Why did Apple leave China? | Is China facing a major financial crisis?

Why did Apple leave China?

 

For the last few days, Apple was getting to hear a lot from many countries, but now Apple has first vented its anger on China. Now, what is Apple's strike on China? We will tell you all this in this article. US tech company Apple has stopped using the memory chip of China's Yangtze Memory Technologies Company i.e. YMTC.

 

Apple used to use this memory chip in its products. YMTC Company is China's top chip maker. Apple began using YMTC's flash memory chip earlier this year, but YMTC has been accused of violating several US laws. Now also know what are the allegations against YMTC. America has taken a tough stand on Chinese companies in recent days and America has a political and diplomatic step toward China.

 

The US has included China's top chip maker YMTC and 30 other companies in such a list and it is believed that US officials are unable to inspect these companies. The US Commerce Department is also investigating these companies. These companies are also under investigation for violation of Washington Export Control.

 

The department will also investigate whether these companies are supplying chips to Chinese telecommunications company Huawei Technologies, as the US has already blacklisted Chinese telecommunications company Huawei Technologies. Earlier it was about to buy 40% of chipsets from YMTC. 

It was to be used in the iPhone sold in China, but after the restrictions, this move Apple has dealt a big blow to China. China will feel this blow even further because the US agency can take more stringent measures on these companies after 60 days. Now, this move is going to be India's bat-bat. Know how that works, too. Global MNCs are investing a lot of money in India. 

To sum up their business from China, these companies have considered India as their new investment destination. Now, most of Apple's iPhones are being manufactured in India. Apple has previously asked its suppliers to move most of its AirPods and Beats headphone products to India. India is being hailed for this, but China is stunned. 

Now also know about the fine imposed on Apple. Apple was recently fined heavily. Brazil's Sao Paulo Civil Court on Thursday fined you $ 19 million, or about ₹156 crores. Also, the new iPhone was asked to be sold with a charger in the country. Stay tuned for all the latest news from the business world.

 

Is China facing a major financial crisis?

 

All is not well in China. Xi Jinping has been elected as the Supreme Leader of the Communist Party of China Congress for the third time. Now in March 2023, Jinping will also take the oath of office for the third time, but neither the people of China nor the economy of China seems happy under his rule. Recently, posters were put up in many places in Beijing in protest against Xi Jinping.

 

Due to his zero covid policy, not only the people here but their economy is also in trouble. China's fiscal deficit has now risen to close to a trillion dollars and as soon as the news broke, economy aficionados are worried, they say, based on data released by the Chinese finance ministry. Bloomberg reported that China's fiscal deficit has reached $ 980 billion.

 

The biggest reason for this is being told to Corona and the real estate crisis here. Due to the housing market crisis in China, there has been a significant decline in the income of the government what are the reasons behind the housing market crisis there and what are their applications? 

So on the one hand where income is declining. On the other hand, the expenditure of the Chinese government has increased due to the lockdown and zero covid policy being imposed for the prevention of corona. Now due to the lockdown, not only the income of the government is decreasing but people are also suffering a lot. 

Despite all this, Xi Jinping is not deterring from imposing a lockdown. Now it is reported that once again a partial lockdown has been done in Wuhan province of China. Why is Wuhan important now, Wuhan is the place where the first case of the corona was reported. Some new cases of the corona were found here. After this, a partial lockdown was imposed here. 

During this time all people have been instructed to stay at home and all non-essential businesses have also been kept closed. China, which is facing economic crisis at home, is trying to build better relations with India. Chinese Ambassador Sun Weidong said in his farewell ceremony on Tuesday that as neighbors, China and India have some differences, but it is natural. 

He said that both the countries need to find common ground for development and it will be necessary to focus on that. Sun Weidong also met External Affairs Minister S. Jaishankar and they had lengthy talks. During this, S Jaishankar said that normal relations between India and China are our bilateral relations to bring the two countries to Asia and the world. 

At the same time, it is very important for regional stability in Asia and the whole world. S. Jaishankar has also emphasized on peace and tranquility in the border areas for better relations between the two countries.

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