When it comes to China and the US, the terms are not good. The US and China are attempting to balance each other out with different strategies as their tensions rise. China is banned from importing advanced chips and chip manufacturing technologies from the USA. To counter this approach by the US government, China has restricted the use of non-Chinese smartphones in its offices. Reportedly, the Chinese government may have ordered state-sponsored companies and its agencies to forbid employees from using non-Chinese phones.
Bloomberg’s report claims that employees have been stopped from carrying their non-Chinese devices to workplaces. This measure by the Chinese government can impact the sales of iPhones and Samsung Galaxy phones in China. Previously, the rule was implemented in just a few states; however, now it has been expanded to eight states. In other words, the ban is spreading across the country.
Slowly and gradually, China is taking steps to stop relying on US-based technologies and products. The government has invested billions of dollars in semiconductor research, development, and production technologies. Throughout the year, several local companies have observed positive trends in smartphone sales. Ever since the news about a possible ban emerged, Apple’s shares have dropped.
Besides this, the shares of Apple suppliers like LG Innotek and Minebea Mitsumi dropped. In the coming months and years, the sales of iPhones are expected to decline. It can seriously impact Apple’s revenue. In contrast, Samsung might not suffer a lot in the Chinese market given the fact that it holds a small market share. It is anticipated that the ban will eventually proliferate in private firms as well. Smaller businesses in less affluent cities are said to have given verbal orders to cease using non-Chinese phones.
In contrast to this, the Chinese government refused to authenticate the information that it has banned iPhones and Samsung phones. The gravity of the situation can vary from one organization to another. While some government organizations may forbid employees from using non-Chinese phones at all, others may restrict them from using iPhones or Samsung phones in the office.
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