After its 2018 American ban on the Chinese telecom appliances manufacturer, Huawei, China is ready to seek revenge. China is rumoured to label Apple as an ‘unreliable entity’. This could potentially damage this American company who is laboriously and steadily depended on China.
This dispute dates back to 2018 when American Government warned its citizens from buying Huawei smartphones. Eventually preventing Google from providing Google service to Huawei. This ban was supposed to end this month, but Trump further extended the ban to 2021.
Even after getting banned from using Google Services, Huawei still managed to sell 240 million smartphones last year, predominantly in the Chinese market.
Adding to this tension, Washington recently planned to block shipments of semiconductors to Huawei Technologies from foundries all around the world, which also includes TSMC. This would put the Chinese company into grave danger. This is because Huawei’s Kirin chipset’s infrastructure are currently designed by TSM.
Reuters reported on a new Chinese threat to Apple.
The report in the Global Times stated that the Chinese government is launching an investigation and will impose restrictions on US companies such as Apple Inc. Cisco System Inc., Qualcomm Inc and Boeing Co airplanes. This will potentially put these US companies under the Unreliable Entity List.
Apple had reportedly planned to shift its production from China to India, which again seems to be under greater conflict as Trump plans to heavily tax companies manufacturing outside US.