Apple and Beijing Forge Tech Commitments as Super Micro Executives Face Smuggling Charges
A top Chinese official has issued a stark warning to global business leaders, signaling potential market turbulence that could trigger a 10% correction in key sectors. Speaking at the China Development Forum in Beijing, Premier Li Qiang declared China a 'cornerstone of certainty' in a veiled critique of U.S. instability, while executives from Apple and major financial institutions listened as Super Micro Computer faces serious legal allegations.
$25 billion reasons Apple needs China
The warmth is not hard to explain. Apple pulled in $25.5 billion from China in the holiday quarter ending December, a 38% jump from the year before, driven by the latest iPhone and customers moving away from rival brands.
Earlier this month, the company cut its App Store commission for Chinese developers from 30% to 25%, bowing to pressure from local regulators. It was not enough for everyone; the Communist Party’s People’s Daily followed up by calling on Apple to do more, accusing the company of “monopolistic” practices.
Beijing is also using the forum to sell its five-year economic plan to 2030 as a foreign investment opportunity. People’s Bank of China governor Pan Gongsheng used a speech today to push back on criticism of Chinese exports.
He said the country’s edge comes from economic reforms, a large domestic market and strong supply chains, not government handouts.
Without naming the US, he blamed persistent trade deficits in some countries on a global financial system built around a single dominant currency. China’s own trade surplus hit a record $1.2 trillion last year, a number that has put Beijing on the defensive in both Europe and Washington.
President Xi Jinping skipped the executive meetings this year, unlike the previous two forums.
A sit-down between Xi and Trump that had been penciled in for around April 1 was called off, though Trump is still expected to make the trip to China later in the year.
On Saturday evening, vice-premier He Lifeng, the official running trade talks with Washington, hosted a dinner for mostly European executives to walk them through the five-year plan. One person at the dinner said the executives were broadly positive but that Chinese overcapacity and the risks it poses to European industry did come up.
Washington goes hard on blocking Nvidia chips from China
While Cook and Li were trading pleasantries in Beijing, federal prosecutors in the US were unsealing charges against Wally Liaw, 71, co-founder of server company Super Micro Computer. It shows China’s insatiable demand for American technology that Washington has decided it cannot have.
Liaw is accused of helping route $2.5 billion in Nvidia AI servers to Chinese buyers in violation of export control laws. The servers carried chips from Nvidia’s Blackwell line, which Washington bars from sale to China because of their role in training advanced AI systems.
Prosecutors say Liaw and associates ran an elaborate operation. Within weeks, $510 million in servers were shipped to China.
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