China bans officials from using iPhones on the job

China has issued an order to all civil servants in central government agencies not to use iPhones or other foreign-branded smartphones for work.

According to the Wall Street Journal, which reported on the Chinese government's new measure, the order calls for officials to absolutely not bring non-Chinese branded devices into work environments.

China seeks technological self-sufficiency as Sino-U.S. tensions rise

China has been implementing measures for more than ten years that aim to reduce the country's dependence on foreign technologies. In addition to significant incentives and investments in the development of its own technology, as initiatives aimed at achieving this self-sufficiency, the Asian country has also asked state-affiliated companies, such as banks, to start using domestic software and to promote the domestic production of semiconductor chips.

In 2020, this campaign intensified in Beijing when the rulers proposed the Dual Circulation growth model. The goal was to reduce dependence on foreign markets and technology, motivated by the intention to strengthen the country's economy and stimulate its own industry, but also against a backdrop of concerns about data security.

However, China's decisions have led to tensions with the United States. With the recent ban on the use of iPhones in Chinese government agencies, different analysts have pointed out that the move has shown that the country should not spare any U.S. company, not even a commercial giant like Apple.

"Even Apple is not immune ... in China, where it employs hundreds of thousands, if not more than a million workers, to assemble its products through its relationship with Foxconn," said Tom Forte, an analyst at D.A. Davidson. For the analyst, China's latest move should encourage foreign companies to also seek independence from the Chinese market by diversifying their supply chain, before tensions worsen.

According to Reuters, US Secretary of Commerce Gina Raimondo visited China last week. At the time, she accused the world's second largest country of using measures such as fines, strikes and other actions that would make trade increasingly risky. According to Raimondo, U.S. companies complain that China has become "uninvestable."

However, it is important to note that the measures or "attacks" appear to be two-way. Even China's most recent restriction appears to mirror similar bans implemented by the U.S. against Chinese smartphone maker Huawei Technologies (HWT.UL) and short video platform TikTok, owned by China's ByteDance.

In addition, Reuters also reported that Washington is working with its allies to block China's access to equipment necessary for the competitiveness of its chip industry. Meanwhile, Beijing is restricting shipments from major U.S. companies, such as aircraft manufacturer Boeing (BA.N) and chipmaker Micron Technology (MU. .O).

China is one of Apple's largest markets

According to previous reports, China is one of Apple's largest markets, accounting for as much as one-fifth of the company's revenue. However, CFRA Research analyst Angelo Zino believes that the Chinese company does not immediately have to worry about the new ban in the Asian country.

For the analyst, the iPhone's popularity in China remains high enough for the company to not feel any immediate impact on its profits. It is worth remembering that the ban comes just days before Apple's next big annual event.

On September 12, the Apple Special Event is expected to announce the launch of the iPhone 15 range and other highly anticipated products. While the immediate concern is not a reduction in Chinese consumer interest, there are growing fears about foreign companies operating in China, rising Sino-U.S. tensions and what further action the two governments might take.