Donald Trump campaigned on getting tough on China for cheating America on trade deals.
Since his election, Trump has followed through by placing tariffs on Chinese goods in order to force negotiations that would lead to more favorable trade agreements.
Now China is fighting back by issuing a threat that Donald Trump won’t like one bit.
The Chinese government is threatening Apple through its state run newspaper.
Communists in the Chinese government are now demanding Apple fork over a larger share of their profits to the government or face “anger” from the Chinese people.
Apple has benefited from cheap labor and a strong supply chain in China and needs to share more of its profit with the Chinese people or face “anger and nationalist sentiment” amid the ongoing trade war, an article in the state-backed People’s Daily warned Tuesday. The article originally appeared in another state-backed publication, Global Times, last week.
The opinion piece highlights how Apple made $9.6 billion in revenues in China in the June quarter, which helped the U.S. giant to recently hit a $1 trillion valuation.
But the continuing trade war between the U.S. and China could leave Apple and other U.S. firms vulnerable as “bargaining chips” for Beijing, according to the article.
“The eye-catching success achieved in the Chinese market may provoke nationalist sentiment if U.S. President Donald Trump’s recently adopted protectionist measures hit Chinese companies hard,” the People’s Daily said.
This threat was issued in response to Donald Trump standing up for American workers with his trade policies.
The Chinese are used to American Presidents who put global interests first and agree to trade deals that benefit the citizens of foreign nations as opposed to the American people.
Trump stood firm so now China is threatening to hold one of America’s crown jewel companies hostage as part of their strategy to make Donald Trump back off his trade war.
We will keep you up-to-date on any new developments in this story.