China-Taiwan Conflict: The crisis in the Indo-Pacific region has deepened after US House of Representatives Speaker Nancy Pelosi’s visit to Taiwan in the past. Tensions between China and Taiwan have reached a peak. Angered by the visit of the US speaker, China has been conducting military drills in areas around Taiwan since August 3. The drill has caused an uproar in international diplomacy. Its effect is now visible on the business as well.
America may be talking about not bowing down to China, but American companies do not want to take the risk of angering a huge market like China. The world’s biggest smartphone maker Apple is most troubled by this ongoing tension between the two countries. Apple’s biggest market is China. In addition, Apple Inc.’s assembly partner Pegatron Corps has several assembly plants in China, from where Apple’s iPhones and laptops are exported around the world.
The launch of the iPhone 14 series may hang?
The American smartphone company is most concerned about the launch of the iPhone 14 series. The company is going to launch this new smartphone in the market next month. Apart from this, many more products are also going to be launched. In such a situation, if there is a delay in shipment due to any problem, then it will have a direct impact on the launching.
Significantly, China has imposed strict rules on Made in Taiwan products. Companies have been asked to label Taiwan China or Chinese Taipei on products traveling from Taiwan to China. Violation of this rule will result in a fine of 400 yuan. Along with this the shipment can also be rejected.
Apple bowed before China
On the one hand, while the Biden administration is trying to challenge China’s bigotry, American companies are ready to blindly obey every order of China. Apple has asked its suppliers to strictly follow China’s new rule regarding Taiwan. According to media reports, the company has directed strict adherence to Chinese rules for shipments going from Taiwan to China.
The company has asked its suppliers to label Taiwan China or Chinese Taipei on products going from Taiwan to China. In fact, on Thursday, Chinese customs officials sent a shipment from Taiwan to Apple’s supplier Pegatron for review. Because in this the new rule of China was not followed.