In a move that underscores China's ongoing efforts to reduce reliance on foreign technologies, the Chinese government has reportedly ordered officials working at central government agencies to cease using Apple's iPhones and other foreign-branded devices for work purposes. This prohibition also extends to bringing such devices into government offices.
While the exact scope and reach of these orders remain unclear, they have been issued by superiors to their staff within recent weeks. The ban on foreign-branded devices comes at a critical juncture, just ahead of an Apple event expected next week where analysts anticipate the unveiling of a new line of iPhones. This development could potentially raise concerns among foreign companies operating in China, particularly as tensions between China and the United States continue to escalate.
The report did not specify other smartphone manufacturers targeted by the ban, and both Apple and China's State Council Information Office, responsible for handling media inquiries on behalf of the Chinese government, have not immediately responded to requests for comment on the matter.
China's drive to reduce dependence on foreign technologies has been ongoing for over a decade. The government has been actively encouraging state-affiliated entities, including banks, to transition to locally developed software and promote domestic chip manufacturing. This push gained momentum in 2020 when Chinese leaders introduced the concept of "dual circulation" to reduce reliance on overseas markets and technology, partly due to growing concerns over data security.
In May 2023, China urged major state-owned enterprises (SOEs) to play a pivotal role in achieving self-reliance in technology, further intensifying the competition between China and the United States in the tech sector. Tensions between the two nations have remained high, with Washington collaborating with its allies to hinder China's access to critical equipment necessary for maintaining competitiveness in the semiconductor industry. In response, Beijing has imposed restrictions on shipments from prominent U.S. companies, including aircraft manufacturer Boeing and chip manufacturer Micron Technology.
During her recent visit to China, U.S. Commerce Secretary Gina Raimondo reported that American companies had expressed concerns about China's increasing business risks, describing the country as "uninvestible." She cited fines, raids, and other actions that have made it increasingly precarious for businesses to operate within the world's second-largest economy.
This latest restriction imposed by China mirrors previous actions taken by the United States against Chinese tech firms, such as smartphone manufacturer Huawei Technologies and the short video platform TikTok, owned by China's ByteDance.
China, a critical market for Apple, accounts for nearly one-fifth of the company's total revenue. The ban on government officials using iPhones for work purposes could potentially impact Apple's market share in China and its overall business operations within the country.
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