• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • About
  • Gowling WLG
  • Legal information
  • Privacy statement
  • Cookie Policy
  • Home
  • About
  • Public Law & Regulation
  • AI
  • Posts

LoupedIn

Protectionism and tech’s raw materials

Published on September 20, 2018 by Gowling WLG

Protectionism and tech’s raw materials


The technology we increasingly rely on every day such as phones, tablets and personal computers are made up of different components. These components and other parts are made using raw materials that can be found in countries all over the world. Materials including aluminium, lithium and cobalt have been listed by the World Bank as likely to see heightened demand in the future as we become even more reliant on technology, highlighting potential issues around protectionism.

On 12th September at their special event in Cupertino, Apple announced their latest generation of hardware with a series of new iPhones and Apple Watch. While the technology giant no longer discloses pre-order numbers for their iPhone sales, the fulfilment of pre-orders for the iPhone X in 2017 experienced delays due to the scale of demand.

There are now three new iPhones in Apple’s smartphone line up with the iPhone XS, iPhone XS Max and iPhone XR. The iPhone XS and iPhone XS Max come with an A12 bionic chip and up to 512GB in capacity. These new features that are being made available in iPhones and other smartphones are being made possible by numerous raw materials. The governments that are rich in these materials have sway over global supply, having the ability to impact prices if other jurisdictions do not have the reserves to make up for any restrictions and meet demand.

How can protectionism affect technology?

The earth metals that are found in the components of devices like iPhones are sourced from jurisdictions across the globe. Some countries such as China are rich in these metals, causing the possibility of some concern for technology companies as they find themselves relying on foreign production.

Shortages and bottlenecks in the availability and sustainability of the raw materials used in technology may be affected by protectionist trade policies such as tariffs, duties or taxes. While measures have been put in place to overcome these potential issues, the discovery, extraction and production of raw materials is fast-paced and prices fluctuate as materials are found in new locations.

How will protectionism affect the future?

As technology continues to develop, the need for the production of natural resources will only continue to grow. The demand for raw materials like lithium is likely to become difficult to keep up with if the mass adoption of electric vehicles occurs. With changes such as the UK government banning the sale of petrol and diesel cars from 2040, the need for raw materials in comparison to the amount needed to power smartphones and other devices will exponentially increase.

Companies planning on investing in specific industries need to consider how much tax they will be paying or if prices will rise when demand increases. As raw materials continue to be discovered in new locations, local producing and processing companies should take advantage of the increased demand caused by technology to improve their own development and growth in the mining sector.

Taking advantage of protectionism

The global rise of protectionism must lead businesses to question whether they are leaving themselves open to risk or prepared to find opportunities.

Our Insights and Resources are recommended for businesses trading internationally. We will update you regularly with information from our legal experts on protectionism, as well as other sectors and services you may be interested in.

Sign up for our protectionism updates


Gowling WLG

Filed Under: Opinion Tagged With: Protectionism, Tech

Views expressed in this blog do not necessarily reflect those of Gowling WLG.

NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Gowling WLG professionals will be pleased to discuss resolutions to specific legal concerns you may have.

Primary Sidebar

Recent Posts

  • Heading back to prosperity – A green light for UK office developments
  • European Data Protection Board issues draft guidelines for data breach notifications
  • Restriction on Public Sector Exit Payments revoked (for now)

Footer

LoupedIn is the Official Gowling WLG Blog. Gowling WLG is an international law firm comprising the members of Gowling WLG International Limited, an English Company Limited by Guarantee, and their respective affiliates. Each member and affiliate is an autonomous and independent entity. Gowling WLG International Limited promotes, facilitates and co-ordinates the activities of its members but does not itself provide services to clients. Our structure is explained in more detail on our Legal Information page.

  • Home
  • About
  • Gowling WLG
  • Legal information
  • Privacy statement
  • Cookie Policy

Gowling WLG 2020

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.

SAVE & ACCEPT