[HN Gopher] Apple CEO Tim Cook 'secretly' signed $275B deal with...
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       Apple CEO Tim Cook 'secretly' signed $275B deal with China in 2016
        
       Author : baybal2
       Score  : 385 points
       Date   : 2021-12-08 08:21 UTC (14 hours ago)
        
 (HTM) web link (www.macrumors.com)
 (TXT) w3m dump (www.macrumors.com)
        
       | andy_ppp wrote:
       | I personally do not trust China, should we not assume computer
       | hardware made there has invisible backdoors? The security state
       | for example believe 5G shouldn't be controlled by Chinese
       | companies, I'm certainly not sure I really trust what I say on
       | this MacBook Pro, is there a way to prove it's not compromised as
       | everyone says it's definitely not but I can imagine the Chinese
       | suddenly just switching off half the computers in the West in the
       | case of a war one day (say the US defending Taiwan).
       | 
       | If I was them looking to become top of the hill I'd be
       | instructing people at Foxconn and wherever else to provide me
       | with backdoors into most computers sold in the West.
        
         | zerohp wrote:
         | Many computer designs can be made by untrusted assemblers as
         | long as the silicon fab, fusing, and packaging are trusted.
         | 
         | Most Intel machines are not designed for it.
        
       | drno123 wrote:
       | Interestingly, Apple could also cause problems to TSMC. Because
       | of Apple-first policy, at least two major chip manufacturers* are
       | moving away from TSMC. One is even completely obsoleting a line
       | of products that was previously being manufactured at TSMC. At
       | the same time, while Apple can get processors from TSMC, their
       | iPhone production is lagging behind due to shortage of power
       | supply ICs.
       | 
       | * - not sure if this info is already public, I am NDA bound to
       | disclose more.
        
         | stevehawk wrote:
         | and if TSMC ends up doing nothing but supplying Apple.. then it
         | likely means they'll end up being a wholly owned Apple
         | subsidiary
        
         | mdasen wrote:
         | We've seen articles about Qualcomm and AMD shifting to Samsung
         | and away from TSMC. Some of Qualcomm's new processors are
         | already moved over to Samsung. The 780G and 888 are already on
         | Samsung's 5nm process. I don't think AMD has moved things, but
         | we've seen articles about it noting how Apple is getting first-
         | access to TSMC's latest processes.
         | 
         | > One is even completely obsoleting a line of products that was
         | previously being manufactured at TSMC
         | 
         | That sounds a bit odd. AMD/Qualcomm products basically obsolete
         | themselves very quickly. People generally aren't looking to buy
         | a Snapdragon 855 from 2019. They'll either be buying the 888 or
         | one of Qualcomm's cheaper lines (like the 700 or 600 series).
         | It seems weird to prematurely obsolete something given that
         | it's likely on a process that you already have enough TSMC
         | capacity for. I mean, clearly I could be wrong. Maybe Samsung
         | offered them something to do that and move things over faster.
        
       | jollybean wrote:
       | There's nothing at all wrong with this unless it involves
       | transfer or IP, know-how and of course the bits about privacy
       | invasion.
       | 
       | Every country should be concerned that the money flying out to
       | megacorps does not result in long term value for the country.
        
       | fossuser wrote:
       | Apple's approach to China remains the most disappointing (and
       | hypocritical) thing about the company. When privacy really
       | matters for the users that need it most, Apple sells them out for
       | continued access to the Chinese market.
       | 
       | https://stratechery.com/2021/the-information-on-apple-in-chi...
        
         | polack wrote:
         | Just like Google that bent over backwards to please the Chinese
         | censorship and their persecution. Then when Google failed in
         | China (domestic competitors was better) they tried to exit
         | "gracefully" by claiming it's due the Chinese hacking them and
         | pretending it's about ethics...
        
         | echelon wrote:
         | A Reddit comment [1] on this same article really hit home,
         | 
         | > Mr. Cook has watched China's middle class grow to four
         | hundred million while watching the domestic middle class
         | shrink. Like GM, which sells more cars in China than the USA,
         | Apple knows where the market opportunities reside.
         | 
         | America needs growth again, whether that's immigration,
         | childbirth and childcare subsidies, or seeking to merge with
         | other democratic nations (Australia, Korea, Japan, Taiwan).
         | 
         | America needs to onshore manufacturing of critical chemicals
         | and components. Steel. Electronics.
         | 
         | America needs education that is equitable, but it also needs to
         | let academically or extracurricularly gifted students advance
         | to special placement.
         | 
         | I want America to be #1. Free speech, being critical of
         | government, and even having the ability to run for president
         | are rights that every person should have.
         | 
         | edit: [1]
         | https://www.reddit.com/r/technology/comments/rb2774/comment/...
        
           | pvarangot wrote:
           | > America needs to onshore manufacturing of critical
           | chemicals and components. Steel. Electronics.
           | 
           | I'm all for countries having local manufacturing
           | capabilities. Not just the US. I was also pretty vocal about
           | Argentina having them when I lived there and I'd love the US
           | to have more accessible local manufacturing now that I'm
           | here.
           | 
           | Thing is, as much as I can want that as an engineer with a
           | somewhat cozy desk job it's true that on-plant jobs require
           | skill and determination that I don't have so I feel a bit of
           | like a hypocrite for suggesting that. Are there people in the
           | US that want factory jobs? Because when looking for talent in
           | California for stuff like manufacturing engineering, supplier
           | development... or when trying to find small shops that will
           | prototype I kinda feel that no one wants to do that. Salaries
           | are kinda okish for those positions, but to actually rebuild
           | the talent and the collective energy and willpower to work
           | those jobs is going to take a while.
           | 
           | Honestly can't blame the Bay Area for not wanting to work in
           | plant considering public transport sucks and everything
           | closes early. You need someone at the house or with flexible
           | schedule to be able to take a job on plant.
        
             | m4rtink wrote:
             | On the other hand interdependence reduces the likelihood of
             | conflict somewhat.
        
             | arcticbull wrote:
             | > Are there people in the US that want factory jobs?
             | 
             | The only way to make manufacturing at home competitive with
             | overseas is full-scale automation. It won't create jobs to
             | bring it back onshore - nor should it for exactly the
             | reasons you specify. Instead, it would be a strategic
             | investment.
        
               | azinman2 wrote:
               | Except automation can't change on a dime. It also is bad
               | at all kinds of things... just see Musk's commentary on
               | why they backed away from so much automation with Model 3
               | for humans.
        
               | AnthonyMouse wrote:
               | Automation works. It's not perfect but it works.
               | 
               | The biggest impediments are political. China will
               | subsidize anything they're not already leading in. To
               | counteract that, you either need tariffs or your own
               | subsidies. But corporations will fight against tariffs
               | (they've already invested in manufacturing in China) and
               | labor unions will fight against subsidies for automation,
               | so here we are.
        
             | beauzero wrote:
             | The rural South wants those jobs.
        
               | krapp wrote:
               | The rural South wants a lot of things it probably isn't
               | going to get. Most of those jobs will be automated away
               | or low wage and low security Amazon warehouse kinds of
               | employment.
               | 
               | If they're expecting lifetime security on the assembly
               | line with enough money for two cars in the garage and a
               | pension with a gold watch at the end, it's not going to
               | happen. That's not how the world works anymore.
        
           | arcticbull wrote:
           | > ... seeking to merge with other democratic nations
           | (Australia, Korea, Japan, Taiwan).
           | 
           | That presumes that other countries want to be part of
           | America. I suspect strongly you'll find that's not the case.
           | Merger then has a more "1812" feeling to it.
           | 
           | The only folks tripping over their shoelaces to be US states
           | are Puerto Rico and DC.
           | 
           | > America needs to onshore manufacturing of critical
           | chemicals and components. Steel. Electronics.
           | 
           | While these are strategically sensible decisions, that won't
           | bring back Apple any time soon. Everyone manufactures in
           | China because there's a critical mass of manufacturing in
           | China. All your components are made there, by everyone, and
           | the best-in-class assembly folks are all there. Supply chain
           | and logistics are all there.
           | 
           | China's investments in ports, roads, railways are paying
           | dividends. Including their one belt one road initiative
           | offering overland rail links to the UK.
           | 
           | It's not sufficient to just say "let's make stuff at home" -
           | it requires real, long-term, strategic thinking, huge
           | investments and optimizing for the group. These are not
           | America's strengths right now.
        
             | vdqtp3 wrote:
             | > tripping over their shoelaces to be US states are Puerto
             | Rico
             | 
             | That's inaccurate, repeated votes for statehood in PR have
             | failed.
        
