‘China has Apple by the balls': How the rising superpower captured the tech giant
Investigative journalist Patrick McGee describes it as the biggest untold story of technology in the 21st century: how, over decades of jaw-dropping investment in China, Apple became one of the world's biggest companies – but in the process helped China become a technology and manufacturing superpower. That power is now being used to challenge the West.
You've said that Apple wouldn't be Apple today without China. And China wouldn't be China without Apple. How so?
By 2015, Apple was investing $55 billion a year into China, and a lot of that was in training people to assemble iPhones, iMacs and other Apple products – by [Apple CEO] Tim Cook's public estimate, 3 million people were trained. Apple sent planeloads of its best engineers – from MIT, Caltech and Stanford – to train the Chinese on how to produce their products. Overall, it has trained 28 million people in its supply chain since 2008. That's bigger than the labour force of California or the population of Australia. It has had more impact on China than the Marshall Plan on Europe after World War II.
In 1999, none of Apple's products was made in mainland China; by 2009, virtually all were, and company profits shot into the stratosphere as a result. Apple was on the brink of bankruptcy in 1996 but within a decade became the richest company on Earth, thanks to sales of its iPhone and iPad. What did China offer that no other country could?
China has policies and a population base tailor-made for the electronics industry. They created bonded zones [places offering generous tax breaks and streamlined customs procedures to attract foreign investment] in cities like Shenzhen. Back in the 1980s, Shenzhen was a series of fishing villages. Today, it's a city of 18 million people. We in the West don't understand how easy it is to build a factory in an area like Shenzhen. The government provides you with the labour from the western part of the country, where literally millions are leaving backbreaking agricultural jobs to work 12-hour shifts in factories. Businesses get free land and cutting-edge machinery. Local cadres in the political system are incentivised to build factories and get growth from their region. The bureaucracy is shaped to be more like a venture capitalist. China has invented a new form of capitalism, where instead of having dynamism in the private sector, it's on the public side.
'Apple provided China with the Ivy League equivalent of a hardware engineering education.'
You write that Apple essentially cracked the code on how to manufacture the world's best products without doing it itself.
In the early 2000s, Apple was figuring out how to manufacture their products in China without owning any of the factories. It was about orchestrating the production of the products rather than building them themselves. But the orchestration they've done is just phenomenally obsessive. This isn't normal outsourcing. They're not just saying, 'Here's a blueprint of what we need; let us know when it's ready.' They're inventing the processes, the components.
So by bringing all its technological expertise and sophisticated production methods to China, Apple taught the Chinese how to develop high-level manufacturing …
Indeed. Jony Ive [instrumental in the design of the iPhone, iPad, iMac and Apple Watch] came up with some spectacular-looking products. But the only way those designs came into large-scale reality was that China was investing massively in supply chains, in infrastructure and in ports. And as one engineer told me, Apple provided China with the Ivy League equivalent of a hardware engineering education. Because Apple is epic, the technology transfer is also epic.
Loading
US Vice President J.D. Vance has very patronisingly reduced the Chinese competitive advantage to its having 'millions of peasants' available to work in factories. But its economy has moved far beyond just low-cost labour producing cheaper products, hasn't it?
