In-Depth

by Malcolm Riddell

Apple in China
1

‘Censorship, Surveillance and Profits: A Hard Bargain for Apple in China’

The New York Times

CHINADebate

|

Jack Nicas, Raymond Zhong, & Daisuke Wakabayashi | The New York Times
&

by
|
|
&
May 20, 2021
‘Censorship, Surveillance and Profits: A Hard Bargain for Apple in China’
‘Censorship, Surveillance and Profits: A Hard Bargain for Apple in China’
No items found.

Heading

Jack Nicas, Raymond Zhong, & Daisuke Wakabayashi | The New York Times

Apple in China

1

BIG IDEA | ‘Apple built the world’s most valuable business on top of China. Now it has to answer to the Chinese government.’

You should read the entire, very detailed, investigative report – excellent, both about Apple and as a case study for foreign tech in China.

‘Two decades ago, as Apple’s operations chief, Tim Cook spearheaded the company’s entrance into China, a move that helped make Apple the most valuable company in the world and made him the heir apparent to Steve Jobs.’

  • ‘Apple now assembles nearly all of its products and earns a fifth of its revenue in the China region.’

‘But just as Mr. Cook figured out how to make China work for Apple, China is making Apple work for the Chinese government.’

  • ‘Behind the scenes, Apple has constructed a bureaucracy that has become a powerful tool in China’s vast censorship operation.’

'China’s leader, Xi Jinping, is increasing his demands on Western companies, and Mr. Cook has resisted those demands on a number of occasions.'

  • But he ultimately approved the plans to store customer data on Chinese servers and to aggressively censor apps, according to interviews with current and former Apple employees.'

‘Mr. Cook often talks about Apple’s commitment to civil liberties and privacy.'

  • 'But to stay on the right side of Chinese regulators, his company has put the data of its Chinese customers at risk and has aided government censorship in the Chinese version of its App Store.’

‘It proactively censors its Chinese App Store, relying on software and employees to flag and block apps that Apple managers worry could run afoul of Chinese officials, according to interviews and court documents.’

  • ‘Tens of thousands of apps have disappeared from Apple’s Chinese App Store over the past several years, more than previously known, including foreign news outlets, gay dating services and encrypted messaging apps.’
  • ‘It also blocked tools for organizing pro-democracy protests and skirting internet restrictions, as well as apps about the Dalai Lama.’

‘And in its data centers, Apple’s compromises have made it nearly impossible for the company to stop the Chinese government from gaining access to the emails, photos, documents, contacts and locations of millions of Chinese residents.’

‘The company has also helped China spread its view of the world.’

  • ‘Chinese iPhones censor the emoji of the Taiwanese flag, and their maps suggest Taiwan is part of China.’
  • ‘For a time, simply typing the word “Taiwan” could make an iPhone crash, according to Patrick Wardle, a former hacker at the National Security Agency.’
more
In-Depth

CHINADebate

CHINADebate

Malcolm Riddell
|

CHINADebate

|
&
|

AUKUS: A New World Order?

‍In case you passed over the news of AUKUS, the new strategic alliance among the U.S, the U.K., and Australia, here a few headlines to encourage a deeper look.
9/19/2021

CHINADebate

CHINADebate

Malcolm Riddell
|

CHINADebate

|
&
|

Xi Jinping: Today, video games. Tomorrow, well ... just be good.

Today's issue is a heads up on what may be Xi Jinping's efforts to reshape Chinese society.
9/7/2021

CHINADebate

Malcolm Riddell
|

CHINADebate

|
&
|

The Taliban: 'China's Perfect Partner'?

Breaking through the blow-by-blow reporting that started when the Taliban began its sweep to victory are the geopolitical analyses of who gains and who loses in Afghanistan.
8/28/2021

CHINADebate

Malcolm Riddell
|

CHINADebate

|
&
|
China's Tech Crackdown
0

China's Tech Crackdown: 'Nobody Saw It Coming.' — Huh?

‘Carnage in China's financial markets signals the beginning of a new era as the government puts socialism before shareholders, and regulatory changes rip apart the old playbook,’ writes Reuters’ Tom Westbrook.
8/1/2021

Bloomberg

CHINADebate

|

Andrew Browne | Bloomberg
|
&
|
China's Tech Crackdown
2

'Why China Is Cracking Down on Its Technology Giants'

‘Why, you may ask, is China crushing some of its most innovative unicorns? We’re in a new era led by President Xi Jinping, and politics are in command.’
8/1/2021

Bloomberg

CHINADebate

|

Shuli Ren | Bloomberg
|
&
|
China's Tech Crackdown
4

'Xi's Four Pillars of Regulation'

