Reports from the Wall Street Journal suggest that China has issued directives to officials in central government agencies, prohibiting the use of Apple’s iPhones and other foreign-branded devices for official purposes or within office premises.
These directives have been communicated by superiors to their respective staff members in recent weeks. However, the extent to which these orders are being disseminated remains unclear, as per the WSJ.
This ban comes just before an Apple (AAPL.O) event scheduled for the following week, which analysts speculate will introduce a new lineup of iPhones. It has the potential to raise concerns among foreign companies operating in China as tensions between the United States and China continue to escalate.
The WSJ report did not mention any specific phone manufacturers besides Apple (AAPL.O). Both Apple and China’s State Council Information Office, responsible for handling media inquiries on behalf of the Chinese government, have not yet responded to requests for comments from Reuters.
For over a decade, China has been striving to reduce its dependence on foreign technologies. This effort has involved urging state-affiliated entities, including banks, to transition to domestic software and promoting local chip manufacturing.
China escalated these efforts in 2020 when its leadership introduced the concept of “dual circulation” growth, aimed at decreasing reliance on foreign markets and technology, especially amid growing concerns over data security.
In May, China encouraged major state-owned enterprises (SOEs) to play a pivotal role in achieving self-reliance in technology, intensifying the competition amid ongoing disputes with the United States.
Sino-U.S. tensions have remained high, with Washington collaborating with allies to limit China’s access to essential equipment needed for its competitive chip industry. Meanwhile, Beijing has imposed restrictions on shipments from prominent U.S. companies such as Boeing (BA.N) and Micron Technology (MU.O).
During a recent visit to China, U.S. Commerce Secretary Gina Raimondo noted that U.S. companies had expressed concerns about China becoming an “uninvestible” market. She pointed to fines, raids, and other actions that have raised the risks of doing business in the world’s second-largest economy.
China’s latest move to restrict the use of iPhones by government officials mirrors similar bans imposed by the United States against Chinese smartphone maker Huawei Technologies (HWT.UL) and the short video platform TikTok, owned by China’s ByteDance.
China stands as one of Apple’s largest markets, contributing to nearly one-fifth of its revenue.
