CNBC: Trump Advisor Criticizes Apple CEO Cook for Slow Withdrawal from China
CNBC reported on July 7 that Peter Navarro, a recent economic advisor to Trump, publicly criticized Apple's CEO Tim Cook, accusing him of not accelerating the pace of moving production lines out of China. Navarro stated that despite repeated calls from the U.S. government to reduce reliance on Chinese supply chains, Apple's actions were "far from sufficient." Data shows that in 2022, over 95% of iPhones were still produced in China. According to a report by the supply chain research firm Counterpoint, as of the first quarter of 2023, China still accounted for 78% of Apple's global capacity. Navarro emphasized that under the threat of geopolitical risks and high tariffs, Apple should accelerate the transfer of its production capacity to countries like India and Vietnam. However, industry analysts point out that the mature supply chain and efficient labor force in China are difficult to replace in the short term. Morgan Stanley estimates that Apple will need at least five years to reduce its Chinese production capacity to below 50%. Cook previously stated that China's supply chain was "unparalleled," but Apple has begun to expand iPhone assembly in India, with India's production capacity expected to rise to 7% in 2023. Data from the Chinese Ministry of Commerce shows that foreign investment in manufacturing in China increased by 23% year-on-year in 2022, indicating that global companies still have confidence in the Chinese market. Navarro's comments have once again raised concerns in the market about the decoupling of the tech industry supply chain, but experts believe that a complete withdrawal from China is "neither realistic nor economical."
Original article: https://www.toutiao.com/article/1837023655783424/
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