China BANS iPhones for officials in dramatic new escalation in row with US
Beijing’s decision to ban the brand could harm Apple’s prospects in the country
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China has banned its government officials from using iPhones for work purposes and from bringing them into the office.
The restrictions have been introduced ahead of an Apple event next week where the technology giant is expected to launch their new range of iPhones.
Technology analysts believe Beijing’s decision to ban the brand for government officials could harm Apple’s prospects in the country.
It could also trigger panic among foreign companies who operate in China, as tensions between the Eastern and Western giants rises.
China is Apple's second largest market
Reuters
China is Apple’s biggest market after the US, generating nearly one-fifth of its revenue.
The move will likely also boost sales of China's own technology brands, such as Huawei
China has been seeking to reduce its dependency on foreign tech and has asked banks to switch the local software.
In 2020, Beijing stepped up this agenda, when they called for a “dual circulation” growth model, which would aim to reduce China’s reliance on western resources.
It also aims to expand domestic consumption by focusing on making their own-brands more appealing to customers.
Sino-US relations have been high after the US has been working to block China’s access to key equipment that would allow them to dominate the chip industry.
Biden’s administration has been placing limits on the number of chip sales to China.
Meanwhile, Beijing has been restricting shipments from big US firms including aircraft maker Boeing.
CHINA LATEST:
Washington have placed limitations on Huawei in the US
Reuters
US Commerce Secretary Gina Raimondo said that US companies had complained that China was now “uninvestible" due to fines and sanctions.
China’s decision to ban iPhones mirrors America’s choice to prohibit TikTok, a Chinese social media platform, on government officials’ phones.
The US government have also placed restrictions on Huawei Technologies, a Chinese smartphone maker.
In 2019, Washington restricted the company’s access to chipmaking tools, resulting in the smartphone maker only being able to released limited 5G versions of their phones using simple chips.
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