This article discusses the potential implications of a TikTok ban in the US for American companies operating in China, such as Apple and Tesla. It⁣ explores possible retaliatory measures from China and⁤ the impact on these companies' revenue.

China’s foreign ministry has ​warned that a potential TikTok Ban in the US could have repercussions‌ for American companies operating in China, such as Apple and Tesla.‌ The House of Representatives recently ⁢passed legislation that would require ByteDance, the parent⁤ company of TikTok, to sell the app to a non-Chinese entity within six months or face a ban⁤ from US app stores. However, the ‍bill’s future in the Senate and potential legal challenges ‌from⁤ TikTok​ remain uncertain.

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Retaliation from China

If the⁤ bill were to pass, China could retaliate, according to ⁤analysts. US tech firms are already facing increasing challenges in China due to ⁢strong local competition and a ​climate of uber-nationalism. ​The Chinese government could retaliate by launching “propaganda brand damage campaigns,” or stifling operations by capping work hours, creating shipping strikes, or impeding permits for new projects. This could be ​particularly damaging for⁣ companies like Apple ‌and Tesla, which generate a significant portion of their revenue from China.

Tiktok Ban Impact on ⁣Apple and Tesla

Gene Munster,​ managing partner ⁣at​ Deepwater Asset Management, believes⁢ a TikTok ban has a 25% chance of materializing. If it does, it could⁤ significantly impact the China portion of US ⁣business revenue for companies like ⁤Apple ⁤and ⁣Tesla. The ​Chinese government could⁣ expand its anti-iPhone campaign beyond the government, mirroring the accusations of spying against TikTok⁤ back at Apple.⁣ This could potentially reduce Apple’s overall business in China from 18% to 12-15%.

Tesla ⁤is also feeling the pressure⁣ in China, with shipments slumping as‍ Chinese manufacturer BYD dominates the electric ​vehicle market. However, Munster believes Tesla might be impacted ‍to a‌ lesser extent than‌ Apple in the event⁢ of a ban.

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