For decades now, Apple has facd an ever-escalating series of challenges in China, from fake stores and factory protests to tightening censorship and mass app bans by the Chinese Communist Party. Now, the company risks getting dragged into the most volatile issue in U.S.-China relations: the future of Taiwan.
Liza Lin, Joyu Wang, and Yang Jie for The Wall Street Journal.:
On Sunday, Taiwanese contract manufacturer Foxconn Technology — one of Apple’s largest suppliers — said it is cooperating with Chinese authorities after state media reported China had opened tax and land-use probes into the company. The investigations come as Foxconn’s billionaire founder Terry Gou pursues a bid for the Taiwan presidency.
The probes, announced days after Apple Chief Executive Tim Cook was in China, open the possibility of a new category of geopolitical risk for Apple in the country… Cook met with China’s senior party and state leaders last week as part of his second visit this year…
In a meeting with Cook, Chinese Vice Premier Ding Xuexiang promised that China would offer more opportunities and a better environment for foreign companies to develop in the country.
On the heels of that reassuring message, China’s investigation into Foxconn is a jarring reminder for Apple of the broadening range of risks it must deal with in the world’s second-largest economy. The probes also amid intensifying competition between Beijing and Washington, with Taiwan’s future at the center of rising tensions…
Apple is so invested in China, both from a consumer and manufacturing standpoint, that it would be challenging to reduce risk in the short term, said Randal Phillips, a strategic consultant on China issues. “Apple is going to have to bet on a gamble that they are ‘too big to fail’ in China,” said Phillips…
MacDailyNews Take: We covered the issue of Apple’s increasingly risky dependence on China last November: Tim Cook firmly latched Apple onto China’s CCP teat. What’s his plan for weaning it off?
Apple’s biggest risk is one of its own making, made specifically by Tim Cook, Chief Operating Officer turned Chief Executive Officer: The company’s potentially crippling over-dependence on CCP-controlled China. – MacDailyNews, February 16, 2023
See also: Tim Cook’s Apple is built in China; now it has to answer to the Chinese Communist Party – May 17, 2021
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Who knows, Tim Cook may have to switch sides one of these days.
I’m not sure where Cook is supposed to go (for manufacturing and assembly) of Apple’s products. China, for now, is the only country that can meet Apple’s needs. It looks like big strides have been made in India, but to completely replace China? Uh… India is gonna need another 20 or 30 years
Remember the chip shortages/ delays due to the Kovid Klown Krisis? You know, all of those cheap-o-chips that power cruise control in cars, trackpads, ceiling fans, etc. Those days will pale in comparison if Commie China gets its hands on TSMC… makers of the BIG chips that power the BIG stuff. Not just Apple stuff, but BIG BOY REAL military grade stuff. But, with Joe in total un-control of global events, I’m sure there is nothing to worry about. Nothing to see here… just Afghanistan, Iran, Ukraine, Russia, Israel, Palestine. Oh, and I almost forgot, the US, too. Move along folks. Move along to another day at the beach with Miz DOCTOR J as the world burns. Move along folks
You are 100% on 🎯 Joe !!