CCP bans iPhones for government officials in China

China is always cautious about the technology used by its citizens. In a recent development, the Chinese Communist Party (CCP) decided to ban the use of iPhones by government officials. Such a move by the Chinese political party has caused trouble and shocked Apple. Reportedly, the stock price of Apple fell 2.9%, which was the biggest two-day percentage drop since November.

The reason behind banning iPhones for official use

Although Apple has good terms with the CCP, government employees are instructed not to use iPhones during official working hours due to privacy concerns. Besides this, the experts believe that China has taken this step in response to the US’s measures to stop China from accessing modern technologies.

There is no information on how long this ban will last since there have been no official details rolled out by the CCP. Such a move can impact Apple’s sales, given that China is one of its biggest markets. Notably, China provides 18% of the total revenue of the company.

According to Bernstein analyst Toni Sacconaghi, perhaps more importantly, the Chinese government’s restriction on the use of iPhones by government employees could negatively impact sales among consumers (related family members; general population) and could be an element of a wider move by the Chinese government to promote utilization of local technology.”

Response by the US government

The US Commerce Department is concerned about this situation, it is seeking more information in order to sort it out. Additionally, Chinese activities were described as typical of the Chinese Communist Party’s policy, which entails supporting national telecommunications champions while gradually limiting market access for Western businesses, by US Representative Mike Gallagher, the head of the House panel on China. The head of the Senate Intelligence Committee, Senator Mark Warner, added, “As the Chinese economy stalls, we could possibly expect more aggressive measures against foreign businesses.”