In this article that I’ve come across from ABC News, “U.S eases Ban on Lethal Arms Sales to Vietnam“ U.S is “unintentionally” increasing the tension between them and their country’s biggest importer. U.S is providing military hardware to neighbouring countries of China, to support them in defending their own waters. However, empowering weaker nations with advance weaponry would only create political issues between U.S and China even though the trade was not deliberate. This would create uncertainties for companies that has production plants in China, (Apple, Nike, Adidas, General electric), affecting the brand image of these companies in China.

This would also affect the efficiency of the workforce as they might be demotivated by the political decisions of United States. Therefore, affecting the assurance of  quality in their products or even security issues within the company. Other threats could also be projected due to this issue, China could raise minimum wages or import regulations on american goods affecting the revenues of companies as well as the production efficiency. Therefore, companies highly rely on political  content  between countries especially when they are the major players in the industries.

http://abcnews.go.com/Politics/wireStory/us-eases-ban-lethal-arms-sales-vietnam-25925358

http://media02.hongkiat.com/tech-brands-us-vs-china/US-vs-China.jpg

http://www.hongkiat.com/blog/tech-brands-us-vs-china/