According to reports from the Wall Street Journal, China has extended its prohibition on government officials using iPhones and similar foreign-branded devices.
This measure, initially introduced in sensitive government departments and government-backed agencies, instructs employees not to bring iPhones to their workplaces.
Furthermore, Beijing intends to broaden this restriction significantly to encompass numerous state-owned enterprises and other government-controlled entities. If these plans come to fruition, it would mark the culmination of a multi-year effort by China to eliminate foreign technology from sensitive environments, reflecting Beijing’s determination to reduce reliance on American software and hardware.
This move also poses a potential threat to Apple’s market position, as approximately one-fifth of its revenue comes from China alone. Apple’s vast manufacturing facilities in China employ millions of people and are responsible for producing the majority of the world’s iPhones, as noted in the report by Bloomberg.
However, the extent to which companies or agencies will adopt restrictions on personal devices remains uncertain, as there have been no formal or written directives issued yet. According to Bloomberg’s report, some firms already prohibit the use of Apple devices in the workplace, while others may completely ban their employees from using them.
Highlighting Apple’s historically favorable relationship with Beijing and its significance to the Chinese economy, Brandon Nispel, an analyst at KeyBanc Capital Markets, stated in a report that Apple has been considered relatively safe in China from government restrictions.
Earlier in 2022, Chinese authorities mandated that central government agencies and state-backed corporations replace foreign-made personal computers with domestic alternatives within a two-year timeframe, marking one of the most aggressive efforts to eliminate foreign technology from critical sectors.
