ZTE and Huawei of course, but also the BATX (Baidu, Alibaba, Tencent, Xiaomi), Didi (China’s Uber), and the largest Chinese companies including ICBC, Bank of China, China Mobile, China Telecom, Petro China or SAIC Motor, just to name a few.
They all rely, in some way or another, on technologies, components, software and intellectual properties from many American companies like Apple, 3M, AMD, Applied Materials, Cisco, Corning, Google, Intel, Micron, Microsoft, Qualcomm, Seagate or Western Digital.
A sales ban of American technologies could bring down the Chinese economy
Although difficult to imagine, but not impossible at the current state of the US-China trade dispute, if the U.S. decides to extend the American technology ban to other - or all - Chinese firms, this could bring the entire Chinese economy to its knees.
What the US may actually be doing is hastening China’s ascension as the economic powerhouse of the world. It has the economic base to maintain rapid growth, and its technology vs U.S. technology on all fronts has begun to catch up. Economies of scale and a single market had a lot to do with US growth as a dominant power, and China has this.
Ok I had read the article on Forbes site… Let’s finish the whole article can we:
A realization that Chinese president Xi Jinping had probably in mind when he announced the “Made in China 2025” initiative earlier this month with the intent to create Chinese champions in industries like information technology (IT), renewable energy, electric vehicle, and robots. China’s Plan B: Copy American technology
Technology independence is a noble goal.
And at its current pace, with extensive government subsidies, China could reach its objective of becoming self-sufficient in core technologies like processors, memories, storage, networking or wireless in the next 7-years, and even perhaps in just 5 years.
The bad news is, what do you do while waiting for your technology industry to catch up?
Luckily for China, there’s a plan B.
It would most likely take 3 to 6 months for advanced Chinese tech companies to duplicate U.S. core hardware components and software, which most are already available in open source anyway.
Of course, that would be totally illegal and infringe on the intellectual property of U.S. companies if these products or components were to be sold outside of China.
However, inside of China, the local government would probably see this as fair game.
While the author seems to think China is on the upper hand and whatever the US does or doesn’t do they have upped their game.
Next stop is Africa. Is US pulls it’s manufacturing out of China, then the Chinese economy will be doomed.
Chinese economy is dependent on the US economy, if the Americans cut down on spending, th e Chinese economy slows down.
Hence, The US has China by yhe balls.
That’s a drop in the ocean. And it’s a good thing you used Apple.
[I]Apple set up some Irish subsidiaries a mere four years after it was founded. Foreign sales, which account for 60% of Apple’s profits, are routed through these Irish subsidiaries and taxed nowhere. How is this possible, when the intellectual property that supports the value of Apple’s products is in the United States?
Apple has an Irish holding company with no operations or employees at the top of its foreign operations. This company also serves as a group finance company. Apple Inc., the U.S. parent of the whole group, pays U.S. tax on the investment earnings of this company. Otherwise, the holding company pays no tax to any government, and has not paid tax for five years. It claims tax residence nowhere.[/I]
The reason why the US changed the tax laws this year is to prevent companies with markets in the US, claiming headquarters in tax friendly havens, like these Irish subsidiaries you give an example of, and paying no tax. They are now taxed and are forced to take the money to the US, in what is being called repatriation.
Not sure how you conclude $250 Billion is a drop in the ocean. And thats just the start. And there are several companies.
Apples is not returning to the US hold your horses just :
Apple Is Paying $38 Billion to Bring Cash Back to the U.S. Because of the Tax Overhaul. Apple Inc. said it will bring hundreds of billions of overseas dollars back to the U.S., pay about $38 billion in taxes on the money and invest tens of billions on domestic jobs, manufacturing and data centers in the coming years.
But the reason that most likely iPhone will for some time be manufactured in China is as :
Most of the components of iPhones and iPads — the supply chain — are now manufactured in China, so assembling the phones half-a-world away would create huge logistical challenges. It would also reduce flexibility.
China’s factories are now far bigger and more nimble than those in the United States. They can hire (and fire) tens of thousands of workers practically overnight. Because so many of the workers live on-site, they can also press them into service at a moment’s notice.
China now has a far bigger supply of appropriately-qualified engineers than the U.S. does — folks with the technical skills necessary to build complex gadgets but not so credentialed that they cost too much.
And, lastly, China’s workforce is much hungrier and more frugal than many of their counterparts in the United States.
So yes they will bring the tax back but expect highly qualified financial experts to guide Apple in reducing the tax.
sasa unasema nini wewe? kwani you think that being an engineer is enough to build world class microchips?
Hapa Kenya tuko na engineer mbona hawatengenezi?
unajua ile research hufanywa silicon valley? Years of research.
Research sio kitu ya siku moja ni miaka. Na China wanataka pesa saa hii. Thats why they just copy paste ile research ishaivishwa na wengine. Someone posted a youtube video of a chinese factory where they assemble grills… hio ni assembly plant sio research facility.
research ni ile inafanywa MIT media lab and elsewhere. kamzee kaproffessor kalianza kucheza na wire na diode in 1944. Na leo ndio kanapata success in new medium to transmit data.
In Japan they are now talking of getting rid of the CCD microchip entirely from the camera and capture light data using lasers and and fiber optics. Research started in the 1980s. Alafu China ati ikuje kama imepita nayo na wajiite super power… wapi? Wanazimwa na siku moja kama switch. 78,000 people at ZTE out of work overnight.
Funny you should say that… White people consider the intelligence scale to be - Asians, Caucasians then dark skinned people (add monkeys to the third group if you so wish).
In fact, engaging their brains is what has put them in this position where they are credibly threatening the dominance of your beloved, mighty USA
PS: if the Chinese are plagiarists, what are Kenyans, apeists? Which would you rather be?
It doesnt have to happen overnight but it will happen. Logistics may be a problem but they are overcome by pricing. An iphoneX costs $400 to build but is sold for $1000. Lets say manufacturing in the US initially drives costs to $700. Apple will still make a profit. Another thing is that in the US, people own iphones through lease or lease to purchase programs that are affordable ( $20-30/ month). Even if the price of an iphoneX jumps to $1400, the lease monthly cost will stay the same. The phone companies will just increase the lease period.
