China has strong words for president-elect Donald Trump. If Trump decides to create a trade war, as he has threatened to do by imposing a 45-percent trade tariff on imported goods, U.S. companies, including Apple, may no longer be able to sell products to Chinese consumers.
“If Trump wrecks Sino-US trade, a number of US industries will be impaired. Finally the new president will be condemned for his recklessness, ignorance and incompetence,” China’s government-sponsored Global Times said. “A batch of Boeing orders will be replaced by Airbus. US auto and iPhone sales in China will suffer a setback, and US soybean and maize imports will be halted. China can also limit the number of Chinese students studying in the US,” the paper added, calling the president-elect “naive.”
China is a huge market for U.S. businesses
China has become an increasingly important smartphone market; the country’s largest cell phone carrier, China Mobile, serves more than 800 million customers. If Apple and other firms aren’t able to sell goods to China, the effects could be devastating to it and other U.S. firms.
Politicians and business people such as Donald Trump suggest that Chinese businesses are ripping off U.S. companies by creating copycat products. Indeed, the tariff would also discourage U.S. companies from building factories and other plants outside of the U.S. It seems unlikely that a trade war with China will occur, but crazier things have happened.