Wall Street Journal: China Bans Use of iPhones for Government Officials

China has reportedly implemented a ban on the use of iPhones by central government officials, according to undisclosed sources cited by The Wall Street Journal. This development has led to a 3.6% decline in Apple’s shares, marking the largest daily drop in a month. Apple’s shares closed at $182.91 in New York on Wednesday. Prior to this drop, Apple had seen a 46% increase in its share price over the course of the year.

The Wall Street Journal reports that the ban has been communicated to employees through chat groups or meetings, although it has not been officially confirmed by China’s Ministry of Foreign Affairs or Apple.

An anonymous source familiar with Chinese central government agencies shared insights into the situation, revealing that officials had been informally avoiding iPhones even before the pandemic. This preference for other smartphone brands, particularly Huawei, has been a trend among central government officials.

It’s worth noting that in June 2022, Chinese government ministries had barred Teslas from their premises due to security concerns. Apple CEO Tim Cook had previously made a high-profile visit to China in March, highlighting the country’s significance as a major market and manufacturing hub for Apple, accounting for approximately 19% of the company’s total revenue.

The ban on iPhones for government officials may be viewed as a response to similar actions taken by the United States against Chinese tech companies. Such measures could potentially have a chilling effect on Apple and other prominent foreign brands with established presences in China.

China’s Huawei and ZTE have faced long-standing restrictions imposed by the US, with the Biden administration taking steps in November 2022 to ban approvals for new telecommunications equipment from these companies due to concerns over national security risks.

Additionally, TikTok has been banned from devices issued by several US institutions, including the House of Representatives, as well as various state governments. These bans stem from concerns that the Chinese government could access user data through TikTok’s parent company, Bytedance, raising questions about data security and privacy.

The ban on iPhones for central government officials reflects the ongoing geopolitical tensions affecting the tech industry and underscores the complex relationship between global tech giants and the Chinese market.