is China really at risk of blocking iPhone shipments?

iPhone

Wistron, Pegatron, Foxconn: all these Apple assemblers are installed in Taiwan. In their factories, these companies manufacture iPhones, iPads or Macs. But the geopolitical situation between the island and China is particularly tense at the moment, but many addresses of these suppliers are precisely located within the Middle Kingdom.

Moreover, it so happens that the single party has just moved up a gear with a label to be affixed on all products emanating from Taipei, thus establishing a certain legitimacy in the country. Apple reacted very quickly: this rule must be followed imperatively, advice sent to subcontractors in the hope of compliance as soon as possible. The law in question has already existed for a while but was not so well applied so far.

A meeting at the highest level

Jason Cheng, vice president of Pegatron, recently spoke with Nancy Pelosi when the U.S. representative visited Taiwan raising media concerns. At the same time, the chosen one also took the time to chat with TSMC. The company is responsible for designing the A15 Bionic chips for the iPhone 13 and iPhone 13 Pro as well as the proprietary processors for Apple silicon Macs.

Yesterday, an additional incident was also announced: China has reportedly started blocking some packages from Pegatron facilities. But the latter quickly disputed the facts, reassuring some investors in passing. Don’t worry about your mobile orders for now, as long as Cupertino’s partners get up to speed.

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What are the risks involved?

If, despite everything, some manufacturers do not adhere to government directives, then a fine could be applied, for example in the event of the presence of a simple mention Made in Taiwan on a packet. Instead, China prefers a “Taiwan, China” or a “ChineseTaipei“. Two mentions that reveal a certain sovereignty over the Asian archipelago.

For consumers, however, Apple is making a big effort to diversify so that inventory doesn’t run out. The firm also invests in other regions, such as in India and Vietnam.

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