Jon Stewart critiques the media spin on Joe Biden’s cancer diagnosis, from CNN's shameless promotion of Jake Tapper’s book to Fox News’s "but"-tainted sympathies.
Award-winning journalist Patrick McGee joins Jon to discuss how Apple built China in his new book "Apple in China: The Capture of the World's Greatest Company." They talk about Apple “sleepwalking” into this crisis, building a competitive market in Xi Jinping's authoritarian state, the vocational training that boosted rivals, how Trump’s attempted Apple boycott backfired, and whether investments may be facilitating the annexation of Taiwan.
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Episode Transcript
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Speaker 1 (00:01):
You're listening to Comedy Central, from.
Speaker 2 (00:07):
The most trusted journalists at Comedy Central is America's only
source for news.
Speaker 3 (00:14):
This is the Daily Show with your host.
Speaker 2 (00:17):
John Stewart, the show man.
Speaker 4 (00:40):
Minam is John Short. What a program we have designed
for you tonight, have bespoke or teasonal effort that I
think you were gonna truly love. And Patrick McGee is
gonna be here. Here's this guy. They call them McGee heads.
That's the fandom, the Patrick McGee fandom, here to discuss
(01:03):
this new book about how Apple's actions in China shifted
the entire global economy. The book is phenomenal for a
book about Apple. It's banana. That's a little, that's a
fruit pun. I don't about you, folks, but me, I'm
(01:29):
on the pins and needles. I'm very anxious right now.
I'm very nervous, very anticipatory. And it's not about whether
Russia and Ukraine will be settled. It's not whether somebody
can stop net and Yahoo somebody please. It's not whether
Taylor's unfriended Blake. I don't know. No, Like most people
(01:51):
in America, I am most looking forward to reading a book.
But when.
Speaker 5 (02:01):
Word go back with Breaking News in our Politics lead
and a brand new excerpt from my upcoming book with
Axios is Alex Thompson.
Speaker 4 (02:09):
It's called Original Sin.
Speaker 3 (02:10):
I'm not sure if you've heard of it. It's on
Biden's Decline. It's called Original Sin. I'm sure you've heard.
On May twentieth.
Speaker 4 (02:15):
That's Tuesday, Original Sin.
Speaker 5 (02:17):
That's coming out in three weeks, on May twentieth. That's
just nineteen days away. In one week and one day
coming out in just a few days, comes out Tuesday.
You will not believe what we found out.
Speaker 4 (02:42):
Don't news people have to tell you what they know
when they find it out, isn't Isn't that the difference
between news and the secret You won't believe when we
found out. No, that's why I'm watching Breaking News in
(03:06):
a week now. I don't know how the rest of
the country is feeling about this book coming out, but
I know New York is hyped.
Speaker 6 (03:33):
New York City by me, the city the city that
never stops reading.
Speaker 1 (03:47):
That's our motto, is.
Speaker 4 (03:52):
I'm kidding of course? That is footage from the reopening
of the Frick Museum. By the way, it is New York,
So you know the real name of the museum is
the collection. They just put it up there, like, Hey,
the freaking collection. What are we doing? So what is
(04:15):
this bombshell book about?
Speaker 7 (04:18):
A new book is outlining new claims about former President
Biden's physical and mental health. The book Original Sin, claims
Biden's health had become so severe that there were internal
discussions about putting the president in a wheelchair.
Speaker 3 (04:31):
He allegedly was napping during debate preparations.
Speaker 5 (04:34):
Another bomb show, former President Biden apparently forgot the name
of his longtime nade Jake Sullivan, and called him Steve.
Speaker 4 (04:40):
O my god, to be fair when you forget a
white guy's name, to be fair, And I'd say it
(05:00):
with respect for the bombshell Steve. It's not a bad guess.
I think even Jake Sullivan at some point was like,
is my name Steve? Because when I look in the mirror,
(05:21):
I could be or Scott maybe a c. The point
is the American news media were hungry for.
Speaker 8 (05:33):
More, a new Biden bombshell, dropping bombshell allegations.
Speaker 4 (05:38):
A steady drip of new revelations, dans damaging new details.
Oh my goodness, they're dripping with the tails a mass
of tsunami the drip drip on Joe Biden's decline. Oh God,
Fox News built an entire Biden sucks border.
Speaker 6 (05:54):
Wall to hold back the raging drips of details in bombshells.
Speaker 4 (06:01):
Nothing could slow down this coming feeding news frenzy about
Biden's cognitive health, other than maybe a report on his
actual physical health, which was not good. But now we
got ourselves a little problem. You've prepared an entire Schmortgish borg,
schmorgisborg shercuterary boards. I mean you know what I'm talking about.
(06:34):
I mean, jeez, entire schorgishborg based on what you thought
would be a relatively uncomplicated story about mental decline. News
has the countdown clock, they got the book graphics, they
got the CNN Happy Meal tie in toys, But now
(06:56):
doing the story seems almost disrespect Can CNN thread the needle?
How do you pivot from excitedly promoting your anchor's book
to somberly and respectfully promoting your anchor's book.
Speaker 9 (07:14):
Iidam's health was very much in the news even before
the cancer diagnosis was announced on Sunday.
Speaker 3 (07:19):
That's because of a new book by CNN's Jake Tapper.
Speaker 10 (07:21):
This was already going to be a tough week, and
this makes it much harder. And that is a reference
to the fact that our colleague Jake Tapper and Alex
Thompson have a book that's set to publish on Tuesday.
Speaker 9 (07:34):
This very tough news, this very challenging news, and at
the same time, the backdrop of our colleague Jake Tapper's
book with Alex Thompson coming out this week.
Speaker 4 (07:49):
It's so hard, it's such a difficult time, so unfathomable
in terms of the pain this family must be feeling.
And yet if you act now now, and you use
the code backslash tap that book, you will Obviously, this
(08:21):
twenty percent off offer is not act available for some
reason in Tennessee. But the point is forgetting about the
fact how fuck weird it is that the News is
selling you a book about news they should have told
you was news a year ago, for free.
Speaker 11 (08:42):
It's just fun.
Speaker 4 (08:56):
It's just fun to watch them not only continue to
push the book in light of this news, but to
actually frame this difficult news as perhaps even more of
a reason to buy this book.
Speaker 8 (09:06):
The timing of former President Joe Biden's cancer diagnosis is
certainly dramatic, coming on the eve of a blockbuster new
book about his health and his time in the White House.
Go on, I'm sure some observers will say that the
reporting in the book is even more important now.
Speaker 4 (09:25):
Yet nobody's saying that. No observers will say it's more
important now. Some observers might think, do these CNN people
work on commission? Like, why are they hawking this fucking thing?
So is this a girl scout cookie situation? Whoever sells
the most tap of books gets a shwin. Now, Well,
(09:52):
that is not necessarily the model they will get. I
don't want to disincentivize people from working hard. Obviously, I
don't go through all the graphics before the shell. Well,
CNN had to shift from somber and caring to always
(10:16):
be closing. Fox and the rest of the right wing
media had a very different problem. How to shift from
let's go Brandon to get well Brandon, and then as
quickly as possible back to let's go Brandon. Watch them
work their magic and see how much weight the word
(10:40):
butt carries. That's a terrible thing for him and his family.
So I hope he beats it, but look, I hope
he beats it, but not too fast. You want to
enjoy this, but what But look, I don't believe that
(11:05):
they just found out Friday, but because they're not credible
on anything they've done so far. True, Yeah, I'll bet
I bet he didn't find out Friday. I'll bet he
found out like Wednesday. And then they were all like,
oh my god, this is terrible. Should we tell this guy?
(11:25):
And then they're like, I don't know whyt to we
tell the family first, And then they're like, well, I
really wasn't help. I gotta tell you. I think this
all really highlights an opening in the greeting card market.
We don't have enough cards that swing wildly from sympathy
(11:46):
to accusation. Praying you get well soon, but there are
some holes in your timeline.
Speaker 11 (12:00):
We're all, I don't know.
Speaker 4 (12:05):
Friday, Wednesday, anyone else want to do this, but pivot
the tush push.
Speaker 3 (12:13):
Obviously hope for a speedy recovery. I will say it
does raise serious questions.
Speaker 9 (12:20):
You hate to see something like this happen, but it
just raised all these questions.
Speaker 10 (12:24):
We're all, of course, praying for President Biden's full recovery,
but the reality.
Speaker 3 (12:29):
Is, you know, I hope it's over this, but.
Speaker 4 (12:32):
Number one, very sorry for his diagnosis and wish him
the best. Number two, I am trying to make a
(12:53):
very serious point here, and I find it very difficult
to do that when you're throwing a totally weird looking
dude right in the middle of ass.
Speaker 11 (13:05):
That is not fair.
Speaker 4 (13:06):
That is not fair to do. That is I don't
know if that was like a green screen thing, but
whatever's happening here. I imagine if I had a nodule
on my pro state, this is what it might look like.
Speaker 7 (13:21):
I believe.
Speaker 11 (13:25):
It's a little bit.
Speaker 4 (13:28):
Why would you get the worst possible haircut for your
head shape?
Speaker 11 (13:32):
Why would you do that?
