Apple will face continuing challenges in China

Significance The move comes amid Apple’s intensifying efforts to reclaim its dominant position in its second-largest international market. However, with the advent of the new Trump administration, the company risks being caught in a geopolitical crossfire. Impacts Apple will continue to invest in Chinese facilities and partnerships with Chinese suppliers for both political and commercial reasons. Apple’s Indian capabilities will grow, but not meaningfully enough to supplant Chinese capabilities for several years. As the US-Chinese rivalry deepens, the Chinese authorities may prioritise creating a more domestic-friendly regulatory environment.