Yes and no. China has robotics and automation on a scale we [the United States] completely lack. But hundreds of millions of people still live in impoverishment, and go to cities like Shenzhen and Guangzhou to work in factories. China has the capacity to move an entire Western city's worth of people, say, up to 500,000, who are willing to relocate for a few months at a time to assemble iPhones and then go someplace else. We have nothing like that. Even if it could, we in the West wouldn't want that to change, because that's not what anybody really wants to do with their life.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sydney Morning Herald
12 hours ago
- Sydney Morning Herald
Inside Australia's biggest war games, Exercise Talisman Sabre
It's a sweltering morning in the top end of Australia, where thousands of military personnel have swarmed Darwin's coastline for the nation's largest war games. Members of the US Coast Guard bring reporters through Darwin's turquoise waters off Larrakeyah Barracks on a fast ride through the security zone. There's chatter about the clear differences between how Australia and the US protect their coasts. Military vessels circle the water, a heavy presence as ordinary boaties cruise through. Further along the coast, a group of soldiers has set up to practise firing. There, they wait for civilian watercraft to pass through, the boaties seemingly unperturbed by the military. For many Darwin residents, the huge influx of armed forces to the region is not a surprise. And many of the troops have been here before. But some say this year's Talisman Sabre, the 11th iteration of the training exercise comprising mainly Australian Defence Personnel and members of the US military, is different. There's a bigger focus on 'the enemy'. Questions swirl in the political bubble about potential threats to Australia. Talisman Sabre kicked off as Prime Minister Anthony Albanese met with Chinese President Xi Jinping in Beijing. Albanese has vowed not to back down on security measures, such as taking back control of the Port of Darwin, controversially leased by Chinese firm Landbridge. Uneasiness hangs in the air in Darwin as journalists ask defence commanders questions regarding China surveilling the war games. The Chinese have routinely monitored military training from afar in recent years. Royal Australian Air Force Commander Louise DesJardins tells a media pack that while the ADF keeps an eye on maritime approaches, 'at the moment we're not happy to discuss the surveillance'. The ADF consistently pushes the message that the war games are not, in fact, targeted at any particular country, and are more for maintaining peace. US Brigadier-General Shannon Smith, serving with one of Australia's steadfast allies, points to the massive scope of the region and what he says are the complexities of international relationships. 'I've seen nothing but a consistent messaging from our administration and our national defence strategy that we're committed to a rule-based order across the globe,' he says. But reporters ask the troops if they feel prepared for war. Many say they are. They acknowledge what they've learned in previous exercises, sometimes serving on 'attack' teams, other times in defence. This stifling day in Darwin, Mark Hazlett, a captain in the Australian Army's reserve 31st/42nd Battalion of the Royal Queensland Regiment, is serving in the 'enemy' team. For this exercise, both the attack and defence teams are operating in a fictitious country, 'Belesia'. Strategies employed are 'open source, obviously derived from our knowledge of the operation procedures and tactics from world actors', Hazlett says. His personnel are tasked with testing the contingencies of the defence team, who represent Australia and its allies. 'That includes having a look at the vulnerabilities, and trying to exploit those as enemy combatants,' he says. Soldiers get to practise detention, handling skills, vehicle checkpoints, and other tactics with personnel from the US, Britain and Canada. For the first time, the exercises have stretched to Papua New Guinea and Christmas Island. Back home, Hazlett is a sergeant with the Queensland Police Service based outside Cairns. He's been with the QPS for more than a decade. Many of the things he's done with the army reserves, however, are difficult to explain to the civilian world – like how to stop his hands trembling when he puts a detonator into a claymore mine. 'It's a nerve-racking thing as it is. You've always got that feeling you've got to ground yourself ... that's why you hold it like a cigarette,' he says. 'But being able to then roll that back and set it off, is an incredible experience ... you're training to be a real soldier. You are a real soldier.' Taine Waerea, a private who recently joined from Queensland, says he always wanted to wear the greens. Loading After months in uniform, he remembers setting up his first claymore. 'I'm an electrician ... I don't get to be trained in such weapons systems I get to be trained in here. I don't get to blow things up,' he laughs. As members of the 31st/42nd Battalion sit near the water for a brief break, Lance Corporal Selby Anderson and his sister Private Brooke Anderson, both train drivers in Queensland, reflect on their careers. For them, military service is personal – their grandfather served in the Royal Australian Navy in Vietnam aboard multiple ships. The pair talk of army helicopters and vehicles, but also giving back to the community. All those who spoke to this masthead are confident when they say Australia is prepared for any war. 'I'll leave the politics to the politicians,' Hazlett says. 'We get a set of orders, and we plan to those orders. For this, we plan to the tactics that we know. We train and we continue to train. 'We will hopefully continue to operate in peace time.'