Speaker 4 (13:35):
My head is long and thin.
Speaker 1 (13:38):
Amplify that.
Speaker 4 (13:46):
Looks like I have a kosher hobdog asked for a Hitler
youth haircut?
Speaker 1 (13:49):
How respectfully?
Speaker 4 (14:04):
Yes, right wing media definitely pivoted from concerned accusation, but
perhaps the most shocking response of all was from the
Commander in Chief himself.
Speaker 12 (14:17):
President Trump posted, Milania and I are saddened to hear
about Joe Biden's recent medical diagnosis. We extend our warmest
and best wishes to Jill in the family, and we
wish Joe a fast and successful recovery.
Speaker 4 (14:40):
That's it. No exclamation points, no off taps, no insults,
whole thing spelled correctly. It's really got all the telltale
signs of a post definitely written by Donald Trump. I
look at I just want to god, Social I wonder
(15:05):
when I saw this poke true Social Centema security alert
the Cente we noticed some suspicious humanity on your account.
If this was in fact you, President Trump, please reply.
Nancy Pelosi's husband is gay. But the fact that Trump
(15:32):
responded to Biden's diagnosis with the most pro forma bare
minimum chat GPT's statement was so astonishing even the corrupt
lamestream media gave Trump his props.
Speaker 9 (15:47):
This is a very traditional comment in this moment from
President Trump to former President Biden.
Speaker 10 (15:53):
I mean, it's a very human, very traditional response from
President Trump. I was very, very pleased to see President
Trump putting forward such a kind statement.
Speaker 4 (16:04):
I will note, as an ardent Democrat, it's really important
that I speak up and thank President Trump for his
gracious statement. A couple of things. It is not important
that you speak up at all as a Democrat. As anything,
it is not important. What we did was not noteworthy
(16:28):
and important. Has any president has any person ever had
a lower bar to clear than I have to salute
the president. I have to salute the president, and I
certainly disagree with him on many things, but I have
to applaud that, after hearing this devastating news about Joe Biden,
that Donald did not take cancer side. Yeah, I'm swinging
(16:58):
to night so important as we as an argue, and
by the way, Trump maintained that level of gravitas for
(17:20):
almost an entire day being diagnosed with cancer.
Speaker 9 (17:24):
I'm surprised that it wasn't you know, the public wasn't
notified a long time ago, because they get to stage nine.
Speaker 4 (17:31):
That's a long time. To be fair, I do think
(18:02):
Biden was at stage nine. We should have found out
about that.
Speaker 11 (18:09):
I don't.
Speaker 4 (18:11):
I don't even know that. And he's the one that's fine, right,
there's no book coming out on him. He's fine. He's
that'll be the next to stage nine cancers. That that's
the kind that grows up like an ivy into a building.
Speaker 11 (18:32):
I'm playing.
Speaker 4 (18:34):
But you know what, maybe it is another cover up.
I don't know. If they came out and said, yeah,
Biden knew about it five years ago, I wouldn't be
shocked if they came out and said Biden found out
on Friday. I wouldn't be shocked, and I understand the
excitement over an insidious democratic cover up about Joe Biden's
mental decline. The thing is, though, it was.
Speaker 13 (18:55):
A terrible cover up because we all he knew, all
of our knew.
Speaker 4 (19:09):
There weren't no cover acts. Pole after poll showed vast
majorities of the public thought Biden was too old and
too out of it to run again. Dean Phillips mounted
an entire primary campaign because of it. I really don't
know if that's Dean Phillips, is.
Speaker 11 (19:28):
That Dean Phillips.
Speaker 6 (19:30):
My point is this, there is a very real person
in this shot, probably named Dean Phillips or.
Speaker 4 (19:43):
Steve, and he might be in the shot, but he,
along with most of the public, knew that it was
a bad idea for Biden to run. We knew it.
And that's what's so hilarious about politicians. The cover up
doesn't work when everyone knows you're lying, and everyone knows
(20:05):
you're lying. The tell is when you're so over the
top about what you don't want to tell the truth about.
Speaker 12 (20:12):
Joe Biden is incredibly competent, and he's incredibly effective.
Speaker 7 (20:16):
This is a man who is sharp, who is on top.
Speaker 4 (20:18):
Of his game. He has more energy than I do.
He works us all under the table. I can't even
keep up with him.
Speaker 13 (20:24):
Three hours on photo lines, I'm three events a day,
then giving speeches.
Speaker 1 (20:30):
Are you kidding?
Speaker 4 (20:31):
I mean, come on, that's insane. Three hours on photo line,
three events a day, that's not free. Hours of photo lines,
and then giving speeches, and then at night fighting crime.
I have done too much. God, they gotta fucking steroid
(21:05):
test these dudes. Look. They used to say, it's not
the crime, it's the cover up, but it's starting to
feel like politics is all cover up crime or not.
In an attempt to hold on to power, political actors
do anything they can to project a reality distortion field
(21:27):
when all known evidence is to the obvious contrary, and
the media tasked with covering them has somehow ended.
Speaker 1 (21:34):
Up inside the bubble with them.
Speaker 4 (21:36):
So for those of you watching at home who might
like to know what the reality of what they're hiding
about our current president would be, look not to the Democrats,
Look not to the media. Look to the president's political allies,
because their hyperbole is the indictment.
Speaker 3 (21:56):
Trump is one of the most transparent presidents of all time.
Speaker 5 (21:58):
The bravest, toughest man in the world, enormous compassions.
Speaker 4 (22:02):
He's only been bound to we the People's frankly ridiculous
that anyone in this room would even suggest that President
Trump is doing anything for his own benefit.
Speaker 5 (22:12):
Nobody believes that Donald Trump could be bought.
Speaker 14 (22:14):
One of the most moral leaders we've had, his.
Speaker 9 (22:16):
Pure honesty, the most ethical American I know.
Speaker 6 (22:22):
Tafrick twenty thirty one book, It's gonna be way.
Speaker 4 (22:27):
When we come by, Patrick madeil join.
Speaker 11 (22:29):
Us, So go away, Jar Trump?
Speaker 4 (22:51):
Are you doing that? Pitts My guest tonight, is an
award winning journalist whose groundbreaking new book is called Apple
in China, The Capture of World's Greatest Company. Please welcome
to the program, Patrick McGee, I thank you for joining us.
(23:22):
The book called Apple and China, The Capture of the
World's Greatest Company. I've got to tell you something. You know,
I'm not much of a reader. I was gonna wait
for the movie to come out, but honestly, like this
is jaw dropping. This book is jaw dropping and so
well researched. It's not a polemic, it's not hyperbole. It's
(23:45):
the story of how China, how China basically was built
as a country by Apple.
Speaker 3 (23:53):
Is that Yeah, Like I say that sometimes and it
sounds totally unhinged, and I get that, yes, And yet
like what happened is like I came across the internal
documents after speaking with two hundred people, and I figured
out that Apple was investing by twenty fifteen, fifty five
billion dollars a year into China. So this is mostly
like they spend loads of money, billions of dollars on
(24:15):
machinery that they put on Apples sorry, on production lines
that are sort of orchestrated by Apple but not owned
by them.
Speaker 4 (24:21):
So they're they're they're building the machinery. Yeah, but they're
outsourcing that. They're they're hiring companies to build this.
Speaker 3 (24:26):
They like outsourcing is the word. And yet there's something
so they own it.
Speaker 4 (24:32):
They own it.
Speaker 3 (24:33):
So I compare it to like the way Uber is
the largest taxi provided in the world without owning any cars.
It's the same thing for manufactured So none of the
factories are owned by Apple, and yet they have like
maniacal control over the machinery within those factories, right, And
so they're and then they're doing like I quote someone saying,
we treat the workers like our arms and legs, like
you do this, and you do that. And the number
(24:55):
of people they've trained like that is twenty eight million,
so larger than the labor force of California since two
thousand and eight. And the number of billions of dollars
they spend on machinery is you know, fourteen billion dollars
I think is the peak year. So some of that's
public and other of this material these doarguments.
Speaker 4 (25:11):
The numbers seem fantastic, of course.
Speaker 3 (25:14):
And you will they do and they don't, right, So
so fifty five billion is a year. Fifty five billion
is per year. That's the investment. A lot of that
is training costs for the employees in China, and the
number of employees, like per Tim Cook's public estimate, right
is three million people are assembling iPhones and other MAC
products in China.
Speaker 4 (25:32):
But these are just low level like oh, it's a million,
lots of fun skilled.
Speaker 3 (25:37):
Jobs, the ones that Howard lutn Like wants to bring
back to America. Yes, yep, and lots of PhDs at
fox con I lefiscated, right. But my point is like
lots of times people think there's great vocational training in China.
The vocational school in China is Apple.
Speaker 4 (25:52):
They've trained all these workers.
Speaker 3 (25:53):
Yes, they've done a huge job. So let me just
put the fifty five billion context. I could not find
any corporate equivalent for how much someone would is investing
in another country, so I had to go to government efforts.
