US defense bill proposes examination of Apple display supplier
Being on the list does not prevent companies from doing business in the US, but it will prevent the US army from becoming part of the supply chain in the coming years.
The draft law, known as the National Defense Authorization Act, was approved by key committees in both homes of the US Congress in July. The last bill, which is considered to be “sine qua non” for financing the US army, is expected to be a law later in the year.
When the bill was approved by the US House of Representatives Armed Services Committee, a newly added change asked the US Department of Defense for the first time to consider whether Boe Technology Group Co., which was listed in Apple’s official suppliers list, would be added to a list of companies allegedly helping China’s army.
Boe and Apple did not respond to comments.
Craig Singleton, a Chinese expert at the Democracies Defense Foundation, a Washington Thinking Corporation, said that Beijing offers billions of dollars subsidies, tax reductions and loans to help Beijing dominate global panel production. “This creates a single -source vulnerability that can be easily used to disrupt or reduce US military operations, weakening commercial supply chains, during a conflict or increasing bilateral tension with Beijing.” Last month, a study published by New York -based Nera Economic Consulting and assigned by Boe’s US subsidiary, which includes large Korean players such as Samsung Electronics and LG Electronics, found that the global prices remained quite competitive without a single player who could not significantly affect prices.
“There is no reliable risk for supply chain interruption by the Motherland Chinese screen manufacturers.” He said.