The Age
12 hours ago
- The Age
Inside Australia's biggest war games, Exercise Talisman Sabre
It's a sweltering morning in the top end of Australia, where thousands of military personnel have swarmed Darwin's coastline for the nation's largest war games. Members of the US Coast Guard bring reporters through Darwin's turquoise waters off Larrakeyah Barracks on a fast ride through the security zone. There's chatter about the clear differences between how Australia and the US protect their coasts. Military vessels circle the water, a heavy presence as ordinary boaties cruise through. Further along the coast, a group of soldiers has set up to practise firing. There, they wait for civilian watercraft to pass through, the boaties seemingly unperturbed by the military. For many Darwin residents, the huge influx of armed forces to the region is not a surprise. And many of the troops have been here before. But some say this year's Talisman Sabre, the 11th iteration of the training exercise comprising mainly Australian Defence Personnel and members of the US military, is different. There's a bigger focus on 'the enemy'. Questions swirl in the political bubble about potential threats to Australia. Talisman Sabre kicked off as Prime Minister Anthony Albanese met with Chinese President Xi Jinping in Beijing. Albanese has vowed not to back down on security measures, such as taking back control of the Port of Darwin, controversially leased by Chinese firm Landbridge. Uneasiness hangs in the air in Darwin as journalists ask defence commanders questions regarding China surveilling the war games. The Chinese have routinely monitored military training from afar in recent years. Royal Australian Air Force Commander Louise DesJardins tells a media pack that while the ADF keeps an eye on maritime approaches, 'at the moment we're not happy to discuss the surveillance'. The ADF consistently pushes the message that the war games are not, in fact, targeted at any particular country, and are more for maintaining peace. US Brigadier-General Shannon Smith, serving with one of Australia's steadfast allies, points to the massive scope of the region and what he says are the complexities of international relationships. 'I've seen nothing but a consistent messaging from our administration and our national defence strategy that we're committed to a rule-based order across the globe,' he says. But reporters ask the troops if they feel prepared for war. Many say they are. They acknowledge what they've learned in previous exercises, sometimes serving on 'attack' teams, other times in defence. This stifling day in Darwin, Mark Hazlett, a captain in the Australian Army's reserve 31st/42nd Battalion of the Royal Queensland Regiment, is serving in the 'enemy' team. For this exercise, both the attack and defence teams are operating in a fictitious country, 'Belesia'. Strategies employed are 'open source, obviously derived from our knowledge of the operation procedures and tactics from world actors', Hazlett says. His personnel are tasked with testing the contingencies of the defence team, who represent Australia and its allies. 'That includes having a look at the vulnerabilities, and trying to exploit those as enemy combatants,' he says. Soldiers get to practise detention, handling skills, vehicle checkpoints, and other tactics with personnel from the US, Britain and Canada. For the first time, the exercises have stretched to Papua New Guinea and Christmas Island. Back home, Hazlett is a sergeant with the Queensland Police Service based outside Cairns. He's been with the QPS for more than a decade. Many of the things he's done with the army reserves, however, are difficult to explain to the civilian world – like how to stop his hands trembling when he puts a detonator into a claymore mine. 'It's a nerve-racking thing as it is. You've always got that feeling you've got to ground yourself ... that's why you hold it like a cigarette,' he says. 'But being able to then roll that back and set it off, is an incredible experience ... you're training to be a real soldier. You are a real soldier.' Taine Waerea, a private who recently joined from Queensland, says he always wanted to wear the greens. Loading After months in uniform, he remembers setting up his first claymore. 'I'm an electrician ... I don't get to be trained in such weapons systems I get to be trained in here. I don't get to blow things up,' he laughs. As members of the 31st/42nd Battalion sit near the water for a brief break, Lance Corporal Selby Anderson and his sister Private Brooke Anderson, both train drivers in Queensland, reflect on their careers. For them, military service is personal – their grandfather served in the Royal Australian Navy in Vietnam aboard multiple ships. The pair talk of army helicopters and vehicles, but also giving back to the community. All those who spoke to this masthead are confident when they say Australia is prepared for any war. 'I'll leave the politics to the politicians,' Hazlett says. 'We get a set of orders, and we plan to those orders. For this, we plan to the tactics that we know. We train and we continue to train. 'We will hopefully continue to operate in peace time.'
