The government of China is reportedly expanding its inspection of technology products developed by major foreign companies – such as Apple – in order to determine whether they constitute a threat to the nation’s security and general public.
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Whether the Chinese government’s actions are motivated by protectionism or genuine security concerns, Apple can’t afford to have its products restricted in one of its largest markets – especially at a time when broader questions are being raised about the company’s future growth prospects. According to The New York Times, these reviews are conducted by personnel connected to the government’s military and security agencies, and focus on features including encryption and data storage. According to anonymous sources who spoke with The New York Times, executives or employees of foreign tech firms must answer questions about their company’s products in person.
There are multiple reasons why the Chinese government would do such a thing. These devices – including Apple’s popular products – are being reviewed in the country to ascertain whether they pose a potential security threat.
Their report noted that “tech companies are concerned that the reviews could set a precedent and that other countries will follow suit, each demanding different checks that would not only be costly but also put the companies at risk of having to hand over further secrets in exchange for market access”. No information about these audits has been disclosed by the Chinese government yet, but as per the local media, they might have started early previous year, the report says. Furthermore, these reviews may also be used to block products without explanation.
The uptick in the number of reviews by the Chinese government will be a worry for Apple as the company is trying to ensure that it has a working relationship with the state. Given the severely diverse nature of both options, it comes as no surprise that president Xi accepted that the path of least resistance lies between the two aforementioned solutions.
Civilian products are hardly ever subjected to the same level of scrutiny that China is placing on Apple and another foreign gadget. Coming on the heels of a trip to China that resulted in a major investment in the Chinese company Didi Chuxing, Cook’s India itinerary is likely to include some significant business meetings. The iPhone maker rejected its request.
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The reviews are conducted by a committee associated with the Cyberspace Administration of China, the country’s Internet control bureau, said people briefed on the reviews.
