Does China want to ban iPhones in authorities? The Chinese government denies such rumors, but sows doubts about the data security of the cell phones. Is the trade dispute between the USA and China entering a new round?
The matter is already clear for the stock market: Official China has something against the iPhone. According to the latest estimates from analysts, Apple will no longer sell 50 million iPhones per year as before, but only 40 million iPhones in China in the future. The basis for this are media reports that authorities and state-owned companies should no longer use iPhones as work devices.
Government spokeswoman Mao Ning has denied this. But at the same time, last week she cast doubts about the security of the devices: “China has no laws or regulations banning foreign devices, such as those from Apple. But recently we have noticed that there are many media reports about security problems with Apple’s iPhone. “The Chinese government attaches great importance to data security and treats domestic and foreign manufacturers equally. We hope that everyone will align with this, including when it comes to the security of cell phone user data.”
New round in the trade dispute?
It was perhaps no coincidence that China’s government took a stand the very week Apple unveiled its latest product. The next generation of the iPhone, which, including its components, will largely be manufactured in China.
For many observers, the new situation has long been proof that the trade dispute between the USA and China is entering a new round. Nick Marro from the British think tank Economist Intelligence Unit in Hong Kong believes that behavior that is already familiar from China is continuing here: “On the one hand, China denies that it is imposing trade restrictions. On the other hand, this is happening quietly in direct discussions of customers for company cell phones.” There is a gap here between what the government says and what is actually happening. “We’ve been seeing this for years. And companies from other countries – such as South Korea – have also been affected by it.”
It is also clear that American government employees do not use Chinese smartphones either. Huawei and other manufacturers have often been excluded from use as business or company cell phones in the USA. So the exchange of blows continues.
China is tightening rules for Data security
What is also keeping the industry on tenterhooks: China, as a huge market for electronic products, is increasingly tightening its rules for data security.
For a few years now, we have been observing that Chinese politicians are increasingly arguing for national security interests in order to restrict trade and thus favor domestic products. Mainly in the high-tech sector – but also in other areas. China often uses this to block market participants from abroad.
And this trend could also cause concern for German and European companies. Because what can be applied to cell phones today may be applicable to cars tomorrow. Or on chemical products, or wherever it suits you.