Shares of Taiwan-based computer hardware maker Gigabyte have plunged due to a blog post noting that Chinese goods are of poor quality.
Shares of Taiwan’s Gigabyte, the company at the center of an international scandal, plunged 10% on the Taiwanese stock exchange on Wednesday, Bloomberg reported. The market value of the manufacturer of motherboards, monitors, video cards, and other computer components fell by $550 million, and this was due to its statements to Chinese manufacturers.
The Taiwanese company posted a blog post on Monday saying it did not find the quality level of Chinese goods good. Gigabyte said Taiwanese-made electronics (including its products) were of higher quality. With this statement, the company also tried to influence competitors who ordered products from Chinese OEMs.
The reaction to such an incident came without delay. The post quickly spread to Chinese social media, where users urged everyone to boycott the Taiwanese brand’s products. Shortly afterward, Chinese online marketplaces JD.com and Suning.com joined the protest. Since Wednesday, searches on these sites for products that use the keywords “Gigabyte” and “Jijia” (the company’s Chinese brand) have shown no results.
Bloomberg tried to get information from JD.com and Suning.com, but both companies declined to comment. Gigabyte removed the original post from its blog on Tuesday and replaced it with an apology. In particular, the Taiwanese manufacturer said the previous statement was “very contrary to the facts” and that the company was proud of the quality of products labeled “Made in China.”