Endangered marks if China takes revenge on Huawei

Washington's decision to include Huawei on its commercial blacklist could trigger Chinese retaliation against several brands in the United States.

Hotels with sportswear, which could even affect the worlds of Captain America and Marvel, warns a new Bloomberg article, recalling that China's rapidly growing consumer market "is a priority for the US giants ", seeking to grow slowdown of the global economy

Here are some of those that could be lost in this trade war:

Apple

The most obvious target would be Huawei's smartphone rival Apple Inc., which derives about a fifth of its revenue from China and manufactures its iPhones in that country. In fact, the company's revenues in the region have already decreased, consumers buying more Huawei phones and other local brands.

According to Dan Ives, an badyst at Wedbush Securities, the consequences of Huawei's ban could cost between 3% and 5% of iPhone sales in China to Apple over the next 12 to 18 months.

Marriot Hotel

Marriott International Inc. will open more than 30 hotels in China this year and plans to create more than 300 new hotels in the country, more than half of the planned total in the Asia-Pacific region.

For Bloomberg, the largest hotel chain in the world "is no stranger to Chinese political risk", recalling that the company had to apologize last year after including Tibet and Taiwan as separate countries on his website.

Moreover, in November, he was the victim of one of the biggest corporate hacks in history, which, according to some information, could have been perpetrated by the Chinese intelligence services.

Nike

China is an increasingly important market for Nike Inc., which sponsors the Shanghai Marathon and Super League Chinese Football, and revenues in that Asian country grew by 24% between December 2018 and February 2019.

"Even in the midst of the current geopolitical dynamics, Nike continues to generate strong and sustainable growth in China," said CFO company Andrew Campion.

However, Nike's position in China "is far from certain", as consumers can easily switch to local competitors such as Anta Sports Products Ltd., a company that, according to Bloomberg, could replace Nike in 2022 the second largest sportswear seller in China after Adidas.

Merck & Co

Since the Chinese regulatory authorities eased restrictions on foreign drugs, few companies have benefited more than Merck & Co, whose HPV vaccines Gardasil and Keytruda's anticancer drug have allowed a rise in the first quarter of the year. 58% of sales in China, reaching 725 million dollars.

However, the escalation of the American trade war. and China "may generate preferential treatment for internally developed products," including vaccines and proprietary treatments, according to badysts Bloomberg Intelligence, Cinney Zhang and Sam Fazeli.

Wonder

Captain America and Iron Man have many admirers in Beijing, having surpbaded Marvel's $ 600 million Avengers: Endgame movie in China since its debut in April, a record for a foreign film in the country.

Marvel, owned by Walt Disney Co., announced on May 20 a partnership with NetEase Inc., based in Beijing, to create games, TV shows and other products. They also discussed the possibility of building very ambitious Marvel attractions at Shanghai Disneyland, according to Disney CEO Bob Iger earlier this month.

However, to access the Chinese market, Disney needs the cooperation of the state, which limits the number of Hollywood movies to the poster.

General Motors and Ford

US automakers They are already under pressure in China, which is currently the largest auto market in the world.

US vehicle sales in the Asian country fell by 28% between March 2018 and March 2019, more than double the 12% decline in the pbadenger car market. General Motors Co. said revenue of $ 400 million in China in the first quarter of the year, 200 million less than the previous year.

If Chinese consumers "decide to use their wallet as a weapon of war, the impact could be even more serious," said Bloomberg, who believes that political tensions could cost GM and Ford Motor Co. the half of their sales in China.

The Chinese telecommunications giant is facing a confrontation with Washington, which accuses him of spying through his devices for the government of the Asian country, which society denies.

After listing the Chinese company on the blacklist of commercial enterprises, the US Department of Commerce on May 20. issued a temporary license to Huawei Technologies to mitigate the impact on the company's customers in the country.

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