So you look at something like the chipsacked, right, Biden's
flagship plan. Let's bring chip fabrication back to America. That's
fifty three billion over four years, right, another way of
saying that Apple is investing quadruple what the Commerce Secretary
(26:17):
called a once in a generation investment in America. So
that's nuts. And then you go back to then you
go back to the Marshall Plan, and you're thinking, okay,
so maybe it's like half of the Marshall Plan something
like that, Like that's going to be crazy. People are
going to relate to that. So I take the Marshall
Plan spending from nineteen forty eight to nineteen fifty two. Right,
this is sort of like America saving saving Europe after
(26:37):
the World War Two, And you convert it to twenty
fifteen dollars and it's half the annual spending of what
Apple is investing in China.
Speaker 4 (26:45):
And this is one hundred and thirty million dollars in
sixteen countries.
Speaker 3 (26:48):
Sixteen countries versus one versus one country. Yeah, and it's
not one, right, it's like the modern equivalent of the
Soviet Union, Like it's our biggest adversary. And so, you know,
I sort of ends the book not to sort of
like get so ahead of my self here no spoilers.
Speaker 4 (27:01):
Yeah, yeah, oh my god, this Apple.
Speaker 3 (27:03):
Time well payperback version.
Speaker 4 (27:07):
I don't want to tell people.
Speaker 3 (27:11):
So I say that as China, you know, as their
GDP eventually overtakes America, and especially because they're doing so
good in the advanced electronics sector, more people are going
to ask how did they do it? Like, how did
they go from such poverty fifty years ago into the
world's greatest maker of like military weaponry and advanced electronics.
(27:31):
And a big portion of the disquieting answer is you're
in year out. Apple taught them they do this.
Speaker 4 (27:37):
By the way, this is chrya. This is not to
single out. This was a decision that that Apple made,
not with this intention, no, not at all. It was
you know, it began. I guess, well, it began with
shareholder capitalism. I guess in the eighties. Yeah, yeah, I
mean not to.
Speaker 3 (27:52):
Well, that's very much in the book. Yeah, absolutely right.
Speaker 4 (27:55):
I mean it's that ethos of you do what's best
for the shareholder, so you're you're searching out the cheapest
laybor of the lowest product. But it really it seemed
like Jijingping in was it twenty thirteen is what made
this so fraught? Would that be correct to say, well, yes, because.
Speaker 3 (28:14):
I would say so. My thesis is really that they
sleepwalked into this crisis. I mean, you cannot blame Apple
for moving into China in the early two thousands. For starters,
the American consensus was that we're going to inculcate.
Speaker 4 (28:25):
That they joined the WTO.
Speaker 3 (28:26):
They came in, I mean, there was broad political support
to do that. The problem was when Xijinping really turns
China in an authoritarian and belligerent direction. It's not like
Apple was on the sidelines not noticing they were attacked
within thirty six hours. If she ascending to the president.
Speaker 4 (28:40):
Tell them about Consumer Day.
Speaker 3 (28:42):
Consumer Day is something that happens March fifteenth every year
in China and basically goes back to the nineteen ninety
one and there's someone in the audience like, I know
Consumer Day. I have read this.
Speaker 4 (28:52):
Where are the ex Consumer Day? Okay?
Speaker 3 (28:55):
So companies are called out for like not living up
to the socialist ethos okay, and it's increasing the Western
companies in the mid two thousands. And in McDonald's twenty
twelve and the book opens with twenty thirteen, Apple is
attacked on Consumer Day and it's for warranty differences of
all things the store.
Speaker 4 (29:10):
It turns out to be not actually true.
Speaker 3 (29:11):
Well it's okay, so little how much time do we have?
It's the most fascinating part.
Speaker 4 (29:17):
Of the AGA program. There's no other program, chickens.
Speaker 11 (29:25):
There nothing.
Speaker 3 (29:27):
I'm going to give you that thirty second version of
this is four chapters in the book. Okay, demand for
iPhone in China after twenty ten is wild. Okay. There
are four stores for one point four billion people. Okay,
so one store per three hundred and fifty million people,
and the iPhone becomes the most conspicuous like status symbol
imaginable on the country in the country. And so what
happens is these gangsters called yellow cows notice this imbalance,
(29:50):
and they begin paying migrants by the busload to come
over to the store and snake around the store six
seven thousand people at times to buy as many iPhones
as possible. And then they go to a city like
chong Qing, population thirty two million, number of Apple stores zero,
and they find ways legal and illegal to sell iPhones
at more money. They're making more money than Apple per iPhone, right, Okay,
(30:10):
so it's absolutely wild. What happens is Apple eventually catches
onto this a little bit because they're doing nefarious things.
They're buying phones in the US, They're using fake ID,
they're buying phones for less than one hundred dollars so
that they can, you know, make even more fat margins
on them and stuff. And so they begin actually burning
out the CPU of the phone, deliberately breaking it in
the process, but rendering it. You can you can no
longer see where it's come from, so they're masking the
(30:33):
retail origin. Okay, So what happens is Apple catches wind
of this and they begin refurbishing these deliberately broken units
rather than replacing them. By refurbishing it, they're doing something
that they're not doing in other countries, right, so they're.
Speaker 4 (30:44):
Actually take that as an insult.
Speaker 3 (30:46):
So they're exactly so without probably knowing the full story. CCTV,
that's just like the state sponsors be at CNN of
China attacks Apple for treating the Chinese in a way
that's inferior to the rest of the world. That was
twelve years ago reported by every media, and like they
never figured out what the story was with the yellow
cows and how it came to be. So that's why
it's so Significant's why it's the prologue.
Speaker 4 (31:06):
And so at that moment, shares of Apple then start
to go down. It becomes less popular in China. Yes,
I honestly don't.
Speaker 3 (31:14):
Remember if shares really fall down. To be honest, the
media is like eyeballs, we're not on China at all
during this time, I mean in China, but sales in China,
sales in China.
Speaker 4 (31:21):
Yeah.
Speaker 3 (31:21):
They first they sort of freeze and then they actually
think that's right.
Speaker 4 (31:24):
Yeah. So Apple's response to that is what playcate.
Speaker 3 (31:26):
Local officials hire a team of people that call themselves
the Gang of Eight. These are the first senior people
in China title yeah and yeah, so these are the
sort of eyes and ears of Coupertino living in China,
first time they've had senior people that live there, and
they basically strategize like what's our message to Beijing, Like
why are we in the country, and how do we
demonstrate to them we're not this exploited of power. Look
(31:48):
at how much we're doing for you. They're the ones
who come up with we're investing like a nation building
effort in China, like get off our back. You have
no idea how much we're helping you. And the fruit
really is in the pudding, fruit and putting whatever proof
is in the pudding, proofs in the pudding. The top
smartphone makers in the world these days are are all Chinese, right,
so Oppo, Vivo, Huawei, shout mate. They had fifty five
(32:10):
percent global market share. And my sort of you know
comment on this is like we think iPhone killed Nokia.
iPhone never had more than twenty percent global market share.
They're not big enough to have killed Nokia. Who killed Nokia?
The Chinese competition? Why did the competition? Chinese competition do
so well because Apple trained all their suppliers, So.
Speaker 4 (32:25):
They trained their competitors to build a product that would
be commensurate with their product, but would be a Chinese
own company, and those companies start to gain Apple start
to gain market share on Apple.
Speaker 3 (32:40):
Yeah. So the early years of making the iPhone, Apple
was really proprietary about all its processes. It would not
want those suppliers to like market their opportunities, their their
technical capabilities to everybody else. But what happens is when
they like obviate the need for a new design. By Johnny,
I've taking a corner and like getting rid of aluminum
or something like.
Speaker 4 (32:57):
That's the whole deal for Apple, like beautiful, the shit's beautiful.
Speaker 3 (32:59):
Yeah, But if if you sort of remove some aspect
of the phone and you no longer need that supplier
and they're so dependent on you, well what happens They
go bankrupt. So instead Apple begins to say, that's a
problem for us. So we deliberately say to our suppliers,
however fast you're growing with us with Apple, grow that
fast with somebody else, because otherwise you're going to be
(33:20):
too dependent.
Speaker 4 (33:20):
Because they don't want to get blamed for exactly.
Speaker 3 (33:22):
But if I'm building a component for an iPhone, what
is the skill set I have and what can I
do with it? Of course I'm going to supply Huawei
and Opo and Vivo. That's the only logical thing to do.
Speaker 4 (33:32):
So they now have a real problem on their hands.
They have trained their competitors and made it part of
their business model that their competitors get healthy and do that.
And they're about to face a real struggle and someone
saves them. Who is it that saves them? Patrick my
record books, somebody declares something about Huawei that puts Apple
(34:01):
back on.
Speaker 3 (34:03):
Somebody's cleared something. But what that's my.
Speaker 4 (34:08):
Trump administration said that huawe was a security there.
Speaker 3 (34:11):
Oh yeah, okay, right correct. So in two thousand nine,
two the books I give you, So in twenty nineteen, Huawei,
China's national champion, outsells the iPhone globally. Apple is panicking
(34:34):
about this, and I've got all these internal emails that
have never been reported on where I mean, Tim Cook
and others basically understand for weeks ahead of an earnings
call that huaweih is the reason why their phone isn't
selling well, and they deliberately obfuscate this from from And.
Speaker 4 (34:50):
That's one of my favorite parts of the book.
