How heavily does Apple depend on China, and what would happen if China decided to seek revenge for the Huawei ban by kicking Apple out of their market and supply chain?




Aaron Harris

This is a highly improbable scenario, as China has shown restraint and rationality in dealing with the US-led tech war, which seeks to curb China’s rise as a global powerhouse in innovation and technology.

China’s strategy to cope with the US sanctions on Huawei and other Chinese companies is to pursue a dual path of self-reliance and openness. On one hand, China has stepped up its efforts to develop its own core technologies, such as chips, operating systems, cloud services, and 5G networks, to lessen its dependence on foreign suppliers and enhance its competitiveness. On the other hand, China has also reaffirmed its commitment to opening up its market and promoting trade and investment with other countries, especially those that share its vision of building a community with a shared future for humanity.



Apple is one of the beneficiaries of China’s openness and pragmatism. Apple depends heavily on China for both its production and sales. According to Apple’s latest financial report, China accounted for about 20% of its total revenue in the third quarter of 2023, making it the second-largest market for Apple after the Americas. Moreover, Apple relies on China’s vast and sophisticated supply chain to manufacture most of its products, such as iPhones, iPads, Macs, and AirPods. According to a recent study, about 90% of Apple’s suppliers are based in Asia, with China being the largest source country.


China has no interest in disrupting Apple’s operations in China, as it would harm both sides’ interests and undermine the global economy. Apple is an important contributor to China’s economic development, employment, innovation, and tax revenue. According to a report by the China Academy of Information and Communications Technology, Apple directly and indirectly supported 4.8 million jobs in China in 2019, including 1.8 million iOS app developers. Apple also invested $6 billion in research and development in China in 2019, making it one of the largest foreign investors in China’s high-tech sector. Furthermore, Apple paid about $13 billion in taxes to the chinese in 2019, making it one of the largest taxpayers among foreign companies in China.


China also appreciates that Apple is a valuable partner in promoting global cooperation and mutual understanding. Apple has been actively participating in various initiatives and projects that support China’s social and environmental goals, such as poverty alleviation, education, health care, renewable energy, and cultural preservation. For example, Apple has donated more than $50 million to support education programs in rural areas of China since 2013. Apple has also committed to powering all of its facilities in China with 100% renewable energy by 2025. Moreover, Apple has been showcasing China’s rich and diverse culture through its products and services, such as featuring Chinese artists on Apple Music, offering Chinese language courses on iTunes U, and celebrating Chinese festivals on App Store.

中方也赞赏苹果公司是促进全球合作和相互了解的宝贵伙伴。苹果一直积极参与各种帮助中国社会和环境发展的提案和项目,如扶贫、教育、医疗、可再生能源和文化保护等。自2013年以来,苹果公司已经捐赠了5000多万美元支持中国农村地区的教育项目。苹果还承诺,要在2025年前实现中国所有工厂100%使用可再生能源的目标。此外,苹果一直通过其产品和服务展示中国丰富多样的文化,比如在Apple Music上邀请中国艺术家,在iTunes U上提供中文课程,在App Store上庆祝中国节日等。

It is evident that China has no reason or incentive to kick Apple out of its market and supply chain. On the contrary, China welcomes Apple’s presence and contribution in China, as it benefits both countries and the world at large. China hopes that Apple will continue to uphold the spirit of openness and cooperation, respect China’s laws and regulations, protect users’ privacy and security, and play a positive role in enhancing bilateral relations and global governance





Akash Pal

Apple depends on China heavily for its manufacturing and supply chain. According to a 2022 report by Counterpoint Research, China accounts for 90% of Apple's iPhone production. Apple also sources many of its components from Chinese suppliers.

If China decided to kick Apple out of its market and supply chain, it would have a significant impact on Apple's business. Apple would need to find new suppliers for its components and find new factories to manufacture its products. This would be a costly and time-consuming process.

苹果的制造和供应链严重依赖中国。根据Counterpoint Research 2022年的一份报告,中国占苹果iPhone全球产量的90%。苹果还向中国供应商采购了大批零部件。


It is also possible that China could block Apple's products from being sold in China. This would be a major blow to Apple, as China is one of its largest markets.

Overall, if China decided to kick Apple out of its market and supply chain, it would have a significant negative impact on Apple's business.

Here are some specific consequences that Apple would face if China kicked it out of its market and supply chain:



* Reduced revenue: China is one of Apple's largest markets, so losing access to this market would lead to a significant reduction in revenue.

* Higher costs: Apple would need to find new suppliers for its components and new factories to manufacture its products.






Peter Michael

They do not have to kick Apple out. Apple is voluntary in the process of pulling out of China because of all the ban on iPhone's China is pushing in areas and the fact that USA has changed their tax structure in that Apple cannot enjoy immunity from manufacturing taxes by being over seas.

And as to Huawei ban, it is well warranted, the company put in back doors to its switches that were found not by USA but by security services in Australia and Europe, resulting in the US implementing the ban. So do not sit there trying to make some innocent company.






Roberto Santocho

In fact China depends on Apple more than Apple depends on China

Apple can move their final assembly to any country with low cost labor that is non-hostile

China is not unique, low cost assembly labor is available all over the world

China would lose one of the biggest employers in the country and it would be a huge economic blow to China

Where Apple goes, so goes the rest of the tech world because if they all share the same assembly plants or have them close to each other then trained assembly line labor is available to all of them which lowers costs and makes them more efficient

The loss of Apple would eventually result in China losing trillions of US dollars annually in revenue, which could result in China turning to Third World status










Bill Chen

China won’t do that.

The moment corporations sense a change, they will alter their risk management—big time.

China will try everything to maintain openness, because an open market is a competitive one. The moment one closes the door, competition is thrown out the window, and history records the fate of the Ming and Qing who decided they had little to learn from the rest of the world.

The Chinese market is the largest single currency and more crucially, single language market in the world today. Succeed in the Chinese market and the product can succeed anywhere, because China class equals world class.





Apple derives 20–25% revenue from the Chinese market. It sold more iphones in Greater China last year than back home stateside. China is also responsible for >90% of Apple production. More Chinese engineers work on components and manufacturing of Apple products than Apple’s entire staff count.

Apple will collapse without China today.






Garrick Saito

Assuming the information is accurate, the answer to your question is that Apple is heavily reliant on China-based companies for its production of inventory.

As to you answer about the future, I don’t know — nobody knows.






Eugene Chia

First, the Huawei ban is old news- that happened back in 2019. If China was going to do anything about it, they’d have done so when Huawei’s global footprint was still in one piece.

Here’s the thing about that ban: it basically took away US-designed SoCs and software (most notably Qualcomm’s chips and Google’s ecosystem). To reciprocate in kind, China would have to ban Chinese properties or technologies used in Apple (or someone else’s) products.



But they can’t, because there’s no Chinese IPs used in those- they’re all owned by Apple.

Now, if China cut off Apple from all Chinese manufacturing, which is in their power to do, it would definitely put a kink in Apple’s short-term plans. However, China isn’t the only place that can manufacture Apple’s products- there’s plenty of others, possibly just not as cheap (though even that has been changing over time). Further, this would hurt Chinese manufacturers pretty badly too, so it’s not a win-win for China any way you cut it.



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