China has issued a new directive, as reported by the Wall Street Journal, which instructs government officials not to use Apple's iPhones or other foreign-branded devices for work purposes or even bring them into government offices. While the extent of the directive's distribution remains unclear, it signals a significant move that could have implications for both Apple and foreign companies operating in China.
This ban comes just ahead of an upcoming Apple event, widely speculated to be the launch of a new iPhone series. As tensions between the United States and China continue to simmer, such a move by the Chinese government could raise concerns among foreign companies doing business in China.
The Wall Street Journal report did not specifically mention any other smartphone manufacturers besides Apple, and both Apple and China's State Council Information Office have not yet commented on the matter.
China's growing focus on data security has led to the introduction of new laws and compliance requirements for companies. Additionally, the Chinese government has encouraged state-owned enterprises (SOEs) to play a pivotal role in achieving technology self-reliance.
Sino-U.S. tensions have been escalating, with Washington working alongside allies to limit China's access to essential equipment necessary to maintain competitiveness in the semiconductor industry. In retaliation, Beijing has imposed restrictions on shipments from prominent U.S. firms, such as Boeing and Micron Technology.
During a recent visit to China, U.S. Commerce Secretary Gina Raimondo revealed that U.S. companies had expressed concerns about the increasing challenges of doing business in China. These concerns revolve around fines, raids, and other actions that have made it risky to invest in the world's second-largest economy.
China's latest move follows a pattern of reciprocal bans between the United States and China, with the U.S. previously taking actions against Chinese companies like Huawei and TikTok, owned by ByteDance.
It's worth noting that China is a crucial market for Apple, accounting for nearly one-fifth of the company's total revenue. The ban on government officials using iPhones for work could have implications for the tech giant's business in the country.