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US and China trade war to severely impact Apple: Report

Both the countries have been going against each other ever since Huawei was accused of using 5G network to attack global economies.

  • Published: May 16, 2020 2:53 PM IST
Apple logo building

Apple is likely to be the biggest casualty in the war of words between the US and China. According to a new report, China is set to impose trade restrictions on US-based companies like Apple, Qualcomm and Microsoft. This development comes a day after the US decided to block shipment of indigenous semiconductors to China, directly affecting manufacturers. Also Read - Huawei Freebuds 3 with noise cancellation and wireless charging launched in India: Price, Features

China is reportedly going to put companies like Apple, Cisco and Boeing that heavily rely on the Chinese market for its revenue on the ‘unreliable entity list.’ This change will directly affect the global business revenue for the US economy. Also Read - Tim Cook tells President Donald Trump that US China trade war will benefit Samsung

US President Donald Trump has been looking to sway companies like Apple back to its native market to use them as the manufacturing base, instead of China. Also Read - India allows tech companies to import goods for repair as China, US on brink of trade war

How it started?

All this started with US insisting that Huawei and its 5G network poses global security concerns. This had escalated into a massive trade war between China and US, which meant that Huawei could no longer work with Google (use its Android version) for its mobile business. This has forced the Chinese mobile giant to develop its own ecosystem of apps called AppGallery which comes without Google services like YouTube, Maps and Gmail.

Those restrictions meant that Chinese people were strongly voting against use of American products. China even started a Boycott Apple movement where people were asked to quit using iPhones in favour of homegrown brands.

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The verbal tiff between Huawei and the US government has been going on since 2019. And after a mid-term lull, the situation seems to be escalating once again. It’s fair to say the coronavirus pandemic has put economic business on the back-burner. But nobody knows when this saga will come to a fruitful conclusion, allowing US and Chinese companies to work together once again.

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  • Published Date: May 16, 2020 2:53 PM IST