Apple goes behind the wall

Donald Trump is not the only one building a wall. China is building it’s own “Technology Wall”. But this is not to stop data and IP coming into the country, it’s to prevent it leaving!

I heard a similar sentiment when I questioned a China technology insider about the 200 million RMB rebate the Guangdong government invested in developing Smart Factory 1.0 software. The response I received was “The Chinese government has no issue with what information comes into the country, only the information that is going out”.

The latest deal to be agreed was between Tim Cooke of Apple and Vice Premier Zhang Gaoli in Beijing this week. Foxconn Chairman Terry Gao also attended the meeting, where Cooke agreed to invest in Apple’s first R&D center in China to develop new products and forge closer ties with local universities.

The Chinese government has been pushing Apple and other western companies to share their source code with the government.

This is a smart move for Apple who has been facing increasing competition in China – its biggest market. However, the Chinese government has been pushing Apple and other western companies to share their source code with the government.

In April Apple refused this request and had to close its movie and book services as it lacked the necessary licences. This highlights the different approach by the Beijing government versus the US, where the CIA recently asked the company to open the phone of a terrorist responsible for the killings in San Bernadino and Apple flatly refused.

It seems the west not only exported manufacturing and jobs back in 1999 – 2001. They also exported expertise and now they are being asked to surrender their IP that they spent years acquiring and may never get back.

Trevor Galbraith Editor-in-Chiefeditor@globalsmt.net

Coming next month… a sneak preview at the newly-opened Panasonic Cloud 9 Innovation Center. Global SMT & Packaging attends the opening of this prestigious applications laboratory, the first of it’s kind in North America.

http://digital.trafalgarmedia.com/h/c/1203-global-smt-packaging

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