Speaker 3 (34:51):
I mean, the chapter is called five alarm Fire because
a VP at Apple. That's what he describes the situation, like,
how do we get sales to be better? And Tim
Cook tells deputies, quote, this is a disaster. We need
all hands on deck now. And then when he speaks
to investors a week or two later, all is fine. Internally,
china sales forecast is actually shrinking. It's not growing slowly shrinking,
(35:11):
and they don't tell investors any of this. So that's
some that's a crazy thing. Now Trump comes into office
basically saying he's going to get his users, his consumers
as his citizens. What am I trying to say? His
fans his fans to boycott Apple. Yes, he really harsh
on Apple, that's right. Wants everything to be built in America, that's.
Speaker 4 (35:31):
Right, wants them to come back. He just laying the
wood on.
Speaker 3 (35:33):
Instead, he totally saves them because when Huawei's at its peak,
he goes after Huawei, deprives them of using Google, which
of course makes androids.
Speaker 4 (35:41):
To clear them a security threat, just clears them.
Speaker 3 (35:43):
A security threat, and it deprives them of using you know,
wonky things like Qualcom five G chips. Huawei's business nearly collapses.
They lose thirty billion dollars of revenue in a year,
and their market share really tanks. They have to like
hive off assets and stuff great for a while. I mean,
the only company that really benefits from that is Apple.
So their market share in China like doubles from nine
percent to seventeen percent. So they do really well. But
now in Trump two point out who always had all
(36:05):
this time to really work hard, and so now they're
sort of back with the vengines. So now in the
global smartphone world, there's iOS, there's Android, and there's harmony Os.
This is my guess, harmony OS will become the de
facto standard for all operating system phones in China. Wow,
that's a guess, right, I think an educated one. And
then the question is do they then market that overseas
(36:26):
and you sort of have like a Chinese firewall iPhone
becoming you know, it's quay phone.
Speaker 4 (36:31):
What I find so interesting about so we think about
step out Now in a macro view, we think about
these companies as kind of monoliths, as monopolies and all
this sort of thing. And the American viewpoint is always
trust busting. We got to go in and break up
these companies. This is a somewhat of a monopolistic operation,
but they are going to break themselves up by training
(36:52):
competitors to compete with them. They're actually creating a far
more competitive market than ever would have given our standard
business practices. So that the irony is they create a
more competitive market in an authoritarian state.
Speaker 3 (37:09):
Yes, it's so much worse than that.
Speaker 11 (37:13):
Come on, come on, okay, so talk to me. So
much worse than that?
Speaker 10 (37:21):
Really, Okay.
Speaker 3 (37:22):
The reason it's worse than that because they're not just
creating phones. What else can you do if you've got
like world leading electronic skills. First of all, what's an
EV It's a smartphone on wheels. So the reason why
evs and China are so damn good is that Apple
taught all their suppliers and the suppliers of phones like
Bawe and China.
Speaker 4 (37:41):
Factory.
Speaker 3 (37:41):
And I have a fascinating section on Tesla who specifically
hires Apple people in China to run the same playbook. Like, So, okay, yeah,
I'm sorry. The reason why I said it was worse
I haven't got to that point. Oh god, alright, what
else can you build?
Speaker 4 (37:58):
Drones?
Speaker 3 (37:59):
Military? Your weaponry? Right, So you're sort of facilitating the
potential annexation of Taiwan by giving out these skill sets
for the last quarter century.
Speaker 4 (38:10):
You know, you could have said that in the book.
I didn't see that. It's it's it's it's fascinating. But
here's the other part that I think is that's when
you realize this whole idea of reshoring in industrialization, that
the idea that tariffs, this weirdly simplistic, you know, cudgel
(38:30):
that we're going to do there is so woefully short
as far as this. This is the result of years
of intense state run industrial planning that was intentional, it
was purposeful. It is I mean, it's literally called Project
twenty twenty five in China. It's China's Project twenty twenty five.
Speaker 2 (38:50):
Yeah.
Speaker 4 (38:51):
So when you think now in Apple says, oh, we're
going to spend five hundred billion back in the United States.
Speaker 3 (38:55):
Where Okay, so I'm so glad you mentioned this. It's
such ludicrous nonsense. Okay. It is the press release that
says that we're going to spend five hundred million dollars
in US literally says, and we'll create twenty thousand jobs.
Like how bad would a government program be if it
spent five hundred billion dollars and all I got was
twenty thousand jobs.
Speaker 2 (39:14):
Right, right, So the mighty.
Speaker 11 (39:17):
Makes those sad.
Speaker 15 (39:18):
But if it were true, nice, If it were true,
then you would have factories springing up in every state
you could think of, with jobs for engineers here, there,
and everywhere.
Speaker 3 (39:29):
This is only my educated guests, but I can't think
of how the math adds up anywhere else. They are
counting in the five hundred million dollars share buybacks and
dividends because Apple spends more than one hundred billion dollars
a year on share buybacks, seventy percent of their investors
are in America. If so facto, that's kind of an
investment in America, right. So that's the only way.
Speaker 4 (39:52):
That because we are now living through an announcement presidency,
because that really is what we are limiting through this
presidency is the missionccomplished presidency. It's just a dude on
a destroyer with a giant banner behind him that says
mission accomplished, even though it has no basis in reality.
And that's how we get things done. And so this
idea of like fifteen trillion dollars in investment coming back
(40:13):
to America. You're like, where how But what's so despicable
about the entire thing is we could have done all
this here, all of it.
Speaker 3 (40:24):
Oh, we can actually disagree.
Speaker 15 (40:25):
Ah, okay, so friends, what is happening?
Speaker 3 (40:34):
So China has things will never compete with, like density
of population and the way that the rural population sort
of is actually not allowed to raise their children in
places like Shenjin, so they have to be floating around.
Speaker 4 (40:45):
We can do that here.
Speaker 3 (40:47):
So, like, I'm a big fan of friend shoring rather
than reshoring. Right, we should be doing what we did
in China, but with allied nations like India, like Mexico.
But it's probably not going to happen in Pittsburg.
Speaker 4 (40:59):
But we have to also though those ancillary businesses. It's
our by allowing this, we really did hollow ourselves out.
Oh I'm convinced.
Speaker 3 (41:07):
The only thing I would say is that that really
happened in the eighties and nineties. Yes, and the Apple
was the last holdout that did not do that.
Speaker 4 (41:13):
Yes, by the way, to be so hypercritical Apple, this
is the example, but this is merely one of myriad
examples of how our industrial policy got the way it got.
Speaker 3 (41:26):
So completely I sort of refer to the book sometimes
as a trojan horse, where what I'm trying to sell
you on is the sex appeal of the world's greatest company.
But what you're actually going to learn about is some
Chinese history, the importance of the US China Tech Battle,
and things like supply chains. But if I said, John,
can you have me on this job? I got a
great book about supply chains, you'd be like, no, thanks, Yeah.
Speaker 4 (41:46):
I'm sorry. We were saying something about something, but I
don't remember what that was. The book is phenomenal and
truly like jaw dropping and like generally true. Thank you
so much for Lena Apple in China. Avail Now, Patrick,
(42:07):
no show, but we're gonna check in with yours for
the rest of the week. Ronnie Chang, Ronnie, what's happening
to my man?
Speaker 11 (42:30):
Nys Sean.
Speaker 14 (42:32):
I'm hosting a daily show this week, and I have
no idea what the hell Jordan Klepper is doing here.
Speaker 4 (42:38):
Well, I don't want to interrupt your week, but my
new special is airing tonight right after the Daily Show.
Speaker 14 (42:47):
Oh special, let me guess it's called something like MAGA
the Next Generation.
Speaker 3 (42:55):
Yeah, that's exactly what it's called it's oh.
Speaker 11 (42:57):
Oh yeah, oh yeah.
Speaker 14 (42:58):
And I bet you're talking to like young Trump's voters
about the future of America or whatever.
Speaker 4 (43:03):
Again, that nailed at that spot on that's what it is.
Speaker 14 (43:06):
Yeah yeah, And I bet as on Comedy Sandra and
it streams on Paramount Plot and then it goes up
on YouTube at midnight.
Speaker 4 (43:12):
Yeah, all of that, All of.
Speaker 3 (43:13):
That is true.
Speaker 5 (43:14):
Yes, but I like, why are you why are you
using that voice?
Speaker 14 (43:18):
Because I love and respect your work. I just u
sarcasm to shield my real emotions.
Speaker 4 (43:22):
Dull. You know.
Speaker 3 (43:24):
Actually, you know some of us We're gonna go out
and watch it together. You're welcome to to come. Oh
it sounds like a nightmare.
Speaker 14 (43:29):
Thank you, Thank you so much for your friendship. I'll
see you there.
Speaker 4 (43:34):
That was really beautiful, guys, that's really nice.
Speaker 11 (43:36):
Probably taking Joint Club. Everybody right, check out Joint in
special airing tonight.
Speaker 4 (43:42):
Here it is your moment is that special?
Speaker 6 (43:52):
Let's go five, Let's go some first experience with the
New York nig Listen to the Greatest Damn My Life.
