US defense bill proposes examination of Apple display supplier
SAN FRANCISCO (Reuters) -A measure added into a massive U.S. defense spending bill in recent weeks will, if passed, ask the Pentagon to determine whether one of Apple's display suppliers should be listed as a Chinese military company.
Being on the list does not block companies from doing business in the U.S. but will in coming years block them from being part of the U.S. military's supply chain.
The bill, known as the National Defense Authorization Act, was approved in July by key committees in both houses of the U.S. Congress. The final bill, considered a "must-pass" because it funds the U.S. military, is expected to become law later in the year.
When the bill was approved by the U.S. House of Representatives Armed Services Committee, a newly added amendment for the first time asked the U.S. Defense Department to consider whether BOE Technology Group Co, listed on Apple's official suppliers list, should be added to a list of firms that allegedly aid China's military.
BOE and Apple did not respond to requests for comment.
Craig Singleton, a China expert at the Foundation for Defense of Democracies, a Washington think-tank, said Beijing had offered billions of dollars in subsidies, tax breaks and loans to help firms such as BOE dominate global panel production.
"This creates a single‑source vulnerability that could be easily exploited to disrupt or degrade U.S. military operations, not to mention undermine commercial supply chains, during a conflict or period of heightened bilateral tension with Beijing," Singleton added.
A study published last month by New York-based NERA Economic Consulting and commissioned by BOE's U.S. subsidiary found that the display industry, which includes major Korean players such as Samsung Electronics and LG Electronics, remains highly competitive, with no single player capable of significantly affecting global prices.
"There is no credible risk of a supply chain disruption by mainland China display manufacturers," the report said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
a minute ago
- Yahoo
Organigram Global Inc. (OGI) Expands Into U.S. THC Beverage Market Across 25 States
We recently compiled a list of the 12 Cheap Pot Stocks to Buy According to Hedge Funds. Organigram Global Inc. stands sixth on our list. Organigram Global Inc. (NASDAQ:OGI), a leading Canadian cannabis producer, is accelerating its international expansion with a strong push into the U.S. hemp-derived THC beverage market. Known for brands like Edison, SHRED, and Monjour, the company has launched a direct-to-consumer e-commerce platform for its Collective Project beverage line, now available in 25 U.S. states. This move marks a major step as the company taps into a market projected to grow from over $1 billion today to $4 billion by 2028. The platform features a range of innovative products, including 'Spark Juices,' sparkling lemonades with varying THC levels and formats. A second phase rollout will introduce 'Fetch,' a line of hemp-derived sodas expected later in summer 2025. These offerings target consumers seeking alcohol alternatives and represent a major shift in Organigram's brand strategy. As the company gains U.S. market traction, it is increasingly showing up on investor radars as one of the cheap pot stocks to buy. CEO Beena Goldenberg emphasized that while the company has built a strong brand presence in Canada, its future growth is tied to international markets. Organigram Global Inc. (NASDAQ:OGI) reported a 177% year-over-year surge in international revenue, fueled by rising sales in Germany and the U.K. Partnerships, such as the one with Sanity Group in Germany, are helping the company secure long-term supply chains and deepen European market access. A lab technician meticulously measuring and mixing ingredients to create a cannabis-infused edible. Organigram Global Inc. (NASDAQ:OGI) also continues to innovate in product development, including advances in fast-acting nano-emulsion technology to deliver a quicker, more consistent experience with cannabis beverages. With ongoing expansion efforts and new product lines, the business is targeting a half-billion-dollar annual revenue run rate, positioning itself as a major player in the evolving global cannabis market. While we acknowledge the potential of OGI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
a minute ago
- Yahoo
Lufax Holding Ltd (LU) Sells $64M in Bad Loans to Cut Credit Risk, Stabilize Outlook
We recently compiled a list of the 10 Best Low Cost Stocks To Buy Under $50. Lufax Holding Ltd stands fourth on our list. Lufax Holding Ltd (NYSE:LU), a leading Chinese fintech firm serving small and micro businesses, is undergoing strategic shifts to navigate a challenging market in 2025. A key recent development was the sale of non-performing loans (NPLs) through its subsidiary, Ping An Consumer Finance. The transaction involved offloading 469 million yuan in NPLs for 36.44 million yuan to Sh China Merch Ping An Asset Management. This move reduced credit risk and supported a drop in the company's loan portfolio by 18%, helping stabilize investor sentiment amid asset quality concerns. In addition to asset optimization, Lufax Holding Ltd (NYSE:LU) is focusing on digital transformation through new partnerships and AI-driven innovation. These efforts aim to boost operational efficiency and profitability while enhancing its competitive edge in a crowded fintech market. The business is also pursuing cost-cutting measures as part of a broader strategy to improve earnings. Despite these positive steps, cheap stocks to buy like Lufax Holding Ltd (NYSE:LU) saw sharp declines in late July, dropping over 11% and 12% on back-to-back days. The sell-off reflected investor concerns over limited near-term catalysts and persistent pressure from traditional banks. An individual using a laptop to access the fintech platform to manage their finances. Looking ahead, the corporation plans to continue managing credit risk proactively, expand its digital offerings, and pursue strategic partnerships. These efforts are expected to support earnings growth and may enable the resumption of dividends by the end of the 2025 fiscal year. While we acknowledge the potential of LU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Bloomberg
3 minutes ago
- Bloomberg
Canada Weighs Retaliation Cost as Analysts Warn Hitting Back Isn't Worth It
Canada's decision to retaliate against US tariffs earlier this year appears to be driving a divergence in how President Donald Trump is dealing with America's neighbors. Until this week, Canada and Mexico received similar treatment in White House trade actions. Each was subject to a 25% base tariff, with a large exemption for goods shipped under the North American free trade pact known as USMCA.
