By: Yassmine ElSayed
CAIRO, Feb. 10 (SEE) -Ian Bremmer, president and founder of
Eurasia Group, a political risk-consulting firm predicted that Apple's business
model in China will probably clash with the desires of Beijing's authoritarian
government.
"I think that within five to 10 years max, Apple doesn't have a model in
China," Bremmer said during a presentation at the Cayman Alternative
Investment Summit.
“Apple relies on China for a chunk of its revenue. China is
such an important market for Apple that the company issued a rare sales warning
last month because of slowing growth and rising trade tensions there” he said.
But Bremmer argues that Apple is the antithesis of what Beijing wants.
"Apple is really good at high-end consumer products
that have secure data. Why would China want you to have that?" Bremmer
asked. "That's completely opposed to the Chinese model."
China's government relies on heavy-handed censorship to
prevent dissent in its society.
"They are going to ensure that Apple doesn't have a
model in China," Bremmer said.
He didn't specify how exactly China's government would pressure Apple's
business.
On other hand, Bremmer struck a more optimistic tone on the
US-China trade war. He predicted that the United States would not levy any more
tariffs on China on when the ceasefire expires on March 1.
"A deal is coming," Bremmer said, noting that neither government
wants to deal with the market and economic fallout. "That's the way
globalization is supposed to work."
Bremmer sees a prolonged confrontation between the United States and China on
the technology front. He predicted a battle for supremacy in crucial
cutting-edge technologies like artificial intelligence, machine learning and
5G.
"We're heading toward a cold war. And I don't know
which one is going to win," Bremmer said.
Follow the latest news on Google News
