As China’s communist government continues to act tight-lipped following House Speaker Nancy Pelosi’s recent visit to Taiwan, Apple is urging its suppliers to be sure to label any shipments from Taiwan to China in strict compliance with Chinese customs regulations regarding in the way the island is named. It’s a critical time for Apple as it prepares to release the next generation of iPhones this fall, and suppliers are currently assembling various components for the new smartphones. According to a Nikkei Asia report, Pelosi’s visit “sparked fears of an increase in trade barriers,” making Apple nervous about “potential disruption” if shipments are delayed or even blocked at customs due to an inability to appease China’s demands for the labeling: Apple told suppliers on Friday that China has begun to strictly enforce a long-standing rule that Taiwanese components and parts must be labeled as being made either in Taiwan, China or “Chinese Taipei,” sources familiar with the matter said. they are aware of the matter at Nikkei Asia. , language indicating that the island is part of China… Using the phrase “Made in Taiwan” on any import declaration forms, documents or cartons could cause shipments to be intercepted and checked by Chinese customs, the sources added. Penalties for breaking such a rule are a fine of up to 4,000 yuan ($592) or, at worst, the shipment being rejected, one of the sources said. This creates a dilemma for suppliers who need to transport materials, parts or spare parts from Taiwan to China, however, as the democratically-ruled island also requires all exports to be marked with the product of origin, meaning they must carry 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 rather an issue that is already happening. Shipments from Taiwan to facilities operated by Pegatron, an iPhone assembly company, in Suzhou, China were “run for review” on Thursday as Chinese officials inspected import declaration forms and cartons to determine whether they were labeled “Taiwan ” or “Republic of China”. Nikkei Asia reported. A senior Pegatron executive was among several corporate leaders from Taiwan’s chip industry who attended a lunch with Pelosi hosted by Taiwanese President Tsai Ing-wen on Wednesday, the report noted, perhaps underscoring another reason the company has come under increased scrutiny . Do you have a tip we should know? [email protected]
