Not too long ago the Chinese government banned Windows 8 from government agencies, and now a similar thing is being done with several Apple products. Products on the list include the iPhone, iPad and MacBook devices.
From what we've come to understand, 10 Apple products are on the list, which includes the iPad Air, iPad Mini, MacBook Air and MacBook Pro. This is a big deal for Apple, but no so much of a problem since the company can still sell its products to Chinese consumers.
Apple isn't the first U.S. based company to come under this kind of scrutiny, as the likes of Microsoft, Dell, Symantec, Kaspersky, and many more have been under the spotlight for quite some time. China claims its recent assault on U.S. companies have a lot to do with market monopoly and security. However, we believe it has much to do with the NSA debacle.
"When the government stops the procurement of products, it sends a signal to corporates and semi-government bodies," said Mark Po, an analyst with UOB Kay Hian Ltd. in Hong Kong. "The Chinese government wants to make sure that overseas companies shouldn't have too much influence in China."
Just last month, Apple is at the helm of criticisms related to security. Apparently, China's state-run television ran a piece that claims iOS 7 is a national security threat due to its background location feature. Apple denied these claims, but it hasn't helped much in deterring the Chinese from upping the ante.
Several Chinese media outlets have laid blame on the NSA issue for the reason why the government is acting in such a manner. However, some Western analysts believe it has nothing to do with the NSA, but with the need to push homegrown products and remove its dependency on foreign technology companies.
In the long term, this could have a serious problem on U.S. based companies seeking to expand in China. Furthermore, companies that are already reaping the rewards in the country stand to lose a lot of money.
Will China stop its onslaught? Probably not.
The country is poised to overtake the United States of America and become the world's largest economy in a few years, which is likely the biggest incentive to cut down and foreign dependency.