Why does Apple invest $55 billion annually in Chinese manufacturing while US factories struggle to source equipment?
Patrick McGee, Financial Times journalist and author of "Apple in China," reveals the manufacturing reality behind Apple's $55 billion annual investment in Chinese factories. This episode explores critical equipment procurement challenges, automation strategies, and reshoring decisions facing manufacturing executives in 2025. Drawing from Tesla's Shanghai factory experience and Apple's supply chain dominance, McGee discusses why 350 million Chinese workers create unmatched manufacturing capacity.
The conversation examines China's "invisible hand" industrial policy that enables overnight factory construction, comparing it to America's regulatory environment that can delay equipment installations for years. McGee challenges assumptions about humanoid robots as manufacturing solutions, questioning whether importing Chinese-made robots truly addresses US industrial competitiveness. For procurement managers and plant directors planning 2025 capital expenditures, this discussion provides essential insights into global equipment sourcing, supplier relationships, and the geopolitical forces reshaping manufacturing investment strategies.
In This Episode:
Patrick McGee is a Financial Times journalist and author of "Apple in China," examining how Apple became dependent on Chinese manufacturing infrastructure. As the Financial Times' Apple beat reporter from 2019-2023, McGee covered global supply chain dynamics and US-China trade relationships. His investigative work earned him the San Francisco Press Club Award in 2023. "Apple in China" has been recognized by The Economist as one of 2025's top 40 books and named a most anticipated title by major publications.
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