The recent arrest of Huawei CFO, Meng Wanzhou, in Canada over the Chinese company’s violation of the US trade sanctions against Iran has, it seems, finally hit the nationalistic nerve center of Chinese people. The Nikkei Asian Review has reported an increasing number of Chinese firms actively incentivizing the use of Chinese brand phones over Apple iPhones.
Among the tactics used by the growing number of Chinese companies is giving a subsidy of as much as 20 percent for the purchase of Huawei phones. Some companies are even reported of discouraging Apple product use by excluding the iPhone users from any job promotions. Many companies have voiced their support in buying Chinese made electronic hardware, like from Huawei and ZTE, as opposed to American made ones. ZTE is another Chinese company which faced a ban in the US.
At a ground level, hotels and restaurants are said to be offering discounts to Huawei users. One brewer in Henan Province is reported to be offering a 30 percent discount on alcohol when customers show their purchase receipt of a Huawei phone.
US-China Trade War
Apple has recently lost its legal battle against Qualcomm in China. Meanwhile, companies like Apple, Huawei, and ZTE are at the crosshair of the Seno-US trade war. The court decision signals the growing dissatisfaction over the US trade policy against China. The iPhone maker is struggling to avoid the sales ban on its phones in the Chinese market. As of now, we are still waiting on the court decision on Apple’s appeal on that verdict.
Apple prices may increase because of the massive Tariffs we may be imposing on China – but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China. Start building new plants now. Exciting! #MAGA
— Donald J. Trump (@realDonaldTrump) September 8, 2018
At home, Apple is facing a growing pressure to manufacture its devices domestically. Not long ago, President Trump hinted on imposing enormous tariffs on the Chinese made Apple devices.
The American President is very vocal when it comes to the “unfair trade practices” of the Chinese. If anything, the Whitehouse tweets on China and the US’s actions like the recent detention of Huawei CFO are only fueling the nationalistic sentiments in China.
Source Nikkei Asian Review