Speaker 7 (44:06):
Explore more shows from the Daily Show podcast universe by
searching the Daily Show wherever you.
Speaker 11 (44:11):
Get your podcasts. Watch The Daily Show weeknights at eleven ten.
Speaker 2 (44:15):
Central on Comedy Central, and stream full episodes anytime on
Paramount Plus
Speaker 11 (44:26):
Paramount Podcasts
You're listening to Comedy Central, from.
Speaker 2 (00:07):
The most trusted journalists at Comedy Central is America's only
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Speaker 3 (00:14):
This is the Daily Show with your host.
Speaker 2 (00:17):
John Stewart, the show man.
Speaker 4 (00:40):
Minam is John Short. What a program we have designed
for you tonight, have bespoke or teasonal effort that I
think you were gonna truly love. And Patrick McGee is
gonna be here. Here's this guy. They call them McGee heads.
That's the fandom, the Patrick McGee fandom, here to discuss
(01:03):
this new book about how Apple's actions in China shifted
the entire global economy. The book is phenomenal for a
book about Apple. It's banana. That's a little, that's a
fruit pun. I don't about you, folks, but me, I'm
(01:29):
on the pins and needles. I'm very anxious right now.
I'm very nervous, very anticipatory. And it's not about whether
Russia and Ukraine will be settled. It's not whether somebody
can stop net and Yahoo somebody please. It's not whether
Taylor's unfriended Blake. I don't know. No, Like most people
(01:51):
in America, I am most looking forward to reading a book.
But when.
Speaker 5 (02:01):
Word go back with Breaking News in our Politics lead
and a brand new excerpt from my upcoming book with
Axios is Alex Thompson.
Speaker 4 (02:09):
It's called Original Sin.
Speaker 3 (02:10):
I'm not sure if you've heard of it. It's on
Biden's Decline. It's called Original Sin. I'm sure you've heard.
On May twentieth.
Speaker 4 (02:15):
That's Tuesday, Original Sin.
Speaker 5 (02:17):
That's coming out in three weeks, on May twentieth. That's
just nineteen days away. In one week and one day
coming out in just a few days, comes out Tuesday.
You will not believe what we found out.
Speaker 4 (02:42):
Don't news people have to tell you what they know
when they find it out, isn't Isn't that the difference
between news and the secret You won't believe when we
found out. No, that's why I'm watching Breaking News in
(03:06):
a week now. I don't know how the rest of
the country is feeling about this book coming out, but
I know New York is hyped.
Speaker 6 (03:33):
New York City by me, the city the city that
never stops reading.
Speaker 1 (03:47):
That's our motto, is.
Speaker 4 (03:52):
I'm kidding of course? That is footage from the reopening
of the Frick Museum. By the way, it is New York,
So you know the real name of the museum is
the collection. They just put it up there, like, Hey,
the freaking collection. What are we doing? So what is
(04:15):
this bombshell book about?
Speaker 7 (04:18):
A new book is outlining new claims about former President
Biden's physical and mental health. The book Original Sin, claims
Biden's health had become so severe that there were internal
discussions about putting the president in a wheelchair.
Speaker 3 (04:31):
He allegedly was napping during debate preparations.
Speaker 5 (04:34):
Another bomb show, former President Biden apparently forgot the name
of his longtime nade Jake Sullivan, and called him Steve.
Speaker 4 (04:40):
O my god, to be fair when you forget a
white guy's name, to be fair, And I'd say it
(05:00):
with respect for the bombshell Steve. It's not a bad guess.
I think even Jake Sullivan at some point was like,
is my name Steve? Because when I look in the mirror,
(05:21):
I could be or Scott maybe a c. The point
is the American news media were hungry for.
Speaker 8 (05:33):
More, a new Biden bombshell, dropping bombshell allegations.
Speaker 4 (05:38):
A steady drip of new revelations, dans damaging new details.
Oh my goodness, they're dripping with the tails a mass
of tsunami the drip drip on Joe Biden's decline. Oh God,
Fox News built an entire Biden sucks border.
Speaker 6 (05:54):
Wall to hold back the raging drips of details in bombshells.
Speaker 4 (06:01):
Nothing could slow down this coming feeding news frenzy about
Biden's cognitive health, other than maybe a report on his
actual physical health, which was not good. But now we
got ourselves a little problem. You've prepared an entire Schmortgish borg,
schmorgisborg shercuterary boards. I mean you know what I'm talking about.
(06:34):
I mean, jeez, entire schorgishborg based on what you thought
would be a relatively uncomplicated story about mental decline. News
has the countdown clock, they got the book graphics, they
got the CNN Happy Meal tie in toys, But now
(06:56):
doing the story seems almost disrespect Can CNN thread the needle?
How do you pivot from excitedly promoting your anchor's book
to somberly and respectfully promoting your anchor's book.
Speaker 9 (07:14):
Iidam's health was very much in the news even before
the cancer diagnosis was announced on Sunday.
Speaker 3 (07:19):
That's because of a new book by CNN's Jake Tapper.
Speaker 10 (07:21):
This was already going to be a tough week, and
this makes it much harder. And that is a reference
to the fact that our colleague Jake Tapper and Alex
Thompson have a book that's set to publish on Tuesday.
Speaker 9 (07:34):
This very tough news, this very challenging news, and at
the same time, the backdrop of our colleague Jake Tapper's
book with Alex Thompson coming out this week.
Speaker 4 (07:49):
It's so hard, it's such a difficult time, so unfathomable
in terms of the pain this family must be feeling.
And yet if you act now now, and you use
the code backslash tap that book, you will Obviously, this
(08:21):
twenty percent off offer is not act available for some
reason in Tennessee. But the point is forgetting about the
fact how fuck weird it is that the News is
selling you a book about news they should have told
you was news a year ago, for free.
Speaker 11 (08:42):
It's just fun.
Speaker 4 (08:56):
It's just fun to watch them not only continue to
push the book in light of this news, but to
actually frame this difficult news as perhaps even more of
a reason to buy this book.
Speaker 8 (09:06):
The timing of former President Joe Biden's cancer diagnosis is
certainly dramatic, coming on the eve of a blockbuster new
book about his health and his time in the White House.
Go on, I'm sure some observers will say that the
reporting in the book is even more important now.
Speaker 4 (09:25):
Yet nobody's saying that. No observers will say it's more
important now. Some observers might think, do these CNN people
work on commission? Like, why are they hawking this fucking thing?
So is this a girl scout cookie situation? Whoever sells
the most tap of books gets a shwin. Now, Well,
(09:52):
that is not necessarily the model they will get. I
don't want to disincentivize people from working hard. Obviously, I
don't go through all the graphics before the shell. Well,
CNN had to shift from somber and caring to always
(10:16):
be closing. Fox and the rest of the right wing
media had a very different problem. How to shift from
let's go Brandon to get well Brandon, and then as
quickly as possible back to let's go Brandon. Watch them
work their magic and see how much weight the word
(10:40):
butt carries. That's a terrible thing for him and his family.
So I hope he beats it, but look, I hope
he beats it, but not too fast. You want to
enjoy this, but what But look, I don't believe that
(11:05):
they just found out Friday, but because they're not credible
on anything they've done so far. True, Yeah, I'll bet
I bet he didn't find out Friday. I'll bet he
found out like Wednesday. And then they were all like,
oh my god, this is terrible. Should we tell this guy?
(11:25):
And then they're like, I don't know whyt to we
tell the family first, And then they're like, well, I
really wasn't help. I gotta tell you. I think this
all really highlights an opening in the greeting card market.
We don't have enough cards that swing wildly from sympathy
(11:46):
to accusation. Praying you get well soon, but there are
some holes in your timeline.
Speaker 11 (12:00):
We're all, I don't know.
Speaker 4 (12:05):
Friday, Wednesday, anyone else want to do this, but pivot
the tush push.
Speaker 3 (12:13):
Obviously hope for a speedy recovery. I will say it
does raise serious questions.
Speaker 9 (12:20):
You hate to see something like this happen, but it
just raised all these questions.
Speaker 10 (12:24):
We're all, of course, praying for President Biden's full recovery,
but the reality.
Speaker 3 (12:29):
Is, you know, I hope it's over this, but.
Speaker 4 (12:32):
Number one, very sorry for his diagnosis and wish him
the best. Number two, I am trying to make a
(12:53):
very serious point here, and I find it very difficult
to do that when you're throwing a totally weird looking
dude right in the middle of ass.
Speaker 11 (13:05):
That is not fair.
Speaker 4 (13:06):
That is not fair to do. That is I don't
know if that was like a green screen thing, but
whatever's happening here. I imagine if I had a nodule
on my pro state, this is what it might look like.
Speaker 7 (13:21):
I believe.
Speaker 11 (13:25):
It's a little bit.
Speaker 4 (13:28):
Why would you get the worst possible haircut for your
head shape?
Speaker 11 (13:32):
Why would you do that?
Speaker 4 (13:35):
My head is long and thin.
Speaker 1 (13:38):
Amplify that.
Speaker 4 (13:46):
Looks like I have a kosher hobdog asked for a Hitler
youth haircut?
Speaker 1 (13:49):
How respectfully?
