Chinese Economics Thread

[Deleted member 15887]

Effortpost: Apple's Deepening Reliance on China's Manufacturing Industry (posted on the Science and Technology thread as well)
Source Article:

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According to the graph provided, there were 759 Apple suppliers around the world in 2017, increasing to 799 Apple suppliers by 2019. What I found this very interesting was that, despite 2 years of trade wars, analysis shows that Apple's manufacturing dependence on China has actually increased.

Despite tariffs and ensuing rumors of Apple leaving China, Apple's supplier base in China has grown from 349 to 383 between 2017, and 2019; China's share of Apple manufacturing and suppliers increased from 46% to 47.9%, nearly 2% over the last 2 years.

Meanwhile:

• Apple's supplier base in SEA stayed stagnant at 88
• Suppliers in Japan have decreased from 127 to 125
• Suppliers in the US decreased from 68 to 58S
• Suppliers in the EU decreased from 35 to 32
• Suppliers in other nations (i.e. Brazil and India) decreased from 21 to 18.

Between 2017 and 2019, Apple's supplier base worldwide grew by 40. China racked up the lion's share of this increase (increasing by 34, taking up 85% of Apple's capacity and supplier expansion between these two years). If Apple is supposed to be "fleeing" China due to trade tensions, what then explains their growing dependence on China's manufacturing, even despite two years of trade tensions?

If we want to look purely at assembly, here's something interesting:
Per a Reuter's article:

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The article notes:

But the factories outside China are smaller and, in the case of India and Brazil, Apple only uses them to meet domestic demand. Apple’s contract factories inside China, meanwhile, have added far more locations than outside, with Foxconn alone expanding from 19 locations in 2015 to 29 in 2019 and Pegatron going from eight to 12, according to Apple’s data. The new locations come as Apple has added watches, smart speakers and wireless headphones to its product lineup.

Overall, from the graph, we can see that Apple's assembly capacity in China has expanded from 30 assembly plants in China in 2015 to 52 assembly plants by 2019, growing by 22 assembly manufacturing operations in that time period. India's assembly manufacturing has grown from none in 2015 to 3 assembly plants in 2019. Brazil's Apple manufacturing assembly grew from 1 in 2015 to 2 in 2019, peaking at 3 assembly operations between 2016-17. Apple's manufacturing base in the US has merely stayed on 2 for the past 5 years. China's share of global Apple assembly operations was 91% in 2015, and 88% in 2019. If this is what you call "diversification", well... what do I have to say? Looks like they aren't succeeding well.

 

[caudaceus]

Effortpost: Apple's Deepening Reliance on China's Manufacturing Industry
Source Article:

Please, Log in or Register to view URLs content!

View attachment 64563
According to the graph provided, there were 759 Apple suppliers around the world in 2017, increasing to 799 Apple suppliers by 2019. What I found this very interesting was that, despite 2 years of trade wars, analysis shows that Apple's manufacturing dependence on China has actually increased.

Despite tariffs and ensuing rumors of Apple leaving China, Apple's supplier base in China has grown from 349 to 383 between 2017, and 2019; China's share of Apple manufacturing and suppliers increased from 46% to 47.9%, nearly 2% over the last 2 years.

Meanwhile:

• Apple's supplier base in SEA stayed stagnant at 88
• Suppliers in Japan have decreased from 127 to 125
• Suppliers in the US decreased from 68 to 58S
• Suppliers in the EU decreased from 35 to 32
• Suppliers in other nations (i.e. Brazil and India) decreased from 21 to 18.

Between 2017 and 2019, Apple's supplier base worldwide grew by 40. China racked up the lion's share of this increase (increasing by 34, taking up 85% of Apple's capacity and supplier expansion between these two years). If Apple is supposed to be "fleeing" China due to trade tensions, what then explains their growing dependence on China's manufacturing, even despite two years of trade tensions?

If we want to look purely at assembly, here's something interesting:
Per a Reuter's article:

Please, Log in or Register to view URLs content!

View attachment 64562
The article notes:

Overall, from the graph, we can see that Apple's assembly capacity in China has expanded from 30 assembly plants in China in 2015 to 52 assembly plants by 2019, growing by 22 assembly manufacturing operations in that time period. India's assembly manufacturing has grown from none in 2015 to 3 assembly plants in 2019. Brazil's Apple manufacturing assembly grew from 1 in 2015 to 2 in 2019, peaking at 3 assembly operations between 2016-17. Apple's manufacturing base in the US has merely stayed on 2 for the past 5 years. China's share of global Apple assembly operations was 91% in 2015, and 88% in 2019. If this is what you call "diversification", well... what do I have to say? Looks like they aren't succeeding well.

People will say that the diversification starts NOW!

 

[Deleted member 15887]

People will say that the diversification starts NOW!

