China has threatened to stifle American trade if US president-elect Donald Trump makes good on his campaign promise to impose massive tariffs on the country's imports.
One of the most regular pledges that Trump made during the run-up to the election was to impose what he called "defensive" tariffs of 45 percent on Chinese imports and to have Beijing officially declare a currency manipulator, "the greatest in the world." At a rally in Florida in August, the Republican suggested these tariffs would force China to "stop the cheating."
In an excoriating op-ed, China's state-run newspaper, Global Times, warned that the People's Republic would adopt "a tit-for-tat approach," and would simply stop buying American goods, including the Apple products that are so popular there. It said:
A batch of Boeing orders will be replaced by Airbus. US auto and iPhone sales in China will suffer a setback, and US soybean and maize imports will be halted. China can also limit the number of Chinese students studying in the US.
Trump as a shrewd businessman will not be so naïve. None of the previous presidents were bold enough to launch an all-out trade war against China. They all opted for a cautious line since it's most consistent with the overall interests of the US, and it's most acceptable to US society.
There were an estimated 131 million iPhones in use in China at the end of 2015, more than any other manufacturer. Data released by the Chinese government suggests that Apple had 16.8 percent of the market, a point higher than Samsung, and 1.2 percent more than China-based Xiaomi.
Trump has already spoken to Chinese President Xi Jinping in a call to congratulate him on his election. A statement released afterwards said: "During the call, the leaders established a clear sense of mutual respect for one another, and president-elect Trump stated that he believes the two leaders will have one of the strongest relationships for both countries moving forward."
Shortly after Barack Obama was elected president for the first time, the US instituted a 35 percent import tariff on Chinese tyres, which prompted retaliatory tariffs on chicken and car exports.
"Both China and the US suffered losses as a result," the Global Times said. "From then on, the Obama administration waged no trade war against China. If Trump imposes a 45 percent tariff on Chinese imports, China-US trade will be paralysed."
Ars has asked Apple for comment.
The state-backed editorial, which was released after the call between the one-time reality star and China's president, concluded: "If Trump wrecks Sino-US trade, a number of US industries will be impaired. Finally the new president will be condemned for his recklessness, ignorance, and incompetence."
China-based Foxconn—which employs nearly 1.5 million workers—is the main site where Apple's iPhone is produced. Arguably, China could step in and halt or disrupt production if Trump's threatened tariffs kick in.
Listing image by Gage Skidmore
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