All bets are off when it comes to China. Just ask Apple CEO Tim Cook; he will tell you about the tech giant’s tumultuous experience in China. One day the Chinese government was rolling out the red carpet, providing Apple with significant financial incentives in exchange for their promise to invest in China and help create 300,000 jobs. Soon thereafter, the Chinese government implemented new cybersecurity laws and regulations that enhanced the host government’s control over Apple’s products and services.
Cook recently decided to take matters into his own his hands. Earlier this month, Apple announced that it and will relocate a significant percentage its production with contractors to India and/or Vietnam. If nothing else, the experience in China has taught him that a careful and nuanced assessment of the host government’s approach to regulating inbound investment and the technology sector is compulsory when considering potential host countries for manufacturing.
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