In a recent statement, a Chinese government spokesperson categorically denied the existence of any laws or regulations prohibiting the use of iPhones or any other foreign phone brands within the country. Ministry of Foreign Affairs spokesperson Mao Ning, speaking at a press conference in Beijing, emphasized China’s openness to foreign companies and encouraged them to take advantage of the opportunities arising from China’s economic growth.
Mao Ning acknowledged the media reports concerning security incidents associated with Apple’s iPhone but did not provide further details. She underscored China’s commitment to information and cyber security. Additionally, she urged foreign cellphone companies operating in China to adhere to the nation’s privacy laws and safeguard customer data against theft by any individuals or organizations.
Last week, The Wall Street Journal published a report claiming that China had prohibited central government officials from using iPhones. This report led to a decline in Apple’s stock value, marking its most significant daily loss in a month.
The White House expressed its concerns regarding these developments. John Kirby, National Security Council spokesman, during a press conference, stated, “It seems to be a piece of the kinds of aggressive and inappropriate retaliation to US companies that we’ve seen from the PRC in the past, that’s what this appears to be.” He called for greater transparency from China regarding its actions and motivations.
In recent months, Beijing has taken measures to address perceived national security risks, targeting American and international consulting firms. In March, Chinese authorities shut down the Beijing office of Mintz Group, an American corporate due diligence firm, and imposed a fine of approximately $1.5 million for alleged unapproved statistical work. In April, police questioned employees at the Shanghai offices of Bain & Company, a global consulting giant. State media later reported multiple raids on the offices of Capvision, an international expert network firm based in Shanghai and New York.
Apple, a prominent American brand in China, relies significantly on the Chinese market, which accounted for about a fifth of the company’s total revenue last year. While Apple does not disclose iPhone sales by country, analysts estimate that last quarter saw more iPhone sales in China than in the United States. The majority of Apple’s iPhones are manufactured in Chinese factories.
In conclusion, China has denied banning iPhones or foreign phone brands, emphasizing its openness to foreign companies. However, concerns persist, and the situation continues to evolve, affecting American businesses operating in the country.
