In-Depth

by Malcolm Riddell

Apple in China
5

'Tim Cook and Apple Bet Everything on China.'

Wall Street Journal

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May 20, 2021
'Tim Cook and Apple Bet Everything on China.'
'Tim Cook and Apple Bet Everything on China.'
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Apple in China

5

BIG IDEA | ‘For Apple, a clean break with China is impossible.’

‘For Apple, a clean break with China is impossible.’

  • ‘Apple relies on a workforce of more than three million indirect workers in China.’
  • ‘Its top manufacturer, Taiwan’s Foxconn Technology Group, hires hundreds of thousands of seasonal employees in China, many of whom manually insert tiny screws and thin printed circuit boards during the iPhone assembly process, people familiar with the process said.’
  • ‘Tens of thousands of experienced manufacturing engineers oversee the process.’

‘Finding a comparable amount of unskilled and skilled labor is impossible, said Dan Panzica, a former Foxconn executive.’

  • ‘The population in China has allowed suppliers to build factories with a capacity for more than 250,000 people.’
  • ‘The number of migrant workers in China, who do much of Apple’s production, exceed Vietnam’s total population of 100 million.’
  • ‘India is the closest comparison, but its roads, ports and infrastructure lag far behind those in China.’

‘ “You’re not going to be able to have mega-factories anywhere else,” Mr. Panzica said. “You’re going to have to break them up.” ’

‘Moving out could also jeopardize Apple sales in China, which counts for nearly a fifth of its total revenue.'

  • ‘Employing so many local workers helped the company gain access to the market and any reduction might weaken its standing with the government, which wields tremendous influence over how global brands are perceived.’
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In-Depth

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Malcolm Riddell
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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
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CHINADebate

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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
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CHINADebate

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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
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CHINADebate

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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

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Andrew Browne | Bloomberg
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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

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Shuli Ren | Bloomberg
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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

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Shuli Ren | Bloomberg
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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

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Tom Westbrook | Reuters
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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
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CHINADebate

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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

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CHINADebate

Malcolm Riddell
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CHINADebate

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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

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Rana Mitter | Oxford
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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

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Rana Mitter | Oxford
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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

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Rana Mitter | Oxford
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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

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Rana Mitter | Oxford
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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

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

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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

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

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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