Apple warns vendors not to use Taiwanese labels to avoid
Apple warns vendors not to use Taiwanese labels to avoid "trade barriers"
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USA: iPhone creator According to Nikkei Asia, Apple has warned its Taiwanese suppliers to strictly adhere to Chinese customs laws that forbid them from using the phrase "Made in Taiwan."
The designation "Taiwan, China" or "Chinese Taipei" must be used on parts and components manufactured in Taiwan, which has been governed independently since separating from Mainland China in 1949 but is seen by Beijing as an inalienable part of the nation. Suppliers claim that Taipei has been asking for its exports to be identified as coming from either the Republic of China, the island's official name, or "Taiwan."

The US technology giant urged suppliers to treat the labelling issue with special urgency to avoid potential disruptions as tensions over House Speaker Nancy Pelosi's trip to Taiwan rose, according to sources cited by the outlet.
The visit of Pelosi, according to the report, "stoked fears of rising trade barriers," with Apple growing more concerned about "possible disruptions."

Chinese customs may hold and inspect shipments if import declaration forms include the phrase "Made in Taiwan," according to sources, with fines of up to 4,000 yuan ($592) for violations. An insider was quoted as saying that such a shipment might, in the worst case, be stopped.
Taiwan is the largest manufacturer of computer chips in the world, and the iPhone 13 uses chips from the Taiwan Semiconductor Manufacturing Company (TSMC).

The microchips, which TSMC sells to customers all over the world, are used in video games, radios, televisions, medical equipment, and communication devices. About one-fifth of TSMC's annual revenue comes from Apple, with North America serving as the company's biggest market. On behalf of 535 clients worldwide, TSMC produces more than 12,300 products, according to the company website.
Apple is heavily dependent on Mainland China and Taiwan to manufacture its phone's most important component as the company prepares to introduce its next generation of iPhones later this year. Assembler of Apple's iPhones Pegatron Corp. has so far been quoted as saying that business as usual was being conducted at its factory in mainland China.

Despite repeated warnings from China that it was a "violation of the one-China principle," House Speaker Nancy Pelosi's visit to Taipei precipitated the most recent escalation of tensions regarding Taiwan.
Pelosi arrived in Taipei on August 2 and was welcomed by Foreign Minister Joseph Wu before China's Ministry of Foreign Affairs denounced the visit as a "serious disregard of China's strong opposition." Pelosi was the highest-ranking US official to visit Taiwan in 25 years.

Officially, the United States does not recognise Taiwan's independence; instead, it backs mainland China's claim to the island, known as the "One-China policy."
China conducted a series of first-ever live fire drills in six locations throughout Taiwan on August 4 in response to the contentious high-profile diplomatic visit. Due to their separatist activities, Beijing has sanctioned two Taiwanese foundations, suspended the import of citrus fruits, some types of fish products from Taiwan, and banned the export of natural sand to the island.

Nancy Pelosi and her close friends would face sanctions, according to China's Foreign Ministry, because the visit seriously undermined the "One-China" tenet and put the stability of the Taiwan Strait and regional peace at risk. China also announced on Friday that it was ceasing all communication with the US on significant issues, including military alliances and climate change.

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