Author: James Alexander Michie
China threatens without fear with great anger and what many consider as a nationalist feeling to Apple if the company does not share the wealth.
Due to the growing trade war between China and the United States, both nations have attacked again and again and no doubt increasingly stronger, now, could China harm the United States in any way that goes beyond raising the tariff rate? , the answer is yes, and that China has previously hinted at what it could do if a trade war starts, since in March in a Chinese Communist Party newspaper a list of companies from the United States was released that could be considerably “damaged” which included Apple Inc., Intel Corp., and Boeing Co.
In spite of this, these were simply hidden threats and for some, China refused to move away from the hypothetical, which took an unexpected turn because an article was released in which the gaze was fixed directly on Apple, in which It reflects that the company benefited from cheap labor as well as a strong supply chain in China and that it is also necessary to share the profits or as some called it “riches”, with China. Likewise in that article, it is emphasized that Apple Inc. reported that in the quarter ended on June 30, there was an increase in sales in China with 19% to $ 9.6 million, which has been a very beneficial quarterly result and that was not expected.
Meanwhile, if the trade war continues, it will leave as a consequence several US companies with significant vulnerable Chinese incomes as “exchange currencies” for Beijing. On the other hand, The Daily warns that China is the most important foreign market for Apple and similarly states that it has left the company exposed if China turns it into a target of nationalist anger and sentiment, however, it also ensures that China does not want to close its doors to Apple in spite of the chaos that has arisen around the commercial war, but if the company continues acquiring certain “Wealth” in China it must share the dividends of development with the nation.
That said, Apple would be forced to increase domestic wages, invest more in China and likewise share its technology, if it refuses to do so it will suffer the consequences becoming a target to significantly harm.
Source: Tyler Durden | Zero Hedge
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