KQED's Forum How Apple Fueled China's Economic and Technological Rise
Jun 6, 2025
Patrick McGee, San Francisco correspondent for the Financial Times and author of 'Apple in China', discusses the intricate ties between Apple and China's economic ascent. He reveals how China strategically allowed Apple's operations to bolster its tech industries. The conversation highlights labor practices in Apple's manufacturing, the risks of technology transfer to competitors like Huawei, and the implications of geopolitical tensions on Apple's future. McGee also touches on the challenges Apple faces in diversifying production outside of China.
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Apple's Massive China Investment
- Apple invested heavily in China, with $55 billion annually in factories, training, and machinery as of 2015.
- This scale of investment rivals major national infrastructure programs and reshaped Chinese manufacturing capabilities.
China's Unique Labor Advantage
- China’s large floating workforce of over 300 million enables massive seasonal factory staffing Apple relies on.
- This dual-class system and rural-urban divide is a key competitive advantage that cannot be replicated elsewhere easily.
Technology Transfer from Apple to China
- China allowed Apple to exploit its labor but used it for technology transfer to build its own tech industry.
- This helped create powerful Chinese smartphone brands such as Huawei and Xiaomi with significant global market share.