               | nradov wrote:
               | No representation without taxation. PR residents don't
               | have to pay US federal income tax, and most of them
               | aren't willing to pay that price to get the political
               | benefits of statehood.
        
             | 908B64B197 wrote:
             | > I suspect strongly you'll find that's not the case.
             | Merger then has a more "1812" feeling to it.
             | 
             | Ironically, the hardest challenge for the British during
             | the war was to keep their soldiers from deserting to the
             | US. Since there was no way a young British male could
             | legally come to America from the UK, joining the army then
             | crossing into America was their only hope.
             | 
             | Ironically today, the countries named by the GP (Australia,
             | Korea, Japan, Taiwan) all have a net inflow of people to
             | trying to get into the US, mirroring what happened in 1812.
             | The political elites might laugh at the idea of a merger
             | (considering they have a vested interest in keeping power)
             | but it seems to make sense for a lot of their highly
             | educated citizens who decided to make it happen here in
             | America!
        
             | mullingitover wrote:
             | > That presumes that other countries want to be part of
             | America.
             | 
             | I feel like if there was a referendum, the UK's population
             | would happily dump their monarchy in exchange for US
             | statehood. There's a lot of commonality with their
             | democracy, language, skepticism of foreign immigration,
             | embrace of capitalism, etc.
             | 
             | It would also be a pretty solid strategic move to bring the
             | US closer to Europe as a hedge against the Russian
             | ambitions laid out in their _Foundations of Geopolitics_
             | playbook.
        
               | phist_mcgee wrote:
               | I think you misjudge how much the Anglophone world looks
               | down on America, and Americans in general. We take great
               | pride in Australia of our differences from that place.
               | We're much more similar to the British (and them to us)
               | than to the Americans.
        
               | 908B64B197 wrote:
               | ... And yet there's a net brain drain to the US.
        
               | makapuf wrote:
               | UK dumped EU, which didn't asked for country dissolution,
               | not sure it would agree to join USA...
        
               | mullingitover wrote:
               | UK voters (imho) were still stinging from the economic
               | decline and austerity measures post-2008, and were led to
               | believe that a divorce from the EU would restore their
               | greatness. Now that that's been demonstrated to be a
               | delusion, and with covid-related economic collapse piling
               | on top of Brexit consequences, UK voters might be open to
               | a dice roll.
               | 
               | This is obviously my idle speculation, and I think the UK
               | voters would never be allowed to vote on such an
               | opportunity anyway. Still, I think if it happened it'd be
               | great for everyone.
        
           | GoodJokes wrote:
           | Way to shoehorn in the gifted students culture war Bs. Also,
           | you juxtaposed it with "equitabl," which is ceding the point
           | to those that say those types of programs are inequitable. We
           | don't need endless growth, we'll capitalism needs it, but we
           | don't.
        
           | didibus wrote:
           | > I want America to be #1. Free speech, being critical of
           | government, and even having the ability to run for president
           | are rights that every person should have
           | 
           | In principle I agree with you, but in practicality something
           | maybe isn't working as expected? If those things mattered so
           | much, why would the Chinese middle class have grown so much
           | while the American middle class shrank? (assuming this is
           | true, which I'm not sure)
           | 
           | At the end of the day, there's still a hierarchy of needs. If
           | one country cannot offer its citizen those needs, reaching
           | for higher level ones doesn't matter. Most people would
           | rather be able to afford food, clothes, a home, electronic,
           | entertainment, etc, than they would the ability to be
           | critical.
           | 
           | On some other dimension, the best argument free democracies
           | had used to be that the people of those countries were richer
           | and had better lives, while totalitarian regimes, religious
           | regimes, communist regimes delivered a worse outcome to its
           | people. And while this is still mostly true, it seems that
           | it's no longer as obvious which one delivers better value to
           | its people.
        
             | idiotsecant wrote:
             | >Most people would rather be able to afford food, clothes,
             | a home, electronic, entertainment, etc, than they would the
             | ability to be critical.
             | 
             | The Chinese 'middle class' standard of medical care ( on
             | average, a lot cheaper but it's also a very basic level of
             | care), financial security, air / water / consumer good
             | safety, access to meaningful education, and freedom of
             | worship / speech / congregation of all types is well under
             | what is typical for a middle class citizen in a western
             | democracy, even including the united states. At around
             | $20,000 USD per year (approx boundary of China's upper
             | middle class) you're in the same general territory as
             | Russia.
        
               | vkou wrote:
               | The difference is that Russia has been stuck in that
               | quagmire for 30 years[1], whereas in China, most of those
               | people would have been impoverished rural poor, 30 years
               | ago.
               | 
               | When you have observed a colossal material improvement in
               | your life, and you have hope for the future, you can
               | overlook a lot of problems with governance.
               | 
               | [1] Yes, yes, Moscow is not an active disaster zone.
               | Russia does not begin and end in Moscow, though.
        
               | wolverine876 wrote:
               | > When you have observed a colossal material improvement
               | in your life, and you have hope for the future, you can
               | overlook a lot of problems with governance.
               | 
               | It has been long believed to work the other way: Poor
               | people don't have the education or resources to deal with
               | governmance; they are trying to survive, working three
               | jobs (if they can get them), etc. When the middle class
               | expands is typically when democracy blooms.
        
               | vkou wrote:
               | Democracy doesn't bloom when the middle class expands.
               | Democracy is just one possible outcome of political
               | upheaval - and political upheaval happens when the middle
               | class feels that their situation is hopeless.
               | 
               | Russia's 'middle class' expanded massively since the
               | economic disaster of the 90s, but I would not describe it
               | as being more democratic today than it was in 1995.
               | 
               | A rising middle class isn't why communism fell apart in
               | the 80s, either. It fell apart because the country lost
               | any faith that the system will bring future prosperity.
        
               | wolverine876 wrote:
               | I didn't say that it happened automatically.
        
             | fossuser wrote:
             | > "why would the Chinese middle class have grown so much
             | while the American middle class shrank?"
             | 
             | Going through an industrial revolution has impressive
             | growth effects that can cover up a lot of bad stuff.
             | 
             | We'll see what happens when that growth starts to slow - I
             | don't think it'll be good.
        
             | kelnos wrote:
             | It still remains to be seen if these short- and medium-term
             | gains for China's middle class will result in prosperity in
             | the long term. "Selling" your social/political/religious
             | freedom can often be a boon in the short term but come back
             | to bite you later.
        
             | wolverine876 wrote:
             | > why would the Chinese middle class have grown so much
             | while the American middle class shrank? (assuming this is
             | true, which I'm not sure)
             | 
             | It's not meaningful: Middle class in China would be poor in
             | the US, and developing countries can expand their economies
             | much more quickly.
             | 
             | I am happy for the middle class people in China.
             | 
             | > the best argument free democracies had used to be that
             | the people of those countries were richer and had better
             | lives
             | 
             | You skip the main reason they have better lives, which is
             | freedom. All those Americans (and others) worked and
             | sacrificed for freedom. Wealth is barely mentioned in the
             | founding documents; the Gettysburg Address, FDR, MLK, etc.,
             | didn't mention it much (though the latter two did address
             | poverty).
        
           | jorblumesea wrote:
           | iPhones are not a middle class item anymore, or, I've seen
           | plenty of "low income" people with iPhones.
           | 
           | Apple dominates the US market, and will continue to do so. So
           | why bother to invest more in a market you already own? The US
           | domestic market hasn't shrunk for iPhones. I think this is
           | reading way too much into this. China is a new growing market
           | largely untapped by Apple, and one that is significantly
           | larger just due to population sizes. It's as simple as that.
        
           | mempko wrote:
           | China simply invested more in their people than USA it seems.
           | You now see American business people like Elon Musk promote
           | divestment from the USA in his attack on government deficits.
        
             | systemvoltage wrote:
             | No, American executives sold middle class souls to mass
             | manufacturing in China, directly leading to Trumpism.
        
             | MangoCoffee wrote:
             | >China simply invested more in their people than USA it
             | seems.
             | 
             | when you say "invested more in their people"? what do you
             | mean?
             | 
             | if we are talking about education. both country offer free
             | education to its people. College education are not
             | compulsory and free in both countries
        
               | beauzero wrote:
               | One culture values a broad band of technical
               | education...one values social education. One advances
               | technically and one wrestles with social issues.
        
               | MangoCoffee wrote:
               | that's culture differences. it doesn't support or shown
               | China invest more in its people.
               | 
               | I'll argue, you don't need a lot of techies. you need
               | people with vision like Steve Jobs, Jack Ma...etc. they
               | don't have tech background and yet created giant tech
               | company.
        
