Apple courts Chinese chip maker, putting US competitiveness and security at risk

Apple is considering using a Chinese chip maker for its new phones, a stunning move given the geopolitical tensions between Beijing and Washington.

Chuck Flint is an attorney and former U.S. Senate chief of staff. He focuses on technology policy and U.S.-China relations.

China has developed a strategy of propping up companies with enormous subsidies in order to undercut global competitors by selling discounted products. It’s a time tested honey trap that attracts scores of foreign businesses that won’t hesitate to do business with the Communist Party for the right price. 

Enter Apple. America’s leading smartphone manufacturer is currently courting Yangtze Memory Technology Corp. (YMTC), a Beijing backed chip maker with links to the Chinese military. YMTC has received approximately $24 billion in government subsidies and is clearly under the thumb of the Chinese Communist Party. It’s risky business.