The recent announcement of a Chinese government measure banning the iPhone from government institutions will mark the beginning of a series of restrictions for Apple. Expanding on information released this week, a new Bloomberg report ensures that the veto could be extended to a wide range of “state-owned companies and other government-controlled entities.”

Decision responds with preventive action against possible attacks on national securitydue to the alleged risks that devices from foreign companies represent for him. For Apple, this would mean the loss of a market in that country that it had already begun consolidating.

China targets iPhone

However For local companies like Huawei, this is an opportunity to win back high-end consumers. The Asian company could do this with the new Mate 60 Pro. The 5G smartphone with satellite calls represents a great success in the face of American restrictions that prevent Huawei from producing new processors with this technology.

According to the report, Specific details of where and how this iPhone ban will be implemented are still being worked out. It is only known that “there is no official or written court decision yet.” But it is believed that this may extend beyond the work environment:

Some will ban Apple devices from the workplace, while others will prevent employees from using them altogether.

The consequences of this decision have already affected Apple. AAPL shares have sparked concerns among investors. Apple’s share price fell 3.6% on Wednesday and fell another 3.29% this Thursday.

According to Bank of America experts, Apple could face sales losses of 5 to 10 million units If Chinese government employees were banned from using iPhones for work. The figure may increase if the measure is extended.

According to the Six Colors chart, this is how Apple has performed in China in recent years.

At this point, Tim Cook’s diplomatic response will be crucial to avoid consequences that will affect Apple. In addition, it accelerates the need to consider other moves to eliminate the American company’s dependence on production in a country with a hostile government.

Tensions rise between the USA and China

This scenario encourages technological warfare between both countries. After all, China did nothing new. The US has banned the use of products of Chinese companies such as Huawei in critical infrastructures and the use of applications such as TikTok by government employees.