanner. It is considered as second products of this brand with
different technology available in market. They see hardware sales as means of providing services
in long term and delivering software. Firm is internet organization with smart hardware and
smartphones connected by LOT platform as their core business. With vision of being coolest
business and being friend with their consumers, Xiaomi is devoted to constant innovation, with
unwavering centering on efficiency as well as quality (Rambi, 2015).
They relentlessly build their amazing products with honest prices to let every consumer in world
enjoy the best and better life through creative technology (Shih, Lin & Luarn, 2014). Currently,
firm goods are present in more than 90 regions and nation all around the world, company have
top position in many markets. Business achieve strong and high growth across all business
segments. They continued to shine even in face of high competition from international and
domestic peers with powerful and unique business model. It is considered as china-based
investment holding firm principally engaged in development, research and sales of smartphones
(Yang & Ma, 2016). The organization mainly conducts their business with the help of four
segments. First segment is smartphone that engaged in sales of products, second one is lifestyles
and LoT goods segment that engaged in sales of other in-home products, including laptops, smart
television and artificial intelligence speakers. Third segment is internet service that engaged in
provision of internet value added services and promoting service. The last segment is involved in
facility of repair services for their hardware goods. The aim of business is to regularly exceed

expectations through innovation in hardware, services and software. Xiaomi smartphone
shipments for India sustained to demonstrate powerful progress momentum and reached number
one market share position. Organization reach at international market, with continue to work on
fundamentals, reinforce their abilities in innovation, supply chain management and strengthen
quality control strategy (Casanova & Miroux, 2019). Accordant to market investigation global
data corporation, organization is placed at fourth biggest position in world where they gain high
amount of profit and generate revenue rather than before. Xiaomi expand outside of home town
with their first international headquarter in Singapore where they operate business efficiently
(Bhatnagar, 2019).
MAIN BODY
Brief description of US - chain trade war
Trade war is economic issue resulting from extreme protectionism in which state create
and raise tariffs against each other in response to trade challenges developed by US. US and
China trade war is ongoing economic problems between both nations. In newest development in
trade dispute between United states and China, the Trump management announced delay to
newly planned 10% tariffs on another $300 billion of Chinese products. The president began
setting trade obstacles on China with goal of pressuring it to make modifications to what US says
is unfair and unequal trade practices. Among those trade activities and their affects is increasing
trade deficit, forced transfer of American technologies to China and theft of intellectual property
(Wisner, Tan & Leong, 2014). The president of US supported tariffs to reduce trade deficit, they
promote domestic manufacturing saying nation was being ripped off by their imposing tariffs
and trading partners became major plank of their presidential campaign.
The trade war impact on farmers in US as well as manufacturers of products, in other
nations trade war between US and China caused economic damage, on the other hand some
countries get benefited from maximizing producing to fill gaps (Seabrooke & Wigan, 2017). It
criticized all over the world, including by US agricultural companies and businesses, however
most farmers continued to help Donald Trump. China replies, threatening their own tariffs of US
products, stating that United States launched a trade war. Export and import markets in number
of countries feared charges would interrupt supply chains that ripple around the world. In US,
trade war brought difficulties for manufacturers, it increases prices for customers. Recently US
release their new regulatory guidelines for their telecom networks process to secure telecom