Chinese state media is warning that Apple could face “anger and nationalist sentiment” as retribution for President Donald Trump’s tough stance regarding revision of U.S. trade agreements with Beijing. The article by the communist state also believes that the American company valued at $1 trillion should share some of its profit with Chinese citizens, who it said formed the cheap labor and strong supply chain to put it at that level of profit. But China could be seeding its own demise. Apple has alternative suppliers in other countries that aren’t manipulating their currencies to gain advantage over the dollar.
Here’s more from CNBC…
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’s recently adopted protectionist measures hit Chinese companies hard,” the People’s Daily said.