Tit For Tat: Who will win this war?

V

VicBee

https://www.pcmag.com/news/chinas-iphone-ban-is-only-just-beginning

China's iPhone Ban Is Only Just Beginning
The ban at Chinese ministries is only the first step, with state companies and government agencies next on the list.

By Matthew Humphries
September 7, 2023

The Chinese government is set to expand the ban on iPhone use to include government-backed agencies and state-owned companies.

China has decided that the iPhone poses a national security risk, but banning the use of Apple's smartphone at some Chinese ministries is apparently just the first step. As Bloomberg reports, the ban is expected to expand to include employees at state-owned companies, as well as those at agencies backed by the government.

The impact of such a ban could be significant on future sales of iPhones in China. For example, state-owned companies such as PetroChina employ over 500,000 people. If you scale that up to include all companies and agencies subjected to the ban, it could easily see Apple lose millions of iPhone users in China this year.

Although Apple is establishing manufacturing locations outside of China, it's still heavily reliant on the country for producing hardware. In turn, Apple has helped create millions of jobs across China in the manufacturing sector, which may play a part in how widespread this ban becomes.

There's also a question regarding consumer confidence going forward—will Chinese consumers continue to choose the iPhone once it becomes widely known the government classes Apple's smartphones as a national security risk?

Alongside the iPhone ban, China is slowly reacting to the US sanctions blocking the most advanced chip-making technologies from being exported to the country. Recently Intel's $4.5 billion Tower Semiconductor acquisition was killed through China's inaction, exports of two vital chip-making metals were restricted, and Micron chips were banned. Meanwhile, Apple will be increasingly glad it decided not to use cheap Chinese memory in its smartphones.

© 1996-2023 ZIFF DAVIS, LLC., A ZIFF DAVIS COMPANY. ALL RIGHTS RESERVED.
More...
 
China has already won. They pilfered western IP for decades and dumped into our markets while keeping their own closed off and tightly controlled. The sanctions are like closing the window when there's a 100ft tsunami barreling towards you.
 
... and that days after Huawei released a satellite capable mobile phone. And the US admitting it is far behind China when it comes to hypersonic weaponry. What did the yanks teach us in econ 101 for the past 80 years? Competition is good ;-)

Even Amazon is turning into a shit show. I hardly order from Amazon anymore. Completely overpriced in Canada and less and less brand products. Turning into Taobao. I save an average 30 to 40 percent on orders from individual stores.

VicBee said:
https://www.pcmag.com/news/chinas-iphone-ban-is-only-just-beginning
More...
 
China already has overtaken the US when PPP GDP accounting model is applied:

GDP_PPP.png


Source: wikipedia, from the above link.

ATTN: the above chart is not up-to-date b/c some months ago Russia has overtaken Germany...
 
Last edited:
Specterx said:
China has already won. They pilfered western IP for decades and dumped into our markets while keeping their own closed off and tightly controlled. The sanctions are like closing the window when there's a 100ft tsunami barreling towards you.
More...
They didn't do anything other than provide efficient labor and factories. Western businesses took their production to China to make more money, which in turn boosted the stock market and financial sector profits.
 
earth_imperator said:
China already has overtaken the US when PPP GDP accounting model is applied:

View attachment 322619

Source: wikipedia, from the above link.

ATTN: the above chart is not up-to-date b/c some months ago Russia has overtaken Germany...
More...
earth_imperator said:
It can not be any worser than today's western fascist Nazi regimes... :)
More...
This almost makes we want to leave the "western fascist Nazi regime" I'm in now for your birthplace or China, but then I saw this
upload_2023-9-7_20-41-8.png

:)
 
https://www.investors.com/etfs-and-...ace-much-larger-problems-in-china-than-apple/

10 U.S. Companies Face Much Larger Problems In China Than Apple
MATT KRANTZ 05:39 PM ET 09/07/2023

If you think Apple (AAPL) has a big "China problem" — you'll be shocked to know it's tiny compared with some other S&P 500 stocks.

Ten stocks in the S&P 500, including Qualcomm (QCOM), Monolithic Power (MPWR) and Texas Instruments (TXN), got more than 27% of their revenue from China (including Hong Kong) or Macau in their latest report annual results, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.

That's much larger than Apple's 18.8% of revenue from China in its latest annual report. And that's potentially a risk as U.S. and China relations strain.

Amazingly, investors don't seem to be pricing in the China risk yet. Shares of the 10 companies with the most Chinese exposure are up 30% this year, outstripping the S&P 500.

But that might be changing — fast. Shares of Apple dropped 3% Thursday on the news some of its products may be blocked for use in China's government.

Big China Slowdown Stings
Relying on China isn't a risk only due to political strains with the West. The economy there is sputtering.

The China economy grew by just 3.2% in the second quarter. That's anemic by the nation's standards.

Which company is most exposed to the mess in China? Computer chipmaker Qualcomm. The company in its latest annual report stated 63% of revenue is from China. Qualcomm is one of the China-exposed companies that is down on a stock-price basis: 3.2% this year.

Tech Relies On China
Tech is one of the most dependent sectors on China. Of the 10 S&P 500 companies most exposed to China, 80% are in the information technology sector.

Following Qualcomm, it's Monolithic Power, which designs power inputs for computer chips. The company got 52% of its revenue from China last year. Even so, shares are up more than 40% this year.

Contrast that with Texas Instruments, which got 49% of revenue from China. Shares are off 0.4% this year. The company's profit is expected to fall by more than 23% this year.

Investors might not be worrying too much about their portfolio exposure to China. But that might change as relations with the U.S. strain more, and the economy slows more.

© 2000-2023 Investor's Business Daily, LLC. All rights reserved
More...
 
You must log in or register to reply here.
Back
Top