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Business News/ Companies / Apple iPhones targeted in China: State-backed entities call for local tech loyalty, report
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Apple iPhones targeted in China: State-backed entities call for local tech loyalty, report

The Chinese state-backed companies and agencies are reportedly banning employees from bringing Apple iPhones and other foreign devices to the workplace, as part of a long-term effort to reduce dependence on foreign technologies.

For representation purposes only (Bloomberg)Premium
For representation purposes only (Bloomberg)

In China, additional state-backed companies and agencies have reportedly instructed their employees not to bring Apple iPhones and other foreign devices to the workplace, according to sources familiar with the matter, as reported by Bloomberg News.

For more than ten years, China has aimed to diminish dependence on foreign technologies by urging state-affiliated entities, including banks, to transition to local software and fostering the development of domestic semiconductor chip manufacturing, adds the report.

In the past month or two, employees in various state firms and government departments across at least eight provinces have been directed to use local brands, according to the Bloomberg News report.

Smaller firms and agencies in December, particularly those in lower-tier cities from provinces such as Zhejiang, Shandong, Liaoning, and central Hebei, which hosts the world's largest iPhone factory, reportedly issued their own verbal directives, as mentioned in the agency report.

In September, Reuters reported that employees in at least three ministries and government bodies were instructed not to use iPhones at work. Apple's shares experienced a marginal decline, reaching $196.50 in extended trading.

Previously, it was reported that Apple’s supplier Foxconn Technology Group has received approval to invest $1 billion additional funds into its upcoming facility in India, dedicated to the manufacturing of Apple products. This substantial augmentation represents a noteworthy stride in its strategic initiative to establish a key manufacturing hub beyond China, according to reports from Bloomberg.

This advancement comes in the wake of the Karnataka state government's formal approval of a substantial $1.67 billion investment, underscoring Foxconn's resolute dedication to expanding its operations in the region. 

The Taiwan-based tech giant, who is recognized for assembling around 70 percent of global iPhones and holding the esteemed title of the largest contract manufacturer globally, is unwavering in its commitment to diversifying production away from China. This strategic shift is a direct response to the challenges posed by the COVID-19 pandemic and the escalating tensions on the geopolitical front.

(With inputs from Bloomberg and Reuters)

 

 

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Published: 18 Dec 2023, 11:13 AM IST
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