Speaker 4 (14:04):
Yes, right wing media definitely pivoted from concerned accusation, but
perhaps the most shocking response of all was from the
Commander in Chief himself.
Speaker 12 (14:17):
President Trump posted, Milania and I are saddened to hear
about Joe Biden's recent medical diagnosis. We extend our warmest
and best wishes to Jill in the family, and we
wish Joe a fast and successful recovery.
Speaker 4 (14:40):
That's it. No exclamation points, no off taps, no insults,
whole thing spelled correctly. It's really got all the telltale
signs of a post definitely written by Donald Trump. I
look at I just want to god, Social I wonder
(15:05):
when I saw this poke true Social Centema security alert
the Cente we noticed some suspicious humanity on your account.
If this was in fact you, President Trump, please reply.
Nancy Pelosi's husband is gay. But the fact that Trump
(15:32):
responded to Biden's diagnosis with the most pro forma bare
minimum chat GPT's statement was so astonishing even the corrupt
lamestream media gave Trump his props.
Speaker 9 (15:47):
This is a very traditional comment in this moment from
President Trump to former President Biden.
Speaker 10 (15:53):
I mean, it's a very human, very traditional response from
President Trump. I was very, very pleased to see President
Trump putting forward such a kind statement.
Speaker 4 (16:04):
I will note, as an ardent Democrat, it's really important
that I speak up and thank President Trump for his
gracious statement. A couple of things. It is not important
that you speak up at all as a Democrat. As anything,
it is not important. What we did was not noteworthy
(16:28):
and important. Has any president has any person ever had
a lower bar to clear than I have to salute
the president. I have to salute the president, and I
certainly disagree with him on many things, but I have
to applaud that, after hearing this devastating news about Joe Biden,
that Donald did not take cancer side. Yeah, I'm swinging
(16:58):
to night so important as we as an argue, and
by the way, Trump maintained that level of gravitas for
(17:20):
almost an entire day being diagnosed with cancer.
Speaker 9 (17:24):
I'm surprised that it wasn't you know, the public wasn't
notified a long time ago, because they get to stage nine.
Speaker 4 (17:31):
That's a long time. To be fair, I do think
(18:02):
Biden was at stage nine. We should have found out
about that.
Speaker 11 (18:09):
I don't.
Speaker 4 (18:11):
I don't even know that. And he's the one that's fine, right,
there's no book coming out on him. He's fine. He's
that'll be the next to stage nine cancers. That that's
the kind that grows up like an ivy into a building.
Speaker 11 (18:32):
I'm playing.
Speaker 4 (18:34):
But you know what, maybe it is another cover up.
I don't know. If they came out and said, yeah,
Biden knew about it five years ago, I wouldn't be
shocked if they came out and said Biden found out
on Friday. I wouldn't be shocked, and I understand the
excitement over an insidious democratic cover up about Joe Biden's
mental decline. The thing is, though, it was.
Speaker 13 (18:55):
A terrible cover up because we all he knew, all
of our knew.
Speaker 4 (19:09):
There weren't no cover acts. Pole after poll showed vast
majorities of the public thought Biden was too old and
too out of it to run again. Dean Phillips mounted
an entire primary campaign because of it. I really don't
know if that's Dean Phillips, is.
Speaker 11 (19:28):
That Dean Phillips.
Speaker 6 (19:30):
My point is this, there is a very real person
in this shot, probably named Dean Phillips or.
Speaker 4 (19:43):
Steve, and he might be in the shot, but he,
along with most of the public, knew that it was
a bad idea for Biden to run. We knew it.
And that's what's so hilarious about politicians. The cover up
doesn't work when everyone knows you're lying, and everyone knows
(20:05):
you're lying. The tell is when you're so over the
top about what you don't want to tell the truth about.
Speaker 12 (20:12):
Joe Biden is incredibly competent, and he's incredibly effective.
Speaker 7 (20:16):
This is a man who is sharp, who is on top.
Speaker 4 (20:18):
Of his game. He has more energy than I do.
He works us all under the table. I can't even
keep up with him.
Speaker 13 (20:24):
Three hours on photo lines, I'm three events a day,
then giving speeches.
Speaker 1 (20:30):
Are you kidding?
Speaker 4 (20:31):
I mean, come on, that's insane. Three hours on photo line,
three events a day, that's not free. Hours of photo lines,
and then giving speeches, and then at night fighting crime.
I have done too much. God, they gotta fucking steroid
(21:05):
test these dudes. Look. They used to say, it's not
the crime, it's the cover up, but it's starting to
feel like politics is all cover up crime or not.
In an attempt to hold on to power, political actors
do anything they can to project a reality distortion field
(21:27):
when all known evidence is to the obvious contrary, and
the media tasked with covering them has somehow ended.
Speaker 1 (21:34):
Up inside the bubble with them.
Speaker 4 (21:36):
So for those of you watching at home who might
like to know what the reality of what they're hiding
about our current president would be, look not to the Democrats,
Look not to the media. Look to the president's political allies,
because their hyperbole is the indictment.
Speaker 3 (21:56):
Trump is one of the most transparent presidents of all time.
Speaker 5 (21:58):
The bravest, toughest man in the world, enormous compassions.
Speaker 4 (22:02):
He's only been bound to we the People's frankly ridiculous
that anyone in this room would even suggest that President
Trump is doing anything for his own benefit.
Speaker 5 (22:12):
Nobody believes that Donald Trump could be bought.
Speaker 14 (22:14):
One of the most moral leaders we've had, his.
Speaker 9 (22:16):
Pure honesty, the most ethical American I know.
Speaker 6 (22:22):
Tafrick twenty thirty one book, It's gonna be way.
Speaker 4 (22:27):
When we come by, Patrick madeil join.
Speaker 11 (22:29):
Us, So go away, Jar Trump?
Speaker 4 (22:51):
Are you doing that? Pitts My guest tonight, is an
award winning journalist whose groundbreaking new book is called Apple
in China, The Capture of World's Greatest Company. Please welcome
to the program, Patrick McGee, I thank you for joining us.
(23:22):
The book called Apple and China, The Capture of the
World's Greatest Company. I've got to tell you something. You know,
I'm not much of a reader. I was gonna wait
for the movie to come out, but honestly, like this
is jaw dropping. This book is jaw dropping and so
well researched. It's not a polemic, it's not hyperbole. It's
(23:45):
the story of how China, how China basically was built
as a country by Apple.
Speaker 3 (23:53):
Is that Yeah, Like I say that sometimes and it
sounds totally unhinged, and I get that, yes, And yet
like what happened is like I came across the internal
documents after speaking with two hundred people, and I figured
out that Apple was investing by twenty fifteen, fifty five
billion dollars a year into China. So this is mostly
like they spend loads of money, billions of dollars on
(24:15):
machinery that they put on Apples sorry, on production lines
that are sort of orchestrated by Apple but not owned
by them.
Speaker 4 (24:21):
So they're they're they're building the machinery. Yeah, but they're
outsourcing that. They're they're hiring companies to build this.
Speaker 3 (24:26):
They like outsourcing is the word. And yet there's something
so they own it.
Speaker 4 (24:32):
They own it.
Speaker 3 (24:33):
So I compare it to like the way Uber is
the largest taxi provided in the world without owning any cars.
It's the same thing for manufactured So none of the
factories are owned by Apple, and yet they have like
maniacal control over the machinery within those factories, right, And
so they're and then they're doing like I quote someone saying,
we treat the workers like our arms and legs, like
you do this, and you do that. And the number
(24:55):
of people they've trained like that is twenty eight million,
so larger than the labor force of California since two
thousand and eight. And the number of billions of dollars
they spend on machinery is you know, fourteen billion dollars
I think is the peak year. So some of that's
public and other of this material these doarguments.
Speaker 4 (25:11):
The numbers seem fantastic, of course.
Speaker 3 (25:14):
And you will they do and they don't, right, So
so fifty five billion is a year. Fifty five billion
is per year. That's the investment. A lot of that
is training costs for the employees in China, and the
number of employees, like per Tim Cook's public estimate, right
is three million people are assembling iPhones and other MAC
products in China.
Speaker 4 (25:32):
But these are just low level like oh, it's a million,
lots of fun skilled.
Speaker 3 (25:37):
Jobs, the ones that Howard lutn Like wants to bring
back to America. Yes, yep, and lots of PhDs at
fox con I lefiscated, right. But my point is like
lots of times people think there's great vocational training in China.
The vocational school in China is Apple.
Speaker 4 (25:52):
They've trained all these workers.
Speaker 3 (25:53):
Yes, they've done a huge job. So let me just
put the fifty five billion context. I could not find
any corporate equivalent for how much someone would is investing
in another country, so I had to go to government efforts.
So you look at something like the chipsacked, right, Biden's
flagship plan. Let's bring chip fabrication back to America. That's
fifty three billion over four years, right, another way of
saying that Apple is investing quadruple what the Commerce Secretary
(26:17):
called a once in a generation investment in America. So
that's nuts. And then you go back to then you
go back to the Marshall Plan, and you're thinking, okay,
so maybe it's like half of the Marshall Plan something
like that, Like that's going to be crazy. People are
going to relate to that. So I take the Marshall
Plan spending from nineteen forty eight to nineteen fifty two. Right,
this is sort of like America saving saving Europe after
(26:37):
the World War Two, And you convert it to twenty
fifteen dollars and it's half the annual spending of what
Apple is investing in China.
