iPhones Banned in Chinese Offices: Tech Tensions Escalate

iPhones banned in Chinese offices

The S&P500 didn't like the rising US yields and slipped below the 4500 level and the 50-DMA yesterday. Nasdaq 100 also fell 0.88%, as Apple dived more than 3.50% on a report that the Chinese government agencies banned staff from bringing iPhone and other foreign-branded devices into the office. This is now something new, the government employees were always expected not to bring iPhones to the office since the Trump-era trade war. But the news was perceived as further escalation of technology war between the US and China, amid other news including Huawei unveiling a new phone that is powered by a chip 'that appears to be the most advanced version of China's homegrown technology to date' – as a demonstration of power that the US' chip export ban is not holding the Chinese companies back from progressing. And the announcement came in the middle of US commerce secretary's goodwill tour in China. Released this morning, Chinese trade data confirmed a 4^th consecutive month of drop in Chinese exports. Although the drop itself was lower than expected, China's share of US imports fell to the lowest levels since 2006.