As tensions between China and the US escalate, the two countries are trying to counter each other through certain measures. The USA banned US-based chipmakers from exporting advanced chips and chip manufacturing technologies to Chinese firms. As a counterattack, the Chinese government has banned non-Chinese smartphones from its offices.
Chinese government may have directed its agencies and state-backed firms to ban use of non-Chinese phones by employees
According to a report from Bloomberg, more Chinese agencies and state-backed firms have asked their employees to stop bringing their iPhones, Samsung Galaxy phones, and non-Chinese smartphones to their workplaces. This will drastically reduce the sales of iPhones and Samsung phones in China, the world's biggest smartphone market. Earlier, only a few states mandated this rule, and now, as many as eight states, including the ones from the prosperous coastal region, have banned non-Chinese phones from their offices. It means the ban is spreading across China.
China has been trying to move away from US-based technologies and products. The country's government has been pumping billions of dollars into semiconductor research, development, and production technologies. Huawei and other local firms have seen a resurgence in smartphone sales. Apple's shares reportedly dipped since this news about a ban was revealed. Even the share prices of Apple's suppliers, including LG Innotek and Minebea Mitsumi, fell. Sales of iPhones are expected to drop, which will directly hit Apple's revenue in the coming months and years. Since Samsung has little market share in China, the company might not be affected as much as Apple.
This ban is expected to unofficially reach private firms, too, as smaller firms in lower-tier cities have reportedly issued their own verbal directives to stop using non-Chinese phones. While the Chinese government has officially denied banning iPhones and Samsung phones in the past, the seriousness of the ban will vary from one agency to another. Some government agencies may stop employees from using an iPhone or Samsung phone in the workplace, while others may stop them from using non-Chinese phones entirely.
