Tech giant Apple is looking to expand its manufacturing outside China, following longstanding criticism of Silicon Valley companies for their ties to the authoritarian communist regime.
The reported shift from the largest U.S. company by market cap comes amid widespread concern at the shutdown of Chinese supply chains as the country pursues a “zero covid” strategy of lockdowns to contain the virus, which recently spiked in the country.
Via the Wall Street Journal:
TOKYO—Apple Inc. has told some of its contract manufacturers that it wants to boost production outside China, citing Beijing’s strict anti-Covid policy among other reasons, people involved in the discussions said.
India and Vietnam, already sites for a small portion of Apple’s global production, are among the countries getting a closer look from the company as alternatives to China, the people said.
More than 90% of Apple products such as iPhones, iPads and MacBook laptops are manufactured in China by outside contractors, according to analysts. Apple’s heavy dependence on the country is a potential risk because of Beijing’s authoritarian Communist government and its clashes with the U.S., analysts have said.
In addition to the economic slowdown caused by China’s zero-covid policy, the country is also becoming a less attractive destination for businesses due to rising geopolitical tensions with the west.
China is under fire for refusing to participate in western-led sanctions against Russia over the Ukraine conflict, while the question of Taiwan continues to gain prominence.
In a joint press conference with the Japanese prime minister on Monday, Joe Biden claimed that the United States has a “military commitment” to Taiwan, a statement that the White House later walked back.
Allum Bokhari is the senior technology correspondent at Breitbart News. He is the author of #DELETED: Big Tech’s Battle to Erase the Trump Movement and Steal The Election. Follow him on Twitter @LibertarianBlue.