BUSINESS

Chinese Wearable Tech Firms Explore Overseas Production as U.S. Tariffs Soar

Published: Apr. 15, 2025 4:31 a.m. GMT+8

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An attendee wears a pair of AR glasses at the Mobile World Congress in Barcelona, Spain, on Feb. 27, 2023. Photo: Bloomberg

In the face of rising U.S. tariffs, Chinese wearable tech companies are racing to explore overseas manufacturing and increasing product innovation to retain their global competitiveness, executives said at Hong Kong’s InnoEX technology fair on Monday

The urgency came as the United States ratcheted up its “reciprocal tariffs” on Chinese goods to up to 145% within a week, with plans to target electronics next. Although semiconductors, computers and smartphones were recently exempted, their exclusion from tariffs is expected to be short-lived, further pressuring Chinese exporters.

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Explore the story in 30 seconds

Chinese wearable tech firms are exploring overseas manufacturing and product innovation to tackle rising U.S. tariffs, which recently increased to up to 145%.
Companies like Kopin and Momax emphasize adapting to customer needs and ensuring competitive pricing, showcasing AI-driven devices at Hong Kong’s InnoEX fair.
U.S. tariff hikes have caused order cancellations and price pressures, prompting some manufacturers to consider relocating production to countries like Cambodia.

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Who’s Who

Kopin Corp.: Kopin Corp., maker of Solos smart glasses, is addressing rising U.S. tariffs by working with partners to establish overseas factories to stay competitive. The company has shifted focus from hardware to AI innovation in recent years, developing smart glasses with real-time scene recognition and aiming to overcome challenges like server delays and weight issues. President Zhang Huiquan emphasized the importance of affordability and competitiveness in retaining customers amidst the tariff pressure.

Momax: Momax, a smart ring maker, is adapting to U.S. tariff hikes by focusing on product innovation and customer needs. Chief Operating Officer Alex Chung emphasized the importance of maintaining strong product models to stay competitive, noting that despite higher tariffs, customers prioritize brand and competitiveness.

Lenovo: Lenovo, operating factories across continents and selling in 180 markets, is preparing for potential turbulence due to rising U.S. tariffs. Harris Ming, senior manager at Lenovo’s AI Powered Vertical Solutions, stated the company is committed to maintaining its global supply despite uncertainties in the trade environment.

IDC: IDC, the analytics provider mentioned in the article, identifies China and the U.S. as the main markets for smart glasses. Their target customers include business professionals, tech enthusiasts, and vision-impaired users. Adoption is also growing in developed Southeast Asian and Middle Eastern countries.

Walmart: The article mentions a Ningbo-based supplier to Walmart and Costco stating that U.S. buyers, including Walmart, canceled orders due to rising tariffs, causing significant pressure on suppliers.

Costco: The article mentions that a Ningbo-based supplier to Walmart and Costco faced U.S. buyers canceling orders after the tariff hikes. This situation, coupled with European clients demanding lower prices, has pressured the supplier, prompting them to plan for a potential production shift to Cambodia.

AI generated, for reference only