Amid escalating tensions between China and the US, both nations are taking measures to counter each other. The US has prohibited US-based chipmakers from exporting advanced chips and chip manufacturing technologies to Chinese firms.
In response, the Chinese government has enforced a ban on non-Chinese smartphones within its offices.
It’s been reported that the Chinese government might have instructed its agencies and state-backed enterprises to prohibit the use of non-Chinese phones among their employees.
As per Bloomberg’s report, an increasing number of Chinese agencies and state-backed companies are instructing employees to refrain from bringing iPhones, Samsung Galaxy phones, and other non-Chinese smartphones to their workplaces.
This move is anticipated to notably diminish the sales of iPhones and Samsung phones in China, the largest smartphone market globally. Initially mandated in a few states, this rule has expanded to encompass as many as eight states, including those within the prosperous coastal region, indicating a widespread implementation of the ban across China.
China has been actively steering away from reliance on US-based technologies and products. The government has invested substantial sums into semiconductor research, development, and production technologies. This shift has resulted in a resurgence of smartphone sales for Huawei and other local firms.
Following reports of the ban, Apple’s shares purportedly experienced a decline. Additionally, the share prices of Apple’s suppliers, such as LG Innotek and Minebea Mitsumi, also fell. Anticipations suggest a potential decrease in iPhone sales, directly impacting Apple’s revenue in the forthcoming months and years. Given Samsung’s limited market share in China, the company might not face as significant an impact as Apple.
The ban’s impact is expected to extend unofficially to private firms, as reports suggest that smaller companies in lower-tier cities have internally issued verbal directives to discontinue the use of non-Chinese phones.
Despite official denials from the Chinese government about banning iPhones and Samsung phones in the past, the severity of the ban might differ among various agencies. While some government bodies could restrict employees from using iPhones or Samsung phones solely within the workplace, others might enforce a complete prohibition on the use of non-Chinese phones altogether.