Thursday, November 17, 2016

The Begin Of Fight Between Trump And China Regarding iPhone

It's well known that the US president, Donald Trump hates China, finding it guilty and the greatest theft in the history of the world. The reasons are quite simple to understand all the biggest multinationals manufacture in China thanks to low labor costs which bringing revenue to the country rather than in that of origin. Let's see what are Trump orders after the following jump.

Three will to Trump, there is the commercial isolationism, protectionism and the fight against multinationals (Apple included) that produce abroad then sell in America.

Well Apple was obliged to consider the possibility of achieving the iPhone entirely in the USA stating that not only increases costs but also would lack the skills and appropriate infrastructure.

Apple told the Wall Street Journal that in China it is easy to mobilize tens of thousands of workers in a few weeks, which is impossible in any other country. In Asia there is a very strong supply chain, due to the experience that factories and companies have built up over years and years of productions, skills that the United States can not replicate in a short time.

Each iPhone produced entirely in the US would cost $ 90 in most, compounds from $ 30-40 for the assembly and $ 50 for the components.

Besides all this, the largest and totally underestimated by Trump problem is that this would raise protectionism of virtual walls which lead to duplication of duties and disputes that would make up the entire economic balance.

China has already promised that if Trump had to keep my word and deny the production of the iPhone, it will start a trade war that will also block other kinds of goods and food that America imports from the East. In addition the country will ban the sale of the iPhone throughout the country.

To avoid panic situations, Apple wanted to emphasize that it has created two million jobs in USA: engineers, clerks in stores, call center and couriers. Apple also employs 8,000 suppliers in the United States and promises to further invest in employment and innovation in the country.

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