China bans government agencies from purchasing Apple products - report

Posted:
in Current Mac Hardware edited August 2014
New procurement regulations handed down last month by the Chinese central government will prevent both national and local agencies from considering future purchases of some Apple products with public funds, a Wednesday report said.

Beijing Apple Store


All variants of the iPad and MacBook lines are affected by the ban, according to Bloomberg. Chinese officials familiar with the list told the publication that Apple's products were not excluded until late in the process.

That timing lines up with the appearance of reports on China's dominant state-run broadcaster that suggested the location tracking features in iOS could pose a "national security threat." Apple swiftly denied those accusations.

"Apple is deeply committed to protecting the privacy of all our customers," the company wrote in its response. "Privacy is built into our products and services from the earliest stages of design. We work tirelessly to deliver the most secure hardware and software in the world."

The Chinese government has grown increasingly wary in recent months of the influence that foreign technology companies wield both in the public and private sector, especially following revelations of the wide-ranging spying practices of the NSA and British Intelligence.

Last week, a similar procurement list covering computer security vendors was said to exclude both Symantec and Kaspersky, prominent security firms headquartered in the U.S. and Russia, respectively. Both companies downplayed the importance of that move, however, saying that the ban only applied to specific procurement processes.
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Comments

  • Reply 1 of 71
    It's payback for the US government banning certain Chinese network router brands from government purchase, for the same alleged reason.
  • Reply 2 of 71
    Cook can nip this in the bud by simply raising all retail store salaries to the same level as the U.S.. Afterall, cook claims to be the champion of fairness. This will ingratiate apple to the Chinese people.

    The Chinese government will be completely blindsided.

    Same should be done in Turkey and other countries that have a disparity in wages.
  • Reply 3 of 71
    flaneurflaneur Posts: 4,526member
    fjose1929 wrote: »
    This will ingratiate apple to the Chinese people.

    The Chinese government will be completely blindsided.

    Nope.
  • Reply 4 of 71
    wingswings Posts: 261member
    Well, why didn't they also ban iPhones? They run the same software as iPads.
  • Reply 5 of 71
    philboogiephilboogie Posts: 7,675member
    "Apple is deeply committed to protecting the privacy of all our customers," the company wrote in its response. "Privacy is built into our products and services from the earliest stages of design. We work tirelessly to deliver the most secure hardware and software in the world."

    Don't know about 'tirelessly' but they do seem to be the #1 when it comes down to security. Yet the Chinese government feels insecure. "Computer says no"

    [/quote]The Chinese government has grown increasingly wary in recent months of the influence that foreign technology companies...[/quote]

    Get used to it. If a country can't embrace the fruition of foreign inventions, it will lose out big time in the long run.
    Last week, a similar procurement list covering computer security vendors was said to exclude both Symantec and Kaspersky, prominent security firms headquartered in the U.S. and Russia, respectively. Both companies <a href="http://www.reuters.com/article/2014/08/04/us-china-software-ban-idUSKBN0G41Q820140804">downplayed</a> the importance of that move, however, saying that the ban only applied to specific procurement processes.

    Apple could do the same, saying the Mac Mini is a great computer. Same goes for the iMac, the... well, you get the picture.
  • Reply 6 of 71

    Protectionism - clear and simple.  They are giving Chinese knockoff brands like Xiaomi space to grow locally.

  • Reply 7 of 71
    lkrupplkrupp Posts: 10,557member
    Quote:

    Originally Posted by fjose1929 View Post



    Cook can nip this in the bud by simply raising all retail store salaries to the same level as the U.S.. Afterall, cook claims to be the champion of fairness. This will ingratiate apple to the Chinese people.



    The Chinese government will be completely blindsided.



    Same should be done in Turkey and other countries that have a disparity in wages.

     

    That’s about as stupid as it gets.

  • Reply 8 of 71
    mknoppmknopp Posts: 257member
    Quote:

    Originally Posted by sog35 View Post

     

     

    pretty good idea.

