Date: 18 September 2023

China Extends iPhone Ban for Local Administration Employees

In the latest step, China has successfully extended its curbs on iPhones to local government workers and state-owned companies following central government employees. Bejign’s move weighed heavily on Wall Street stock indexes, with Apple shares falling.

SOURCE: Andy Wong/AP

The recent extension of a ban imposed more than two years ago has become a growing challenge for the U.S. company, which relies heavily on China for revenue grow and manufacturing. Moreover, the ban is believed to be a sign of Beijing pushing back on its reliance on U.S. tech. According to Chinese state media, in China operates more than 150,000 state-owned companies, employing more than 56 million people in 2021.
The Guardian reports that Apple shares fell more than 6% over Wednesday and Thursday following the day after the Chinese governmental action The Chinese government has a unique eye on Apple products because under the one company umbrella, relay control of the hardware and software, opposing the strategy of ex. Google, Samsung, or Microsoft. Moreover, as a symbol of U.S. technological advances, Apple is treated as a valuable Washington asset in a trade war.
The move hits Apple heavily, for which China is one of the most significant markets, generating nearly a fifth of its revenue. The Taiwan-founded Apple supplier Foxconn possesses its megafactories in China, with over 1.2 million employees, making China the main Apple supplier. Ongoing tensions on the Washington-Bejging line accelerated Apple’s plans to move production the South-East Asia and India.
It is worth highlighting that The Chinese action may be treated as a Bejign’s response to the U.S. banning TikTok on government devices early this year. Both sides ping pong impose of impediments are a broader phenomenon of the Sino-U.S. decoupling.
Szymon Polewka is a student of international relations at the Jagiellonian University in Kraków, specializing in the history of international relations, the Eurasian region, DACHL countries, intercultural relations, and the energy sector. He is currently on a scholarship at the University of Bremen. He has gained experience organizing the 2020 Economic Forum in Karpacz and numerous youth and student associations, such as AIESEC or Koło Naukowe Wyzwań Zielonego Ładu.

1. Helen Davidson, Hibaq Farah, Dan Milmo, China reportedly extends iPhone ban to more workers as tensions with US rise, The Guardian, 8 September 7, 2023

2. Julie Zhu, Kevin Yao, China moves to widen state employee iPhone curbs, Reuters, September 7, 2023

3. Shunsuke Tabeta, China expands iPhone ban to local governments, state-owned firms, Nikkei Assia, September 8, 2023

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