4 ms·

I don't understand why everybody is dismissing any chance of retaliation against for instance Apple. With this they're killing a major player outside China, tha

by mnl 7y ago

I don't understand why everybody is dismissing any chance of retaliation against for instance Apple. With this they're killing a major player outside China, that's about half of their smartphone sales ($52B revenue). I don't think China is going to take it just like that.

freeflight 7y ago
Because this is already framed as retaliation for "China being evil and stealing our jobs and IP". So once the actual Chinese retaliation is gonna hit, it can be played up for full effect as "Look at what they are doing now! They never stop attacking us!" to further rile up the sentiments.
- close04 7y ago
  It probably won't be "retaliation" as people imagine it: the government stepping in and taking aim at Apple. Chinese consumers might decide (be encouraged) to buy more Huawei and less Apple. It can be something as indirect as making the US the devil on every possible channel or as direct as including a "patriotic" point in their scoring systems. There's a myriad of ways China could hit at Apple or other US companies without the government directly executing them.
  - panpanna 7y ago
    This had already happened. When US blocked use of Huawei network equipment they started a major PR campaign on China. In China Huawei numbers are up, Apple is down so I guess it worked.
  - westiseast 7y ago
    I for one feel like there’s actually limited play in this - America already is and has been the boogeyman for years. Whipping up nationalistic sentiment and expecting consumers to fall in line is a transparent tactic and younger, affluent consumers are fairly cynical. It rarely has any long term effect either (see previous nationalistic anti-Japan and anti-Korea consumer boycotts). Also don’t underestimate the power of Apple brand - it’s not like banning Google or Facebook which had very limited presence in Chinese minds. Moves to limit access to Apple products, tax them, ban them etc would not go down well. The government could offer more subsidies to domestic companies, better credit terms or financial incentives, but then that’s just China paying for the cost of Trumps tariffs - Trump wins. That said, Huawei and other phone makers have been taking chunks out of Apple by making better phones at competitive prices - that’s what actually moves consumers.
treis 7y ago
Retaliating against Apple hits China as well since Apple's products are manufactured/assembled there. China has a tightrope to walk here. Companies like Apple can shift their manufacturing to different countries and likely will if China comes down too harshly on them.
rchaud 7y ago
Retaliating against Apple would spook governments of other countries that are still planning to proceed with Huawei's 5G equipment. I think Huawei is betting that this is more political theater from Trump, and can be resolved with a token gesture that lets the Pres declare the outcome as a win for him personally.

by mnl 7y ago

freeflight 7y ago

Because this is already framed as retaliation for "China being evil and stealing our jobs and IP". So once the actual Chinese retaliation is gonna hit, it can be played up for full effect as "Look at what they are doing now! They never stop attacking us!" to further rile up the sentiments.

close04 7y ago
It probably won't be "retaliation" as people imagine it: the government stepping in and taking aim at Apple. Chinese consumers might decide (be encouraged) to buy more Huawei and less Apple. It can be something as indirect as making the US the devil on every possible channel or as direct as including a "patriotic" point in their scoring systems. There's a myriad of ways China could hit at Apple or other US companies without the government directly executing them.
- panpanna 7y ago
  This had already happened. When US blocked use of Huawei network equipment they started a major PR campaign on China. In China Huawei numbers are up, Apple is down so I guess it worked.
- westiseast 7y ago
  I for one feel like there’s actually limited play in this - America already is and has been the boogeyman for years. Whipping up nationalistic sentiment and expecting consumers to fall in line is a transparent tactic and younger, affluent consumers are fairly cynical. It rarely has any long term effect either (see previous nationalistic anti-Japan and anti-Korea consumer boycotts). Also don’t underestimate the power of Apple brand - it’s not like banning Google or Facebook which had very limited presence in Chinese minds. Moves to limit access to Apple products, tax them, ban them etc would not go down well. The government could offer more subsidies to domestic companies, better credit terms or financial incentives, but then that’s just China paying for the cost of Trumps tariffs - Trump wins. That said, Huawei and other phone makers have been taking chunks out of Apple by making better phones at competitive prices - that’s what actually moves consumers.

treis 7y ago

Retaliating against Apple hits China as well since Apple's products are manufactured/assembled there. China has a tightrope to walk here. Companies like Apple can shift their manufacturing to different countries and likely will if China comes down too harshly on them.

rchaud 7y ago

Retaliating against Apple would spook governments of other countries that are still planning to proceed with Huawei's 5G equipment. I think Huawei is betting that this is more political theater from Trump, and can be resolved with a token gesture that lets the Pres declare the outcome as a win for him personally.