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Why Is the Chinese Government Out to Get Apple?

By Evan Niu, CFA - Apr 3, 2013 at 2:24PM

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Chinese media outlets have been waging an all-out smear campaign against Apple recently. Should investors be concerned?

In recent weeks, state-owned media outlets in China have been bashing Apple (AAPL -1.92%) in a comprehensive smear campaign. The government might be trying to retaliate for a recent attempts by the U.S. government to ban telecom equipment purchases from ZTE and Huawei. Another possibility is that the government is trying to give China Mobile (CHL) more leverage in its negotiations with Apple, since the government indirectly owns 74% of China Mobile. The negative publicity is a risk factor, but CEO Tim Cook's recent apology has been well-received.

In the video below, Fool contributor Evan Niu, CFA, discusses the implications for investors.

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Apple Inc. Stock Quote
Apple Inc.
AAPL
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China Mobile Limited
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