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Apple's China bargain is running out of time

Thursday, August 5, 2021

Significance

A major exception is Apple, for which China is both a major market and a global production base. The firm's activities in China have sparked controversies in both China and the West, but so far it has navigated them successfully. However, recent developments in China's internal environment and foreign relations make the situation more difficult.

Impacts

  • Apple's attempts to diversify its supply chain will create opportunities for other Asian countries.
  • Apple's data activities in China will face scrutiny from overseas, potentially leading to regulatory or market responses.
  • Apple will only retain the foundations of its integrated business model through rigorous compliance with Chinese legislation and regulation.
  • Chinese-US political tension is here to stay; any major US firm with exposure to China is at risk of being used as a pressure point.
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