     

    I don't think he needs to raise it as high as US salaries (cost of living is much cheaper) but paying them significantly more than other local companies may help

     

    the funny thing is the phone isn't banned...


     

    The fact that the MacBook is banned and the iPhone isn't says a lot about the validity of their reasoning for the ban.

     

    Funny how concerns about iOS tracking led to a ban on a product that doesn't use iOS, but left the most widely selling iOS product untouched.

     

    This is another BS shakedown by the corrupt Chinese government. It is another example of why I think that non-Chinese companies who pin too much hope on China are fools. They would be much better off moving their production and sales to other regions of the world.

     

    Heck, I am sure that Africa would love to get Apple's production.

  • Reply 9 of 71
    rob53rob53 Posts: 3,232member

    We know the NSA and CIA spy on foreign countries including computer attacks. We also know the China government sponsors at least as much if not more hacking of US government installations. Neither is right but for China to attack Apple for this is ridiculous. Apple pays a lot of Chinese salaries, taxes (brides or whatever you want to call them), and any reduction in products will be felt. Of course, the Chinese government can simply buy Chinese and use the Android phones and iPhone knockoffs they get from their own companies, just like we used to demand for government purchases. This is how Ford and GM stayed in business. I know the Chinese government has a lot of employees with potential purchases but Apple doesn't sell to everyone so I don't see this as hurting AAPL stock. 

  • Reply 10 of 71
    chipsychipsy Posts: 287member
    Quote:
    Originally Posted by sog35 View Post

     

    according to this chinese site it says Bloomburg got it wrong.

     

    Apple is not banned.  They just need to file paper work

     

    http://companies.caixin.com/2014-08-06/100713823.html

     

    quote below from the article (translate using Google translate)

     

     

    Today, foreign media reported that the Chinese government procurement list, including the exclusion of iPad, iPad Mini, MacBook Air, including 10 models of Apple products. The report quoted an unnamed official as saying, for safety considerations, the Chinese government has 10 Apple products removed from the procurement list, saying the Chinese government does not intend to buy Apple iPhone6.

     

    "The reality is not so. July 28, the Ministry of Finance, Development and Reform Commission jointly issued the sixteenth issue of energy-saving products in government procurement notification list, Apple failed to enter the shopping list, but this is not the Chinese government banned the purchase of Apple, Apple may abandon themselves into energy-saving products in government procurement list. "aforementioned industry insiders said.


    Well this could of course be a case of one word against another (with who knows maybe an attempt by the Chinese government to save face in its own country by putting out this statement). Since it's already known that Microsoft has been shut out of the current issue of energy saving products in government procurement, it isn't unthinkable that Apple would get the same treatment. But I guess we don't have enough details to determine who is right.

  • Reply 11 of 71
    Quote:
    Originally Posted by fjose1929 View Post



    Cook can nip this in the bud by simply raising all retail store salaries to the same level as the U.S.. Afterall, cook claims to be the champion of fairness. This will ingratiate apple to the Chinese people.



    The Chinese government will be completely blindsided.



    Same should be done in Turkey and other countries that have a disparity in wages.

     

    Dude, do you Economics?

  • Reply 12 of 71
    lkrupplkrupp Posts: 10,557member

    Apple is being made a political pawn in the chess game between China and the U.S. This all started when the U.S. banned sales of Chinese networking products, just like Microsoft and other U.S. tech companies.

     

    http://techonomy.com/2013/04/huawei-zte-banned-from-selling-to-u-s-government/

     

    Anyone who thinks this is anything other than politics is sorely delusional. Trying to assign some negative connotation towards Apple (like the dumbass comments about wage inequities) is just incredibly biased. This is international politics. Apple is the American standard bearer when it comes to brand recognition. It’s has a big political target on its back. Occam’s Razor applies here in spades.

  • Reply 13 of 71
    MacProMacPro Posts: 19,693member
    maloderous wrote: »
    Dude, do you Economics?

