Is Apple on China's soon to be announced blacklist?

Is Apple on China's soon to be announced blacklist?
Don't let that 90-day reprieve fool you, the Trump Administration still doesn't trust Huawei. According to AFB, Acting Secretary of Defense Patrick Shanahan says that Huawei cannot be trusted because of how close it is to the communist Chinese government. Shanahan commented about the pressure it has put on allies not to allow Huawei networking equipment to be used on 5G networks being built. "When I look at that situation, it's too much risk...You can't trust those networks are going to be protected," the Acting Defense Secretary said. The risk he mentions has to do with the possibility that Huawei's gear contains a back door sending information to the Chinese government; according to the laws of the country, the government can ask Huawei to spy at its behest at any time.

Meanwhile, Bloomberg reports that China is fighting back. The country announced yesterday that it has created a blacklist of foreign companies and individuals that won't supply or deal with China, especially Huawei. The second largest smartphone manufacturer in the world and the global leader in networking equipment was placed on the Commerce Department's Entity List last month. That means that the company cannot source parts from the U.S. without a government license. That led a number of important members of the company's U.S. supply chain (on which it spent $11 billion last year) to cut ties with the manufacturer. Important suppliers like Google, Qualcomm and Intel will stop selling to Huawei (some will honor the 90-day reprieve) and even foreign firms with slight ties to the U.S. like chip designer ARM Holdings will steer clear of the company.


Those companies and some others outside of the U.S. could be on China's blacklist. And in a twist, a spokesman for China's Ministry of Commerce says that the list will include firms and individuals that "pose a threat or potential threat to (China's) national security." Gao Feng says that the Ministry will take the necessary measures against those on the list. Feng adds that these measures, along with the names on the list, will be publicly announced soon.

Apple most likely won't be blacklisted by China


Don't expect to see Apple on China's blacklist. The country is an important market to Apple and hurting iPhone sales there would seem like the perfect move for revenge-minded Chinese officials. And Apple would no doubt recapture second place in the global smartphone market jumping over a crippled Huawei. However, there are a couple of things to remember. One, Apple doesn't do business with Huawei. And two, the majority of iPhones are manufactured in China by Chinese companies using Chinese employees. A serious cutback in iPhone production would have a major effect on China's economy.


News about the blacklist comes as the U.S.-China trade war continues on with no end in sight. Both countries are taxing products imported from the other. While smartphones are not yet a casualty of the war, the next tier of Chinese products that the U.S. plans to tax is expected to include handsets. Since Apple has the iPhone assembled in China, it is considered an import from the country. Unfortunately, U.S. companies and consumers are being hurt by the tariffs since those firms affected by the extra tax can either eat the cost of the tariff or pass it on to consumers. For example, iPhone cases and the leather case for the iPad are being hit by the 25% tariff. However, Apple is eating the extra cost allowing the retail price of these accessories to remain the same.

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38 Comments

1. yobolegend

Posts: 53; Member since: Sep 14, 2016

Let the trade war begin... Who win nothing Who lose everyone

7. sgodsell

Posts: 7360; Member since: Mar 16, 2013

Even if Apple isn't blacklisted in China, Apple has been steadily in decline in China for more than a year, and continues to lose market share.

13. jacky899

Posts: 430; Member since: May 16, 2017

Well if China's recession doesnt end, theres less and less people that can afford an iphone and people who could afford one would rather save their money in preparation for more economic downturn. For this reason many would flock to cheaper mid tier Huawei or local brands

29. mootu

Posts: 1517; Member since: Mar 16, 2017

"Well if China's recession doesnt end" China is not in recession, Chinese growth is roughly double that of the US.

36. Marcwand3l

Posts: 432; Member since: May 08, 2017

It has nothing to do with the recession. Apple is the next Samsung in China.

18. oldskool50

Posts: 1529; Member since: Mar 29, 2019

And they will continue to do so. The fact is, China doesn't have to ban Apple. All the Chinese Gov't has to do is order Foxconn to stop making the iPhone and it's over for china in Apple and this will cause a huge delay for several Apple products as no where else on the planet right now has a big enough factories available to produce them. The few that will, once shipped because of low numbers would cause the price to likely triple to get one. Apple at that point would be doomed for at least a couple years. This could be the karma that we need to slap Apple back into reality and turn them into a Saint.

24. Dr.Phil

Posts: 2356; Member since: Feb 14, 2011

Foxconn is Taiwanese, which is separate from mainland China. Unless you want to have an argument over China's claims over Taiwan.

37. Marcwand3l

Posts: 432; Member since: May 08, 2017

Yeah but many of Foxconn's assembly plants are in China so China can easily shut down those plants.

23. iloveapps

Posts: 855; Member since: Mar 21, 2019

The same with Cheap Samsung and what’s worst is that their mobile division is not profiting at all because they sold tons of cheap products that are replaceable after a year of use, in simple term - Junks.

25. tedkord

Posts: 17356; Member since: Jun 17, 2009

Medicated wipe?

