Apple stock fell.
Beijing:
A Chinese decision has put Apple in the fray. In fact, according to a Wall Street Journal (WSJ) report, the Chinese government has banned its government employees from using iPhones or other foreign-branded devices during work, which resulted in Apple shares falling on Wednesday.
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The Chinese order proved costly for Apple
According to news published in Bloomberg, The Wall Street Journal published a report citing people with knowledge of the matter that some central government regulators in China received instructions in chat groups or meetings to stop bringing Apple or other foreign brands of gadgets into the office. However, it is not clear how widely this order will be implemented.
Apple shares were hit by the news, with Apple shares falling 3.6% to $182.91 on the New York Stock Exchange on Wednesday. Which is the biggest one-day drop since August 4. Earlier, Apple has climbed 46% so far this year.
Tech companies caught in the Sino-US war
Apple products are very popular in China. Despite growing resentment over US attempts to control China’s technology industry, Apple enjoys considerable popularity in China, its largest international market. Apple’s iPhones are best sellers in China and are widely used in both the government and private sectors.
While the Chinese government is troubled by its growing use of American products, sensitive agencies in other countries discourage the use of foreign equipment, Beijing has also sought to reduce its technology dependence on its geopolitical foe, the United States. A campaign has been launched for a few years
Huawei was blacklisted by the US
In this battle of technological expansion, the ball is still in America’s court, and it does not want to let China take the lead at any cost, so a few days ago, the Biden administration ordered China to limit the state’s exports. The-Art Semiconductor Equipment has come under scrutiny for supplying components to China’s top chipmaker, Semiconductor Manufacturing International Corp, Huawei Technologies, which has been blacklisted by the US.
Apple’s problem amid the trade war between China and the US is that it is highly dependent on China, both as a manufacturing partner and its biggest market.