Apple unlikely to face much backlash from latest U.S. move against Huawei

Posted:
in General Discussion
Although China is threatening to take "countermeasures" against U.S. companies for blocking semiconductor shipments to Huawei, experts say it's unlikely Beijing will go after Apple.

An Apple Store in China with its logo illuminated for World AIDS Day. Credit: Wang Gang
An Apple Store in China with its logo illuminated for World AIDS Day. Credit: Wang Gang


Earlier in May, the U.S. moved to block shipments of chips made by U.S. software or hardware to Huawei. In response, China threatened to retaliate against U.S. companies by launching investigations or placing firms on an "unreliable entity list."

Despite that, experts familiar with Apple's relationship with Beijing told CNBC that it's unlikely that the Cupertino tech juggernaut will face much backlash over the move.

Counterpoint Research Director Neil Shah said that any restrictions on Apple's operations in the country could "further accelerate" the company moving its manufacturing elsewhere -- something China would like to avoid.

By way of supply chain partners like Foxconn, Apple indirectly employs hundreds of thousands in China.

"Apple has huge and indirect contribution to the Chinese economy," Shah told CNBC. "So Beijing will have to think twice before targeting Apple."

The company has also enjoyed a good relationship with Chinese authorities, according to Eurasia Group's Paul Triolo. Though some brand boycott efforts may happen, he said it's unlikely that there will be "major moves" against the high-profile company.

It wouldn't be the first time that Apple has faced some backlash from a U.S. move against Huawei. After the U.S. placed two bans on Huawei using American equipment, some citizens and companies in China began boycotting Apple. That boycott didn't appear to have a huge effect on Apple, however.

The company has been incredibly careful how it operates in China, which likely helped its reputation with officials in Beijing. Apple removed a mapping app used by pro-democracy Hong Kong protestors in 2019, for example.

But while Apple probably won't face the brunt of China's "countermeasures," experts say that the government is still likely to target U.S. firms.

"At a minimum there will likely be investigations of U.S. companies for anti-monopoly behavior and for compliance with the provisions of the cybersecurity law," Triolo said.

That would give China plenty of flexibility to appease anti-Apple activists through symbolic actions while not "further poisoning the business environment" in China for U.S. and foreign firms, Triolo added.

Comments

  • Reply 1 of 7
    lkrupplkrupp Posts: 10,557member
    Apple is already moving some manufacturing out of China. The communist totalitarian government probably doesn’t want to accelerate that movement by smacking Apple down hard.
    razorpitshaminowatto_cobra
  • Reply 2 of 7
    sflocalsflocal Posts: 6,123member
    lkrupp said:
    Apple is already moving some manufacturing out of China. The communist totalitarian government probably doesn’t want to accelerate that movement by smacking Apple down hard.
    Yep... because each and every move Apple makes to move manufacturing probably results in hundreds, if not a few thousand jobs moving as well.

    Good.  I'm happy to see ANYONE taking a stand against China.  They have gotten away with way too much for far too long.
    tmayrazorpitFredwardwatto_cobra
  • Reply 3 of 7
    sflocal said:
    lkrupp said:
    Good.  I'm happy to see ANYONE taking a stand against China.  They have gotten away with way too much for far too long.
    Stand up and be happy: Throw away from your China made iPhone and Mac and MacPro and Beats and bla bla bla...
    dewmeleavingthebiggGeorgeBMac
  • Reply 4 of 7
    Is “anti-monopoly behavior“ an illegal activity in China?
    watto_cobra
  • Reply 5 of 7
    razorpitrazorpit Posts: 1,796member
    tabarnack said:
    sflocal said:
    lkrupp said:
    Good.  I'm happy to see ANYONE taking a stand against China.  They have gotten away with way too much for far too long.
    Stand up and be happy: Throw away from your China made iPhone and Mac and MacPro and Beats and bla bla bla...
    And replace them with?
    watto_cobra
  • Reply 6 of 7
    dee_deedee_dee Posts: 129member
    tabarnack said:
    sflocal said:
    lkrupp said:
    Good.  I'm happy to see ANYONE taking a stand against China.  They have gotten away with way too much for far too long.
    Stand up and be happy: Throw away from your China made iPhone and Mac and MacPro and Beats and bla bla bla...
    China didn't make them, they just assembled them.
    watto_cobra
  • Reply 7 of 7
    GeorgeBMacGeorgeBMac Posts: 11,421member
    Probably not....   Apple and China have had a very good relationship that has benefited both.
    But not so for some other U.S. companies and operations. 
    ... China has made it clear they are done bearing the brunt of politically motivated games from the American Right Wing.

    And, that is why, very likely, we will see this whole ridiculous charade fade away:  As U.S. companies realize they will be targeted, not only will they put pressure on the Conman to end his game.  But too, the Conman will again start to see the impact of his foolishness take down the American stock market and economy that he is depending on to backstop his reelection.

    Stock Market advisor Jim Cramer is a major Trump supporter and China hater.   But even his response was:  "Are you CRAZY?  Why would you do something like this?"
    Why?
    1)  To distract from his own failures to protect the country and its people
    2)  To punish what he sees as his political enemies.

    So again, Why?
    It has nothing to do with anything involving protecting America or Americans and everything to do with protecting Trump
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