               | kelnos wrote:
               | You need both, and you need a lot more "techies" than
               | visionaries. Otherwise those visionaries just sit around
               | at home with no one competent enough to execute on their
               | vision.
        
               | thrdbndndn wrote:
               | College education is dirty cheap in China compared to the
               | US (income adjusted).
        
               | MangoCoffee wrote:
               | this doesn't support "China simply invested more in their
               | people than USA it seems.".
        
               | thrdbndndn wrote:
               | I'm not replying to that. I'm replying to your comment.
               | 
               | And you now changed it to "College education are not
               | compulsory and free in both countries" which is even more
               | wrong..
        
               | MangoCoffee wrote:
               | >I'm not replying to that. I'm replying to your comment
               | 
               | thank for clarify
               | 
               | >And you now changed it to "College education are not
               | compulsory and free in both countries"
               | 
               | i never change my statement to OP and what's wrong? both
               | countries doesn't offer free College education. one is
               | cheaper doesn't mean its free.
        
             | echelon wrote:
             | > You now see American business people like Elon Musk
             | promote divestment from the USA in his attack on government
             | deficits.
             | 
             | Source?
             | 
             | If that's true, that's disgusting.
        
             | justinator wrote:
             | > China simply invested more in their people than USA it
             | seems
             | 
             | So long as you're not Muslim.
        
               | dirtyid wrote:
               | Technically, especially Muslims. The per capita amount
               | spent on securitization, reeducation, labour transfer
               | (jobs programs) for the purpose of sinicizating restive
               | muslims population is massive.
        
               | autosharp wrote:
               | Those camps didn't build themselves.
        
               | laurent92 wrote:
               | France has invested a lot in their Muslims, and only has
               | neighborhood violence to show for it. It's the most
               | costly people to invest in.
        
               | Barrin92 wrote:
               | that this is an extreme oversimplification of the
               | Xinjiang issue should be obvious given the fact that
               | other Muslim Chinese minorities like the Hui in China
               | enjoy relative religious freedom. (in fact the issue is
               | assimilation into China's ruling class, not religion per
               | se). In fact inter-Muslim wars in China itself have a
               | long history between different Islamic groups. Also of
               | course the (lack of) response from the Muslim world in
               | general to the Uyghur situation should make clear that
               | the situation is somewhat more complicated.
        
               | justicezyx wrote:
               | What do you mean? China invest heavily in Xinjiang.
               | Xinjiang GDP is 19th on the list https://zh.m.wikipedia.o
               | rg/wiki/%E4%B8%AD%E5%8D%8E%E4%BA%BA%...
               | 
               | Per capita GDP is similarly ranked.
               | 
               | And there are 56 minorities groups in China, they were
               | all have specific aid program, like preferential
               | treatment in national college exams.
               | 
               | What's the basis of such a wishwash statement on China
               | and the people? Are you suggesting Chinese people are
               | practicing racial segregation? Or what exactly are you
               | suggesting?
        
               | idiotsecant wrote:
               | barbed wire and re-education don't count!
        
               | justicezyx wrote:
               | What do you mean?
               | 
               | Are you suggesting Xinjiang _genocide_ , a ridiculous
               | propaganda lie https://www.scmp.com/economy/global-
               | economy/article/3133228/...
               | 
               | How is an ethnic group increase population 18% annually
               | while being genocided?
               | 
               | Or the forced labor in Xinjiang? Another ridiculous lie
               | without any substantial evidence? Some random pictures of
               | prisoners moving around, and call it forced labor?
        
             | bserge wrote:
             | Come in, grab the money, take control and/or leave. Easy
             | when it's a western democratic country. Freedom, tolerance
             | and diplomacy are core tenets, after all.
             | 
             | Some tried that in China only to realize their government
             | aren't a bunch of muppets.
             | 
             | I wonder how long it will take either for corporations to
             | tame/destabilize the CCP or the latter to squash them into
             | submission.
        
           | zpeti wrote:
           | Which subreddit is that from? Seems like rare comment content
           | for Reddit.
        
             | [deleted]
        
             | oblio wrote:
             | It's in the URL. Technology.
        
           | hypertele-Xii wrote:
           | > Free speech, being critical of government, and even having
           | the ability to run for president are rights that every person
           | should have.
           | 
           | Every person? Including convicted criminals?
           | 
           | https://en.wikipedia.org/wiki/Felony_disenfranchisement_in_t.
           | ..
        
             | ribosometronome wrote:
             | Ones who have finished their sentence? Absolutely. The
             | world is better served if we allow folk who have made
             | mistakes are allowed the opportunity to grow and re-enter
             | society as full members rather than permanently made a
             | second-class.
        
         | ISL wrote:
         | Is Stratechery's paywall new? I'm surprised to see one from an
         | author who writes in a voice that aspires to reach the world.
        
           | mdekkers wrote:
           | I pay for Stratechery. It's absolutely worth it. Top tier
           | analysis.
        
           | fossuser wrote:
           | Ah I didn't realize this was a daily one (I subscribe) - he
           | does a mixture of free and not free. I think the subscription
           | is worth it though.
        
           | dcwca wrote:
           | Worth the subscription fee for sure
        
           | divbzero wrote:
           | Having the financial means to develop and maintain his voice
           | seems like a reasonable part of that aspiration. The author
           | is fully supported by his work with Stratechery. [1]
           | 
           | [1]: https://stratechery.com/about/
        
         | loudtieblahblah wrote:
         | every company - from privacy advocates to those cashing in on
         | social justice - bow to China. Every, last one of them.
        
         | hereforphone wrote:
         | I have a secret to share. Apple and others may virtual signal
         | but at the end of the day it's all about profits. If you
         | believed otherwise you were mislead. "Think Different" is just
         | a commercial slogan.
        
         | pbhjpbhj wrote:
         | I assumed it was firstly access to Chinese manufacturing. They
         | can probably still make humongous profits without the Chinese
         | market, but presumably their global sales rely on first
         | manufacturing in China?
        
           | arcticbull wrote:
           | Yep, and it's likely that China is the only place they could
           | actually manufacture their products. China isn't the cheapest
           | place to make things anymore, and it hasn't been in a long
           | time - that's been supplanted by Bangladesh, Vietnam, etc.
           | It's even within spitting distance to manufacture in the US.
           | 
           | Companies manufacture complex electronics products in China
           | because everyone manufactures there. The skills are there,
           | factories are there - but most importantly, the supply chains
           | are there. You can drive a truck from factory to factory to
           | pick up all the pieces you need. Then drop the truck off at
           | Foxconn. They'll make the products and you can put them back
           | into the truck and drop them off at the port or rail yard.
           | 
           | That's not something you can just replace overnight.
        
             | reaperducer wrote:
             | _China is the only place they could actually manufacture
             | their products_
             | 
             | And yet, the Apple products I bought for my wife this
             | Christmas state "Made in Vietnam" on the box. And other
             | electronics I've purchased for her recently were similarly
             | not made in China.
             | 
             | China hasn't been the "only" place to manufacture tech for
             | several years now. It's an outdated cliche.
        
             | nradov wrote:
             | Apple manufactures iPhones in India for local sales.
             | 
             | https://www.business-standard.com/article/companies/made-
             | in-...
        
             | tooltalk wrote:
             | Samsung is the largest smartphone-maker in the world (and
             | has been for much of past 10+ years). They ceased all their
             | phone-making operation in China and left for Vietnam a
             | couple of years ago (also most recently closed their last
             | display, shipbuilding operation) -- along with 200+
             | suppliers, plus 20+ new domestic suppliers created there
             | along the way. Now, most of Samsung phones are made in
             | Vietnam and their output there accounts for some 30% of
             | Vietnam's export and 20% of their GDP (2019).
             | 
             | I'm very skeptical that China is the only place Apple can
             | make their products. Sure, Apple doesn't actually
             | "manufacture" anything -- the company outsourced it to
             | Taiwnese CM's like Foxconn, Wistron, and others who have
             | cleary demonstrated that they have no competence,
             | experience, or even desire to build things outside China
             | (see Foxconn's misadventures in Brazil, Wisconsin US). But
             | that shouldnt' be surprising considering that their
             | business model entirely depends on ginormous state
             | subsidies and seemingly unlimited supply of young,
             | unskilled laborers from rural China. Also consider the fact
             | that most critical, high-value components come from not
             | China, but South Korea, Japan, the US (some via TSMC in
             | Taiwan) -- China still makes less than 5% of all chips
             | produced globally (as of 2019 according to US SIA). Of
             | course, they are all assembled/packaged there, but China's
             | contribution to this whole process still accounts for less
             | than 4% of overall value.
             | 
             | I just don't buy the argument that China as the world's
             | electronic supply-chain can't be replaced.
        
