Monday, July 23, 2018

China Challenges Wisconsin Foxconn

China is building a new display making plant that comes as a counter to the one being built in Wisconsin by Foxconn.  No doubt that was sure to happen since Apple seemed willing to accept that some of its new displays would come from the US.  It didn't take China long to build a competitor that can cut costs and try to stave off Apple doing anymore work in the US.  Whether China can stop the flow of work on Apple products and keep them in China is another thing entirely. 

China works against Apple in a lot of ways and this is the first step Apple has taken to let them know it is possible to build its products somewhere else.  China has cut off sales from applications and music and forced Apple into putting its domain storage in China under Chinese control.  Neither of those things were things Apple wanted to do.  How many times do you have to get a stick in the eye before you get angry? 

They fought long a hard to keep products away from Chinese "national security" reviewers who are just passing those products along to the intelligence services for exploitation and the state controlled enterprises who compete with Apple for smartphones, tablets and laptops.  They didn't think Apple would consider not taking any more of their intrusions into Apple's proprietary secrets and moving to some other place.  The Chinese have gone too far, and now they are pretty sure they have to do more to keep Apple in China.  Good luck with that.  The cost of doing business in China has finally become too much for some of the vendors there, and it has nothing to do with the benefits of low labor costs.  It has a lot to do with the stealing of secrets that cost long-term business that outweigh those short-term profits.

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