The Advertiser
13 hours ago
- The Advertiser
Asian stocks drop as investors brace for crucial week
Asian stocks retreated on Friday and the US dollar headed for its biggest weekly drop in a month ahead of a crucial week for markets that includes Donald Trump's tariff deadline and key central bank meetings. MSCI's global equity index retreated from an all-time high and was 0.2 per cent lower in early European trading while Japan's Nikkei index ended the day 0.7 per cent lower after two days of gains. Data released on Friday showed the inflation rate in Tokyo rose 2.9 per cent year-on-year in July, down from 3.1 per cent in June. Japanese government efforts to moderate inflation are working, though underlying Tokyo price pressures remain elevated, ING Economics said in a commentary. It expects the Bank of Japan to hold interest rates steady at its July 30-31 meeting, but said the central bank would likely raise its forecast for inflation. In the Chinese markets, Hong Kong's Hang Seng shed 1.1 per cent to 25,383.07 and the Shanghai Composite index slid 0.3 per cent to 3,593.38. Europe's STOXX 600 share index also fell 0.5 per cent in early trade. Ahead of the August 1 deadline for US trade deals with Europe and China, stock markets have been buoyed up by firm US economic data and framed the risk of tariffs hitting growth as a reason to expect Federal Reserve rate cuts. "Higher (US) inflation will, in time, result in weaker demand and weaker investment," UBS Wealth Management economist Dean Turner said. Van Luu, head of solutions strategy, fixed income and foreign exchange at Russell Investments, said he was waiting for a buying opportunity in US Treasuries for this reason. "US data looks astonishingly resilient," he said, but this likely reflected a spending rush before tariffs pushed business input costs and retail sticker prices higher. The past week saw US trade agreements with Japan, Indonesia and the Philippines, while deal talks continued with South Korea. Next week brings the next Fed interest rate meeting, the closely watched monthly payrolls report, and earnings from Amazon, Apple, Meta and Microsoft. Trump has kept up pressure on Fed Chair Jerome Powell to cut rates after a rare presidential visit to the central bank on Thursday, although he said he did not intend to fire Powell, as he has frequently suggested he would. US 10-year Treasury yields were steady at 4.41 per cent while two-year yields, which track monetary policy bets, were also flat at 3.923 per cent. Robust earnings from Google parent Alphabet took Wall Street's Nasdaq to a record high on Thursday but futures trading signalled the tech-heavy index would flatline at the start of cash trading in New York. Contracts tracking the blue-chip S&P 500 index were also flat in early European dealings. The Bank of Japan has its own policy announcement on Thursday, and Prime Minister Ishiba's Liberal Democratic Party holds a meeting on the same day. That's after the European Central Bank held rates steady on Thursday, pausing its easing campaign as it waited to assess the impact from US tariffs. The euro was steady against the dollar on Friday at $US1.1745 , although German government debt sold off, with the yield on benchmark 10-year Bunds up five basis points (bps) in early dealings to 2.74 per cent, the highest since March 28 . Japanese government bond yields were steady on Friday at about 1.6 per cent, a level last seen in October 2008, having ratcheted higher on concerns the political scale is tilting more towards fiscal stimulus. This came after big gains for opposition parties backing consumption tax cuts in Sunday's upper house election. Pressure is building on the more fiscally hawkish Ishiba to quit after his coalition lost its majority in the vote, having done the same in lower house elections last October. Gold eased 0.3 per cent to around $US3,356 an ounce. Brent crude futures gained 0.7 per cent to $US69.65 a barrel. with AP Asian stocks retreated on Friday and the US dollar headed for its biggest weekly drop in a month ahead of a crucial week for markets that includes Donald Trump's tariff deadline and key central bank meetings. MSCI's global equity index retreated from an all-time high and was 0.2 per cent lower in early European trading while Japan's Nikkei index ended the day 0.7 per cent lower after two days of gains. Data released on Friday showed the inflation rate in Tokyo rose 2.9 per cent year-on-year in July, down from 3.1 per cent in June. Japanese government efforts to moderate inflation are working, though underlying Tokyo price pressures remain elevated, ING Economics said in a commentary. It expects the Bank of Japan to hold interest rates steady at its July 30-31 meeting, but said the central bank would likely raise its forecast for inflation. In the Chinese markets, Hong Kong's Hang Seng shed 1.1 per cent to 25,383.07 and the Shanghai Composite index slid 0.3 per cent to 3,593.38. Europe's STOXX 600 share index also fell 0.5 per cent in early trade. Ahead of the August 1 deadline for US trade deals with Europe and China, stock markets have been buoyed up by firm US economic data and framed the risk of tariffs