If Apple couldn't be bothered to diversify for the past decade, or even during the Trump trade war, what makes you think they'll care enough to do it now?

 

[emblem21]

If Apple couldn't be bothered to diversify for the past decade, or even during the Trump trade war, what makes you think they'll care enough to do it now?

If China is still the most stable nation now and given how all the other places lack the capability to commit for such a development, I mean India for the love of God is a ridden with the pandemic and there infrastructure after all this time, is still terrible. Hence In the near future, the USA simply cannot win since now only is the USA is among the worse places to invest right now (and in the near future given the economic collapse occurring right now), there isn't many nations even want to go to the USA in the future given how disease/debt ridden that nation is and there isn't going to be any recovery for a long time.

 

[horse]

Effortpost: Apple's Deepening Reliance on China's Manufacturing Industry (posted on the Science and Technology thread as well)
Source Article:

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The Communist Party of China could consider to make this information a state secret. Anyone who should publish such stuff, should be arrested and silenced!

Informing the other country that their actions are moronic, detached from reality, and may actually help China, is not information that they should tell them.

Then again ... what difference will it make anyways???

Bwahahahahahahahaha!

 

[Tam]

Could this lead to an increase in imports from China? After all, China's economy of scale and infrastructure allows it to produce goods at lower prices than most other countries. If there's large inflation, along with high levels of unemployment, people may not be able to afford non-Chinese alternatives.

Yes, because its the basic stuff that people are needing more and China builds the basics. Basic essential goods are facing inflationary if not hyperinflationary pressures. What people are buying less are luxuries, high end goods, like cars and stuff. These are suffering heavy deflationary pressures.

 

[horse]

Yes, because its the basic stuff that people are needing more and China builds the basics. Basic essential goods are facing inflationary if not hyperinflationary pressures. What people are buying less are luxuries, high end goods, like cars and stuff. These are suffering heavy deflationary pressures.

Agree.

What they say, about the automobile industry, that if they get the autonomous vehicle to work, that could radicalize the car and it role in society.

Instead of everyone owning a car, there will be a fleet of autonomous cars, basically taxis. This fleet is for use by everyone, on command. Live in a city, you do not need a car anymore.

Car ownership goes down. Car sales goes down.

Basically no demand.

If the car company like Chrysler, does not make an autonomous vehicle, Chrysler going bankrupt yet again. It is a race for survival.

------------ ---------------- ------------------

Then of course, with autonomous vehicles, they will need a standalone 5G network, which only one country has a couple of those (that we know about) at the moment.

Ban Huawei!!!

Now!!!

 

[Hendrik_2000]

Digital RMB see here how it works
China has launched a pilot program of digital yuan or RMB in southern Chinese city of Shenzhen. Follow CGTN to see what it looks like and how to use it. The digital currency can be spent without using the internet.

 

[PiSigma]

Agree.

What they say, about the automobile industry, that if they get the autonomous vehicle to work, that could radicalize the car and it role in society.

Instead of everyone owning a car, there will be a fleet of autonomous cars, basically taxis. This fleet is for use by everyone, on command. Live in a city, you do not need a car anymore.

Car ownership goes down. Car sales goes down.

Basically no demand.

If the car company like Chrysler, does not make an autonomous vehicle, Chrysler going bankrupt yet again. It is a race for survival.

------------ ---------------- ------------------

Then of course, with autonomous vehicles, they will need a standalone 5G network, which only one country has a couple of those (that we know about) at the moment.

Ban Huawei!!!

Now!!!

I think that is partially true. Most cars are used twice a day, going to work and going from work to home. We used to have car2go in my city, and it was impossible to find a car when I needed it in downtown or in my neighborhood. And since most people need the vehicle for the same two time periods, the cars are idle for 20 of the 24 hours in a day. And they are all in downtown during the day and in the suburbs at night. Autonomous would solve this issue, but it won't resolve the everyone go home or to work at same time issue.

People also have different needs for different days, weekend's would need bigger vehicles for the whole family to go do activities or road trips. Weekdays are solo drivers going to/from work. So that means the demand for different fleets on weekdays and weekends will be different.

Styles of driving is also going to be different, I like my BMW and Audi for my sedan driving to work and would never touch a American car. My wife drives a Volvo xc60 because it's got comfortable seats and is the safest thing on the road (for the baby), and won't drive anything else except my car or her mom's Mercedes.

Autonomous might replace a lot of personal cars in dense cities or might even allow overnight roadtrips (so u can sleep), but won't be 100%.

 

[solarz]

Digital RMB see here how it works
China has launched a pilot program of digital yuan or RMB in southern Chinese city of Shenzhen. Follow CGTN to see what it looks like and how to use it. The digital currency can be spent without using the internet.

I think YouTube is showing you the same videos that it's showing me.