               | MangoCoffee wrote:
               | >I'm very skeptical that China is the only place Apple
               | can make their products
               | 
               | I'm skeptical as well since Foxconn also open a factory
               | in India for Apple.
               | 
               | https://asia.nikkei.com/Business/Technology/Foxconn-set-
               | to-m...
        
           | silisili wrote:
           | Apple is big enough and rich enough that they don't need
           | Chinese manufacturing. It is a nicety, and probably cheaper,
           | but they could have probably picked about any country to do
           | it and set up shop. As pointed out, Samsung does all their
           | mfg in Korea and Vietnam. Oneplus setup shop in India for
           | some devices...and Apple is much more powerful than BBK.
        
             | acomjean wrote:
             | Their cpus are manufactured in Taiwan, which is kinda
             | China. Those bleeding edge components are important to
             | excellent performance of their products.
        
               | dublin wrote:
               | I'm sure China knows that if they do ever actually invade
               | Taiwan, then there will be hundreds of agents, if not
               | outright military actions, to destroy or sabotage the
               | critical parts of Taiwanese industry rather than let them
               | fall into the hands of the CCP. (For instance, I can't
               | imagine any of the key ASML machines would survive
               | without being quite thoroughly destroyed by thermite to
               | keep their secrets from falling into Chinese hands.)
               | 
               | This would nearly completely cripple the world's tech
               | economy for a decade, but that is far better then
               | becoming vassals to CCP tyranny.
        
               | ethbr0 wrote:
               | I'm sure China would be quite happy if Taiwan was even
               | kinda China.
        
           | MangoCoffee wrote:
           | >their global sales rely on first manufacturing in China?
           | 
           | for the past years but China's wages is increasing and
           | Chinese crack down on tech company like Alibaba, Tencent,
           | DiDi...etc. would it extend to foreign company? Not to
           | mention the rise of Chinese domestic tech company like
           | Xiaomi.
           | 
           | it look like Apple is not making their money back in China
           | with this deal.
           | 
           | "To placate Beijing, though, some capital may have served
           | more like donations to state enterprises and local
           | governments. The company generated $249 billion of sales in
           | Greater China over the last five years, less than the pledged
           | amount."
           | 
           | https://www.reuters.com/breakingviews/apples-ugly-china-
           | deal...
        
             | [deleted]
        
             | alliao wrote:
             | even less when you take out Taiwan's revenue from that
             | 249bn
        
           | brandall10 wrote:
           | China is their number 1 market to expand. If market cap is to
           | go up, China is instrumental there.
           | 
           | If anything, continuing to manufacture in China is likely
           | required for that market expansion. Otherwise I feel they
           | would have started to diversify to other, less politically
           | tenuous markets.
        
       | tomohawk wrote:
       | Quizlings
        
       | moogly wrote:
       | At what point does something like this become a national security
       | issue? I know these modern titans of industry answer to no one,
       | but perhaps they should?
        
         | olalonde wrote:
         | Whose national security?
        
         | lazyeye wrote:
         | The modern titans of industry are certainly answerable to their
         | govt in one country at least.
        
           | RustyConsul wrote:
           | According to the markets, accountability seems to be a
           | liability. When they started axing IPO's, capital fled China
           | and the dollar strengthened.
        
         | smoldesu wrote:
         | I think it became a security issue when Apple bent to China's
         | desire to keep iCloud servers in a domestic datacenter. If
         | Apple gives up control so willingly for a foreign nation, one
         | can only imagine how deeply in bed they are with American
         | intelligence agencies.
         | 
         | National security issue, though? The US government has no
         | desire to call Apple on security or privacy. Doing so would be
         | a pure disadvantage for them.
        
         | questiondev wrote:
         | they gotta answer to someone. this is getting ridiculous.
        
         | makeitdouble wrote:
         | I find it interesting you see Apple a national asset needing
         | special scrutiny.
         | 
         | It might as well be true, but then you should also expect other
         | countries to start dealing with Apple as a part of the US gov.
         | and not a purely private party.
        
           | [deleted]
        
           | titzer wrote:
           | > a national asset
           | 
           | Or a threat. An entity with a trillion dollars in reserves
           | and devices in billions of people's hands, including hundreds
           | of thousands, if not millions, of government employees.
           | That's a lot of leverage.
        
           | dariusj18 wrote:
           | Lockheed Martin is a private company with all sorts of laws
           | on what they can and cannot do with foreign countries. It is
           | not weird to create special categories for niche protected
           | industries.
        
           | moralestapia wrote:
           | >you should also expect other countries to start dealing with
           | Apple as a part of the US gov. and not a purely private party
           | 
           | That is exactly what happened and that's why they approached
           | Tim Cook.
        
           | onepointsixC wrote:
           | Of course it needs special scrutiny. What if in the midst of
           | a break down in talks between the US and China, Chinese
           | regulators come calling and say that either Apple provides
           | the iCloud backup data of a staffer of an America senator or
           | else they will be immediately banned from the Chinese market.
        
             | angio wrote:
             | Maybe at that point Apple can stop spying on its users,
             | that way as an EU citizen I get the US government to stop
             | spying on me too (Apple was part of PRISM).
        
       | einpoklum wrote:
       | Well, I happen to know that Apple management signed many deals
       | with the US, which is just as problematic of a world state as
       | China, if not more so.
       | 
       | That is to say - unless you have a planet-wide blind spot, this
       | title evokes the same emotional response as, say, "JD.com signed
       | RMB 275B deal with US corporations in 2016".
        
         | poutine wrote:
         | There is no moral equivalency between the US and China. Stop
         | this right away.
        
           | justicezyx wrote:
           | What do you mean no moral equivalency? Are you suggesting one
           | is obviously superior than the other? Judging the behaviors
           | in the 21st century, I think China is morally superior to US?
           | Based on the wars invoked by IS, and the poverty elimination
           | done by China. Obviously China improved Chinese citizens
           | living standard dramatically, while US are doing the opposite
           | across the world.
        
             | trasz wrote:
             | Sadly, this discussion always goes the same way. You'll see
             | accusations of concentration camps, then countered by the
             | existence of actual forced labour camps (private prisons),
             | then "countered" by being called a weebo. It's a
             | fundamental mental difference between many Americans and
             | the rest of the western world, the american exceptionalism.
        
               | rscoots wrote:
               | >You'll see accusations of concentration camps, then
               | countered by the existence of actual forced labour camps
               | (private prisons)
               | 
               | Are you implying the Chinese criminal justice system is
               | more just than that of the US? Lol!
               | 
               | At least the people in US private prisons were ostensibly
               | convicted of crimes by their peers. Unlike the victims of
               | the ongoing genocide under the CCP.
               | 
               | Also # of inmates in all prisons in the US has been
               | rapidly dropping, and in any case they're far more humane
               | than Chinese ones.
               | 
               | Anyways, arguing with CCP apologists I know I'm in the
               | backwaters here. Bring on the undeserved downvotes.
        
             | lastbitwritten wrote:
             | You are based in the US?
             | 
             | Try posting that 'The US is morally superior to China' in
             | China, and you are going to spend a lot of time being re-
             | educated as to why that's not true.
             | 
             | But seriously, I just want to privately practice tennis.
        
             | onepointsixC wrote:
             | The increase in living standards in China are directly
             | caused by US efforts to open up China, to accept investment
             | and liberalization of it's economy. And yes one is morally
             | superior. One is an ethno-nationalist state that is
             | genociding a religious minority while the other is multi
             | cultural democracy. The successes or failures of either
             | will inform which direction all of humanity will move
             | towards in the 21st century.
        
               | justicezyx wrote:
               | > The increase in living standards in China are directly
               | caused by US efforts to open up China, to accept
               | investment and liberalization of it's economy.
               | 
               | Equally, US maintains it's living standard, mostly
               | because China did a wonderful job of producing cheap
               | goods to sell to US.
               | 
               | > One is an ethno-nationalist state
               | 
               | According to wiki
               | https://en.m.wikipedia.org/wiki/Ethnic_nationalism:
               | 
               | """ The central political tenet of ethnic nationalism is
               | that ethnic groups are entitled to self-determination."""
               | 
               | This does not have moral assessment. People in an ethnic
               | group can decide for themselves. Seems reasonable.
               | 
               | But China is not ethno nationalism because of the
               | explicit unified Chinese ethnogroups narrative. https://e
               | n.m.wikipedia.org/wiki/Ethnic_minorities_in_China
               | 
               | And Han as an ethnic group, is also not ethnic at all.
               | It's like "white" people. Han people are no where close
               | to be classic ethnic groups, other than being speaking in
               | the same language (with numerous dialects).
               | 
               | > that is genociding a religious minority
               | 
               | I have stated multiple times that muslim or uygur
               | genocide in Xinjiang is a laughable propaganda lie.
               | 
               | The population in Xinjiang has been growing faster than
               | other ethnic groups, and are growing contiguously.
               | https://www.scmp.com/economy/global-
               | economy/article/3133228/...
               | 
               | Check your facts.
        
