Comply with China etiquette rules

Apple iPhone 13 on display at the Apple Store

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With the communist government of China still acting very prickly in the wake of the House Speaker nancy pelosi recent visit to Taiwan, Apple is urging its suppliers to ensure that they label any shipment from Taiwan to China in strict compliance with Chinese customs regulations regarding the island’s name.

It’s a critical time for Apple as it prepares to launch the next generation of iPhones this fall, and vendors are assembling various components for the new smartphones.

According to a Nikkei Asia report, Pelosi’s visit “stoked fears of rising trade barriers,” making Apple nervous about “potential disruptions” if crucial shipments are delayed or even blocked in customs due to that China’s labeling demands are not appeased:

Apple told suppliers on Friday that China has begun strictly enforcing a long-standing rule that parts and components made in Taiwan must be labeled as made in “Taiwan, China” or “Chinese Taipei,” sources told Nikkei Asia. familiar with the matter. , language that indicates that the island is part of China‚Ķ

Use of the phrase “Made in Taiwan” on any import declaration forms, documents or cardboard boxes could lead to Chinese customs holding and checking the shipments, the sources added. Penalties for violating the rule are a fine of up to 4,000 yuan ($592) or, in the worst case, the shipment being refused, one of the sources said.

However, this presents a dilemma for suppliers who need to ship materials, components or parts from Taiwan to China, as the democratically governed island also requires that all exports be labeled with the product of origin, meaning they must bear the words “Taiwan” or “Republic of China”, the official name of the island, according to suppliers and logistics companies.

It is not a hypothetical problem, but a problem that is already happening. Shipments from Taiwan to a facility operated by Pegatron, an iPhone assembler, in Suzhou, China, were “held for review” on Thursday, while Chinese officials inspected import declaration forms and cardboard boxes to determine if they were labeled “Taiwan” or “Republic of China”. Nikkei Asia reported.

A top Pegatron executive was among several Taiwanese chip industry corporate leaders who attended the lunch with Pelosi that was hosted by the Taiwanese president. Tsai Ing-wen On Wednesday, the report noted, perhaps highlighting another reason why the company has found itself under heightened scrutiny.

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