Apple warns suppliers to comply with Chinese customs law

Apple invested in huge solar energy farms in China

Apple has allegedly asked its suppliers to be really certain that shipments from Taiwan to China are fully compliant with the latter’s customs regulations, as tensions between the two countries intensify following Nancy Pelosi’s controversial visit to Taiwan.

A little more chaos 

The warning seems to follow reports that shipments to Pegatron’s Chinese factory were held for scrutiny by Chinese customs following that visit.

Apple is warning suppliers to take precautions all the same. The iPhone maker told suppliers that China has begun enforcing a rule requiring Taiwanese-made parts and components to be labelled as from either “Taiwan, China” or “Chinese Taipei”, according to Reuters.

The rules state that cartons must not carry the words “Taiwan” or. “Republic of China”. This is being reported as an intensification of oversight following Pelosi’s meeting with key technology industry leaders in Taiwan this week.

Pegatron has denied the report, but China has expressed fury at Pelosi’s visit and has made a range of reprisals to represent this anger. While the visit was apparently intended as a gesture of support, it also seems to have inflamed the satiation.

Just in time for iPhone 

While it is to be hoped Apple’s supply chain will take the company’s warning seriously, there is no doubt that the timing is bad for all parties, given that iPhone 14 production has likely just begun pending introduction next month.

Apple is attempting to secure its supply chain and build in additional resilience.

Just yesterday we learned that Foxconn is extending iPhone production in India while Apple seeks to secure multiple supply chains across China. This is a twin track solution to expand production in other territories while also building and strengthening bridges with Chinese firms.

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