               | onepointsixC wrote:
               | >I have stated multiple times that muslim or uygur
               | genocide in Xinjiang is a laughable propaganda lie.
               | 
               | That you have stated so does not mean if it is true or
               | not. Your Chinese source doesn't change the fact that
               | Uyghur birthrates dropped by a 60% between 2015 to 2018
               | according to Chinese government statistics. From 2016
               | there was a seven-fold increase in sterilization [1].
               | There are no natural reasons why that would happen, only
               | to Uyghurs, entirely limited within Xinjiang in such a
               | short amount of time. It is the textbook definition of
               | genocide [2].
               | 
               | [1]: https://apnews.com/article/ap-top-news-
               | international-news-we... [2]:
               | https://www.un.org/en/genocideprevention/genocide.shtml
        
               | trasz wrote:
               | Birth rates always drop when the quality of life
               | improves. You can easily see this in eg migrants from
               | Third World countries to Europe.
               | 
               | Also, the whole genocide discussion would look much
               | better if the accusing side wasn't directly responsible
               | for an actual genocide: killing a million random people
               | in Middle East.
        
               | onepointsixC wrote:
               | > Birth rates always drop when the quality of life
               | improves.
               | 
               | Sure. They do not drop 60% in only a few years, only
               | amongst a single ethnic group in a single region. The
               | numerous testimonies, plus recently leaked documents
               | confirming this is an explicit CCP policy removes any
               | doubt.
        
           | trasz wrote:
           | Indeed - one of them killed about million innocent people in
           | the last two decades, the other was focused on peaceful
           | economic growth instead.
        
             | loudtieblahblah wrote:
             | neither country has been focused on peaceful economic
             | growth in the last two decades.
             | 
             | but their sins aren't equal, either.
        
       | scottcodie wrote:
       | Apple works with the US government too. Apple operates in China
       | so it'd be prudent to work with the government for mutual
       | benefit. I'm not sure I see why this is being framed as a bad
       | thing.
        
       | vmception wrote:
       | the comments, lol!
       | 
       | > Maybe one day he should think about resettling to China... just
       | saying.
       | 
       | I mean yeah? Maybe? It's really not that hard to understand how
       | to maintain high standing in multiple conflicting societies.
       | Doing so in China is also not that difficult or bothersome, not
       | any harder than maintaining good standing in a private platform
       | like Youtube the analogy being that the arbitrary decisions
       | follow unspoken rules but you can predict what those rules are
       | and still have a great and endearing time. I get that we are
       | raised not to respect that a _government_ assumes that kind of
       | role while tolerating private institutions that run our day to
       | day lives operating the same way, but the assumption that day-to-
       | day life is _sooooo_ aggravating in China is just completely
       | wrong.
        
         | another_story wrote:
         | Day to day life in China is easy if you're in a Tier 1 city,
         | able to speak/read Chinese, don't require stable access to non-
         | China based internet services, don't mind the pollutuon and are
         | not black or Indian.
         | 
         | Even with some of these it's still OK, but it can be
         | aggravating quickly. I feel like there is always someone in
         | every apartment block constantly renovating and the drills on
         | the walls never cease. Also, try transferring money put of the
         | country. Spent more time in banks in China than all other
         | places I've lived combined. And I speak Chinese, so most things
         | are easier.
        
           | loudtieblahblah wrote:
           | Tim Cook should be forced to live there for the rest of his
           | life
           | 
           | https://en.wikipedia.org/wiki/LGBT_rights_in_China
        
       | uniqueuid wrote:
       | The really interesting question is of course:
       | 
       | What conditions are there _outside_ of China?
       | 
       | Has Apple agreed to behave differently in the US, censoring apps
       | or content or disadvantaging competitors?
        
       | moneywoes wrote:
       | Is it strange google has avoided China for so long?
        
         | [deleted]
        
       | LatteLazy wrote:
       | A billion dollar company (and Apple is a trillion dollar company)
       | is a political entity. It's decisions have political effects. You
       | cannot run a company that size and NOT expect governments of all
       | sizes and types to come knocking with "requests".
        
       | literallyaduck wrote:
       | When Apple and HP collaborated, HP was forced to cram iTunes on
       | its devices for years. China isn't known for respecting IP, not
       | sure who is the "good guy" in this collaboration, almost like the
       | Borg and Cylons joined forces.
        
       | dirtyid wrote:
       | Apple was growing massively in PRC in mid 2010s, should not be
       | surprising they got roped into more prosocial and pro-
       | establishment (read CCP) obligations. If memory serve this was
       | right after Apple started clean energy programs in 2015 and PRC
       | regulators shutting down itunes books & movies.
       | 
       | >Cook's negotiations led to the successful signing of the
       | multibillion-dollar agreement, quashing a number of regulatory
       | actions against the company with exemptions and enabling access
       | to the Chinese market, in return for significant investments,
       | business deals, and worker training in the country.
       | 
       | Keyword is exemptions and access, aka what you expect from
       | trillion dollar company lobbying governments.
        
         | fundad wrote:
         | It's not surprising but it's a surprise. All the lobbying for
         | the US Tariff exemptions were out in the open, if it was
         | revealed as a surprise it would look like bribery.
        
       | jms703 wrote:
       | It's the shareholders' company and the shareholders got what they
       | wanted, access to more revenue and profits.
        
       | inasio wrote:
       | Disregarding the human rights/politics background, this sounds
       | like standard operating procedure for Apple: Do whatever it takes
       | to have unimpeded access to the best tools/tech needed for their
       | mission
        
         | mhoad wrote:
         | Except no, you shouldn't just disregard the human rights /
         | politics in search of "the best tools" which happens to be low
         | waged workers who were famously killings themselves at work in
         | such large numbers that their solution was to install nets so
         | that they wouldn't die when jumping out the windows anymore,
        
           | inasio wrote:
           | I didn't mean to imply that you should disregard human
           | rights, only that when you look at it from a strictly
           | strategic point of view, it aligns with the strategy that
           | Apple follows in many other areas. See for example buying
           | full chip lines, entire display supply, even for the gigantic
           | windows they use at the Apple stores.
        
       | ipv6ipv4 wrote:
       | Daring Fireball [1] has another passage from the article which is
       | illuminating with regards to any promises Apple makes about how
       | it will resist governmental pressure to compromise its products,
       | vis-a-vis Apple's CSAM scanning tool.
       | 
       | "Sometime in 2014 or early 2015, China's State Bureau of
       | Surveying and Mapping told members of the Apple Maps team to make
       | the Diaoyu Islands, the objects of a long-running territorial
       | dispute between China and Japan, appear large even when users
       | zoomed out from them. Chinese regulators also threatened to
       | withhold approval of the first Apple Watch, scheduled for release
       | in 2015, if Apple didn't comply with the unusual request,
       | according to internal documents.
       | 
       | Some members of the team back at Apple's headquarters in
       | Cupertino, Calif., initially balked at the demand. But the Maps
       | app had become a priority for Apple, so eventually the company
       | complied. The Diaoyu Islands, when viewed in Apple Maps in
       | mainland China, continue to appear on a larger scale than
       | surrounding territories."
       | 
       | Apple has, and will, fold to government pressure faster than a
       | lawn chair.
       | 
       | 1. https://daringfireball.net/linked/2021/12/08/the-
       | information...
        
         | SN76477 wrote:
         | ever get involved in a land war in Asia
        
         | TheTon wrote:
         | Apple Maps is operated by AutoNavi (a Chinese company) in China
         | [1].
         | 
         | It doesn't really make sense that the Chinese government would
         | be pressuring Apple directly to make political changes to the
         | map provided by AutoNavi. If they wanted the map drawn
         | differently they could just pass a law requiring it or go
         | straight to AutoNavi with the request.
         | 
         | Of course the story could still be true (I have no idea), but
         | not mentioning AutoNavi kind of strains its credibility.
         | 
         | 1. https://www.apple.com/legal/privacy/data/en/apple-maps/
        
         | ge96 wrote:
         | > CSAM
         | 
         | Thinking about this other than things like existing social
         | media, satellites... I've recently seen ads where it's like
         | "get paid to take pictures of your neighborhood". Was wondering
         | about that as a means to export out high res images of
         | locations through an app.
        
