Apple could be used as a ‘bargaining chip’ in the trade war, Chinese state media warns
Chinese state media: Apple could be used as ‘bargaining chip’ in trade war from CNBC.
- Apple has benefited from cheap labor and strong supply chain in China which has helped it boost profit and get to a $1 trillion valuation, the state-backed People’s Daily said.
- The U.S. firm should share that money with Chinese citizens, the article urged.
- Apple could be the target of “anger and nationalist sentiment” amid the ongoing trade war.
Apple has benefited from cheap labor and a strong supply chain in China and needs to share more of its profit with the Chinese people or face “anger and nationalist sentiment” amid the ongoing trade war, an article in the state-backed People’s Daily warned Tuesday. The article originally appeared in another state-backed publication, Global Times, last week.
The opinion piece highlights how Apple made $9.6 billion in revenues in China in the June quarter, which helped the U.S. giant to recently hit a $1 trillion valuation.
But the continuing trade war between the U.S. and China could leave Apple and other U.S. firms vulnerable as “bargaining chips” for Beijing, according to the article.
“The eye-catching success achieved in the Chinese market may provoke nationalist sentiment if U.S. President Donald Trump’srecently adopted protectionist measures hit Chinese companies hard,” the People’s Daily said.
Editorial: China will not surrender to US threatening tactic
Washington is playing double-faced tactics in the ongoing trade war. It on one hand threatened to slap a 25-percent tariff on $200 billion of imported Chinese goods after initially setting them at 10 percent, and on the other hand sent the signal through various ways that it is willing to negotiate with China.
From $50 billion, to $200 billion and then the proposed $500 billion, from 10 percent to 25 percent, Washington’s tariff game has been seen through by China.
But it created a new tactic of accelerating the trade war while advertising its willingness for talks. The mainstream opinion is that the US wants to use carrot-and-stick diplomacy to bully China into unilateral trade concessions, while some others hold that the hardliners in the White House overwhelm those calling for talks.
However, both groups share the same goal: to defeat China, no matter they prefer trade war or negotiation. But there is no way for them to be satisfied.
Pointing China with gun and artillery and then asking for a talk, the US showed zero sincerity. The eye-catching economic figure released recently boosted Washington’s confidence, making the arrogant Uncle Sam unaware of where it really is before having rounds of clash with China.
It is very possible that the trade war will be escalated given that both sides have not yet reached the state of strategic stalemate. Analysts said that China suffers the largest impact at the initial phase and the US at a later one. But China will eventually defeat the trade blackmail of the US and it is impossible to force China into surrender to the US coercion.
The countermeasures China took are self-defensive responses. It insisted on not firing the first shot but will hit back once it is bullied.
The country has been well prepared for fighting against the rising US tariffs, but will not fight the US through a self-exhaustion approach. In whatever way the US escalates the trade war, China will react in its own way.
Though China will not start a war, it is a good hand in hitting the pain points of its opponents to defend itself.
Though the US appears to be big and strong, it is in fact vulnerable from inside. Washington is too paranoid and stubborn to take care of the interests of American farmers, entrepreneurs and consumers.
As a matter of fact, some American firms have already been on the brim of collapse, and the farmers are severely hurt by the trade war.