Attempts by China to leverage market access into self-censorship by U.S. companies should also be treated as trade violations that are subject to retaliation. Thank you, Ben, for this honest appraisal which involves sticking out your neck and perhaps even harming your ability to travel to China or expand your business. Regarding this comment about Apple: And then there is Apple: the company is deeply exposed to China…
Note that Cook became CEO because of his logistics and operations work in China, so there is a lot of legacy to go on. Apple assembles iPhones in Brazil and I believe India now, but these are mostly for high tariff reasons. Much of what goes into an iPhone isn’t made in china (and what is made in China can easily be made elsewhere), but they are mostly made in east Asia, so having assembly done somewhere in the regio…
A few years ago, I was surprised to learn that Taiwan actually has low-cost but high-end (university-educated) labor. Ph.D. graduates abound.
It is an advanced economy yet wages are surprisingly low due to its export-focused strategy and various other structural causes. Cost of living in Taiwan also appears to be pretty low, which makes low wages bearable. It is a low-growth economy and it doesn't have the glitziness of Hong Kong, but everything feels 1st world (clean, technically advanced, efficient) so I'm not sure how the balance sheet there actually works out.
(that said, I understand many recent TW graduates tend to seek their fortunes in mainland China, where the pay is better.)