APPLE is trying to reduce its dependence on China, but is having difficulty dumping the nation, reports Bloomberg.
In recent years, American companies have had a growing list of reasons to downgrade their ties with China, including tariffs, China's Covid lockdowns, the Taiwan situation and more.
In an earlier-than-usual move for new models, Apple started producing some iPhone 14 models in India.
Apple's largest supplier, Foxconn Technology Group, recently agreed to a US$300 million expansion of its production facilities in Vietnam.
Meanwhile, Bloomberg Intelligence estimates it would take eight years to move 10 per cent of Apple's production capacity out of China, where 98 per cent of the company's iPhones have been made.
'With China accounting for 70 per cent of global smartphone manufacturing and leading Chinese vendors accounting for nearly half of global shipments, the region has a well-developed supply chain, which will be tough to replicate - and one Apple could lose access to if it moves,' said analysts Steven Tseng and Woo Jin Ho.
Many companies attempting to unwind those ties could take forever and may cause lasting damage to an already damaged global economy.
Of course, unanticipated events, such as the Russian-Ukraine war, provide a reminder of the systemic risks of economic integration and the time decoupling can take.
Under US President Joe Biden, the US$615 billion US-China trade relationship has turned into a cold war following the tensions under Trump that resulted in tariffs on a collective $360 billion worth of bilateral goods, along with US sanctions on critical Chinese technology manufacturers.
The Covid crisis caused President Xi Jinping's strict virus-containment policies, which barred travel and left major areas locked down for extended periods.
Said Centre for Strategic and International Studies senior adviser Scott Kennedy: 'There was some momentum in this direction as a consequence of the trade war and the pandemic,'
'The Shanghai lockdown was really a monster accelerant. And the cross-strait crisis in early August added more fuel to the fire.'
Yet the Biden administration's reshoring strategy remains a lofty but unfulfilled ambition.
SeaNews Turkey
In recent years, American companies have had a growing list of reasons to downgrade their ties with China, including tariffs, China's Covid lockdowns, the Taiwan situation and more.
In an earlier-than-usual move for new models, Apple started producing some iPhone 14 models in India.
Apple's largest supplier, Foxconn Technology Group, recently agreed to a US$300 million expansion of its production facilities in Vietnam.
Meanwhile, Bloomberg Intelligence estimates it would take eight years to move 10 per cent of Apple's production capacity out of China, where 98 per cent of the company's iPhones have been made.
'With China accounting for 70 per cent of global smartphone manufacturing and leading Chinese vendors accounting for nearly half of global shipments, the region has a well-developed supply chain, which will be tough to replicate - and one Apple could lose access to if it moves,' said analysts Steven Tseng and Woo Jin Ho.
Many companies attempting to unwind those ties could take forever and may cause lasting damage to an already damaged global economy.
Of course, unanticipated events, such as the Russian-Ukraine war, provide a reminder of the systemic risks of economic integration and the time decoupling can take.
Under US President Joe Biden, the US$615 billion US-China trade relationship has turned into a cold war following the tensions under Trump that resulted in tariffs on a collective $360 billion worth of bilateral goods, along with US sanctions on critical Chinese technology manufacturers.
The Covid crisis caused President Xi Jinping's strict virus-containment policies, which barred travel and left major areas locked down for extended periods.
Said Centre for Strategic and International Studies senior adviser Scott Kennedy: 'There was some momentum in this direction as a consequence of the trade war and the pandemic,'
'The Shanghai lockdown was really a monster accelerant. And the cross-strait crisis in early August added more fuel to the fire.'
Yet the Biden administration's reshoring strategy remains a lofty but unfulfilled ambition.
SeaNews Turkey