As the trade war between the US and China gets messy, companies are preparing for what is to come. The US government has severely banned Chinese companies. The ban is stricter with Chinese manufacturing giant Huawei. As of now, there is no new ban on any American company by the Chinese. However, the more the US oppresses China, the more it will reciprocate, sooner or later. If there is retaliation from China, Apple will probably be the first beneficiary. For this purpose, the American company composes its home.
Apple is preparing for the future
In order to ensure the stability of the iPhone supply in the Chinese market, Apple is creating a “cleaner” industrial line. One of the major signs is that the Shenzhen Luxshare Precision spent 3.3 billion yuan to acquire Wistron in China. The foundry is now officially in the manufacture of iPhone.
The importance of the Chinese market for Apple is self-evident. The Chinese smartphone market is the largest in the world. In contrast to the Indian market, which mainly focuses on cheap phones, China strongly protects all segments. The Chinese smartphone market is very competitive, but it is also profitable. Apple is closely monitoring the US / China situation and planning ahead.
In addition, an iPhone metal case supplier, Catcher Technology, intends to sell 30% of its shares in its mainland factory. Luxshare has also been involved in negotiations in the past, but then turned to Casetek, a subsidiary of Pegatron. However, Catcher now has a new buyer and is currently negotiating a deal. Obviously, behind this reorganization of the supply chain lies Apple’s alignment and support. The idea is that the complete production process of Chinese iPhones will take place in China.
More Chinese companies will face the US ban
In recent years, tensions between the US and China have reached new heights. At the moment, the US is dealing with Huawei and facing other Chinese companies. At the moment, his eyes are on TikTok and this short video app has two options. It either sells its American companies to an American company or is banned. Earlier today, Microsoft officially confirmed that it is in talks with ByteDance (TikTok’s parent company) to acquire a stake in TikTok. Although the Chinese application is reluctant to sell, it must make a decision by September 15. The restriction will definitely not stop with Huawei and TikTok. Other popular Chinese companies will probably follow soon.