         | qeternity wrote:
         | I totally get that people want companies to act with dignity,
         | but the idea that a company, even one as large as Apple, is
         | going to make any sort of difference with respect to China's
         | oddities is wishful thinking.
         | 
         | Apple has a business to run. They abide by all sorts of
         | requests in various countries in which they operate. Of course
         | there has to be a line somewhere, I'm just not sure this is it.
        
           | AnthonyMouse wrote:
           | > Apple has a business to run. They abide by all sorts of
           | requests in various countries in which they operate.
           | 
           | And then people rightly condemn them for it. Because not
           | getting a pass even when the pressure is strong -- especially
           | when the pressure is strong -- is the only incentive we can
           | give them to even try to resist that pressure.
           | 
           | That sucks for them. It puts them between a rock and a hard
           | place.
           | 
           | Too bad.
           | 
           | Because the alternative is that nobody fights against wrong.
        
           | wolverine876 wrote:
           | It seems fashionable to preach helplessness. Apple can't
           | change China by themselves, but they are not by themselves.
           | If we all follow that reasoning, then nothing ever happens.
           | To surrender and retreat from the field of battle is a sure
           | way to lose. Despair is a leading psyops tactic - targeted at
           | enemies; let's not help them.
           | 
           | It would be interesting to talk about what organizations like
           | Apple can and cannot do; what is effective and what isn't. Is
           | there any research?
           | 
           | Apple should not be deceiving people outside China with CCP
           | propaganda, which is what the maps are.
        
             | misnome wrote:
             | How are they deceiving people outside China when only
             | showing the difference inside China?
        
           | burntoutfire wrote:
           | > Apple has a business to run.
           | 
           | "Apple" is not some abstract entity. There are people behind
           | Apple (the shareholders, the managers, the employees). Real
           | people, with real morals and values. I don't think that the
           | only thing all of them care about is "running a business" and
           | that all of them feel it absolves them from acting humanly.
           | It's more complicated than that. (having said that, of
           | course, greed is always strong).
        
           | ipv6ipv4 wrote:
           | We can have a very long debate about that but I think it's
           | beside the point with regards to Apple's CSAM effort. The
           | point is that Apple is inventing a tool that is very amenable
           | to being wielded as a weapon of mass surveillance, and
           | oppression.
           | 
           | The maps analogy is that it's one thing for the Chinese
           | government to tell Apple to implement a mapping app from
           | scratch so that it can be used to display bogus mapping data.
           | It's quite another for the Chinese government to tell Apple
           | to modify its existing Maps app data.
           | 
           | In light of the inherent amorality of companies that you are
           | pointing out, the people working in these companies should be
           | smart enough not to go out of their way to place themselves
           | in situations with such moral hazards. Apple shouldn't be
           | building weapons.
        
           | fossuser wrote:
           | I think these things have a corrupting influence on the
           | principles of the company over time:
           | https://zalberico.com/essay/2020/06/13/zoom-in-china.html
           | 
           | It's better to figure out an exit (imo) than continue to
           | capitulate on these kinds of things, particularly in a
           | country that is hostile to foreign companies and IP (and
           | particularly if one of your company values is the privacy of
           | your users).
           | 
           | ---
           | 
           | >>Peter Thiel: Well I think, again those aren't the only two
           | possibilities, I don't think they created very much, I think
           | a lot of it was just handed over from the west so it wasn't
           | even stolen.
           | 
           | You know, I criticized Google a few years ago for refusing to
           | work on its AI technology on Project Maven with the U.S.
           | military, but working with Chinese universities and Chinese
           | researchers. And since everything in China is a civilian-
           | military fusion, Google was effectively working with the
           | Chinese military, not with the American military. And there
           | was sort of this question, "Why Google was doing this?" And
           | one of the things that I was sort of told by some of the
           | insiders at Google was they figured they might as well give
           | the technology out through the front door, because if they
           | didn't give it - it would get stolen anyway.
           | 
           | >>Peter Thiel: I had a set of conversations with some of the
           | Google people in the deep mind AI technology, "is your AI
           | being used to run the concentration camps in Xinjiang?" and
           | "Well, We don't know and don't ask any questions." You have
           | this almost magical thinking that by pretending that
           | everything is fine, that's how you engage and have a
           | conversation. And you make the world better. And it's some
           | combination of wishful thinking. It's useful idiots, you
           | know, it's CCP fifth columnist collaborators. So it's some
           | super position of all these things. But I think if you think
           | of it ideologically or in terms of human rights or something
           | like that, I'm tempted to say it's just profoundly racist.
           | It's like saying that because they look different, they're
           | not white people, they don't have the same rights. It's
           | something super wrong. But I don't quite know how you unlock
           | that.
           | 
           | https://nixonseminar.com/2021/04/the-nixon-seminar-
           | april-6-2...
        
             | kelnos wrote:
             | Not disagreeing with what Thiel is saying here, but it's
             | pretty hypocritical for him to be criticizing here
             | considering he's the co-founder of Palantir, a company that
             | feeds some tasty tasty morsels to the surveillance state
             | and military-industrial complex.
        
               | fossuser wrote:
               | I can't go into it, but this is a misunderstanding of
               | what Palantir does.
        
               | wolverine876 wrote:
               | I can't go into it, but ...
        
               | brandall10 wrote:
               | It seems he's drawing a distinction at domestic vs.
               | foreign actors. The criticism at Google here is against
               | working to enable the US military vs. what is a thin veil
               | of enabling the Chinese military hiding behind a veil.
        
               | fossuser wrote:
               | It's also about a defense of the west and western
               | liberalism over China and the CCP authoritarianism.
               | 
               | It's Google leadership capitulating to the (imo naive)
               | politics of its workforce to not work with the USG, while
               | continuing to support the governments of adversaries
               | (because largely American politics ignores the plight of
               | people in places like KSA and China under a weak kind of
               | moral relativism).
        
               | philwelch wrote:
               | It's only hypocritical if you find the American and
               | Chinese governments morally equivalent.
        
               | simonh wrote:
               | Thiel seems to genuinely believe the USA, and the west in
               | general, is in an existential struggle with forces intent
               | on destroying it. I can't speak for him, but maybe
               | Islamic fundamentalists, authoritarian autocracies like
               | Russia, Chinese communism, etc.
               | 
               | If you genuinely believe that, then putting ever more
               | powerful intelligence gathering tools in the hands of
               | western governments, even at some risk of threats to
               | freedoms in the west, might seem reasonable.
               | 
               | That's especially true if you have good confidence in the
               | checks and balances in the free west to prevent the worst
               | abuses of such tools, and that the threats are truly
               | dire.
        
               | AnthonyMouse wrote:
               | Pointing out someone else's hypocrisy isn't an
               | inconsistency. If someone says doing business with a
               | military is unacceptable and then proceeds to do business
               | with a military, they're a hypocrite. That's still true
               | even if the person telling you this does business with a
               | military.
        
           | kelnos wrote:
           | I know this would never happen, but I wish companies would
           | just default to not doing business in China, unless they are
           | able to sell their product, uncompromised. I wouldn't mind
           | legislation to that effect, though I'm sure that would come
           | with a ton of unintended consequences.
           | 
           | If China (and similar repressive regimes) wants these sorts
           | of products with onerous restrictions built in, they should
           | have to build them themselves.
           | 
           | Of course, I do recognize that this is perhaps somewhat
           | hypocritical: the OFAC list in the US comes to mind (which
           | makes it illegal for US entities to do business with entities
           | in certain "bad" countries). I'm reminded of GitHub's fight
           | to allow people from Iran to use GitHub. I get the purpose of
           | sanctions on Iran, but hurting regular Iranian citizens with
           | these sorts of bans does nothing to punish or put pressure on
           | the people who are actually the targets of sanctions.
        
             | vmception wrote:
             | When I see state capital or communist societies, I see
             | "single whale that _has_ to purchase at inflated prices "
             | 
             | I'll spin up a British Virgin Islands company or buy
             | another passport first in response to any legislation aimed
             | at preventing business with those whales
             | 
             | Others are already 5 steps ahead of me
        
             | Talanes wrote:
             | Nothing hypocritical there at all, in both cases you are
             | against a government that is placing itself in the way of
             | normal people and unfiltered access to information/tools.
        
         | i_have_an_idea wrote:
         | > Apple has, and will, fold to government pressure faster than
         | a lawn chair.
         | 
         | So will any company, when threatened by China. And, btw, so
         | will most countries.
         | 
         | Yes, Apple has a lot of money, but they're in no position to
         | resist a powerful country. I don't think it's fair to expect
         | that of them.
        
