Chinese tech firms up their game as reciprocal tariffs hit U.S. products

Hong Kong – Marcus Wu’s home racing simulator configuration needs one more thing: a manual change of changes. A decade ago, one of a western brand would have been obvious for players such as the Hongkonger of 12 years.

As President Donald Trump’s trade war increases with Beijing, the fact that Wu opted for a change of Chinese manufacturer Moza illustrates how far Chinese manufacturers have arrived competing with their western counterparts about affordability and quality.

The deep economic conflict between the United States and China, the two largest economies in the world, has the potential to wreak havoc on a complex globalized trade network. And Trump’s attempts to recover the manufacture of US coast could have involuntary consequences, including giving Chinese technology manufacturers at a time when US products are already becoming expensive.

Wu and his father-cum-financial, Mingfai, have already made their decision, opting for a Chinese alternative on US brands such as Thrustmaster, based in Oregon. “If only the price were good, but the quality was not, then I would not have bought this,” said old man. “But this is cheaper and works very well.”

The duo was sailing on the computer market Shui Po Shui Po de Hong Kong, a large center of small technological stores that sell everything, from computer pieces to game teams for casual players and enthusiasts equally.

For residents and tourists from Continental China, a country with a game market of half a billion users, the market is a unique window, with the best US brands, including Dell, Corsair and the Swiss manufacturer that is quoted in Nasdaq Logitech.

Those are just some of the companies that compete for the market share in a game industry that the estimates of the accounting firm PricewaterhouseCoopers will be $ 300 billion by 2027. According to the Chinese game industry report, China players contributed $ 44 billion in sales to the industry last year.

To be safe, western brands remain popular when it comes to large ticket articles such as monitors, processors and storage devices, but market vendors told NBC News that Chinese brands have been eliminating it from the park when it comes to accessories, such as mice, keyboards and simulative configurations.

“Many Chinese manufacturers appeared after pandemic,” said Dennis Leung, sales assistant in a store that specializes in game peripherals. “They often provide an extremely cheap and bargain price compared to the entire market,” he said.

Standing in front of a 30 mice table, Leung held two with identical sensation and weight. The Chinese option, which was cheaper and more powerful, had been selling to its western counterpart, he said.

The Trump administration issued last week a memorandum that says that electronics, including computers, smartphones and some components, will be temporarily exempt from the levies imposed on Chinese imports.

But Trump’s indication that duties on semiconductors and other technologies could be on their way means that it is still not clear if electronics could be more expensive in the United States and if the prices of products made in the United States could also increase for the rest of the world.

This uncertainty may already be causing nervousness to companies such as Dell, the technological giant of $ 56 billion has a 20% participation in the global games market, as well as the market capitalization of $ 12 billion for Logitech and specialists such as Corsair, which is worth $ 630 million.

Administration rates in the market arrive at a time when the quality of Chinese products has already improved greatly. That gives Hong Kong’s suppliers the opportunity to capitalize.

When it comes to buying accessories for games, buyers really do not care where the final product, Kira Fong, manager of another store in the market, to NBC News comes from. “Most people only look for quality. They still want the best team,” he said.

Analysts expect China manufacturing technological products to only improve.

“People choose more Chinese manufacturing products in each industry, not only personal computers, games, smartphones or electric vehicles,” said Xiao Feng Zeng, who analyzes the China’s play and electronic sports industry in Niko Partners, an Asian and European game intelligence firm.

“Its quality is better and the price is cheaper,” said Shanghai headquarters, adding that Trump’s policies will harm the United States capacity to compete for young players.

The president’s policies, which refers to himself as “tariff man”, are already feeding at higher prices.

Hyte, a PC sister brand for Ibypower games, based in California, said this month on X that, although it was in an increase in prices, these prices will not be sustainable in the long term.

That was not a problem for Marcus Wu, and what is more important, his father, at the end of the Sham Shui Po market.

With his son excited to go home and play with his new change of changes, Mingfai Wu gave a sigh of relief.

“It’s Chinese,” said old man. “That’s why it’s cheap and good!”