China has issued a warning about potential security incidents involving iPhones and has urged all smartphone makers to comply with data protection and information security laws. The Chinese government emphasized the importance of information and network security and stated that both domestic and foreign companies should adhere to these laws. This comes after reports of Chinese government bodies banning or discouraging the use of Apple devices, which caused a significant drop in Apple’s stock. The Chinese foreign ministry clarified that there are no laws prohibiting the purchase and use of foreign phones, including Apple, but they have noticed reports regarding security incidents related to iPhones. Apple recently released an emergency software update to address a vulnerability that allowed spyware to be injected into iPhones. China is an important market for Apple, contributing about a fifth of its revenue and accounting for a significant number of annual iPhone sales. While there is no official ban on iPhone use for civil servants or state-owned enterprise workers, there are oral or informal rules that are mandatory. Foreign executives and analysts believe that China’s stance is more about protecting state security and sending a message to Washington rather than seriously impeding Apple’s business. Apple has strong relationships with various levels of government in China but has also been diversifying its supply chain to other countries like India.
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