According to the Wall Street Journal report, China has prohibited central government officials from using or bringing iPhones and other devices from foreign brands into the office. However, this move caused Apple's shares to plummet by 3.6%. This ban could heighten concerns among foreign firms operating in China as Sino-US tensions escalate. For over 10 years, China has aimed to decrease its dependence on foreign technologies by urging state-affiliated institutions, such as banks, to switch to native software and promote local chip manufacturing. Several experts have stated that the ban shows that China wants to reduce reliance on American technologies. However, Apple’s biggest market after the US is China. The company will be launching its new line of devices under the iPhone 15 series in less than a week. Any further action that could harm the sales of iPhones in the country could impact Apple's overall targets. Due to these bans USA companies have been advised to diversify supply chains to other countries and ensure their customer concentrations are less China-dependent in case the situation gets worse. Earlier in 2022, Chinese authorities ordered central government agencies and state-backed corporations to replace foreign-branded personal computers with domestic alternatives within two years. China and the US view each other’s tech companies as potential security risks that could access sensitive data and government infrastructure. In May, Montana became the first US state to ban Chinese-owned TikTok over data privacy concerns, with a number of other states mulling similar moves. US federal agencies and many state governments  have already banned the app on government-issued phones. The restrictions imposed by both countries on each other can lead to more isolated markets across the globe.

Tags

• china
• iphone ban
• usa

Advertisement