China just issued a ban on Chinese government officials from using
iphones and other foreign made devices, quoting National Security
Issues. National Security Issue is now such a useful term for China to
use, thanks to the USA for inventing it. How widely will this ban spread
is left to be seen. China accounts for 20% of the global iphone market
for Apple and is not to be sniffed at.
This is widely seen as a
retaliation against the USA for its ban on Huawei, coming not a second
too early, I suppose. Chinese phonemakers like Huawei, Vivo, Xiaomi and
others now have the confidence to take over the Chinese market, with the
Chinese population now migrating widely to phones made by Chinese
companies. When the expression of a little wave of dissent becomes a
tsunami, it will be interesting to see how Apple is going to fare in
China.
With chipmakers already grappling with eventual cut off
from the Chinese market, and Apple facing the unpalatable situation in
China evolving, TSMC, the biggest supplier of high end chips to Apple is
not going to find the going comfortable as well. China is adding insult
to injury to beleaguered TSMC, which had already been dealt a
blindsided fatal blow by the USA over its setting up of a chips foundry
in Arizona.
We can see how China's calculated retaliation can
lead to detrimental effects for even those further down the supply
chain. China's retaliation is all encumbering, offering little escape
even for those not directly affected, just like its restriction of rare
earth exports. Not only does it affect chip manufacturers, but is
affecting the military establishment, EV makers, phone makers and most
equipment and consumer electronic makers. China controls the supply and
market, and can dictate what no others have the luxury of doing. China
still has a lot of other cards to play with.
Anonymous
1 comment:
It has been reported that the ban by China will eventually cover all Government employees, not just officials. This is no small number to sniff at, considering the extent of entities under the Central Government's control.
And that could even extend to the private sector as well, if the Chinese Government were to insist that any communication made to or with Government departments must be through a non iPhone or non foreign equipment to get through, using only a Chinese developed software. Chinese Government Departments already phased out computers running Microsoft Windows. The Chinese Government can always claim this is for National Security Reasons. What will this do to Apple and foreign made computers and other equipment?
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