CNBC: Apple could be used as a 'bargaining chip' in the trade war, Chinese state media warns
* Apple has benefited from cheap labor and strong supply chain in China which has helped it boost profit and get to a $1 trillion valuation, the state-backed People's Daily said.
* The U.S. firm should share that money with Chinese citizens, the article urged.
* Apple could be the target of "anger and nationalist sentiment" amid the ongoing trade war.
Apple has benefited from cheap labor and a strong supply chain in China and needs to share more of its profit with the Chinese people or face "anger and nationalist sentiment" amid the ongoing trade war, an article in the state-backed People's Daily warned Tuesday. The article originally appeared in another state-backed publication, Global Times, last week.
The opinion piece highlights how Apple made $9.6 billion in revenues in China in the June quarter, which helped the U.S. giant to recently hit a $1 trillion valuation.
But the continuing trade war between the U.S. and China could leave Apple and other U.S. firms vulnerable as "bargaining chips" for Beijing, according to the article.
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WNU Editor: By issuing these threats the Chinese are making the case on why foreign companies should not invest in China. This type of rhetoric is going to backfire on China .... if not already. These threats are also telling me that the Chinese government is concerned on where this trade war is heading, and they are reacting accordingly.
7 comments:
Yeah that's cute and all but Europe (Juncker) has already indicated that they'll use this historic opportunity and join the US in settling their bill with China. Im not a math genius but china cannot win this by a long shot. They'd lose against the US alone. We've pulled our assets several months ago - way before the Juncker's/Trump joint press briefing. .haven't looked back. China made enemies around the world and they all get the knives out
Well if the chinese cannot win on the economic front there's only one other solution to win.Backing down is not an option.Taiwan should get ready.
Globalization is failing when China threatens to devour an American supply chain based in China. I can't think of any action better suited to accomplish Trump's goal of bringing back manufacturing from China to the USA. This smacks of Chinese flaying about as they run out of tariffs to slap on US products.
What!! I think we should ask why is the Times writing such a piece; it's a scare tactic to drive the vote in November. Why not have the Times promote fair trade practices.
They had $35 billion stacked up overseas wasn't it? Kinda high priced stuff, it seems to me judging by their computer prices over here. Take out the cult factor and their sales would decline somewhat and still be more pricey than most.
In the interests of transparency, I must admit that I drive and overhaul when necessary a 1967 VW sedan that I bought in 1971 so my astonishment at what Apple gets away with in the gadgetry price arena may not be reflective of the average American but still.....$35Bill!!! Folks, that's not chump change. Even to Ms.
Pelosi.
That's a lot of Chinese jobs and paychecks at stake in an allegedly slowing Chinese economy.
"Iafiv Iv said...
Well if the chinese cannot win on the economic front there's only one other solution to win.Backing down is not an option.Taiwan should get ready."
I am thinking Vietnam is on the top of the list, like the Rhineland was. Easy pickings, VN has no friends who can help. The US and Russian aid would be limited, at best.
Bhutan next, but that could bring in India and a big war with two nuclear ace card holders.
I bought flyswatters today. Walmart. Identical appearance as the Chinese ones I owned prior. A few swats and man I felt young again. The accuracy of old was back. Picked those things off my window screen sideways with hardly a sound from the screen and with the slightest flick of my wrist. And no bent handle in the aftermath. Precision.
Two lessons here; these were made in the Philippines #1, #2, we don't need Chinese fly swatters.
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