    Is that a dance? :D
  • Reply 14 of 71
    lkrupp wrote: »
    That’s about as stupid as it gets.

    I think that the public'a opinion about a company is greatly affected beyond the products they make.

    Having the people perceive you as a company that benefits its employees, against the the better practice of maximizing profits by lowering costs, in the human resources department, might actually prove beneficial. It wouldn't be like Apple gives all the profits for the retail store, but I'm pretty sure that if Apple wanted to give the idea of being the best company and brand all around, they could have the best paid retail staff anywhere without it having an impact on their profitability.
  • Reply 15 of 71
    bobschlobbobschlob Posts: 1,074member

    Probably a little string pulling by Russia in there for good measure.

  • Reply 16 of 71
    kerrybkerryb Posts: 270member
    I could care less.
  • Reply 17 of 71
    maestro64maestro64 Posts: 5,043member

    And you all think the US government does not have a similar Ban on certain product made outside the US. Hell the President is not allow use anything but a blackberry. 

     

    The US government has list of products which all government agencies are allowed to buy from they can not buy anything which is not on that list. This is standard operating procedures for all government agencies around the world.

     

    What we have here is another example of media creating FUD to get some sort of reaction, i.e manipulate a stock

  • Reply 18 of 71
    lkrupplkrupp Posts: 10,557member
    Quote:
    Originally Posted by Drunkzombie View Post





    I think that the public'a opinion about a company is greatly affected beyond the products they make.



    Having the people perceive you as a company that benefits its employees, against the the better practice of maximizing profits by lowering costs, in the human resources department, might actually prove beneficial. It wouldn't be like Apple gives all the profits for the retail store, but I'm pretty sure that if Apple wanted to give the idea of being the best company and brand all around, they could have the best paid retail staff anywhere without it having an impact on their profitability.

     

    Complete, utter nonsense and socialist utopian mindset.  If that were true then people should be flocking to American made goods, having a social conscience so that their fellow citizens can participate in the joys of a just economy (or other some such nonsensical pablum). Well guess what? They’re NOT. You put a shirt manufactured in the U.S. next to the same shirt made in Bangladesh (and five dollars cheaper) and the typical American consumer will buy the foreign made product every time. 

     

    You think WRONG!

  • Reply 19 of 71
    maestro64maestro64 Posts: 5,043member
    Quote:
    Originally Posted by lkrupp View Post

     

    Apple is being made a political pawn in the chess game between China and the U.S. This all started when the U.S. banned sales of Chinese networking products, just like Microsoft and other U.S. tech companies.

     

    http://techonomy.com/2013/04/huawei-zte-banned-from-selling-to-u-s-government/

     

    Anyone who thinks this is anything other than politics is sorely delusional. Trying to assign some negative connotation towards Apple (like the dumbass comments about wage inequities) is just incredibly biased. This is international politics. Apple is the American standard bearer when it comes to brand recognition. It’s has a big political target on its back. Occam’s Razor applies here in spades.


    The US advise (never banned) that companies in the US not buy Chinese made networking products due to back doors designed into the product, this is nothing new it dates back to the early 2000's.

  • Reply 20 of 71
    Quote:

    Originally Posted by Drunkzombie View Post



    I'm pretty sure that if Apple wanted to give the idea of being the best company and brand all around, they could have the best paid retail staff anywhere without it having an impact on their profitability.

     

    Only if there was an increase in worker productivity (entirely possible) and/or an increase in sales resulting from an improved public opinion of the company that was large enough to at least offset the additional amount paid out in increased wages.  Otherwise it most definitely would impact their profitability.

     

    IMO it would be difficult for Apple to pull it off on the public opinion front - their products are already fairly popular.  And there's diminishing returns for improving productivity by raising wages at some point when the job description remains static, so I think that one's unlikely given that Apple already pays their retail staff  better than minimum wage and has great loyalty from them.

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