The metaphorical dangers posed by eggs and a single wicker container are well rehearsed. But until recently a focused approach worked well for Apple suppliers in China. Now, a sense of panic is in the air as the US prepares to impose a fourth round of tariffs. This time, it is a 25 per cent tax on 3,800 products including $43.2bn worth of smartphones and $37.5bn of laptops.
These levies could be imposed by the end of June. Global markets have sold off on concerns of a spillover effect.
For now, Chinese technology manufacturing companies face the most urgent challenges. Worst affected are companies with production bases in China that rely on exports to the US. A fifth of all Apple’s suppliers are Chinese. About half of its global suppliers have some production in the country.