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The whole point of an attack is that it hurts the other guy. If you're afraid to hurt China's economy, or worse if you fear that China will counterattack, then
by totalZero 6y ago
The whole point of an attack is that it hurts the other guy. If you're afraid to hurt China's economy, or worse if you fear that China will counterattack, then you have already lost.
The trade relationship between China and the USA is not a symmetrical one. The USA is the customer; it should take its business elsewhere.
Apple spent $100B on stock buybacks last year, and has allocated another $50B for this year. How many factories could Apple have established in Ecuador, Panama, or Mexico with $150B?
Big players like Apple are the ones who must move first, because a manufacturing ecosystem (ie, an urban area like a mini-Shenzhen with access to parts, skilled labor, shipping, worker housing, and prototyping tools) will spring up wherever they go. They are the only ones who have the level of scale and importance to be able to establish a beachhead in a new region. Their ability to bring revenue and jobs gives them power to negotiate favorable terms with governments of small countries.
- NotSammyHagar 6y agoChina has a very sophisticated manufacturing industry there, no doubt the best in the world. It will take a long time to build up the infrastructure of multiple manufacturing engineers in other places, just like the bay area and other places like Seattle have a lot of 'intellectual infrastructure' that companies can hire from. Apple could do this kind of stuff in the US, but it would cost more, at least in the next few years, to establish those kinds of capabilities in the US.