Technology giant Apple has warned suppliers shipping from Taiwan to ensure they adhere to strict Chinese customs regulations — banning them from saying “Made in Taiwan.”
The company has asked its suppliers to adhere to the long-standing Chinese rule that anything made in Taiwan must be labeled as “Taiwan, China” or “Chinese Taipei.”
Tensions have escalated in the US and China after House Speaker Nancy Pelosi visited Taiwan despite repeated warnings from the Chinese not to do so, claiming it was a “violation of the One China Principle.”
She landed in Taipei earlier this week and was greeted by Foreign Minister Joseph Wu, before China’s Foreign Ministry immediately rejected the move, calling it a “serious disregard for China’s strong opposition.”
According to a report from Nikkei Asia, the visit “ignited fears of increasing trade barriers,” making Apple nervous about “potential disruptions.”
The iPhone maker has now warned suppliers that the country has begun to enforce their strict customs, to ensure they adhere to them to avoid further problems.
Apple bosses were reportedly concerned that a delivery problem could delay the launch of their new iPhone 14 handset in September
The iPhone maker has now warned suppliers that the country has begun enforcing their strict customs, to ensure they adhere to them to avoid further problems.
Apple has asked their suppliers to follow China’s time-honored rule that anything made in Taiwan must be labeled “Taiwan, China” or “Chinese Taipei”
Speaker Nancy Pelosi tweeted a photo of the congressional delegation’s arrival in Taipei, saying: ‘Our visit reiterates that America stands behind Taiwan: a robust, vibrant democracy and our key partner in the Indo-Pacific’
Apple’s iPhone assembler Pegatron Corp confirmed that its factory in mainland China is operating normally, amid claims their shipments were being held by officials for investigation.
The penalty for violating the rule is a fine of up to 4,000 yuan ($592), or the shipment will be refused, according to the report.
Taiwan is home to the world’s largest computer chip maker, Taiwan Semiconductor Manufacturing Company (TSMC). TSMC’s chips are used in a wide variety of phones, including the iPhone 13; cars including the Renault Arkana SUV; game consoles including the Nintendo Switch and Playstation 5; and smart home appliances, including the Revcook smart toaster.
TSMC’s hold on microchip manufacturing means Apple is heavily dependent on China and Taiwan to make the most critical part of its phone.
The Information reported last year that Apple CEO Tim Cook signed a $275 billion five-year deal with China in 2016 to relax strict regulations on its operations in the country. That deal appears to have been rocked by renewed tensions between China and Taiwan.
Apple did not immediately respond to DailyMail.com’s request for comment.
The company is gearing up to launch their next-generation iPhones later this year, with vendors ramping up production efforts for the new phone in September.
It comes after major concerns arose in the tech industry over supply amid mounting tensions between Taiwan and China.
Apple’s chipmaker, the Taiwan Semiconductor Manufacturing Company (TSMC), has warned that a war between Taiwan and China would make “everyone losers,” leading to economic turmoil.
TSMC chairman Mark Liu, pictured, said earlier this week that the chipmaker’s factory, the world’s largest semiconductor manufacturer, could not operate if the Chinese invaded because it cannot be controlled “by force.”
Amid mounting warnings from China about Pelosi’s visit, four US ships, including the aircraft carrier USS Ronald Reagan (shown in a file photo), were positioned in waters east of Taiwan for ‘routine’ deployment
TSMC chairman Mark Liu said earlier this week that the chipmakers’ factory, the world’s largest semiconductor manufacturer, could not operate if the Chinese invaded.
He told CNN, “No one can control TSMC by force. If you undertake a military force or an invasion, you will render the TSMC factory useless.
“Because this is such an advanced manufacturing facility, it relies on a real-time connection to the outside world, to Europe, to Japan, to the US, from materials to chemicals to spare parts to engineering software and diagnostics.”
He urged Beijing to think twice before taking action, as China accounts for 10 percent of the TSMC’s business.
Taiwan produced more than 60 percent of the world’s semiconductors last year, and Liu urged all sides to think about ways to avoid war so that the “motor of the world economy can keep humming.”
He added that lessons should be learned from Russia’s invasion of Ukraine, as the war there has created a “loss, loss, loss” situation for the Western world as well as Russia and Ukraine.