China has officially repaid by the United States by creating a list of "unreliable" entities that damage the interests of domestic companies. This move is expected to affect several foreign companies that are doing business in China, and Apple is one of them.
As part of this rule, China will set up a process to identify foreign companies that violate the rules, break contracts and turn off Delivery for non-commercial reasons. Gao Feng, spokesman for the Ministry of Commerce, said "necessary action will be taken" against those listed.
The trade wars between the United States and China have already escalated to an unprecedented level. The US government has blocked Huawei from selling equipment in the US and buying parts from US suppliers. China has responded by targeting US tech companies such as Google, Qualcomm and Intel.
This weekend, the United States is able to implement higher tariffs on goods coming from China. Meanwhile, Beijing has already outlined its own retaliation plan. Negotiations between the United States and China went sour after Trump accused China of supporting an agreement. Meanwhile, Chinese officials blamed the Americans to raise their claims.
Michelle Lam, economics from Greater China in Societe Generale SA, was quoted as follows: "Certainly, companies that have announced cutting supplies for Huawei, such as Panasonic and Toshiba, are under threat." Be very detrimental to multinational corporations. "
The long-term trade dispute between the United States and China has shaken the financial markets. Companies like Apple are most affected. In fact, the trade war has also triggered a stock market over the past few weeks. The pale economic outlook is only expected to worsen the situation.
Apple uses US technology and gets units built at Chinese factories owned by Taiwanese companies. Apple has already revealed that iPhone sales in China have fallen sharply. Analysts have predicted that the commercial war could mean a sharp 29% reduction in the company's overall global profits. Meanwhile, the "Boycott Apple" moment seems to pick power in China.
We hope that both the United States and China will dispel the differences and come up with a robust sustainable foreign policy.