Expect more companies to follow Apple's lead
This example of $Apple(AAPL)$ now committing hundreds of billions in US investments is very telling of the issues that plague US-China relations.
Politicians love to tell us China is to blame for stealing jobs especially those in the rustbelt area. But they fail to call out the same US companies that benefitted immensely from their business with China but never had a long-term plan to elevate the productive capacity of their home market.
US corporations, for decades, have benefitted from outsourcing production to countries like China. They are driven by a desire to increase profitability, which they cannot be blamed for doing on behalf of shareholders and Wall Street.
But it's also important for these same companies - with market caps in the trillions of dollars - to reinvest a sizeable portion of those profits back into the US.
It's not just adding more stores and hiring more employees to staff those stores that sell products to US consumers. It's not just spending on automation that will make their own business more efficient.
It's having a longer-term thinking and vision of ensuring that they can create higher value opportunities at home. They shouldn't wait for a President like Trump to threaten their entire supply chain system before they act.
Expect more companies to follow Apple's lead.
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