The Dark Side of Globalization: How Apple's China Strategy Could Backfire Spectacularly

Based on interviews with former Apple executives and engineers, Patrick McGee's book 'Apple in China – The Capture of the World’s Greatest Company' argues that the Chinese government could shut down iPhone production overnight if it chose to. The book details how Apple invested heavily in Chinese manufacturing capabilities—training millions of workers and investing over $275 billion in the first five years—to transform China into a premier manufacturing hub. This investment led to Apple becoming deeply dependent on China for its supply chain, with only final assembly done elsewhere (e.g., India). The book also explores the broader economic impacts, including how American companies struggled to compete and Chinese brands like Huawei emerged as global competitors. McGee warns that if China decides manufacturing for Apple is less profitable than promoting domestic premium brands, it could cripple Apple's operations.