Why can’t the Chinese and American ＂decoupling theory＂ ferment Apple mobile phones in the United States？

　　CCTV News:US President Trump’s tweet of "ordering all American enterprises to withdraw from China" highlights the so-called "decoupling theory" between China and the United States that is rampant in this administration. Whether it is feasible for American enterprises to leave China or not, American enterprises themselves have the most say. Let’s start with the case of Apple.

　　From the chart of Apple’s share price on August 23rd, we can see that there were two precipice-like plunges during the whole trading period. The first plunge was after China announced that it would impose tariffs on $75 billion of American goods, and the second one was after Trump urged all American enterprises to leave China.

　　Some analysts said that for Apple, Trump’s threat to let all American companies leave China was like a "heavy punch in the stomach". The bigger problem is that it is impossible to leave China.

　　After studying the development and production of iphone, Bloomberg believes that Apple chose to assemble in China for a reason: people can easily attribute it to cheap labor, but this is not the case.

　　At present, most iphone are located in two cities in China — — Shenzhen and Zhengzhou are assembled, and Foxconn is responsible for the specific work. Foxconn has not only brought millions of jobs, but also brought thousands of manufacturers of mobile phone parts. The Shenzhen-centered cluster effect means that most of the parts needed for a mobile phone, a laptop or a drone can be produced within tens of kilometers of Fiona Fang.

　　The US media said that so far, all attempts to replicate this cluster effect have failed, and Brazil is a perfect example. Previously, Apple faced high import tariffs in Brazil, so it cooperated with Foxconn to produce iphone locally. After Foxconn set up a factory in Brazil, it did not carry out a lot of high-level manufacturing work, but continued to complete most of the production work in China, because the supply chain in China is centralized and parts can be pre-assembled.

　　As a result, most iPhone parts are made in China, and the Brazilian factory only completes the final assembly. This has also led to the number of new jobs far below the expectations of the local government.

　　Bloomberg believes that if the iPhone is to be produced in the United States, it is more likely to follow the footsteps of Brazil rather than form a model like Shenzhen.