Apple May be Used as Hostage by China Against USA


#1

“The eye-catching success achieved in the Chinese market may provoke nationalist sentiment if U.S. President Donald Trump’s recently adopted protectionist measures hit Chinese companies hard,” the People’s Daily said.

“China is by far the most important overseas market for the U.S.-based Apple, leaving it exposed if Chinese people make it a target of anger and nationalist sentiment. China doesn’t want to close its doors to Apple despite the trade conflict, but if the U.S. company wants to earn good money in China, its needs to share its development dividends with the Chinese people.”

It’s unclear how the publication thinks Apple should share its profits with Chinese citizens.

^ All from article.

We must pay close attention to the ways in which international companies operate between China and USA as a thermometer for their conflict. How do they share their profits (and those indirect benefits these cause on society) as ordained by the law and regulation? How have these things changed over the last few years?

What would be the social impact from an increase in the price of the next iPhone if China exercises their power over Apple? It would have a very strong demoralizing effect in the USA electorate and would doubtlessly lead to more conflict, both internally and in response to China.

What is the extent to which China can work their influence on Apple? If Apple has a backdoor to their users’ devices, it is vulnerable to forceful takeover by Chinese authorities.


#2

The Pentagon has ordered all stores on U.S. military bases worldwide to ban mobile phones and other telecommunications equipment made by the Chinese companies Huawei Technologies Co. Ltd. and ZTE Corp. after senior U.S. intelligence officials warned the phones could be used to spy on Americans and U.S. service members.
Some years ago, Chinese military technicians took over in flight a top secret CIA stealth drone and landed it an Iranian Air Force base.
This outrage was only in the news for a very short time, one day. I can only imagine how the Chinese military accomplished this astonishing act .


#3

Trump underestimates China, and only Pentagon reports seem to tell the whole story of China.


#4

Cool! I hadn’t heard of these, I’ll give them a read.


#5

Oh , how so ?? :thinking: Please tell us all . :laughing:


#6
  1. Sounds a lot like a wealth redistribution scheme from this “state-sponsored publication”

but if the U.S. company wants to earn good money in China, its needs to share its development dividends with the Chinese people.

It’s unclear how the publication thinks Apple should share its profits with Chinese citizens.

  1. Cheap labor benefits both Apple and the Chinese people. If they have a better opportunity, they would take that vs. working for Apple. The wage may not look like a lot for US citizens, but they are living wages for the Chinese people over there, for the people with that skill level and demographics. If Apple wasnt there, they would be scrambling for something else.

  2. Apple already exposed themselves for intellectual property theft by setting up their factories in China. China is a sizable market for Apple when it first started there, but now there are other imitators that are making “Apple-lite” products that sell for much cheaper, even tho they have the same builds. Oppo is a prime example of this, among other lesser known brands.

https://www.quora.com/Why-is-Apple-silent-about-all-the-Chinese-smartphone-companies-Xiaomi-Oppo-Vivo-directly-copying-their-ideas

https://www.wsj.com/articles/beijing-regulator-orders-apple-to-stop-sales-of-two-iphone-models-1466166711

  1. The Chinese government already implemented policies here and there to curb Apple’s sale in China, when other companies want to get into the market of smartphone

So in conclusion, its nothing but a bluff bc China does not want to lose the money that Apple is pouring into China through R&D and other human capital investment, as well as intellectual property mentioned above.


#7

We can always ask Sen. Dianne Feinstein (D-Calif.) AND her personal driver who is a Chinese SPY !!!. :exploding_head: The SPY “worked” for COMMIE Feinstein for 20 YEARS, according to reports. It was unclear how long he had been providing information to the Chinese government. :thinking::thinking: I wonder , did the FBI plant an agent in her office , did they apply for a VISA warrant , tap her phone , bug her office . :wink:


#8

Listen to her conversations and phone calls, look at sensitive documents, gps all her locations, tap that wrinkled ass… :laughing:


#9

WHOA !!! :mask: Ain’t nobody tapping that thing !!! :scream: :laughing::laughing::laughing:


#10

The Chinese aren’t known for their taste…they eat anything…:laughing::laughing:


#11

Stop , I’m puking . :grimacing:


#12

In practice the transfer of production by Apple from China elsewhere is a nightmare. The associated costs are ridiculous, and while Apple certainly brings a lot of business to China, it also presents an excellent target for China because Apple is so highly regarded and visible in the lives of cosmopolitan Americans.

There is no reason to believe that this is only a bluff, there is a lot more to be won by China other than the fact that it would lose Apple’s business, as it is unlikely that Apple would ever think that it is actually sound to leave China, as the supply chains and available labor is unavailable to that scale anywhere else.

The point is that China can apply pressure through various American companies that operate in China. Apple, by being the most valuable company in the US, and a highly regarded treasure of American business.

People will notice and care if iPhone prices go up and therefore this makes Apple a highly susceptible bargaining chip for China that the US will want to prevent for PR purposes.

Smells like conflict.


#13

Hence the recent moves from Apple to relocate back to the US and elsewhere. Yes, transferring production immediately while shutting down their operations in China is costly, hence Apple and their associate partners are making the move slowly for some times now.

Tho I agree, through much regulations and taxing, the US manufacturing base and availability is rather a joke comparing to one in China. That and the fact that other components being largely produced in the vicinity in either Taiwan, S. Korea and China itself makes it an enticing place to mass-produce their product. I do hope that the recent tax break would somewhat revitalize the manufacturing base in the US, tho that is an overly-optimistic outlook.

Funny how socialist China has a more flourishing and “freer” manufacturing base, unshackled by over-regulations and governmental interventions.

On the price and its social effect, I dont think it will have much of an impact since the price of their phones has been creeping up tremendously comparing to their leading competitor, Samsung. The Iphone X costs $1K and the S9 varries between $720 to $800ish. Sure people will complain, but they will buy the product regardless bc of consumer loyalty.