Chinese Entities: Chinese agencies and state-backed companies are reportedly advising their staff against bringing foreign devices, including Apple iPhones, to the workplace. This move aligns with China’s longstanding efforts to reduce dependence on foreign technologies, urging state-affiliated entities to adopt local software and support domestic semiconductor chip manufacturing.
According to sources, numerous state firms and government departments across at least eight provinces have issued directives in the past month or two, instructing employees to use local brands. This push for domestic technology is part of China’s strategy to enhance self-reliance and promote its own tech ecosystem. Apple, a major foreign player in the Chinese market, has not yet responded to requests for comments on this development.
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In December, similar directives were issued by smaller firms and agencies in lower-tier cities from various provinces, including Zhejiang, Shandong, Liaoning, and central Hebei, where the world’s largest iPhone factory is located. This follows a trend observed in September when staff in several ministries and government bodies were reportedly instructed not to use iPhones while at work.
The subtle shift in preferences toward local devices is emblematic of China’s broader initiative to strengthen its technological independence. This move may pose challenges for foreign tech giants operating in the country, as the Chinese government continues to prioritize and promote homegrown solutions.
In response to these developments, Apple’s shares experienced a marginal decline, settling at $196.50 in extended trading. The implications of this shift in device preferences extend beyond individual consumer choices, signaling a broader trend in the Chinese market’s technological landscape.
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How many Chinese entities are on the Entity List?
The Commerce Department is taking action to add around 600 Chinese entities to the Entity List, with over 110 of them being added since the beginning of the Biden Administration. This move is crucial to safeguard our sensitive technologies.
What is the Entity List in the US?
The Bureau of Industry and Security (BIS) under the United States Department of Commerce publishes the Entity List, which is a list of foreign persons, entities, or governments subject to trade restrictions. This list serves as a means to regulate trade and commerce with certain entities.
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The Entity List can be located in Supplement No. 4 to Part 744 of the Export Administration Regulations (EAR) (15 C.F.R.).
Who are foreign entities of concern?
According to BIL section 40207(a)(5), a foreign entity can be designated as a FEOC through Subparagraph (E). This means that if the Secretary of Energy, in consultation with the Secretary of Defense and the Director of National Intelligence, determines that a foreign entity is engaged in unauthorized activities, it can be classified as a FEOC.