China expands ban on iPhones, Apple products amid geopolitical tensions with US

China's government has broadened its ban on iPhones and Apple products, impacting local government workers and state-owned companies.

This move comes as part of Beijing's effort to reduce its dependence on UStechnology amid escalating geopolitical tensions between the USand China, as reported by the Guardian.

Expanding the iPhone ban

The initial ban on iPhones in government workplaces began to gain momentum when several agencies instructed employees not to bring their iPhones to work. Bloomberg reported that this ban was expected to expand further, extending to state-owned companies.

Nikkei reported that some state-owned companies are prohibiting employees who work with trade secrets from bringing their iPhones, Apple Watches, or AirPods to work starting next month. This move underscores China's concerns about what it deems the security risks posed by using Apple devices.

Reducing dependence on UStech

China's actions are seen as a response to its growing unease with dependence on US technology. The ban on iPhones and Apple products reflects Beijing's broader strategy of reducing reliance on foreign-made tech products.

The news of the expanded iPhone ban had a notable impact on Apple's stock prices. Apple shares dropped more than six per cent over two days, though they rebounded slightly on the third day. China represents a significant market for Apple, generating nearly a fifth of its revenue. Despite these losses, analysts like Erik Woodring believe that the impact on Apple's revenue will be limited to around four per cent.

Apple's production in China

Apple's production remains heavily centredin China, with approximately 90 per cent of its products manufactured in the country. Key suppliers like Foxconn, with its massive factories in China, play a crucial role in Apple's supply chain. However, due to political instability and pandemic disruptions, Apple has accelerated plans to diversify production to other countries, including Vietnam and India.

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Apple's predicament is part of a broader trend of geopolitical tensions between the USand China. Some analysts speculate that Beijing's actions against Apple are retaliatory measures in response to the US banning Huawei from national 5G networks and restricting China's access to vital semiconductor technology.

The USgovernment has taken various measures to curb Chinese tech influence, including banning telecommunications equipment from Chinese firms like Huawei and imposing export restrictions on advanced computer chips.

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