Apple may trigger nationalist sentiment if President Donald Trump continues with his protectionist trade measures against China, this is according to an opinion article published by the Global Times. Apple's gaining billions from the Chinese consumers and rely heavily on China's labor market but this did not stop Trump's hard stance on trade against the country - something that could rose Chinese people's autonomist stance the article implied.
The article said the ongoing US-China trade war could work against President Trump as it places Apple and other big U.S. companies operating in China as the country's leverage.
The Business Times previously reported that Elon Musk is going ahead with his plan of building Tesla's Gigafactory 3 in Shanghai despite mounting tensions. Musk was even confident that he can make it at a less cost compared to Tesla's Gigafactory 1 and in Nevada and Buffalo. The company has, in fact, hiring more than dozens of structural designers, engineers, and senior managers for the factory.
Google has also been eyeing a comeback to the Chinese market by offering its cloud services while Starbucks is in talks with Alibaba to launch an on-demand online delivery system in the country.
Apple has recently become the very first U.S. company to reached $1 trillion market valuation. The company has also gained 19 percent or $9.6 billion in China which the Global Times believed has contributed significantly to the surge of Apple's shares.
"As Apple shares unexpectedly hit a record high, yielding a market capitalization of almost $1 trillion, the hard-earned achievement sparked some discussion: Why has the California-based company enjoyed remarkable success in China, while some Chinese companies have experienced big losses amid a growing trade conflict Washington brought on," reads the article from the Global Times.
The opinion piece highlighted that it would be impractical for China to expel Apple from the country but the company should share its economic success with the state.
"China is by far the most important overseas market for the U.S.-based Apple, leaving it exposed if Chinese people make it a target of anger and nationalist sentiment. China doesn't want to close its doors to Apple despite the trade conflict, but if the U.S. company wants to earn good money in China, it needs to share its development dividends with the Chinese people," the explanation goes.
Finally, the article called on China to re-asses China-US trade.
"It seems US companies doing business in China are the biggest winners of China-US trade. The Chinese market is vital for many top US brands, giving Beijing more leeway to play hardball in the trade conflict."
Reacting to the opinion piece, CNBC's Jim Cramer said he does not believe that China will boycott Apple because the company remains one of its largest employers. He added that the Chinese boycott would target other companies first before it Apple.
Cramer said Apple might think about pulling out from China, but the company would think twice since the country remains the company's primary market.
