by Chris Kanthan from: worldaffairs: how-china-can-cripple-us-economy/ (see below for bio)
The US-China trade talks collapsed, Trump ratcheted up the economic war against China. The US government put Huawei on the ‘hit-list’ thereby virtually stopping all US companies — hardware and software — from supplying any components to Huawei, which spends about $11 billion a year on American products. US elites are ‘putting a gun to China’s head’ to force a new deal.
However, this hubris and overconfidence ignores the fact that China has a lot of leverage over the US economy and corporations as well. Here just a few of the ways China could retaliate and even totally wreck the US economy:
Targeting Apple: Huawei is a $100 billion company, while Apple’s revenue is $265 billion and its market cap is close to $1 trillion. Virtually all of Apple’s products are assembled in China. A lot of the iPhone parts are also now designed and made in China (by Chinese companies). Finally, Apple gets 20% of its revenue — amounting to $50 billion — and 25% of its profits from Chinese consumers.
So there are numerous ways China can cripple Apple. Shutting down Apple’s factories even for a few days will crush Apple’s stocks and the entire US stock market. Shut down the factories for a month, Apple may never recover again.
Targeting US Retail Stores: The US gets 40% of all apparel, 50% of furniture, 70% of appliances, 72% of footwear, 75% of toys, 80% of shoes, 85% of travel goods and 90% of smartphones/computers/electronics from China. Go to Walmart or any other store and see how many goods are made in China. If China places an export ban for a few weeks, all the retail stores in America will have empty shelves and there will be riots all across the US.
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The author of this article is Chris Kanthan. He is a hi-tech professional in the San Francisco Bay Area, and is also a writer and an author, trying to raise awareness about politics, world affairs, food and health through non-partisan blog posts, often with a twist of satire.
You can check out his books — available on Amazon (Kindle & paperback), Smashwords, Apple’s iBooks etc.
- Geopolitics For Dummies
- The Cure for Russophobia
- Deconstructing the Syrian War
- What the heck happened to the USA?
- Deconstructing Monsanto
All the writing in this article is copyrighted. Please contact the author Chris Kanthan at email@example.com if you would like to republish or use any of the materials.