Apple boss Tim Cook calls for 'calm heads' amid fears of US and China trade war
Apple boss Tim Cook has called for “calm heads” amid growing fears China and the US could be on the brink of a trade war.
His comments came after US President Donald Trump announced plans to impose tariffs on up to $60bn (£42.5bn) of Chinese goods on Thursday, accusing them of intellectual property theft.
China later announced a $3bn list of US goods, including pork, apples and stainless steel pipes, which could be hit by higher tariffs in retaliation to Washington’s accusation that Beijing improperly acquired foreign technology.
Speaking at the China Development Business Forum in Beijing on Saturday, Mr Cook urged businesses to keep their lines of communication open, reports CNN.
“What I’ve seen over my lifetime is that countries that embrace openness, that embrace trade, that embrace diversity, are the countries that do exceptionally – and the countries that don’t, don’t,” said Mr Cook, whose company could be affected by a trade war between the two countries.
“My belief is that businesses should engage with governments in the countries that they’re doing business, whether they agree or disagree.
“You can be assured that this is a topic that I’m very passionate about and that I have weighed in on, and will continue to.”
Laurence Fink, chief executive of BlackRock, also urged the sparring countries to avoid a “public fight”, and spoke out to defend globalisation.
“I’ve been in this business now 42 years,” he said, according to CNN.
“I’ve seen the wonders of how humanity has grown through globalisation; globalisation is one of the greatest human achievements.”
The annual forum, which brings together corporate leaders with Chinese economic officials, is usually used to showcase Beijing’s plans.
But this year’s forum has been overshadowed by the growing dispute between the US and China.
Trump accuses China of flooding global markets with unfairly low-priced steel and other goods and stealing or pressuring foreign companies to hand over technology.
Investors fear a trade war could damage the global economy and slash profits at big US exporters such as Apple and Boeing.
Roughly $1 of every $5 in Apple’s sales came from China, Hong Kong and Taiwan in its last year.
Much of the manufacturing and assembly of Apple products is also done in Chinese factories, which could be affected if trade restrictions start piling up.
Additional reporting by Associated Press (AP)
