The Sino-American Tech War Claims Apple as Its Latest Victim

The Sino-American Tech War Claims Apple as Its Latest Victim



Apple is only the latest casualty of​ the Sino-American tech ⁣war

Few events in the ⁢tech calendar create as much buzz ‌as the release of the latest iPhone. On September 12th Tim Cook, Apple’s boss, unveiled what he called “truly incredible”⁤ new⁤ devices. Yet it was an earlier,⁣ quieter‌ launch of a rival gadget that left the tech world gobsmacked. In late August, with⁢ no forewarning, Huawei showed off the Mate ⁣60 Pro. As the first⁢ fully Chinese-made ⁣smartphone⁣ that can tap into 5G networks, ​it was an⁣ instant hit. The processors inside it were made by SMIC, China’s chipmaking ‌champion. It ⁣is exactly this type of technology that America has been‌ trying to​ stop Huawei and‌ other Chinese ⁢companies from getting their hands on.

If being upstaged by a Chinese rival was not enough to⁤ sour Apple’s mood, days later news broke that‍ some Chinese ‌government departments and ​state-owned firms may be banning iPhones. The ‌American giant’s share price fell by ​6%,‍ wiping around $200bn ‌from its market value.

A ban’s direct impact on Apple would be minimal. A tiny fraction of China’s 7m or so public servants‍ can afford iPhones, reckons Jefferies,​ an investment bank. Still, the rumours—and they‌ are still that—signal that not even ⁤Apple, whose relations with China have long been cosy, is ⁤invulnerable to geopolitics. What is more, China’s ⁣targeting of America’s most valuable company, combined with SMIC’s newfound chipmaking prowess, may provoke‍ hawks in Washington to tighten anti-Chinese controls. ⁤The Chinese may respond,​ and so on up the escalation ladder.⁤ No wonder investors are spooked.

2023-09-14 06:55:18
Link from www.economist.com
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