Here we go again. After thinking that an all-out trade war with China had been averted, President Donald Trump has thrown fresh gas and emptied a fire that seemed to burn down to bays. First, there was another batch of $ 200 billion of Chinese goods. Then there was a confirmation order prohibiting US telecommunications companies from using equipment from any company as a national security threat.
Huawei received that label after reports of leaks, vulnerabilities and backdoors were published over the past two years. Chinese hacking, spying and corporate espionage have long been a major problem for the West, but it seems that Huawei is probably more scapegoat than grand mastermind.
While nothing but potential Apple chargers are definitely affected by this new round of tariffs (so far), it still has a huge negative impact. Apple was back on the doorstep of a trillion dollar valuation a few weeks ago, but their stock market fell as soon as the news of these new charges became public. There is good reason for this, as nationalist setbacks in China are gaining momentum. As the biggest US target, Apple will carry a huge burden here.
According to a report by BuzzFeed News, there is already a lot of setbacks and require boycotting of Apple products on Chinese social media. China has also retaliated with a 25% tariff of $ 60 billion in US goods. This is all very bad news for the company, as their latest quarterly report indicated that the worst of their sudden downturn in China looked like it was over. It has almost certainly changed now.
The news is not just bad for Apple, either.
"Some Weibo users went further and called for rejection of other US technologies." Trump doesn't allow businesses to use Huawei, so let's not use Apple. We should not buy any phone that also uses Qualcomm. "
All US technology companies that have a large presence in China are likely to face the same setbacks as Apple.
Unfortunately, sits US executive and legislative branches [1