September 06, 2023 (MLN): China ordered officials at central government agencies not to use Apple’s iPhones and other foreign-branded devices for work or bring them into the office, the Wall Street Journal (WSJ) reported.
In recent weeks, staff was given instructions by their superiors in workplace chat groups or meetings, WSJ added.
The directive is the latest step in Beijing’s campaign to cut reliance on foreign technology and enhance cybersecurity and comes amid a campaign to limit flows of sensitive information outside of China’s borders.
The move by Beijing could have a chilling effect on foreign brands in China, including Apple. Apple dominates the high-end smartphone market in the country and counts China as one of its biggest markets, relying on it for about 19% of its overall revenue, it noted.
It wasn’t clear how widely the orders were being distributed, but similar messages were communicated to employees at some central government regulators.
China’s restriction mirrors similar bans in the U.S. against Huawei Technologies as well as against officials using Chinese-owned TikTok, with both superpowers concerned about data leaks amid heightened emphasis on national security and deteriorating relations.
Chinese leader Xi Jinping has been emphasizing national security as China’s rivalry with the U.S. intensifies, leading to a tightening of state control over data and digital activities in recent years. In July, China started implementing an expansive update of an anti-espionage law.
Apple, one of America’s most valuable tech companies that relies on China both as a major market and as a production site, has been largely spared in the technology battle between the world’s top two economic powers.
With most Apple products assembled in China, Apple is a source of millions of jobs in the country through its contract manufacturers and suppliers.
Apple has dominated China’s market for smartphones priced over $600 in recent years after U.S. sanctions hit rival Huawei’s ability to make 5G phones.
The Chinese hardware maker recently unveiled a faster flagship phone aimed at challenging Apple again for premium users.
One of the iPhone’s selling points is its security and privacy features. In 2016, Apple had a legal battle in the U.S. with the Justice Department over a dead terrorist’s iPhone as law enforcement sought Apple’s help to unlock the device while Apple pushed back.
China requires some companies, including foreign ones, to store locally collected data in the country. Companies including Apple and Tesla built and use data centers in China, but such moves may be insufficient to ease Beijing’s concerns about national security.
Late last year, the U.S. imposed new export restrictions on advanced semiconductors and chip-manufacturing equipment in an effort to prevent American technology from advancing China’s military power.
In January, Xi urged the country’s policymakers to focus on developing an independent and controllable tech supply chain.
The U.S. has placed restrictions on communications equipment made by Chinese companies including Huawei, which Washington has labeled a national-security threat over concerns it could spy for Beijing. Huawei denies the allegations.
Copyright Mettis Link News
Posted on: 2023-09-06T17:12:26+05:00
