US tech giant Apple loses $200 billion in 2 days. And there's a China connection

US tech giant Apple's shares dropped sharply for the second consecutive day on Thursday, leading to its market value falling by nearly $200 billion. The rout in Apple shares was triggered by reports that China planned to extend a ban on the use of iPhones to government-backed organisations and state corporations.

While Apple fell sevenper cent in just two days, shares of other tech companies like Qualcomm, Micron Technology, Microsoft and Nvidia too declined asfears of repercussions gripped the broader US technology sector.

The news of a potential ban by China spooked investors as they began selling off a variety of assets, including semiconductors, mega-cap technologies, and Chinese equities traded in the United States.

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Apart fromApple, several other American technology firms that depend on sales and manufacturing in China now fear that they may be impacted by Beijing's potential ban at some point of time.

Apple relies heavily on the Chinese market and infrastructure for production. But slumping demand for due to the prolonged real estate market crisis has hit Apple's revenue margins.

Apple's woes have been compounded by a rise in the US Treasury rates, as investors sell bonds on expectations that the Federal Reserve may have to up its battle against inflation.

Meanwhile, taking aim at Apple's exclusive tap-to-pay system, the top consumer watchdog in the United States cautioned tech companies against being unduly restrictive in providing access to payment applications, as it writes regulations surrounding the sharing of customer financial data.

The Consumer Financial Protection Bureau warned that Apple and Alphabet's Google Pay, which together control the vast majority of the mobile device tap-to-pay market, might limit final users' choice.

The bureau plans to issue open banking laws in the next months. These regulations would effectively control how financial institutions disclose customer data.