J.D. Vance says Apple benefits from 'Chinese slave labor' and calls it 'pretty sick'

By Weston Blasi

Apple, like many U.S. companies, does much of its manufacturing outside the U.S.

'Do I think Apple is an evil company? No. Do I think sometimes they benefit from Chinese slave labor? Yeah, and that's pretty sick.'GOP vice presidential nominee J.D. Vance

That was Republican vice presidential nominee J.D. Vance discussing Apple Inc. (AAPL) and other tech companies during a televised interview with CNBC on Thursday.

Apple, like many U.S. tech companies, does much of its manufacturing overseas. Portions of Apple's supply chain in recent years have been located in countries including China, Vietnam and India.

Many of the workers in these countries are not employed by Apple but by other companies, such as Foxconn (TW:2317).

Watch: Why it's hard for Apple to make iPhones outside of China

While there are many reasons a U.S. company might make products in another country, one is cheaper labor. For example, Foxconn reportedly paid workers in China less than $3 an hour to make iPhones last year. That's lower than the federal minimum wage in the U.S. of $7.25, and much lower than certain states' minimum wages: California and several others mandate pay of over $15 an hour.

Nearly all Apple products are designed in the U.S. and made elsewhere. A facility in Zhengzhou, China - known as "iPhone City" - at one point made 85% of the Pro lineup of iPhones.

"What I've said is we need to lower taxes on corporations that are creating jobs in this country and raise tariffs on corporations that are shipping jobs overseas," Vance said.

Many companies beyond the tech sector also manufacture products outside the U.S., including many popular shoe and clothing brands, as well as some big retailers.

Apple did not respond to a request for comment.

Vance's comments come as Apple unveiled several new products this week at its product-release event, including the iPhone16, upgraded AirPods and a new Mac Mini. Some of these new products will harness Apple Intelligence, which the company presented as its foray into the AI space at the WWDC tech conference in June 2024.

Read on: Verizon puts price tag on buyouts and says nearly 5,000 employees are leaving

-Weston Blasi

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

09-12-24 1736ET

Copyright (c) 2024 Dow Jones & Company, Inc.