Opinion | Apple’s Warning About China Business

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From WSJopinion: The fiasco of zero-Covid, growing Communist oppression at home and rising aggression abroad make clear that China isn’t the economic opportunity it was

plans to move much of its iPhone supply chain out of China is the most important signal to date that Western CEOs are wising up about business risks in the People’s Republic. Any corporate board that isn’t doing the same is doing a disservice to shareholders.

Western companies piled into China because of its huge market, low labor costs, and promise of market reform. But those days are over as President Xi Jinping has put the state back in charge of the economy and used regulation and theft to punish foreign investors. Political risks are rising fast, as the protests against zero-Covid and threats against Taiwan show. This is a shame because a China that played by global rules would be a boon to humanity, but that isn’t Mr. Xi’s Middle Kingdom.

The political uncertainty is hurting more than Apple. Nikkei reported last week that Japanese auto makers are struggling to keep their Chinese factories operating

 

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