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Tech war: China’s iPhone curbs roil US stocks from Apple to Qualcomm
- Apple registered its worst two-day decline since November, after Beijing told some ministry employees to stop using iPhones at work
- Apple supplier Qualcomm, one of the US companies with the largest China presence, led losses among major tech firms
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Beijing’s widening curbs on iPhone use by government staff raised concerns among US lawmakers on Thursday and fanned fears that American tech companies heavily exposed to China could take a hit from rising tensions between the countries.
Apple closed down 2.9 per cent on Thursday – its worst two-day percentage decline since November – after news that Beijing has told employees at some central government agencies in recent weeks to stop using their Apple phones at work.
Several Wall Street analysts said the curbs show that even a company with a good relationship with the Chinese government and a large presence in the world’s second-largest economy was not immune to rising tensions between the two nations.
Sino-US friction has worsened in recent years as Washington tries to restrict China’s access to key technologies including cutting-edge chip technology, and Beijing looks to reduce its reliance on American tech.
China’s Huawei Technologies last week launched its new Mate 60 Pro smartphone, which is powered by an advanced chip made by Chinese contract chip maker Semiconductor Manufacturing International Corp and marks a breakthrough for the duo hit by US sanctions.
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