China Orders Officials to Stop Using Apple iPhones for Work, Citing Security Concerns
Sept 6 (Reuters) – In an effort to increase cybersecurity and reduce reliance on foreign technologies, China has reportedly ordered officials at central government agencies to stop using Apple’s iPhones and other foreign-branded devices for work or bring them into the office. The Wall Street Journal reported on Wednesday that staff received these instructions in recent weeks through workplace chat groups or meetings. However, it remains unclear how widely these orders have been distributed.
This move comes just ahead of an Apple event next week, where analysts anticipate the launch of a new line of iPhones. The ban on Apple devices could potentially raise concerns among foreign companies operating in China as tensions between the United States and China continue to escalate.
The Wall Street Journal report did not name any other phone makers besides Apple. Both Apple and China’s State Council Information Office, which handles media queries on behalf of the Chinese government, have not immediately responded to requests for comment from Reuters.
Upon hearing the news, the stock market experienced a slight decline, with Apple’s shares falling 0.7% in premarket trading.
China has been actively seeking to reduce its reliance on foreign technologies for over a decade. The country has encouraged state-affiliated firms, such as banks, to switch to local software and has promoted domestic semiconductor chip manufacturing. Beijing intensified this campaign in 2020 with the proposal of a “dual circulation” growth model, aiming to reduce dependence on overseas markets and technology due to increased concerns over data security.
In May, China urged big state-owned enterprises to play a crucial role in achieving self-reliance in technology, further raising the stakes amid growing rifts with the United States.
Sino-U.S. tensions have been on the rise as Washington collaborates with its allies to limit China’s access to crucial equipment necessary for its chip industry to remain competitive. In response, Beijing has imposed restrictions on shipments from prominent U.S. companies, including planemaker Boeing and chip company Micron Technology.
Several analysts believe that China’s reported ban on Apple devices indicates its unwillingness to spare any U.S. company in its efforts to reduce dependence on American technologies. “Even Apple is not immune… in China where it employs hundreds of thousands, if not more than a million workers, to assemble its products through its relationship with Foxconn,” warned analyst Tom Forte of D.A. Davidson.
It is worth noting that China is one of Apple’s most significant markets, accounting for nearly a fifth of its revenue. However, experts do not expect an immediate impact on Apple’s earnings due to the iPhone’s popularity in China.
During her visit to China last week, U.S. Commerce Secretary Gina Raimondo revealed that American companies had complained to her about China becoming “uninvestible.” The fines, raids, and other actions taken by Chinese authorities have made it increasingly risky to do business in the world’s second-largest economy.
This recent restriction imposed by China mirrors similar bans enforced by the United States against Chinese smartphone maker Huawei Technologies and the short video platform TikTok, both owned by China’s ByteDance.
In conclusion, China’s order for officials to stop using Apple iPhones and foreign-branded devices for work aims to strengthen cybersecurity and decrease reliance on foreign technologies. This move underscores the escalating tensions between the United States and China and may raise concerns among foreign companies operating in China.