GOOD MORNING FROM LONDON
Nikkei Asia reports that China now has more Apple suppliers than any other country – a sign that Biden’s efforts to untangle US/Chinese supply chains have failed. Of Apple’s top 200 suppliers in 2020, 51 were based in China, incl HK, replacing Taiwan for the top spot.
Apple is known for its rigorous quality standards + the rise of Chinese suppliers underlines China’s growing manufacturing + tech capabilities. Universally getting into Apple’s supply chain is a “golden ticket” for suppliers to become the best in the world.
China’s success is at others’ loss – both Taiwan and Japan numbers reducing.
The US is also a loser as Trump, + now Biden hoped to reduce the US reliance on China’s supply chain by imposing punitive tariffs + the blacklisting of many Chinese companies. China’s costing + quality has won the day.
A closing comment;- businessmen want to progress, succeed, profit, quality + repeat orders. No business de-couples in these circumstances as Washington is beginning to understand.