Speaker 4 (26:45):
And this is one hundred and thirty million dollars in
sixteen countries.
Speaker 3 (26:48):
Sixteen countries versus one versus one country. Yeah, and it's
not one, right, it's like the modern equivalent of the
Soviet Union, Like it's our biggest adversary. And so, you know,
I sort of ends the book not to sort of
like get so ahead of my self here no spoilers.
Speaker 4 (27:01):
Yeah, yeah, oh my god, this Apple.
Speaker 3 (27:03):
Time well payperback version.
Speaker 4 (27:07):
I don't want to tell people.
Speaker 3 (27:11):
So I say that as China, you know, as their
GDP eventually overtakes America, and especially because they're doing so
good in the advanced electronics sector, more people are going
to ask how did they do it? Like, how did
they go from such poverty fifty years ago into the
world's greatest maker of like military weaponry and advanced electronics.
(27:31):
And a big portion of the disquieting answer is you're
in year out. Apple taught them they do this.
Speaker 4 (27:37):
By the way, this is chrya. This is not to
single out. This was a decision that that Apple made,
not with this intention, no, not at all. It was
you know, it began. I guess, well, it began with
shareholder capitalism. I guess in the eighties. Yeah, yeah, I
mean not to.
Speaker 3 (27:52):
Well, that's very much in the book. Yeah, absolutely right.
Speaker 4 (27:55):
I mean it's that ethos of you do what's best
for the shareholder, so you're you're searching out the cheapest
laybor of the lowest product. But it really it seemed
like Jijingping in was it twenty thirteen is what made
this so fraught? Would that be correct to say, well, yes, because.
Speaker 3 (28:14):
I would say so. My thesis is really that they
sleepwalked into this crisis. I mean, you cannot blame Apple
for moving into China in the early two thousands. For starters,
the American consensus was that we're going to inculcate.
Speaker 4 (28:25):
That they joined the WTO.
Speaker 3 (28:26):
They came in, I mean, there was broad political support
to do that. The problem was when Xijinping really turns
China in an authoritarian and belligerent direction. It's not like
Apple was on the sidelines not noticing they were attacked
within thirty six hours. If she ascending to the president.
Speaker 4 (28:40):
Tell them about Consumer Day.
Speaker 3 (28:42):
Consumer Day is something that happens March fifteenth every year
in China and basically goes back to the nineteen ninety
one and there's someone in the audience like, I know
Consumer Day. I have read this.
Speaker 4 (28:52):
Where are the ex Consumer Day? Okay?
Speaker 3 (28:55):
So companies are called out for like not living up
to the socialist ethos okay, and it's increasing the Western
companies in the mid two thousands. And in McDonald's twenty
twelve and the book opens with twenty thirteen, Apple is
attacked on Consumer Day and it's for warranty differences of
all things the store.
Speaker 4 (29:10):
It turns out to be not actually true.
Speaker 3 (29:11):
Well it's okay, so little how much time do we have?
It's the most fascinating part.
Speaker 4 (29:17):
Of the AGA program. There's no other program, chickens.
Speaker 11 (29:25):
There nothing.
Speaker 3 (29:27):
I'm going to give you that thirty second version of
this is four chapters in the book. Okay, demand for
iPhone in China after twenty ten is wild. Okay. There
are four stores for one point four billion people. Okay,
so one store per three hundred and fifty million people,
and the iPhone becomes the most conspicuous like status symbol
imaginable on the country in the country. And so what
happens is these gangsters called yellow cows notice this imbalance,
(29:50):
and they begin paying migrants by the busload to come
over to the store and snake around the store six
seven thousand people at times to buy as many iPhones
as possible. And then they go to a city like
chong Qing, population thirty two million, number of Apple stores zero,
and they find ways legal and illegal to sell iPhones
at more money. They're making more money than Apple per iPhone, right, Okay,
(30:10):
so it's absolutely wild. What happens is Apple eventually catches
onto this a little bit because they're doing nefarious things.
They're buying phones in the US, They're using fake ID,
they're buying phones for less than one hundred dollars so
that they can, you know, make even more fat margins
on them and stuff. And so they begin actually burning
out the CPU of the phone, deliberately breaking it in
the process, but rendering it. You can you can no
longer see where it's come from, so they're masking the
(30:33):
retail origin. Okay, So what happens is Apple catches wind
of this and they begin refurbishing these deliberately broken units
rather than replacing them. By refurbishing it, they're doing something
that they're not doing in other countries, right, so they're.
Speaker 4 (30:44):
Actually take that as an insult.
Speaker 3 (30:46):
So they're exactly so without probably knowing the full story. CCTV,
that's just like the state sponsors be at CNN of
China attacks Apple for treating the Chinese in a way
that's inferior to the rest of the world. That was
twelve years ago reported by every media, and like they
never figured out what the story was with the yellow
cows and how it came to be. So that's why
it's so Significant's why it's the prologue.
Speaker 4 (31:06):
And so at that moment, shares of Apple then start
to go down. It becomes less popular in China. Yes,
I honestly don't.
Speaker 3 (31:14):
Remember if shares really fall down. To be honest, the
media is like eyeballs, we're not on China at all
during this time, I mean in China, but sales in China,
sales in China.
Speaker 4 (31:21):
Yeah.
Speaker 3 (31:21):
They first they sort of freeze and then they actually
think that's right.
Speaker 4 (31:24):
Yeah. So Apple's response to that is what playcate.
Speaker 3 (31:26):
Local officials hire a team of people that call themselves
the Gang of Eight. These are the first senior people
in China title yeah and yeah, so these are the
sort of eyes and ears of Coupertino living in China,
first time they've had senior people that live there, and
they basically strategize like what's our message to Beijing, Like
why are we in the country, and how do we
demonstrate to them we're not this exploited of power. Look
(31:48):
at how much we're doing for you. They're the ones
who come up with we're investing like a nation building
effort in China, like get off our back. You have
no idea how much we're helping you. And the fruit
really is in the pudding, fruit and putting whatever proof
is in the pudding, proofs in the pudding. The top
smartphone makers in the world these days are are all Chinese, right,
so Oppo, Vivo, Huawei, shout mate. They had fifty five
(32:10):
percent global market share. And my sort of you know
comment on this is like we think iPhone killed Nokia.
iPhone never had more than twenty percent global market share.
They're not big enough to have killed Nokia. Who killed Nokia?
The Chinese competition? Why did the competition? Chinese competition do
so well because Apple trained all their suppliers, So.
Speaker 4 (32:25):
They trained their competitors to build a product that would
be commensurate with their product, but would be a Chinese
own company, and those companies start to gain Apple start
to gain market share on Apple.
Speaker 3 (32:40):
Yeah. So the early years of making the iPhone, Apple
was really proprietary about all its processes. It would not
want those suppliers to like market their opportunities, their their
technical capabilities to everybody else. But what happens is when
they like obviate the need for a new design. By Johnny,
I've taking a corner and like getting rid of aluminum
or something like.
Speaker 4 (32:57):
That's the whole deal for Apple, like beautiful, the shit's beautiful.
Speaker 3 (32:59):
Yeah, But if if you sort of remove some aspect
of the phone and you no longer need that supplier
and they're so dependent on you, well what happens They
go bankrupt. So instead Apple begins to say, that's a
problem for us. So we deliberately say to our suppliers,
however fast you're growing with us with Apple, grow that
fast with somebody else, because otherwise you're going to be
(33:20):
too dependent.
Speaker 4 (33:20):
Because they don't want to get blamed for exactly.
Speaker 3 (33:22):
But if I'm building a component for an iPhone, what
is the skill set I have and what can I
do with it? Of course I'm going to supply Huawei
and Opo and Vivo. That's the only logical thing to do.
Speaker 4 (33:32):
So they now have a real problem on their hands.
They have trained their competitors and made it part of
their business model that their competitors get healthy and do that.
And they're about to face a real struggle and someone
saves them. Who is it that saves them? Patrick my
record books, somebody declares something about Huawei that puts Apple
(34:01):
back on.
Speaker 3 (34:03):
Somebody's cleared something. But what that's my.
Speaker 4 (34:08):
Trump administration said that huawe was a security there.
Speaker 3 (34:11):
Oh yeah, okay, right correct. So in two thousand nine,
two the books I give you, So in twenty nineteen, Huawei,
China's national champion, outsells the iPhone globally. Apple is panicking
(34:34):
about this, and I've got all these internal emails that
have never been reported on where I mean, Tim Cook
and others basically understand for weeks ahead of an earnings
call that huaweih is the reason why their phone isn't
selling well, and they deliberately obfuscate this from from And.
Speaker 4 (34:50):
That's one of my favorite parts of the book.
