Apple is facing new and strict regulations coming from the Chinese State Administration of Press, Publication, Radio, Film, and Television, as it demanded the closure of Apple’s iTunes Movies and iBooks Store within the country.
Although the computing company has had a healthy relationship with China, it seems that the Chinese state does not want its people to have such an easy access to media, books and film; a measure that will surely harm Apple as it relies on China for its economic growth, being the second largest market in the world for Apple products.
Profits produced in China by Apple account for over half of the company’s revenue growth; which is why it is known by stock traders that China’s currency index has an important impact on Apple’s stock values.
China’s actions against Apple
— Digit (@digitindia) April 22, 2016
Apple is now facing the same regulatory measures that most American companies undergo when they enter Chinese markets, as it was revealed by Edward Snowden that American technology companies were able to provide and make use of tools for cyber espionage for the U.S.
It seems that China’s measures are a bold step into placing a tighter grip on what Chinese people receive on their media devices, so the government is now able to have a more strict national security while also promoting Chinese companies. The internet and the world of communications are an important field now more than ever. President of China Xi Jinping stated that “China must improve management of cyberspace and work to ensure high-quality content with positive responses creating a healthy, positive culture that is a force for good.”
— Apple Minute (@AppleMinute) April 22, 2016
When the iPhone 6 was released, Chinese officials refused to put it under regular certification procedures, but Apple was forced to transfer all of its Chinese customer’s data onto government servers. It is also known that the Chinese government has asked for Apple’s source code for a specific product, but the company refused to comply. Conversely, it was reported that with Apple’s CEO Tim Cook’s visit to China, the company’s products were seen as a luxurious brand, ideal for members of the Communist Party, their families and those of important businessmen.
China is known for being of a tough character in the field of cyberspace, as they have also managed to have Google remove its search engine from the country, restricting the use of Facebook and limiting the sales of tech giants such as Microsoft and IBM.
Source: Business Insider