Apple in China: The Capture of the World’s Greatest Company

The computer maker that once dominated China’s development into an industrial powerhouse is now dominated by China’s government, according to this insightful debut account. Financial Times reporter McGee recaps Apple’s 30-year process of shuttering its original American factories and outsourcing production to Chinese contract manufacturers. It’s partly a saga of greed as Apple took advantage of Asia’s lax regulations and its own bargaining power—Apple forced one firm to sign a production contract without reading it—to ruthlessly cut costs. But Apple also invested hundreds of billions of dollars in its Chinese suppliers, taught them state-of-the-art techniques, and brought them its own engineers and high-tech machinery. Apple eventually located most of its production in China, which, McGee contends, made it hostage to Beijing’s whims. The company appreciated the government’s policy of crushing labor unions and muting bad press but had to bow to demands to compromise customers’ data privacy and accommodate censorship. McGee’s perceptive account presents a cogent rethink of Apple’s role in the global economy, painting the company as the de facto proprietor and active manager of China’s advanced electronics sector. He also makes the potentially dry subject of global supply chains riveting, with epic narratives of bleeding-edge product design and colorful portraits of larger-than-life leaders. The result is a fascinating analysis of how global capitalism conquered China—and vice versa. (May)