How Apple stays on China’s good side

As Trump’s trade war escalates, Tim Cook launches a $300 million renewable energy investment fund in China.

From Apple’s Thursday press release:

Cupertino, California — Apple today announced a new first-of-its-kind investment fund in China to connect suppliers with renewable energy sources. As part of Apple’s commitment to address climate change and increase the use of renewable energy within its supply chain, 10 initial suppliers and Apple will jointly invest nearly $300 million over the next four years into the China Clean Energy Fund. The fund will invest in and develop clean energy projects totaling more than 1 gigawatt of renewable energy in China, the equivalent of powering nearly 1 million homes.

My take: Apple’s relationship with China will be just fine. See here.

11 Comments

  1. John Kirk said:

    “My take: Apple’s relationship with China will be just fine.”

    I hope you’re right, PED. I am less sanguine. Trump keeps upping the ante and China has to respond in some way. It seems to me that making Apple’s products more expensive would be an easy way to communicate to U.S. consumers the price they’re paying for engaging in this trade war with China.

    0
    July 13, 2018
    • John Blackburn said:

      I agree with John. Much as I’d hate it, punishing Apple is too symbolically convenient to pass up for too long.

      1
      July 13, 2018
  2. Gianfranco Pedron said:

    “It seems to me that making Apple’s products more expensive would be an easy way to communicate to U.S. consumers the price they’re paying for engaging in this trade war with China.”

    I suspect, without prejudice, that the demographic targeted by Apple is more inclined to already be aware of the likely consequences of a trade war with China. I might suggest that a significant price increase of Apple’s competitors’ products would drive the point home where it’s most needed.

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    July 13, 2018
  3. Brian Loftus said:

    Foxconn employee about 1,000,000 making Apple products. The Chinese are not going to touch Apple.
    The Chinese can only target $115 Billion of imports from US, US can target $450-500 Billion of imports from China.

    2
    July 13, 2018
  4. Fred Stein said:

    Apple’s small investment just continues their long-term commitment to green energy and nothing more. They aren’t trying to placate anyone. It helps a bit in terms of image, but far bigger forces are at play.

    0
    July 14, 2018

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