August 10, 2022
Apple asks suppliers to comply with China customs rules amid Sino-US tensions: Report

According to a Nikkei report on Friday, Apple has asked suppliers to ensure that shipments from Taiwan to China comply with post-customs rules to avoid being held up for scrutiny.

Sino-US trade tensions escalated after US House of Representatives Speaker Nancy Pelosi and a congressional delegation visited Taiwan.

The iPhone maker told suppliers that China has begun to enforce a long-standing rule that parts and components made in Taiwan must be labeled as “Made in Taiwan, China” or “Chinese Taipei”. , the report said, citing sources familiar with the matter. ,

Apple did not immediately respond to a Reuters request for comment.

Apple iPhone assembler Pegatron said its mainland China plant is operating normally, in response to a media report that shipments to Pegatron’s factory in China were being conducted for investigation by Chinese customs officials.

Taiwan’s supply and assembly partners Foxconn and Pegatron are ramping up manufacturing efforts as Apple prepares to launch its new iPhone in September.

Pelosi’s visit to Taiwan, meanwhile, coincides with US efforts to prevent TSMC – the world’s largest chip maker on which the US is heavily dependent – from setting up a manufacturing base in the US and making advanced chips for Chinese companies. Is.

US support for Taiwan has historically been based on Washington’s opposition to communist rule in Beijing and its resistance to Taiwan’s absorption by China. But in recent years, Taiwan’s autonomy has become a significant geopolitical interest to the US due to the island’s dominance of the semiconductor manufacturing market.

Recently, the US Congress passed the Chips and Science Act, which provides $52 billion (about Rs 4,11,746 crore) in subsidies to support semiconductor manufacturing in the US. But companies will receive Chips Act funding only if they agree not to manufacture advanced semiconductors for Chinese companies.

© Thomson Reuters 2022

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