           | ipv6ipv4 wrote:
           | So Apple shouldn't build a mass surveillance tool that it
           | knows it will be coerced to misuse.
        
             | i_have_an_idea wrote:
             | If you know anything about China, then you know they have
             | more than an abundant supply of mass surveillance tools. If
             | Apple doesn't play ball with the local government, what do
             | you think will happen? They'll ban them and the new market
             | leader will be some Chinese company that probably copied a
             | bunch of their designs and is more than happy to preinstall
             | the govt rootkit.
        
           | ethbr0 wrote:
           | > _So will any company, when threatened by China_
           | 
           | Facebook, Google, LinkedIn, Twitter, Snapchat, Reddit,
           | Twitch, Dropbox, Medium, Wikipedia, DuckDuckGo?
           | 
           | https://en.greatfire.org/search/alexa-top-1000-domains
        
             | i_have_an_idea wrote:
             | You are making a very good point. There's no Facebook,
             | Google, Twitter, Snapchat etc in China. But there are
             | WeChat, Baidu, Weibo, QQ, etc.
             | 
             | China is more than capable to clone and/or make its own
             | version of these companies. And these companies will do as
             | the government says. So, I think that's an excellent
             | example to show that tech "boycotting" China does nothing
             | to change them.
             | 
             | Separately, you should also keep in mind that a bunch of
             | these companies didn't even have a choice, since they were
             | considered a threat to national security by the state.
        
               | ethbr0 wrote:
               | Whether or not China will clone an app is immaterial to
               | question of whether all companies will fold to Chinese
               | government pressure.
               | 
               | There are many large examples that just didn't, and they
               | exited the market.
               | 
               | There are also many large examples that struck varying
               | bargains. I'm sure the CCP didn't get everything they
               | wanted from the referenced Apple deal, and there were
               | hardliners who were pissed about it.
               | 
               | And then there are probably a ton of examples that don't
               | even care to bargain and just say yes to whatever is
               | asked.
               | 
               | So, complicated spectrum.
               | 
               | Side note, if I'm doing my quick math right, Apple's
               | worldwide revenue is equivalent to 1.6% of China's GDP.
               | Which is pretty impressive.
        
               | i_have_an_idea wrote:
               | > Whether or not China will clone an app is immaterial to
               | question of whether all companies will fold to Chinese
               | government pressure.
               | 
               | It is very material though. If your business is not
               | special/unique in some important way, then you don't have
               | a lot of bargaining power when the CCP officials come to
               | negotiate the terms. Then your choices boil down to --
               | accept whatever is offered or exit completely. While some
               | exited completely, I very much doubt they did so on
               | ethical grounds, as you seem to be implying. Rather, the
               | terms were unsatisfiable.
               | 
               | Trying to get some sort of an acceptable to you deal is
               | the only thing that makes sense from a business
               | perspective. The alternative is losing access the world's
               | biggest market and watching the state prop up a powerful
               | new competitor that may well compete outside the borders
               | of China too.
               | 
               | If you want American companies to be able to resist
               | Chinese govt pressure, then you need to have significant
               | intervention from the US government and hope that they
               | will be able to broker some sort of a deal. Failing that,
               | it's a joke to think that any company has any actual
               | bargaining power in a negotiation with the Chinese govt.
        
               | matwood wrote:
               | This brings up the long debated question about China and
               | Russia before them. Is it better to have US/Western
               | companies operating with some concessions or better to
               | boycott.
               | 
               | I'm still of the opinion it's better to operate with
               | concessions because there is a chance of influencing the
               | local population over time. Otherwise we end up with a
               | completely siloed environment like has happened with
               | parts of China's tech scene.
        
         | ryandrake wrote:
         | Anyone who has worked in mapping/GIS at a company that sells in
         | China has seen this in action. The "display these islands
         | larger" requests, the obfuscated coordinate system for geo-
         | aligning maps, and other map content regulatory issues[1] all
         | need to be dealt with if you want your map product available in
         | the country. Not excusing it, but every company with maps there
         | is required to do this, not just Apple.
         | 
         | 1:
         | https://en.wikipedia.org/wiki/Restrictions_on_geographic_dat...
        
           | gbasin wrote:
           | I compared the same area in apple vs google maps, the islands
           | don't even show up in google unless you zoom way in. You sure
           | about this?
        
             | nradov wrote:
             | It's location dependent. Apple Maps shows some areas with
             | different size or labels only when you're inside China.
        
             | topicseed wrote:
             | Google Maps is blocked in China, I think.
        
               | tonyhb wrote:
               | So, as much as people like to throw shade at Google, we
               | can say that they haven't caved on this. That's a plus
               | for them.
        
               | ntSean wrote:
               | It's not that they didn't cave, Google products are
               | unavailable due to sanctions.
               | 
               | Google Search for example was heavily modified for the
               | Chinese market.
        
               | judge2020 wrote:
               | > Google Search for example was heavily modified for the
               | Chinese market.
               | 
               | Do you mean something other than Project Dragonfly, which
               | was terminated?
        
             | samstave wrote:
             | What happens with satellite view?
             | 
             | What happens in Google Earth?
        
           | nradov wrote:
           | While these are in no way comparable to China's demands,
           | several other countries have also forced satellite imagery
           | vendors to blur out certain sensitive areas.
           | 
           | https://en.wikipedia.org/wiki/List_of_satellite_map_images_w.
           | ..
        
             | [deleted]
        
             | mitigating wrote:
             | They are in no way comparable because if an area in a map
             | is blurred I know the information is restricted.
        
           | hyperpallium2 wrote:
           | It's the complying not the requiring.
        
           | junon wrote:
           | This is a mind boggling realization. Is OSM data also
           | compromised in the same way?
        
             | ryandrake wrote:
             | OpenStreetMap has a page[1] on this. TLDR: Private
             | individuals surveying is illegal in China, which seems to
             | outlaw the entire OSM project and any participation or
             | contribution. I am not a lawyer or expert on Chinese law so
             | who knows.
             | 
             | 1: https://wiki.openstreetmap.org/wiki/China
        
               | mistrial9 wrote:
               | I am curious about this -- is it more complete to say
               | that zero surveying is allowed without a permit, if it is
               | an individual or company or school or anyone?
        
               | javajosh wrote:
               | That is rather chilling, is it not? That a nation would
               | prevent its citizens from _looking around_ and measuring
               | what they see? I can 't help but wonder how the chickens
               | will come home to roost.
        
               | foota wrote:
               | That's the chilling thing about Chinese censorship?
        
               | Eelongate wrote:
               | > " _the_ chilling thing "
               | 
               | Your comment implies a singular chilling thing, while his
               | does not.
        
               | whatshisface wrote:
               | Chickens can't find their way home if maps are illegal
               | now can they.
        
               | PoignardAzur wrote:
               | I'm no sympathizer to the CCP, but I don't think this
               | argument makes sense in our time.
               | 
               | There's a big gap between a private individual looking
               | around, and lots of private individuals coordinating to
               | look at everything all the time.
               | 
               | Modern technology is making that gap larger year after
               | year.
        
               | whatshisface wrote:
               | That argument would be more appropriate if OSM was about
               | something other than where the streets went.
        
         | davesque wrote:
         | This level of pretense is really mind boggling to me. It
         | underscores how certain regimes/people fear objective reality
         | more than anything. And it's a very inconvenient position to
         | take since objective reality is everywhere.
        
         | tene wrote:
         | Does anyone have any insight into the motivation behind making
         | the islands appear larger? I haven't been able to come up with
         | any plausible guesses about what "make the islands look big"
         | would be helpful in achieving.
        
           | martythemaniak wrote:
           | It's pretty simple, China claims large parts of the south
           | China sea, parts that extend far, far out of their maritime
           | bounds and go into other countries' territories. They have a
           | variety of justifications, one of which is they they dredge
           | some reefs and make them into islands which they then claim.
           | This particular instance is not in the south China sea, but
           | it's all the same.
        
