China won’t target Apple despite the US Huawei ban

Published or Updated: May 28, 2019

Huawei CEO advising China not to punish Apple for the U.S. actions against the Chinese telecom giant, citing the possible loss of technological advancements.

Apple and Huawei

Why China won’t target Apple despite the US Huawei ban

Apple will no doubt suffer if it is forced to shift its manufacturing operations, but China will feel even more pain if the US tech giant walks out or curtails its operations in the country.

Factories that churn out iPhones, iPads and other Apple gadgets employ hundreds of thousands of Chinese in mammoth facilities, providing economic security to the workers as well as boosting the local economies.

The US firm currently sources many components from Chinese suppliers. If it is compelled to move production elsewhere, several supply chains will get affected, and the damage to the Chinese industry will be huge.

Apple’s iPhone sales slump while China’s Huawei gains

Apple’s biggest cash cow, the iPhone, continued to suffer weaker sales around the world in first quarter of the year as Chinese tech giant Huawei flexed its muscles and claimed more market share from Apple and its longtime rival, Samsung.