A Chinese decision has brought Apple to the ground. In fact, according to a Wall Street Journal (WSJ) report, the Chinese government has banned its government employees from using iPhones or other foreign-branded devices during work, as a result of which Apple’s shares fell on Wednesday. He fell on his face.
China’s decree, Apple overshadowed
According to the news published in Bloomberg, The Wall Street Journal published a report quoting people with knowledge of the matter that – Some central government regulators in China received instructions in chat groups or meetings to stop bringing gadgets from Apple or other foreign brands to the office. However, on what scale this order will be implemented, it is not clear.
Apple’s shares were affected by this news, on Wednesday, Apple’s stock fell 3.6% to $182.91 on the New York Stock Exchange. Which is the biggest one-day fall after August 4. Prior to this, Apple has climbed up to 46% so far this year.
Tech companies caught in the Sino-US war
Apple products are very popular in China. Apple enjoys considerable popularity in China, its biggest international market, despite growing resentment of US attempts to control China’s technology industry. Apple’s iPhones are bestsellers in China and are widely used in both the government and private sectors.
While China’s government has been troubled by its increased use of American products, the way sensitive agencies of other countries discourage the use of foreign equipment, Beijing has also sought to reduce its technology dependence on its geo-political foe the United States. For this, a campaign has been launched in the last few years.
In 2022, Beijing ordered central government agencies to replace foreign-branded personal computers with domestic alternatives within two years, in one of the most aggressive moves to reduce its reliance on foreign technology companies .
US blacklists Huawei
In this battle of technology expansion, the ball is still in America’s court, and it does not want to let China take the lead at any cost, so a few days ago, the Biden administration ordered China to limit the export of state-of-the-art semiconductor equipment, China’s top chipmaker, Semiconductor Manufacturing International Corp, has come under scrutiny for supplying components to Huawei Technologies, which has been blacklisted by the US.
Apple’s problem in the midst of the trade war between China and America is that it is very much dependent on China, one as a manufacturing partner and secondly its biggest market is also China.