Continuing with its theme of self-reliance, the Chinese government has issued a ban on the use of iPhones for government employees. As tensions heat up between the US and China both in international trade and relations, Beijing has placed a much greater emphasis on national security. With concerns of sensitive information falling into the hands of US allies and nationals, the CCP sees this move as a way to prevent against Western technological influences. This move comes after years of major restrictions on the freedoms of Chinese citizens, who lack a free press and the right to freely speak.
Conversely, this move comes after a similar ban in the United States. According to the Wall Street Journal, the Chinese ban “mirrors similar actions taken in the U.S. against cell phone manufacturer Huawei and digital media platform TikTok.”
As both nations seem to be economically and defensively posturing over issues such as the Russian-Ukraine war, Taiwan, and issues with the U.S. dollar in the Middle East- this ban comes at a particularly convenient time for the CCP.
The actions of the CCP against Apple (NASDAQ: AAPL) could also be perceived as an economic move against the United States. A recent market study by Counterpoint Research showed that Apple had a strong market share at over 16% of the Chinese domestic market. Its use has caused investors to lose confidence in one of the U.S.’s largest companies, with shares falling in price by over 6.42% at Tuesday’s closing bell. This event opens another chapter in the rocky relationship between Washington and Beijing.
