China is known as the fastest growing economy in the world. It’s also a communist nation. Sure, they give you some freedoms. But if you get too powerful, Beijing will put a stop to it, especially if you’re an international company. Just ask Apple.
Six months ago, Apple debuted services iBooks Store and iTunes Movies in China. One day, they were abruptly shut down. Before Apple could even release these services to the Chinese population, they had to get the State’s permission. They got it. But one day, Chinese State Authority figures ordered iBooks Store and iTunes Movies shut down. This is baffling because Apple has had relative success bringing new services to China. Apple Pay is a huge hit over there. But the success is also their downfall. Apple’s products and services are so successful that the Chinese government is resisting and restricting Apple. Some say the State is doing this to slow the tide of American companies down and give Chinese based companies like Alibaba and Tencent a boost. Some say it’s social and cultural. Chinese President Xi Jinping is cracking down on Western ideology altogether. President Xi said Chinese cyberspace must be…ahem…’improved to create a positive culture that is a force of good.’ What did he mean by that?
There’s an elephant in the room: the Chinese economy. This year hasn’t been kind to the world’s second largest economy. They’re slipping and want every piece of money towards Chinese based businesses. Is that part of the reason China is cracking down on international business? I find that funny. Here was a nation that got rich off of taking our jobs and wealth (that the US government and US major corporations let slip by). But now other companies are taking Chinese business, China is sweating. Is that why they’re clamping down on Apple? What will Apple’s next move be?