Speaker 3 (34:51):
I mean, the chapter is called five alarm Fire because
a VP at Apple. That's what he describes the situation, like,
how do we get sales to be better? And Tim
Cook tells deputies, quote, this is a disaster. We need
all hands on deck now. And then when he speaks
to investors a week or two later, all is fine. Internally,
china sales forecast is actually shrinking. It's not growing slowly shrinking,
(35:11):
and they don't tell investors any of this. So that's
some that's a crazy thing. Now Trump comes into office
basically saying he's going to get his users, his consumers
as his citizens. What am I trying to say? His
fans his fans to boycott Apple. Yes, he really harsh
on Apple, that's right. Wants everything to be built in America, that's.
Speaker 4 (35:31):
Right, wants them to come back. He just laying the
wood on.
Speaker 3 (35:33):
Instead, he totally saves them because when Huawei's at its peak,
he goes after Huawei, deprives them of using Google, which
of course makes androids.
Speaker 4 (35:41):
To clear them a security threat, just clears them.
Speaker 3 (35:43):
A security threat, and it deprives them of using you know,
wonky things like Qualcom five G chips. Huawei's business nearly collapses.
They lose thirty billion dollars of revenue in a year,
and their market share really tanks. They have to like
hive off assets and stuff great for a while. I mean,
the only company that really benefits from that is Apple.
So their market share in China like doubles from nine
percent to seventeen percent. So they do really well. But
now in Trump two point out who always had all
(36:05):
this time to really work hard, and so now they're
sort of back with the vengines. So now in the
global smartphone world, there's iOS, there's Android, and there's harmony Os.
This is my guess, harmony OS will become the de
facto standard for all operating system phones in China. Wow,
that's a guess, right, I think an educated one. And
then the question is do they then market that overseas
(36:26):
and you sort of have like a Chinese firewall iPhone
becoming you know, it's quay phone.
Speaker 4 (36:31):
What I find so interesting about so we think about
step out Now in a macro view, we think about
these companies as kind of monoliths, as monopolies and all
this sort of thing. And the American viewpoint is always
trust busting. We got to go in and break up
these companies. This is a somewhat of a monopolistic operation,
but they are going to break themselves up by training
(36:52):
competitors to compete with them. They're actually creating a far
more competitive market than ever would have given our standard
business practices. So that the irony is they create a
more competitive market in an authoritarian state.
Speaker 3 (37:09):
Yes, it's so much worse than that.
Speaker 11 (37:13):
Come on, come on, okay, so talk to me. So
much worse than that?
Speaker 10 (37:21):
Really, Okay.
Speaker 3 (37:22):
The reason it's worse than that because they're not just
creating phones. What else can you do if you've got
like world leading electronic skills. First of all, what's an
EV It's a smartphone on wheels. So the reason why
evs and China are so damn good is that Apple
taught all their suppliers and the suppliers of phones like
Bawe and China.
Speaker 4 (37:41):
Factory.
Speaker 3 (37:41):
And I have a fascinating section on Tesla who specifically
hires Apple people in China to run the same playbook. Like, So, okay, yeah,
I'm sorry. The reason why I said it was worse
I haven't got to that point. Oh god, alright, what
else can you build?
Speaker 4 (37:58):
Drones?
Speaker 3 (37:59):
Military? Your weaponry? Right, So you're sort of facilitating the
potential annexation of Taiwan by giving out these skill sets
for the last quarter century.
Speaker 4 (38:10):
You know, you could have said that in the book.
I didn't see that. It's it's it's it's fascinating. But
here's the other part that I think is that's when
you realize this whole idea of reshoring in industrialization, that
the idea that tariffs, this weirdly simplistic, you know, cudgel
(38:30):
that we're going to do there is so woefully short
as far as this. This is the result of years
of intense state run industrial planning that was intentional, it
was purposeful. It is I mean, it's literally called Project
twenty twenty five in China. It's China's Project twenty twenty five.
Speaker 2 (38:50):
Yeah.
Speaker 4 (38:51):
So when you think now in Apple says, oh, we're
going to spend five hundred billion back in the United States.
Speaker 3 (38:55):
Where Okay, so I'm so glad you mentioned this. It's
such ludicrous nonsense. Okay. It is the press release that
says that we're going to spend five hundred million dollars
in US literally says, and we'll create twenty thousand jobs.
Like how bad would a government program be if it
spent five hundred billion dollars and all I got was
twenty thousand jobs.
Speaker 2 (39:14):
Right, right, So the mighty.
Speaker 11 (39:17):
Makes those sad.
Speaker 15 (39:18):
But if it were true, nice, If it were true,
then you would have factories springing up in every state
you could think of, with jobs for engineers here, there,
and everywhere.
Speaker 3 (39:29):
This is only my educated guests, but I can't think
of how the math adds up anywhere else. They are
counting in the five hundred million dollars share buybacks and
dividends because Apple spends more than one hundred billion dollars
a year on share buybacks, seventy percent of their investors
are in America. If so facto, that's kind of an
investment in America, right. So that's the only way.
Speaker 4 (39:52):
That because we are now living through an announcement presidency,
because that really is what we are limiting through this
presidency is the missionccomplished presidency. It's just a dude on
a destroyer with a giant banner behind him that says
mission accomplished, even though it has no basis in reality.
And that's how we get things done. And so this
idea of like fifteen trillion dollars in investment coming back
(40:13):
to America. You're like, where how But what's so despicable
about the entire thing is we could have done all
this here, all of it.
Speaker 3 (40:24):
Oh, we can actually disagree.
Speaker 15 (40:25):
Ah, okay, so friends, what is happening?
Speaker 3 (40:34):
So China has things will never compete with, like density
of population and the way that the rural population sort
of is actually not allowed to raise their children in
places like Shenjin, so they have to be floating around.
Speaker 4 (40:45):
We can do that here.
Speaker 3 (40:47):
So, like, I'm a big fan of friend shoring rather
than reshoring. Right, we should be doing what we did
in China, but with allied nations like India, like Mexico.
But it's probably not going to happen in Pittsburg.
Speaker 4 (40:59):
But we have to also though those ancillary businesses. It's
our by allowing this, we really did hollow ourselves out.
Oh I'm convinced.
Speaker 3 (41:07):
The only thing I would say is that that really
happened in the eighties and nineties. Yes, and the Apple
was the last holdout that did not do that.
Speaker 4 (41:13):
Yes, by the way, to be so hypercritical Apple, this
is the example, but this is merely one of myriad
examples of how our industrial policy got the way it got.
Speaker 3 (41:26):
So completely I sort of refer to the book sometimes
as a trojan horse, where what I'm trying to sell
you on is the sex appeal of the world's greatest company.
But what you're actually going to learn about is some
Chinese history, the importance of the US China Tech Battle,
and things like supply chains. But if I said, John,
can you have me on this job? I got a
great book about supply chains, you'd be like, no, thanks, Yeah.
Speaker 4 (41:46):
I'm sorry. We were saying something about something, but I
don't remember what that was. The book is phenomenal and
truly like jaw dropping and like generally true. Thank you
so much for Lena Apple in China. Avail Now, Patrick,
(42:07):
no show, but we're gonna check in with yours for
the rest of the week. Ronnie Chang, Ronnie, what's happening
to my man?
Speaker 11 (42:30):
Nys Sean.
Speaker 14 (42:32):
I'm hosting a daily show this week, and I have
no idea what the hell Jordan Klepper is doing here.
Speaker 4 (42:38):
Well, I don't want to interrupt your week, but my
new special is airing tonight right after the Daily Show.
Speaker 14 (42:47):
Oh special, let me guess it's called something like MAGA
the Next Generation.
Speaker 3 (42:55):
Yeah, that's exactly what it's called it's oh.
Speaker 11 (42:57):
Oh yeah, oh yeah.
Speaker 14 (42:58):
And I bet you're talking to like young Trump's voters
about the future of America or whatever.
Speaker 4 (43:03):
Again, that nailed at that spot on that's what it is.
Speaker 14 (43:06):
Yeah yeah, And I bet as on Comedy Sandra and
it streams on Paramount Plot and then it goes up
on YouTube at midnight.
Speaker 4 (43:12):
Yeah, all of that, All of.
Speaker 3 (43:13):
That is true.
Speaker 5 (43:14):
Yes, but I like, why are you why are you
using that voice?
Speaker 14 (43:18):
Because I love and respect your work. I just u
sarcasm to shield my real emotions.
Speaker 4 (43:22):
Dull. You know.
Speaker 3 (43:24):
Actually, you know some of us We're gonna go out
and watch it together. You're welcome to to come. Oh
it sounds like a nightmare.
Speaker 14 (43:29):
Thank you, Thank you so much for your friendship. I'll
see you there.
Speaker 4 (43:34):
That was really beautiful, guys, that's really nice.
Speaker 11 (43:36):
Probably taking Joint Club. Everybody right, check out Joint in
special airing tonight.
Speaker 4 (43:42):
Here it is your moment is that special?
Speaker 6 (43:52):
Let's go five, Let's go some first experience with the
New York nig Listen to the Greatest Damn My Life.
Speaker 7 (44:06):
Explore more shows from the Daily Show podcast universe by
searching the Daily Show wherever you.
Speaker 11 (44:11):
Get your podcasts. Watch The Daily Show weeknights at eleven ten.
Speaker 2 (44:15):
Central on Comedy Central, and stream full episodes anytime on
Paramount Plus
Speaker 11 (44:26):
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