From Factory Partner to Hostage State: The Communist Trap for Western Capital
Apple is aiming to shift all iPhone production out of China by 2026. As part of that effort, they are attempting to transfer machinery and equipment to India. However, Chinese authorities are making the process as difficult as possible.
Like many others, Apple is beginning to experience firsthand what it’s like to deal with those deeply entrenched in Asian communist business cultures.
Throughout the relationship, they extract an economic surplus from you—the creator or provider of the opportunity.
Over time, the true cost of “cheap labor” becomes apparent, and the downside risks outweigh the initial savings.
Example: Bendgate, exploding batteries, and defective phones.If you attempt to withdraw or reduce your business operations, they will actively undermine you.
Example: TikTok campaigns targeting Western luxury goods and PR sabotage.They will steal your intellectual property and even try to hijack your business model.
When you attempt to downsize or transition away, they’ll weaponize local rules and regulations to make the exit as painful and bureaucratic as possible.
Ultimately, once you realize that those you empowered are now working against you, you’ll understand the hard truth:
You never should have enabled them in the first place.