The usage of iPhones by central government employees is apparently prohibited in China.
According to the Wall Street Journal, supervisors have been informing employees of the restriction through meetings or chat groups.
Following the revelation, Apple’s stock fell 3.6% on September 6 and closed at $182.91 in New York. This represented the largest daily decline in a month. Apple had increased 46% so far this year before Wednesday.
Despite the apparent lack of a clear regulation, the WSJ claims that Chinese officials had already stopped using iPhones before the outbreak.
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The WSJ also said that top domestic manufacturers like Huawei are now the handsets preferred for central government officials.
The Chinese government has previously reneged on agreements to use US goods. Due to security concerns, some Chinese government ministries had previously prohibited Teslas from entering their facilities.
Around 19% of Apple’s total income comes from China, a large market and manufacturing hub.
The iPhone ban is a response to similar actions taken by the US against Chinese technology.
US sanctions have long been in place for Chinese companies ZTE and Huawei. Additionally, because both businesses represent “an unacceptable risk” to US national security, the Biden administration prohibited approvals of new telecoms equipment from both corporations in November 2022.
Several US organizations, including the House of Representatives, the City of New York, Montana, New Jersey, Ohio, Texas, and Georgia have also prohibited TikTok from being downloaded on devices they distribute to their residents.
