“President Donald Trump is preparing a series of efforts to limit China’s ability to invest in the U.S. tech sector, multiple media reports have suggested, putting the sector front-and-center in the brewing trade war between Washington and Beijing,” Martin Baccardax writes for TheStreet. “The Wall Street Journal first reported Monday that the President will use the wide-reaching International Emergency Economic Powers Act of 1977 to invoke national security concerns to limit the ability of China-owed or China-backed firms to invest in U.S. companies that are linked to ‘industrially significant’ U.S. technology. The reports also said that the U.S. Treasury and Commerce Departments, as well as the National Security Council, were drafting plans to introduce ‘enhanced’ export controls, that could be unveiled as early as this week, to keep American technology from finding its way to China.”
The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A. Trade must be fair and no longer a one way street! – U.S. President Trump via Twitter, June 24, 2018
The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A. Trade must be fair and no longer a one way street!
— Donald J. Trump (@realDonaldTrump) June 24, 2018
“U.S. tech companies, including Apple, which sold more iPhones in China than it has in the US for the past three years and generated 20% of its nearly $200 billion in annual revenues there, have important links to both mainland China and Taiwan,” Baccardax writes. “Foxconn, on the flipside, relies on its Apple contract — the last of which was reportedly worth $7.5 billion — for more than half its revenues.”
Read more in the full article here.
“‘We’ve got trillions of dollars seeking our crown jewels of technology,’ said White House trade adviser Peter Navarro last week. ‘There has to be a defense against that.’
Before the rules go into effect, the individuals said, U.S. industry would have a chance to comment,” Bob Davis reports for The Wall Street Journal. “‘The President has made clear his desire to protect American technology,’ said Commerce Secretary Wilbur Ross, in a statement to The Wall Street Journal on Sunday. ‘All possibilities that would better protect American technology, including potential changes to export controls, are under review.'”
“Josh Kallmer, senior vice president at the Information Technology Industry Council, a trade association of high-technology companies, said he expected plenty of companies to offer comments on the proposal,” Davis reports. “‘There is opportunity for the administration to arrive at a formula for policy that addresses national-security risks in a targeted way and not put a blanket on activities that our companies are involved in every single day,’ he said.”
Read more in the full article here.
MacDailyNews Take:
I’m cognizant that in both the U.S. and China, there have been cases where everyone hasn’t benefited, where the benefit hasn’t been balanced. My belief is that one plus one equals three. The pie gets larger, working together. — Apple CEO Tim Cook, March 24, 2018
At least half of the popular fallacies about economics come from assuming that economic activity is a zero-sum game, in which what is gained by someone is lost by someone else. But transactions would not continue unless both sides gained, whether in international trade, employment, or renting an apartment. — Thomas Sowell, June 14, 2006
SEE ALSO:
The Trump administration told Apple it would not place tariffs on iPhones assembled in China – June 19, 2018
Chinese stocks end at 2-year low, Apple suppliers sink on trade-war concerns – June 19, 2018
Why Apple CEO Tim Cook is acting like tech’s top diplomat – June 18, 2018
Apple CEO Tim Cook doesn’t expect a full-blown trade war between the U.S. and China – June 5, 2018
President Trump and Apple CEO Cook meet at White House with trade the focus – April 25, 2018
Apple CEO Cook to meet with President Trump – April 25, 2018
Why Apple stock can withstand a Chinese trade war – April 5, 2018
Apple CEO Tim Cook heads to China as President Trump orders 25 percent tariffs on up to $60 billion in Chinese imports – March 23, 2018
BoA Merrill Lynch: Apple is prepping a ‘foldable’ iPhone; U.S. and China trade tensions not an issue for Apple – March 23, 2018
Designed in California. Assembled in China. How Apple’s iPhone skews U.S. trade deficit – March 21, 2018
President Trump blocks Broadcom-Qualcomm deal over China concerns – March 13, 2018
Elon Musk sides with President Trump on trade with China – March 8, 2018
Analyst: President Trump’s tariff impact on Apple would be just a ’rounding error’ – March 7, 2018
Apple and other tech firms caught in crossfire as U.S.-China trade war looms – March 7, 2018
Apple Macs caught up in President Trump’s aluminum tariff plan – March 2, 2018