Apple asks suppliers to follow Chinese customs rules amid Sino-US tensions: report

Apple has asked suppliers to ensure that shipments from Taiwan to China comply with the latter’s customs regulations to avoid being checked, according to a Nikkei report on Friday.

Sino-US trade tensions have escalated following the visit of US House of Representatives Speaker Nancy Pelosi and a congressional delegation to Taiwan.

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

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

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

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

Meanwhile, Pelosi’s trip to Taiwan coincided with US efforts to convince TSMC – the world’s largest chipmaker, on which the United States relies heavily – to establish a manufacturing base in the United States and stop making advanced chips for Chinese companies.

US support for Taiwan has historically been based on Washington’s opposition to communist rule in Beijing and Taiwan’s resistance to China’s absorption. But in recent years, Taiwan’s autonomy has become a vital geopolitical interest for the United States due to the island’s dominance in 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 United States. But companies will only receive Chips Act funding if they agree not to manufacture advanced semiconductors for Chinese companies.

© Thomson Reuters 2022


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