Goodbye to the iPhone for Chinese officials. The government of China has banned the American company’s iconic iPhones for professional use in at least three ministries- one more step to reduce dependence on foreign technology. This new measure comes in the middle of a campaign to filter information from abroad and is a hard blow for Apple.

The Drastic Impact

The impact on the Apple firm has already been felt on the stock market: in the last two sessions—waiting for this Thursday’s closing—its shares fell around 7% and saw almost $200 billion disappear (180,000 million euros).

Last week, the North American company dropped 3% on the stock market; it lost around 3.5% well into the session. Marilena Orfanides, managing partner of Coventina, a company dedicated to financial advice, believes that this decline in Apple’s price is “circumstantial” and downplays the Chinese government’s move. In conversation with this newspaper, the expert highlights her confidence in Apple and points to the technological war between the Asian giant and the United States as the main culprit for the stock market fall.

All indications indicate that the Chinese regime, led by Xi Jinping, has opted for this counteroffensive in response to the restrictions imposed in the United States on Huawei phones or the TikTok network. At a time of growing rivalry between both powers, officials’ ban on using iPhones had already been applied in some regions of Asia. Now, however, it has become a state policy.

China Does Not Prohibit The iPhone. 

The notice prohibits the use of the iPhone between the functions of the Gobierno and the information published subject to a Beijing restriction against the gigantic technology of Apple.

“China does not have laws, regulations or directives that prohibit the purchase or use of foreign branded phones, including the iPhone”, declared Mao Ning. “We hope that all companies operating in China strictly follow China’s data security law.”

However, Chinese diplomacy has shown its concern for the “large media exposure of security incidents related to Apple phones”; for this reason, it “refers to the management of information security”.

“The Chinese government concedes great importance to computer and cyber security and deals with national companies and foreign companies like other countries”, he added.

​Prioritize Chinese Businesses

The Chinese president has asked that state offices invest more in purchasing policies for computers and operating systems manufactured by local companies. In 2021, Beijing already imposed restrictions on the use of the Tesla vehicle, also American, for fear of leaks by members of its armed forces. The Asian giant did not achieve its goal since sales continued quickly.

Summary

Technology has become one of the main vectors that invade China and the United States in its particular commercial war, a critical national security market. Although Pekin denies the prohibition of the iPhone, it could reduce the dependence on the exterior of technological products manufactured in the country.

Therefore, some government agencies limit the use of Apple’s brand name in 2020 and its ability to use Chinese-branded mobiles like Huawei, Xiaomi, Oppo or Vivo.