‘Broadly, Beijing is concerned about four pillars of stability: banking, anti-trust regulation, data security and social equality. All of Beijing’s major interventions reflect these concerns.’
8/1/2021

Bloomberg

CHINADebate

|

Shuli Ren | Bloomberg
|
&
|
China's Tech Crackdown
3

'Stock Market: China Doesn’t Care How Much Money Investors Lose'

‘Does Beijing not care how much money foreign investors have lost? Does the government really want to close China Inc.’s access to the deep pool of global capital? The short answer is, no, the government doesn’t care.
8/1/2021

Reuters

CHINADebate

|

Tom Westbrook | Reuters
|
&
|
China's Tech Crackdown
1

'The most significant philosophical shift since Deng'

‘Carnage in China's financial markets signals the beginning of a new era as the government puts socialism before shareholders and regulatory changes rip apart the old playbook. According to some analysts, it is the most significant philosophical shift since former leader Deng Xiaoping set development as the ultimate priority 40 years ago.’
8/1/2021

CHINADebate

CHINADebate

Malcolm Riddell
|

CHINADebate

|
&
|

Didi: Xi Surprises Us Again

Beijing shocked the financial world when it pulled the rug out from under Didi days after its IPO on the New York Stock Exchange and also announced new regulations reigning in overseas IPOs and Chinese companies already listed.
7/8/2021

CHINADebate

CHINADebate

Malcolm Riddell
|

CHINADebate

|
&
|
What the West Gets Wrong About China
0

‘Why do business and political leaders in the West persist in getting China so wrong?’

From that I suggested that to invest successfully in China, you have to understand – and be aware of - what those differences are.
6/20/2021

Harvard Business Review

CHINADebate

|

Rana Mitter | Oxford
|
&
|
What the West Gets Wrong About China
1

Part 1 | ‘Why do business and political leaders in the West persist in getting China so wrong?’

‘Why do business and political leaders in the West persist in getting China so wrong?’
6/20/2021

Harvard Business Review

CHINADebate

|

Rana Mitter | Oxford
|
&
|
What the West Gets Wrong About China
2

Part 2 | ‘Myth 1: Economics and Democracy Are Two Sides of the Same Coin'

‘The truth, then, is that China is not an authoritarian state seeking to become more liberal but an authoritarian state seeking to become more successful—politically as well as economically.’
6/20/2021

Harvard Business Review

CHINADebate

|

Rana Mitter | Oxford
|
&
|
What the West Gets Wrong About China
3

Part 3 | ‘Myth 2: Authoritarian Political Systems Can’t Be Legitimate’

‘A Marxist-Leninist system is concerned not only with economic outcomes but also with gaining and maintaining control over the system itself.’ ‘That has huge implications for people seeking to do business in China.’
6/20/2021

Harvard Business Review

CHINADebate

|

Rana Mitter | Oxford
|
&
|
What the West Gets Wrong About China
4

Part 4 | ‘Myth 3: The Chinese Live, Work, and Invest Like Westerners’

‘For much of its turbulent modern history, China has been under threat from foreign powers, both within Asia (notably Japan) and outside it (the UK and France in the mid 19th century).’ ‘China’s rulers, therefore, see foreign engagement as a source less of opportunity than of threat, uncertainty, and even humiliation.’
6/20/2021

The New York Times

CHINADebate

|

Jack Nicas, Raymond Zhong, & Daisuke Wakabayashi | The New York Times
|
&
|
Apple in China
1

‘Censorship, Surveillance and Profits: A Hard Bargain for Apple in China’

‘Apple built the world’s most valuable business on top of China. Now it has to answer to the Chinese government.’
5/20/2021

Wall Street Journal

CHINADebate

|

|
&
|
Apple in China
5

'Tim Cook and Apple Bet Everything on China.'

‘For Apple, a clean break with China is impossible.’
5/20/2021

The New York Times

CHINADebate

|

Jack Nicas, Raymond Zhong, & Daisuke Wakabayashi | The New York Times
|
&
|
Apple in China
2

'Apple in China: No Plan B'

“This business model only really fits and works in China. But then you’re married to China.” ‘The Chinese government was starting to pass laws that gave the country greater leverage over Apple, and Mr. Xi would soon start seeking concessions. Apple had no Plan B.’
5/20/2021

The New York Times

CHINADebate

|

|
&
|
Apple in China
3

'Apple Reaches $2 Trillion'

“This business model only really fits and works in China. But then you’re married to China.” ‘The Chinese government was starting to pass laws that gave the country greater leverage over Apple, and Mr. Xi would soon start seeking concessions. Apple had no Plan B.’
5/20/2021