hitting growth as a reason to expect Federal Reserve rate cuts. "Higher (US) inflation will, in time, result in weaker demand and weaker investment," UBS Wealth Management economist Dean Turner said. Van Luu, head of solutions strategy, fixed income and foreign exchange at Russell Investments, said he was waiting for a buying opportunity in US Treasuries for this reason. "US data looks astonishingly resilient," he said, but this likely reflected a spending rush before tariffs pushed business input costs and retail sticker prices higher. The past week saw US trade agreements with Japan, Indonesia and the Philippines, while deal talks continued with South Korea. Next week brings the next Fed interest rate meeting, the closely watched monthly payrolls report, and earnings from Amazon, Apple, Meta and Microsoft. Trump has kept up pressure on Fed Chair Jerome Powell to cut rates after a rare presidential visit to the central bank on Thursday, although he said he did not intend to fire Powell, as he has frequently suggested he would. US 10-year Treasury yields were steady at 4.41 per cent while two-year yields, which track monetary policy bets, were also flat at 3.923 per cent. Robust earnings from Google parent Alphabet took Wall Street's Nasdaq to a record high on Thursday but futures trading signalled the tech-heavy index would flatline at the start of cash trading in New York. Contracts tracking the blue-chip S&P 500 index were also flat in early European dealings. The Bank of Japan has its own policy announcement on Thursday, and Prime Minister Ishiba's Liberal Democratic Party holds a meeting on the same day. That's after the European Central Bank held rates steady on Thursday, pausing its easing campaign as it waited to assess the impact from US tariffs. The euro was steady against the dollar on Friday at $US1.1745 , although German government debt sold off, with the yield on benchmark 10-year Bunds up five basis points (bps) in early dealings to 2.74 per cent, the highest since March 28 . Japanese government bond yields were steady on Friday at about 1.6 per cent, a level last seen in October 2008, having ratcheted higher on concerns the political scale is tilting more towards fiscal stimulus. This came after big gains for opposition parties backing consumption tax cuts in Sunday's upper house election. Pressure is building on the more fiscally hawkish Ishiba to quit after his coalition lost its majority in the vote, having done the same in lower house elections last October. Gold eased 0.3 per cent to around $US3,356 an ounce. Brent crude futures gained 0.7 per cent to $US69.65 a barrel. with AP Asian stocks retreated on Friday and the US dollar headed for its biggest weekly drop in a month ahead of a crucial week for markets that includes Donald Trump's tariff deadline and key central bank meetings. MSCI's global equity index retreated from an all-time high and was 0.2 per cent lower in early European trading while Japan's Nikkei index ended the day 0.7 per cent lower after two days of gains. Data released on Friday showed the inflation rate in Tokyo rose 2.9 per cent year-on-year in July, down from 3.1 per cent in June. Japanese government efforts to moderate inflation are working, though underlying Tokyo price pressures remain elevated, ING Economics said in a commentary. It expects the Bank of Japan to hold interest rates steady at its July 30-31 meeting, but said the central bank would likely raise its forecast for inflation. In the Chinese markets, Hong Kong's Hang Seng shed 1.1 per cent to 25,383.07 and the Shanghai Composite index slid 0.3 per cent to 3,593.38. Europe's STOXX 600 share index also fell 0.5 per cent in early trade. Ahead of the August 1 deadline for US trade deals with Europe and China, stock markets have been buoyed up by firm US economic data and framed the risk of tariffs hitting growth as a reason to expect Federal Reserve rate cuts. "Higher (US) inflation will, in time, result in weaker demand and weaker investment," UBS Wealth Management economist Dean Turner said. Van Luu, head of solutions strategy, fixed income and foreign exchange at Russell Investments, said he was waiting for a buying opportunity in US Treasuries for this reason. "US data looks astonishingly resilient," he said, but this likely reflected a spending rush before tariffs pushed business input costs and retail sticker prices higher. The past week saw US trade agreements with Japan, Indonesia and the Philippines, while deal talks continued with South Korea. Next week brings the next Fed interest rate meeting, the closely watched monthly payrolls report, and earnings from Amazon, Apple, Meta and Microsoft. Trump has kept up pressure on Fed Chair Jerome Powell to cut rates after a rare presidential visit to the central bank on Thursday, although he said he did not intend to fire Powell, as he has frequently suggested he would. US 10-year Treasury yields were steady at 4.41 per cent while two-year yields, which track monetary policy bets, were also flat at 3.923 per cent. Robust earnings from Google parent Alphabet took Wall Street's Nasdaq to a record high on Thursday but futures trading signalled the