Despite pretty harsh claims from China threatening punishment against Apple, nothing could happen CNBC spoke to a set of experts who they say that Apple has indirect relations in China and that within itself will dismiss any potential action being taken,
The iPhone maker has a good relationship with Beijing and, indirectly via its manufacturing partners, employs hundreds of thousands of workers in the world’s second-largest economy, factors that could dissuade China from taking action against the company.CNBC
According to an expert who spoke to CNBC, China won’t take the risk of upsetting Apple when it already plays such an influential role in its economy,
“China is already facing headwinds as companies such as Apple look to diversify their manufacturing base,” Neil Shah, research director at Counterpoint Research, told CNBC. “So it could be a double whammy if China targets Apple in China and indirectly Foxconn, it would further accelerate the manufacturing to outside of China.”
On Friday a Chinese state-run newspaper put an article saying the Chinese government would take legal action against Apple and other Ameican companies over Washington’s treatment of Huawei. That same day the President Trump administration cit supplies for American companies to Huawei in a move that upset the regime.
China threatened “countermeasures” listing only one specific of listing Apple as an “unreliable entity list,” the exacts of that list remain a mystery. this also comes the same day that Apple chip supplier TSMC announced it was building a production plant in Arizona, then reportedly it cut off supply to Huawei entirely.
Apple’s feud with China has always been indirect via the White house. The ongoing trade war between the two countries has pushed Apple into a corner, only recently being able to void tariffs on specific products. It’s unclear what China will do next, or how Apple will respond, but one thing is for sure, it probably won’t be pretty.