Apple is trying to move some of its production out of China. Yet, Chinese firms are taking over an increasingly high-tech share of Apple's manufacturing. What does this mean for decoupling?
First, this a good read on the complexity of Apple work with its suppliers and the evolution of geopolitical implications on manufacturing.
“As the world tries to move production away from China, China’s share of manufacturing seems to continue growing. How can this be? Part of the explanation is straightforward. As companies like Apple move lower-end production out of China, China is moving up Apple’s production value chain into high-tech, high-value components.”
This is the least surprising outcome as China is following the exact same pattern the USA, Japan, Taiwan, and South Korea did on each of their paths to high tech manufacturing.
First, this a good read on the complexity of Apple work with its suppliers and the evolution of geopolitical implications on manufacturing.
“As the world tries to move production away from China, China’s share of manufacturing seems to continue growing. How can this be? Part of the explanation is straightforward. As companies like Apple move lower-end production out of China, China is moving up Apple’s production value chain into high-tech, high-value components.”
This is the least surprising outcome as China is following the exact same pattern the USA, Japan, Taiwan, and South Korea did on each of their paths to high tech manufacturing.