tech-heavy index would flatline at the start of cash trading in New York. Contracts tracking the blue-chip S&P 500 index were also flat in early European dealings. The Bank of Japan has its own policy announcement on Thursday, and Prime Minister Ishiba's Liberal Democratic Party holds a meeting on the same day. That's after the European Central Bank held rates steady on Thursday, pausing its easing campaign as it waited to assess the impact from US tariffs. The euro was steady against the dollar on Friday at $US1.1745 , although German government debt sold off, with the yield on benchmark 10-year Bunds up five basis points (bps) in early dealings to 2.74 per cent, the highest since March 28 . Japanese government bond yields were steady on Friday at about 1.6 per cent, a level last seen in October 2008, having ratcheted higher on concerns the political scale is tilting more towards fiscal stimulus. This came after big gains for opposition parties backing consumption tax cuts in Sunday's upper house election. Pressure is building on the more fiscally hawkish Ishiba to quit after his coalition lost its majority in the vote, having done the same in lower house elections last October. Gold eased 0.3 per cent to around $US3,356 an ounce. Brent crude futures gained 0.7 per cent to $US69.65 a barrel. with AP Asian stocks retreated on Friday and the US dollar headed for its biggest weekly drop in a month ahead of a crucial week for markets that includes Donald Trump's tariff deadline and key central bank meetings. MSCI's global equity index retreated from an all-time high and was 0.2 per cent lower in early European trading while Japan's Nikkei index ended the day 0.7 per cent lower after two days of gains. Data released on Friday showed the inflation rate in Tokyo rose 2.9 per cent year-on-year in July, down from 3.1 per cent in June. Japanese government efforts to moderate inflation are working, though underlying Tokyo price pressures remain elevated, ING Economics said in a commentary. It expects the Bank of Japan to hold interest rates steady at its July 30-31 meeting, but said the central bank would likely raise its forecast for inflation. In the Chinese markets, Hong Kong's Hang Seng shed 1.1 per cent to 25,383.07 and the Shanghai Composite index slid 0.3 per cent to 3,593.38. Europe's STOXX 600 share index also fell 0.5 per cent in early trade. Ahead of the August 1 deadline for US trade deals with Europe and China, stock markets have been buoyed up by firm US economic data and framed the risk of tariffs hitting growth as a reason to expect Federal Reserve rate cuts. "Higher (US) inflation will, in time, result in weaker demand and weaker investment," UBS Wealth Management economist Dean Turner said. Van Luu, head of solutions strategy, fixed income and foreign exchange at Russell Investments, said he was waiting for a buying opportunity in US Treasuries for this reason. "US data looks astonishingly resilient," he said, but this likely reflected a spending rush before tariffs pushed business input costs and retail sticker prices higher. The past week saw US trade agreements with Japan, Indonesia and the Philippines, while deal talks continued with South Korea. Next week brings the next Fed interest rate meeting, the closely watched monthly payrolls report, and earnings from Amazon, Apple, Meta and Microsoft. Trump has kept up pressure on Fed Chair Jerome Powell to cut rates after a rare presidential visit to the central bank on Thursday, although he said he did not intend to fire Powell, as he has frequently suggested he would. US 10-year Treasury yields were steady at 4.41 per cent while two-year yields, which track monetary policy bets, were also flat at 3.923 per cent. Robust earnings from Google parent Alphabet took Wall Street's Nasdaq to a record high on Thursday but futures trading signalled the tech-heavy index would flatline at the start of cash trading in New York. Contracts tracking the blue-chip S&P 500 index were also flat in early European dealings. The Bank of Japan has its own policy announcement on Thursday, and Prime Minister Ishiba's Liberal Democratic Party holds a meeting on the same day. That's after the European Central Bank held rates steady on Thursday, pausing its easing campaign as it waited to assess the impact from US tariffs. The euro was steady against the dollar on Friday at $US1.1745 , although German government debt sold off, with the yield on benchmark 10-year Bunds up five basis points (bps) in early dealings to 2.74 per cent, the highest since March 28 . Japanese government bond yields were steady on Friday at about 1.6 per cent, a level last seen in October 2008, having ratcheted higher on concerns the political scale is tilting more towards fiscal stimulus. This came after big gains for opposition parties backing consumption tax cuts in Sunday's upper house election. Pressure is building on the more fiscally hawkish Ishiba to quit after his coalition lost its majority in the vote, having done the same in lower house elections last October. Gold eased 0.3 per cent to around $US3,356 an ounce. Brent crude futures gained 0.7 per cent to $US69.65 a barrel. with AP
