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China doesn't just provide supply chain anymore. They are also a huge market now because of its growing middle class. China has money to spend and US companie
by schiang 6y ago
China doesn't just provide supply chain anymore. They are also a huge market now because of its growing middle class. China has money to spend and US companies need to tap into that market.
- phone8675309 6y agoThey're also now the market that all movies must target in order to be successful.
- reaperducer 6y agoThey're also now the market that all movies must target in order to be successful. It depends on your definition of "successful." You can have a successful movie and not distribute it in China. It won't make the absolute maximum number of dollars possible on planet Earth, but it can still be a successful movie.
- phone8675309 6y ago> You can have a successful movie and not distribute it in China. It won't make the absolute maximum number of dollars possible on planet Earth, but it can still be a successful movie. The business success or failure of a movie is entirely determined by how much money it makes. To maximize that success (or even to be considered a success), you must publish in China.
- reaperducer 6y agoThe business success or failure of a movie is entirely determined by how much money it makes Even without your movement of goalposts, a movie can still be successful without being in China. The most successful movies in history were released, and massively profitable, before China's market opened to the rest of the world. To maximize that success (or even to be considered a success), you must publish in China. This is simply false. There are plenty of successful businesses, movies, video games, and other enterprises that never touch China. I hate to break it to you, but China is a non-factor for the vast majority of businesses on the planet.
- reaperducer 6y agoChina has money to spend and US companies need to tap into that market. "Choose to" tap into that market. No company "needs" to be in China. Just like there are thousands of companies in Europe that do not do business in the United States, and thousands of companies in Brazil that do not do business in Russia.
- lotsofpulp 6y agoIt is conceivable in a winner take all business, or a top 2 take all business, you either tap into the world’s largest market or you don’t survive. For example, Apple being able to lock up all the supply of higher end chips and smaller companies not being able to compete.
- Clubber 6y ago>It is conceivable in a winner take all business, or a top 2 take all business, you either tap into the world’s largest market or you don’t survive. The US is the world's largest market, by a lot. https://en.wikipedia.org/wiki/List_of_largest_consumer_markets https://en.wikipedia.org/wiki/List_of_largest_consumer_marke...
- lotsofpulp 6y agoYes, I meant the world’s top markets. Especially one that’s up and coming.
- deleted 6y ago[deleted]
- dalbasal 6y agoYou're getting kind of semantic. Theoretically, No company "needs" to be in business at all. If Chinese consumer market growth continues as it has been, it may the biggest market for Apple. Hard to be the largest luxury goods company in the world without the largest luxury goods market... OP is right. This gives China influence. Supply chain influence is a minor thing, relative to "I'm your biggest customer" influence.
- ng12 6y agoIs there a good reason why we shouldn't sanction China like we do Russia, NK, and Iran? There's plenty of money to be made in those countries too.
- mullingitover 6y ago> There's plenty of money to be made in those countries too. Russia GDP: ~1.7 trillion Iran GDP: ~0.45 trillion North Korea GDP: ~0.028 trillion Meanwhile, China GDP: ~14.34 trillion
- macintux 6y agoOne reason, good or not depending on your views, is that China’s GDP is 10x Russia’s, 20x Iran’s, and 1000x North Korea’s (and I have to suspect that’s generous towards NK). https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal) https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nomi...
- SiempreViernes 6y agoThere are US sanctions on China. There is however a huge problem with sanctions: you need to have a realistic plan for what you want to accomplish with your sanctions, or else it does little more than adding some friction to trade. That means that if you want to actually change the behaviour of a nation using sanctions, you need to have modest goals, an acceptance of compromise, and a readiness to let the other side come out looking like a respectable partner. These are basically things the US cannot muster in the relationship with Iran and North Korea, and the American violation of the JCPOA has significantly eroded US ability to persuade other countries to impose their own sanction. For China and Russia, the US alone cannot impose any important amount of sanctions and have them be upheld by third parties, the USA trying to block all imports from China would just mean the rest of the world needs to switch to using Yuan or Euros because that volume of trade simply cannot be replaced.
- jonathannat 6y agoUS has started to, with sanctions on xinjiang related companies, with sanctions on chinese officials over hong kong. It's just a matter of time before more sanctions arrive. Because dictatorships are short-sighted and incapable of change. So let's say China tries to prod Taiwan with some military approach and fails. Or escalation of border war with India or Vietnam or Japan. Or increasing purchases or Iranian goods. When there's a mini-war started by China in Asia, you will see a full worldwide sanction on China.
- JustSomeNobody 6y agoApple has a $2T market cap. Do they truly "need" China? I know, I know, they have a responsibility to their shareholders, blah blah. But Two Trillion Dollars.
- gfiorav 6y agoYes. Never forget how the US seemingly thought that its companies, unchecked, would defend the national interests. We should all learn from this.