White House Accuses China Of iPhone Ban As Retaliation In Ongoing Trade War

The White House has accused China of implementing a ban on Apple Inc.’s AAPL iPhones, alleging it to be a retaliatory measure amid the ongoing trade tensions between the two countries.

What Happened: On Wednesday, National Security Council spokesman John Kirby expressed concern, stating that the reported ban on iPhones appears to be part of a pattern of aggressive retaliation by the People’s Republic of China or PRC against U.S. companies, reported Bloomberg. 

“We’re watching this with concern, clearly. It seems to be of 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,” said Kirby. 

He added, “The truth is, we don’t have perfect visibility on exactly what they’re doing and why, and we certainly would call on them to be more transparent about what they’re seeing and what they’re doing,”

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Previously, it was reported that China plans to expand the ban to state-backed organizations, including several agencies instructing their staff not to bring iPhones to work, but the country’s foreign ministry spokeswoman, Mao Ning, denied the existence of specific laws and regulations targeting Apple or foreign phone brands.  

Instead, she highlighted the importance of security and the need for all companies operating in China to comply with its laws and regulations. “We noticed that there have been many media reports about security incidents concerning Apple phones.” 

However, this appears to be at odds with the resurgence of the Chinese tech giant Huawei, which aligns with the reported iPhone ban.

Why It’s Important: The uncertainty regarding Apple’s status in China, a crucial production base and market for the company, has left investors on edge. With China representing 19% of Apple’s revenue, any unfavorable change in public sentiment could significantly affect the company’s overall financial performance.

This development coincides with the launch of Apple’s latest iPhone 15 models, for which preorders will begin on Friday. 

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