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State employees across China, from nuclear power plants to far-flung hospitals, have received instructions in recent weeks to cease using Apple phones. This marks a Beijing-led pushback against the US tech giant, resulting in a $200bn decrease in Apple’s share value this week.
Various Chinese government agencies and state-owned enterprises have advised their employees not to use Apple iPhones. This extends previous limitations on government use of Apple devices that have been in place for years.
“We were informed by our management in August that we must not bring any Apple products – be they cell phones or laptops – into office buildings,” said an employee at the China National Nuclear Corporation. The source spoke on condition of anonymity due to the sensitivity of the matter.
Other employees at government institutions and state-owned companies have confirmed the existence of similar restrictions, some dating back many years.
Although Beijing has not formally announced any curbs, reports of iPhone bans have raised concerns among investors ahead of Apple’s new smartphone launch. China accounts for approximately a fifth of Apple’s revenues.
“This must have come from the very top,” stated Willy Lam, senior fellow at the Jamestown Foundation think-tank. He added that it is a decision with broad implications for many Apple employees in China and sends a message to American and other multinational corporations operating in China.
One employee at the China National Nuclear Corporation revealed that China Telecom, a state-owned company, visited their offices in late August to promote domestic phone brands.
“We were told that US security agencies could control Apple devices through security loopholes,” the employee said. “The target includes not only military personnel but key individuals in all sectors of society.”
A nurse at a state-owned hospital in Inner Mongolia stated that the local government instructed hospital staff to stop using iPhones at the end of August due to perceived “huge security risks” associated with iOS.
Other state employees indicated that unofficial restrictions on iPhone usage have been in place for several years. A police officer revealed that they were banned from using iPhones a few years ago.
A civil servant in Beijing mentioned that central government departments linked to the military imposed a ban on iPhone usage years ago. Civil servants across all government agencies, including non-sensitive sectors, have been encouraged to choose Chinese alternatives like Huawei for the past two years.
However, restrictions on iPhone use vary among government agencies. For instance, the No 10 General Design Department of the China Aerospace Science and Industry Corporation recently published procedures on how to check iPhones for spyware on China’s social media platform WeChat.
State instructions are not the only challenge faced by Apple. Some employees have voluntarily stopped using iPhones due to escalating tensions between China and the US, as well as concerns about security risks.
“I stopped using my iPhone for work a few years ago when US-China relations began to deteriorate,” said an employee at a large state-owned financial institution. “Apple is an American company and will prioritize US interests.”
Previous reports in Chinese media have highlighted how iPhone encryption settings hindered investigations into local officials during anti-corruption crackdowns.
“President Xi Jinping is anxious to ensure complete control of the flow of information,” Lam explained. “Apple is widely used in China, but unlike Huawei and domestically produced phones, the government doesn’t have as much direct control over its production and manufacturing process.”
This is not the first time an American tech giant has faced restrictions on selling to Chinese agencies. For example, in May, Beijing banned operators of critical infrastructure from purchasing products from US memory-chip maker Micron, citing “serious network security risks”. This move was seen as retaliation against Washington’s efforts to limit Chinese access to critical technology.
Apple, whose CEO Tim Cook visited Beijing this year to meet with Xi Jinping, has benefitted from US sanctions imposed on its competitor Huawei. Apple’s iPhone sales in China skyrocketed after Huawei was banned in 2019 from accessing cutting-edge foreign components and forced to halt production of its 5G smartphones.
Last week, Huawei released a new phone believed to be 5G-capable and using domestic chips. This release demonstrates how China’s technology industry is adapting to US export controls.
These recent developments come after US commerce secretary Gina Raimondo visited Beijing to re-establish dialogue on economic matters. US national security adviser Jake Sullivan stated that, at this stage, he has no plans to address the Apple issue with the Chinese government.
Chinese technology groups have also been denied the opportunity to sell to Western government departments.
The UK government has instructed its departments to remove products manufactured by surveillance equipment maker Hikvision, citing privacy concerns. The White House, US armed forces, and the European Union’s executive branch have banned the Chinese-owned social media app TikTok from government devices.
When asked about a potential ban on Apple, a spokesperson for China’s Ministry of Foreign Affairs stated, “We welcome products and services from any country as long as they meet China’s legal and regulatory requirements.”
Apple and Huawei did not respond to requests for comments. The China National Nuclear Corporation did not respond immediately to a request for comment.
Additional reporting by Lauren Fedor in Washington
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