China has banned official government agencies to bring iPhones devices into the office. This has had severe economic consequences on Apple stocks, as China provides the the company almost 20% of its revenue. The purpose of China’s government is to reduce its dependence on American technologies. But not only Apple is affected, but also other US firms like platemaker Boeing have been affected by Beijing restrictions. However, we see also that the US has taken similar measures against the Chinese company Huawei. The solution for China is to increase state-affiliated firms like banks to use local softwares and local manufacturing, minimizing the economical effects of US restrictions.This will encourage companies to diversify both their supply chains and customer concentration, and reduce their reliance on China, in case tensions worsen.
The economic tensions between China and the United States have important consequences all over the world. These two economic giants, with different political and economic systems, have engaged in trade disputes, tariffs, and technological rivalries. As a result, businesses worldwide have faced supply chain disruptions, increased costs, and uncertainty. Furthermore, these tensions have contributed to a bigger geopolitical rivalry, impacting international relations and security. Moreover, the global economy has become more fragmented, with countries and companies reconsidering their dependence on either China or the US. The world faces challenges in finding new ways for cooperation.
Written by Paula Guerrero López
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