Apple’s Brand in China Takes a Hit From Backlash Against Trump

The trade war is taking its toll on Apple, a new survey of Chinese consumer attitudes shows, according to Bloomberg.

The company tumbled to No. 24 in an annual report on China’s top brands, falling from No. 11 a year ago. In 2017, before the trade war started, Apple was fifth in this ranking. Meanwhile, Apple’s biggest local rival, Huawei, climbed two spots and came in second, behind only Chinese payment service Alipay.

The shuffle in the rankings is a sign of the growing challenge American brands face in the second year of Donald Trump’s tariff showdown with his Chinese counterpart, Xi Jinping. The survey findings show Chinese consumers growing cooler towards some American brands, especially after Huawei saw its CFO arrested in Canada last year at the behest of the U.S. government.

The survey, conducted annually, this year asked Chinese consumers in large cities for their views on more than 250 brands across 27 categories. Respondents evaluated brands they used or were considering using, rating rated their relevance to the lives of consumers based on qualities such as innovation, usefulness and dependability.

Patriotism helped fuel the rise of other Chinese brands, too. Sportswear maker Li Ning cracked the top 40 for the first time, ranked No. 34, just two spots behind market leader Nike. There were only two American names in the top ten this year, Android at No. 3 and Intel at No. 9, compared to five in the 2017 survey.

Unlike Apple, Android and Intel don’t have to worry about consumers switching allegiances to local competitors, Milliken said, and that explains why they manage to remain highly ranked.

Geopolitical tensions aren’t the only problem Apple faces in China, its biggest market after the U.S. While Beijing is pushing to make the country a leader in the introduction of 5G networks, Apple’s phones, even the newly announced iPhone 11, don’t support that latest wireless standard.