The Chinese Telecom Trump Spared
Bloomberg Businessweek|January 14, 2019

When President Trump gave the “death penalty” to ZTE, he showed just how fraught the trade war could be for Huawei, Apple, and every other big tech company.

Joshua Brustein
The Chinese Telecom Trump Spared

During an earnings call last May, Apple Chief Executive Officer Tim Cook told investors he wasn’t worried about President Donald Trump’s trade war with China. The world’s two superpowers were too intertwined, Cook argued, for either one to try to seriously damage the other. “China only wins if the U.S. wins, and the U.S. only wins if China wins,” he said. “And the world only wins if China and the U.S. win.”

Just after the market closed on Jan. 2, Cook had a different message. For the first time in 15 years, Apple Inc. cut its revenue projections. The CEO explained that the Trump administration’s trade policies had hurt demand for iPhones in China. The following day, Apple lost 10 percent of its market value. Its decline fueled a broader sell-off among investors already spooked by the sudden possibility that the once inexorable march of globalization could be reversed.

If there was a lesson for Apple investors, it was one that their counter parts in China already know well: There’s no escaping geopolitics. Huawei Technologies Co. and ZTE Corp., the big Chinese phone and equipment manufacturers, have been under intense pressure from the Trump administration, which is seeking to limit China’s control of fifth-generation, or 5G, wireless networks. The new technology will power not only smartphones but also autonomous vehicles and connected infrastructure. Chinese dominance over such a vital new technology poses a potential security risk, at least according to U.S. intelligence agencies.

Esta historia es de la edición January 14, 2019 de Bloomberg Businessweek.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición January 14, 2019 de Bloomberg Businessweek.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE BLOOMBERG BUSINESSWEEKVer todo
Instagram's Founders Say It's Time for a New Social App
Bloomberg Businessweek US

Instagram's Founders Say It's Time for a New Social App

The rise of AI and the fall of Twitter could create opportunities for upstarts

time-read
4 minutos  |
March 13, 2023
Running in Circles
Bloomberg Businessweek US

Running in Circles

A subscription running shoe program aims to fight footwear waste

time-read
3 minutos  |
March 20 - 27, 2023
What I Learned Working at a Hawaiien Mega-Resort
Bloomberg Businessweek US

What I Learned Working at a Hawaiien Mega-Resort

Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.

time-read
10 minutos  |
March 20 - 27, 2023
How Noma Will Blossom In Kyoto
Bloomberg Businessweek US

How Noma Will Blossom In Kyoto

The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking

time-read
3 minutos  |
March 20 - 27, 2023
The Last-Mover Problem
Bloomberg Businessweek US

The Last-Mover Problem

A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps

time-read
10+ minutos  |
March 20 - 27, 2023
Tick Tock, TikTok
Bloomberg Businessweek US

Tick Tock, TikTok

The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban

time-read
10+ minutos  |
March 20 - 27, 2023
Cleaner Clothing Dye, Made From Bacteria
Bloomberg Businessweek US

Cleaner Clothing Dye, Made From Bacteria

A UK company produces colors with less water than conventional methods and no toxic chemicals

time-read
3 minutos  |
March 20 - 27, 2023
Pumping Heat in Hamburg
Bloomberg Businessweek US

Pumping Heat in Hamburg

The German port city plans to store hot water underground and bring it up to heat homes in the winter

time-read
3 minutos  |
March 20 - 27, 2023
Sustainability: Calamari's Climate Edge
Bloomberg Businessweek US

Sustainability: Calamari's Climate Edge

Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment

time-read
4 minutos  |
March 20 - 27, 2023
New Money, New Problems
Bloomberg Businessweek US

New Money, New Problems

In Naples, an influx of wealthy is displacing out-of-towners lower-income workers

time-read
4 minutos  |
March 20 - 27, 2023