Apple warned suppliers on Friday not to identify Taiwan as an independent country, Nikkei reported.
The announcement comes after some Apple components were put on hold for review by Chinese authorities.
Earlier this week, House Speaker Nancy Pelosi drew the ire of China by visiting Taiwan.
The Nihon Keizai Shimbun reported that Apple told its suppliers on Friday to avoid labeling products from Taiwan as “Made in Taiwan.”
In order to avoid implying to suppliers that Taiwan is independent of China, the company will label products or components manufactured in Taiwan as manufactured in “Taiwan, China” or “Chinese Taipei”. Japan’s business news outlet said it had to.
According to Nikkei, Apple made the decision to avoid supply chain disruptions from China’s scrutiny of labels, especially as it prepares to receive components from Taiwan that will be used in new products due to launch later this year. did.
According to the Nihon Keizai Shimbun, some iPhone components were reviewed on Thursday to see if the shipments were labeled to China’s satisfaction.
Apple did not immediately respond to an Insider’s request for comment prior to publication.
Apple’s warning comes just days after U.S. House Speaker Nancy Pelosi’s visit to Taiwan sparked a strong reaction from China. China has claimed Taiwan as its own, but China has never ruled this autonomous democracy.
The Chinese government sees Pelosi’s actions as a “major political provocation” and a challenge to China’s sovereignty, said Hua Chunying, China’s assistant foreign minister. Said on Twitter. Chinese President Xi Jinping warned ahead of the visit that the Biden administration would be “burned.” Beijing has also launched a series of military exercises around Taiwan in response.
Pelosi has been an outspoken supporter of Taiwan independence.
“I want Taiwan to always have freedom and security, and I have no intention of backing down,” Pelosi said at a news conference on Wednesday.
Apple relies specifically on China and Taiwan to provide components for its products. Last year, more than a quarter of the company’s suppliers were in China. Many of the company’s products are assembled in China, a process Apple CEO Tim Cook helped pioneer.
Last year, The Information reported that Cook signed a five-year, $275 billion deal with the Chinese government in 2016 to ease regulatory crackdowns on its operations in Asia.
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