Close ad

Donald Trump's financial analyst and economic adviser, Larry Kudlow, in one of his interviews this week expressed his suspicion that China would probably steal Apple's technology.

This is - especially in the context of the current tense relations between China and the United States - a rather serious statement, which is why Kudlow warns that he cannot guarantee it in any way. But at the same time, it suggests that Apple's trade secrets could be stolen in favor of Chinese smartphone manufacturers and improve their market position.

Kudlow's entire statement doesn't add much additional context. Trump's economic adviser said he did not want to prejudge anything, but at the same time expressed his suspicion that China could seize Apple's technology and thus become more competitive. He further stated that he perceives certain indications of surveillance by China, but does not yet have any concrete knowledge.

Recently, Apple does not have an enviable position in China: it is slowly losing its market share in favor of cheaper local manufacturers. In addition, Apple is also fighting a court battle here in which China is demanding a ban on the sale of iPhones in the country. The reason for China's efforts to ban the import and sale of iPhones to the country is allegedly a patent dispute with Qualcomm. Qualcomm's lawsuit covers patents related to image resizing and the use of touch-based navigation apps, but Apple says the iOS 12 operating system should not be covered.

Whether Kudlow's statement is true or not, it will not have a positive effect on the relationship between Apple and the Chinese government. Apple CEO Tim Cook has repeatedly emphasized his interest in a mutually satisfactory resolution of the aforementioned disputes, but at the same time he rejects Qualcomm's accusations.

Power Lunch

Source: CNBC

.