China flags security concerns with iPhones amid reports of ban
What's the story
China's foreign ministry has denied reports of a ban on international brand handsets, including Apple's iPhones, but acknowledged "security incidents related to Apple's phones," reported both Bloomberg and Reuters. As per reports, China has widened existing restrictions on government employees using iPhones, directing some central agency staff to stop using Apple mobile devices at work. This comes amidst rising tensions between Beijing and Washington, making 'foreign' mobile phones a major national security issue for both countries.
Details
Cyber security concerns
When questioned about the reports during a routine press briefing, Mao Ning, spokeswoman of the Chinese foreign ministry, stated, "China has not issued laws, regulations or policy documents that prohibit the purchase and use of foreign brand phones such as Apple's." "But recently we did notice a lot of media exposure of security incidents related to Apple's phones. The Chinese government attaches great importance to information and cyber security and treats both domestic and foreign companies as equals," she added.
What Next?
Apple's revenue relies on Chinese market
China, including Taiwan and Hong Kong, accounted for 19% of Apple's $394 billion revenue last year, making it a crucial market for the tech giant. However, recent reports of China discouraging the use of iPhones by government officials signal growing challenges for Apple's reliance on the country for revenue growth and manufacturing. Apple shares showed minimal movement in premarket trade on Wednesday, having slipped nearly 2% after unveiling the iPhone 15 and other new products on Tuesday.
Insights
Local tech push amid security concerns
Ning stated that China expects all mobile phone companies to follow its laws and regulations and to strengthen their information security management. China has been placing greater importance on using locally-made tech products due to technology's growing significance as a national security issue.