4. Papa_Ji

Posts: 848; Member since: Jun 27, 2016

Its as eaay as 123... #3

19. oldskool50

Posts: 1529; Member since: Mar 29, 2019

Just because the guy likes Apple. If the Chinese Gov't tells anyone to ban anything related to Apple, there is nothing they can do about it. Huawei can't ban Apple. The Chonese Gov't can. See you don't even know how to look up the right info. China's trade is controlled by their Gov't, just like ours. Huawei CEO loving Apple can't stop a Gov't order. Sorry Charlie, you may get a rude awaking.

27. QuantumRazer

Posts: 129; Member since: Apr 27, 2019

Also Huawei's CEO stated in the interview that his family members all own Apple products right now and he will buy iPhones for their new phones unless asked otherwise. Apple ban in China does nothing beneficial to Huawei or general consumers but only gives Chinese/US government an excuse to escalate the trade war, and it needs to stop.

3. Papa_Ji

Posts: 848; Member since: Jun 27, 2016

Banning Apple will not have any significant impact on jobs in China... Apple will loose 70-80% of there volume and others number will gain drastically....and most of them will be Chinese OEM. Which will neutralize the job cuts. And most important- There will be less flow of money from china to US and hence it will strengthen Chinese economy. Blacklisting Microsoft and google (cloud business) is also good idea to spank Trum buts. Cutting Rare-metal suppy can easily **** the whole US tech industry. Its all win-win for China.

11. ScottsoNJ56

Posts: 109; Member since: Oct 01, 2017

Microsoft and Google are already not allowed in China and as far as rare earth metals, watch how fast we find them somewhere besides China. win-win for the USA

14. Back_from_beyond

Posts: 1418; Member since: Sep 04, 2015

You're a first rate moron if you actually believe that. Those rare earth minerals aren't called that for the hell of it. They are quite rare as most of those minerals don't naturally occur on Earth. The largest quantities are found in China with a rare discovery of a new source in disputed waters with Japan.

28. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

China mines 80% of the world supply with 40% resources. There are 60% of rare earth resources outside China, they just need to be mined and I don't think that us has a problem to do it.

30. mootu

Posts: 1517; Member since: Mar 16, 2017

Rare earth minerals are abundant, they are a by product of mining. The big problem is processing the ore. It is very difficult and very polluting for the enviroment. America has 1 rare earth mine, it is Chinese owned and guess where the ore is sent for processing?, yup China. The other big processor of rare earths is Estonia who process around 20% of rare earths but most of those come from Russia and go back to Russia, and Putin is not going to sell those to the US.

34. Back_from_beyond

Posts: 1418; Member since: Sep 04, 2015

Except those resources aren't located in the USA so I think you'll find that they do actually have a very big problem doing that. China is currently in possession of the largest resources and by far the largest processor of these rare resources. The primary source the USA have is tiny in comparison to China.

38. Marcwand3l

Posts: 432; Member since: May 08, 2017

China controls over 90% or the rare earth minerals market. So they dictate the price. There's no way US could replace the Chinese supply in a short period of time so yeah the Chinese can f**k them up this way with no effort.

33. ScottsoNJ56

Posts: 109; Member since: Oct 01, 2017

And you're a first rate idiot if you believe that.

21. oldskool50

Posts: 1529; Member since: Mar 29, 2019

WRONG. They are rare for a reason. Most of them are only in China. If they are even more rare outside China, that means they will be more costly.

12. apple-rulz

Posts: 2112; Member since: Dec 27, 2016

And you'll be stuck in India, working your lower caste sewer cleaning job, and being bitter at life. It's a win-win for everyone.

22. oldskool50

Posts: 1529; Member since: Mar 29, 2019

Since Apple won't be selling in products made in Chin, you won't have a crappy company to cheer-lead for. You will likely be working that exact same job. Except you may be cleaning with your tongue and brushing your teeth with the dirty water you made, because all the soap you use is mostly made in China too. China could almost bring the US economy to a halt. You have zero idea how many US companies make productd in China. And you have no idea how long it will take for them to find alternatives options. Trump is stupid and now we gonna find out how right Obama and Hilary are. I hope the whole US economy crashes like a plane out the sky. At that point, Russia will come take over and Trump will be Putin Grand Emperor.

20. oldskool50

Posts: 1529; Member since: Mar 29, 2019

Without Apple, Samsung could drop prices on the S and Note to be more competitive and Samsung would go back to selling 400M phones again. And since APple has zero backup products, Apple will die the most horrible death.

5. shm224

Posts: 288; Member since: Mar 19, 2015

pointless clicky-bait headline.

8. Alcyone

Posts: 383; Member since: May 10, 2018

What should we expect from Alan? My advice, if you dont already have a few, get ad blockers. Gotta use 3 or 4 to stop the ads here.

6. Guseinguliev

Posts: 115; Member since: Mar 04, 2019

This suggests that in China there is no law. What are they blaming the iPhone for? just so blacklisted?

9. Subie

Posts: 2361; Member since: Aug 01, 2015

Did you even read the article? It says "firms and individuals that "pose a threat or potential threat to (China's) national security." Nor has the lust been released. This is no different than what the U.S. under Donald's administration is doing.

* Some comments have been hidden, because they don't meet the discussions rules.

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