![]() ![]() ![]() “American tech companies seeking to cozy up to the CCP must realise the clock is ticking,” added Gallagher, a Republican. “This is textbook Chinese Communist Party (CCP) behaviour – promote PRC national champions in telecommunications, and slowly squeeze western companies’ market access,” US Representative Mike Gallagher told Reuters. The chairman of the US House panel on China said that the ban was “not surprising”. “The worry for the market is that, if China purposely chooses to make business difficult for a company like Apple, which has a good and important working relationship in China, then it can do so for a lot of other US companies doing business in China,” O’Hare said. “This could provide an additional challenge for the company, as its revenues from China have already been negatively impacted by a challenging macroeconomic environment in that country.”ī analyst Patrick O’Hare said the Apple situation has implications for other tech companies. “We believe the restrictions have the potential to slow Apple’s sales growth in China,” D A Davidson analyst Tom Forte said. The extension of a ban imposed more than two years ago signals growing challenges for the US company, which relies heavily on China for revenue growth and manufacturing. Apple, together with its suppliers, employs thousands of workers in China and CEO Tim Cook stressed its long ties with the country during a March visit to Beijing. ![]() In 2020, state-owned Chinese financial publication Economic Observer reported that some government agencies had implemented rules to ban officials from using iPhones due to Apple’s strict privacy rules that make it difficult for anticorruption officials to access and investigate suspects’ phones.Ĭhina is one of Apple’s biggest markets and generates nearly a fifth of its revenue. One of the sources said they had not yet been given a deadline to cease their iPhone use and it was not immediately clear how widely the ban was being enforced.Īpple and China’s State Council Information Office, which handles media queries on behalf of the government, did not immediately respond to requests for comment. Staff in at least three ministries and government bodies were told not to use iPhones at work, sources familiar with the matter told the Reuters news agency but declined to be named due to the sensitivity of the situation. The Bloomberg report said a release last week of a Huawei smartphone employing a made-in-China processor was hailed in Chinese state media as a “triumph” in the wake of US sanctions. Government agencies and state-owned enterprises (SOEs) in both countries have been the first and most important areas to push forward such a campaign. The move came amid intensifying tensions between Beijing and Washington.Ĭhina has increasingly emphasised using locally made tech products, as technology has become a major national security issue for Beijing and Washington. It was followed Thursday by a Bloomberg News report that China planned to expand the ban to government-backed agencies and state companies, broadening the effect of the policy in a centrally-planned economy. Shares of the world’s biggest publicly-traded company were down 2.8 percent at $177.79 in late morning trading on Thursday, after falling 3.6 percent on Wednesday following a Wall Street Journal report that China barred the use of Apple smartphones in central government agencies. The latest restriction by China mirrors similar bans taken in the United States against Chinese smartphone maker Huawei Technologies (HWT.UL) and short video platform TikTok, owned by China's ByteDance.Apple shares fell sharply for a second straight session following reports of significant Chinese restrictions on iPhones at government offices and state-backed entities amid growing tensions between China and the United States. companies had complained to her that China had become " uninvestible", pointing to fines, raids and other actions that have made it risky to do business in the world's second-largest economy. Commerce Secretary Gina Raimondo said U.S. Belong throws in a free 80 SIM with each refurbished phone purchase. Each refurbished phone comes with a 12-month warranty. No immediate impact is expected on earnings, however, considering the popularity of the iPhone in China, CFRA Research analyst Angelo Zino said.ĭuring a visit to China last week, U.S. Environmentally-conscious telco Belongs refurbished iPhones are supplied through Kingfisher, a leader in the recycling and e-waste spaces. This "should inspire companies to diversify both their supply chain and customer concentrations to be less dependent on China in the event the tensions get worse."Ĭhina is one of Apple's biggest markets and generates nearly a fifth of its revenue. in China where it employs hundreds of thousands, if not more than a million workers, to assemble its products through its relationship with Foxconn," D.A. company in its push to reduce its dependence on American technologies. Several analysts said on Wednesday that the reported move showed Beijing was not willing to spare any U.S. ![]()
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