When India boycotts Chinese telecom, it can’t hurt Apple

From the Wall Street Journal’s “China Tech Firms Face Backlash Over Beijing’s Policies” ($), posted early Monday:

“Outrage over the deaths of 20 Indian soldiers last week in a border clash with Chinese troops added fuel to a boycott movement that has already seen Indian smartphone users mass-deleting Chinese-made software.

Indian officials said on Wednesday that they would bar their state-run telecom companies from purchasing equipment from Chinese companies such as ZTE Corp. and Huawei Technologies Co. for future 4G mobile networks. Indian authorities have also privately warned telecom operators against working with Chinese companies in the rollout of new 5G networks. As recently as December, Huawei and ZTE were welcomed to participate in India’s 5G trials.”

My take: A speed bump for Huawei, an opening for Apple.

See the Apple 3.0 India archives.

3 Comments

  1. Jerry Doyle said:
    “…. My take: A speed bump for Huawei, an opening for Apple.”

    My take: Be careful what you ask for, you may get it.

    Geopolitics are such these days that what goes around comes around. Everything in geopolitics is so fluid.

    What is good about geopolitics is global trade makes the world more entangled, and thus, more compelling for trading nations to work together through negotiations to resolve outstanding differences then resorting to traditional wars. The strongest of the strong can become weak, if suddenly all other nations unite to no longer feed the stronger’s pocketbook.

    In a global integrated economy, all economies need each other to reap higher levels of economic success to increase their indigenous populous’ lifestyles. Democracies are more vulnerable than authoritarian governments. When businesses and industries in a democratic led country suffers, they turn quickly against the incumbent office holder who either decides to exercise “profiles-in-courage,” or capitulate and survive politically. Even authoritarian governments, though, are vulnerable if their respective economies become so weak as to cause social unrest, thus throwing out the ruling authoritarians; a little more difficult, but doable.

    4
    June 22, 2020
  2. Bart Yee said:
    As usual Jerry, your comments were prescient. A new announcement comes from trade advisor Navarro saying the China trade deal was “over” and then the Administration and he walk back the remark.

    Such inconsistency, posturing and almost market manipulation just makes one wonder how committed we are to getting our economy back on track vs other alternative reasons for actions and statements like this. It’s a double edged sword to mess with semi-stable trade relations at this point when America agricultural products exporters need to move goods and food at a time when they really need revenues and income.

    And for Apple, whenever they seem to get a sustained run based on reasonably factual company and team progress and innovation, some external events or geopolitical clash upends or temporarily halts the run. For some it’s true, slowing the run allows people to regroup and think out the next moves. It’s just a shame Apple has to fend off these external events as well.

    0
    June 22, 2020

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