       | tiffanyh wrote:
       | Everyone new this back in 2016.
       | 
       | On May 16, 2016 - China blocked Apple iTunes, Movies, etc [0].
       | 
       | On the same date, Apple invested $1B in Didi (Chinese "Uber") [1]
       | and magically China unblock Apple.
       | 
       | So what's new in this story?
       | 
       | [0] https://amp.scmp.com/tech/leaders-
       | founders/article/1945616/a...
       | 
       | [1] https://mobile.reuters.com/article/amp/idUSKCN0Y404W
        
       | ksec wrote:
       | Since this is finally out, I am hopping they have all the other
       | juicy details in supply chain, where Apple _lifted_ suppliers to
       | their standard and help them build out  / counter balance
       | competitors. ( Also interesting this is coming out from The
       | Information, which tends to be an Apple shill for many years from
       | Apple PR. But I am looking at BOE, YMTC and Luxshare. Should be
       | the easiest find and leaks. If they do intend to go deep into it.
       | )
        
         | georgeburdell wrote:
         | You're not the only one "hoping". Apple is a shameful company
        
       | bell-cot wrote:
       | So...local politicians, in a market where Apple was making money
       | hand-over-fist, were feeling kinda used. By a huge foreign
       | corporation. And the they started getting sticky on all sorts of
       | regulatory things that Apple needed. Until Apple's CEO promised
       | to do a bunch of "local investing" in their country.
       | 
       | How different is this from the 1980's in the U.S., when Japanese
       | auto makers decided that they needed to start building cars in
       | America, and otherwise placating American politicians and voters
       | with big piles of money?
        
         | musicale wrote:
         | > How different is this from the 1980's in the U.S.
         | 
         | Historians generally agree that Martina Navratilova was
         | rightfully and lawfully detained for insulting the Republican
         | party.
         | 
         | And that it was important for Toyota to comply with US lawful
         | interception requirements for any communication in automobiles.
        
         | frozenport wrote:
         | 1. was done in secret
         | 
         | 2. traded seemingly unrelated investments aka you can build
         | your computers if you invest in our SAAS
         | 
         | 3. technology transfer may be a violation of us export controls
         | 
         | Its really not obvious if the Chinese win because it's an
         | extremely opaque way to choose winners and losers.
        
           | pasabagi wrote:
           | > 1. was done in secret
           | 
           | Was it? Reading the article, the only 'secret' component was
           | the lobbying, which is obviously done behind closed doors.
           | Everything else is public commitments and public statements -
           | which makes sense, since they were trying to pour oil on
           | troubled chinese waters.
           | 
           | FWIW, western media often suggests stuff is 'secret' in
           | china, because they can't read chinese, and all those
           | orientals are awfully mysterious.
        
             | MangoCoffee wrote:
             | >western media often suggests stuff is 'secret' in china,
             | because they can't read chinese, and all those orientals
             | are awfully mysterious.
             | 
             | this is stupid.
             | 
             | BBC Chinese (https://www.bbc.com/zhongwen/simp) have many
             | Chinese/people who can speak/read/write Chinese.
             | 
             | large Western Media have Chinese staffs just like any large
             | Chinese Media in China, HK or Taiwan with people capable of
             | speak/read/write English.
        
               | [deleted]
        
         | ohmanjjj wrote:
         | Apple paid protection money. Pretty simple, no need to sugar
         | coat it
        
           | chrischen wrote:
           | That's what all government is: a racket.
        
             | ethanbond wrote:
             | Life before nationstates was famously prosperous, safe, and
             | enriching.
        
               | cdot2 wrote:
               | The agricultural revolution and it's consequences have
               | been a disaster for the human race?
        
               | bostonsre wrote:
               | Which agricultural revolution? If the earliest, sure more
               | food is good, but having to fear being wiped off the
               | earth from random raiders or armies kind of sucks.
        
               | cdot2 wrote:
               | States require administrators by definition and
               | administrators require food surplus or they would starve.
               | I know there were some hunter gatherers who had small
               | food surpluses but I dont think there was anything that
               | could remotely be called a state
               | 
               | This guy edited his comment. He originally asked if there
               | were states before agriculture
        
               | cm2012 wrote:
               | Contrary to popular internet belief, hunter gatherer life
               | sucked way worse.
        
               | breakfastduck wrote:
               | There is absolutely no way at all to verify that claim -
               | considering 'better/worse' entirely depends on the
               | _happiness_ of those individuals. Something we have no
               | way of measuring.
        
           | bell-cot wrote:
           | That I am aware of, "protection money" clearly implies that
           | the payments are to a criminal organization - which is
           | separate from, and unauthorized by, the established state.
           | The MacRumors story seems very clear that Apple and Mr.
           | Cook's deal was with the Chinese government, and the ruling
           | Chinese Communist Party.
           | 
           | Do you have information to the contrary? Or is your point
           | merely to voice anger at China, the CCP, Apple, and/or Mr.
           | Cook?
        
             | tshaddox wrote:
             | > That I am aware of, "protection money" clearly implies
             | that the payments are to a criminal organization - which is
             | separate from, and unauthorized by, the established state.
             | 
             | The phrase is also very commonly used to refer to money
             | paid to government officials who are corrupt. One could
             | still quibble over whether this is _technically_
             | "corruption" since it might very well be totally legal and
             | encouraged under Chinese law, but I think the usage of the
             | phrase here is quite suitable.
        
       | pupppet wrote:
       | This will be the logical conclusion to every major American
       | corporation unless someone puts a stop to this. If profit comes
       | before everything, then so will China's 1.4B potential market vs
       | US's 330M market.
        
         | titzer wrote:
         | It's growthism driving this. If you need to grow your revenue
         | 20% year-over-year every year for decades, pretty soon you have
         | to swallow ungodly amounts of new dollars. You can either
         | gobble more of the market (higher market share), grow the
         | market, or find new markets. And growthism will mine out every
         | one of those possibilities.
        
         | sneak wrote:
         | You are forgetting about manufacturing.
         | 
         | While China is indeed an important and huge market for sales...
         | approximately 100% of Apple's products are _manufactured_ in
         | China (save some tiny fraction that are assembled in India or
         | Texas).
         | 
         | Every iPhone sold everywhere worldwide (except the few
         | assembled in India) comes from China.
         | 
         | Apple cannot exist without China. Full stop.
        
           | manquer wrote:
           | China is not the only cheap manufacturing hub. If Apple
           | wanted to, they could be investing their 100's of billions
           | (instead of stock buy backs they have been doing for years)
           | in alternative locations to build their capability in other
           | geographies.
           | 
           | Apple is still doing China because it wants to, not because
           | it has to. At their size they have the time and money to
           | invest in multiple locations and spread their risks.
        
           | onepointsixC wrote:
           | That's completely wrong. How is it that one of their largest
           | global competitors, Samsung, exists despite having no
           | factories in China for years now? Apple could leave China
           | just fine as far as manufacturing is concerned. The question
           | is would it be able to still sell to the Chinese market if it
           | does.
        
         | lastofthemojito wrote:
         | It seems to be Apple's standard MO to comply with local
         | regulations regardless of market size. They've complied with
         | Russian demands[0,1] and it looks like Apple Rus accounts for
         | something like 2.6% of Apple's revenue, a fraction that Apple
         | could probably do without.
         | 
         | From a recent interview[2] with Tim Cook:
         | 
         | >"World peace through world trade," Cook said, adding that
         | operating in foreign countries means Apple has to "acknowledge
         | that there are different laws in other markets."
         | 
         | 0: https://arstechnica.com/tech-policy/2021/09/apple-and-
         | google...
         | 
         | 1: https://www.bbc.com/news/technology-50573069
         | 
         | 2: https://www.businessinsider.com/apple-china-tim-cook-
         | respons...
        
           | remarkEon wrote:
           | >World peace through world trade
           | 
           | And here I was under the impression that most everyone -
           | everyone important enough at least - understood that Fukuyama
           | was (very) wrong. Perhaps his definition of "world peace" is
           | different.
        
             | lastofthemojito wrote:
             | I'm not sure where Fukuyama and Friedman agree and
             | disagree, but Cook's quote struck me as Friedman-esque. It
             | sounds like he sees Apple as a player in Friedman's Dell
             | Theory of Conflict Prevention: "No two countries that are
             | both part of a major global supply chain, like Dell's, will
             | ever fight a war against each other as long as they are
             | both part of the same global supply chain".
             | 
             | (Quoting from
             | https://en.wikipedia.org/wiki/Capitalist_peace)
        
         | bt1a wrote:
         | I imagine you mean T and B, respectively?
        
           | [deleted]
        
           | [deleted]
        
       | wnevets wrote:
       | Say what you want about Google and Microsoft but at-least they
       | have taken _some_ steps to back away from China 's oppressive
       | government.
        
       | Kharvok wrote:
       | We can't trust multinationals with our data. They will sell us
       | all out.
        
         | loudtieblahblah wrote:
         | you can't trust them to protect our freedom of speech, our
         | privacy, to save the environment, to care about how social
         | media impacts kids, you can't trust them for anything, ever.
        
       | rodneyzeng wrote:
       | Yeah, China is taking advantage of US companies, state
       | governments, to compete with USA. There are lots of company
       | leaders and governors can benefit from secrete negotiations with
       | China government. There is only one China, but there are tons of
       | American businesses.
        
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       (page generated 2021-12-08 23:00 UTC)