Apple Bends the Knee, Warning Suppliers Shipping from Taiwan to Strictly Obey China’s Label Demands After Pelosi Visit

 
apple iPhone 13 on display in apple store

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With China’s communist government still acting very prickly in the wake of Speaker of the House Nancy Pelosi’s recent visit to Taiwan, Apple is urging its suppliers to make sure to label any shipments from Taiwan to China in strict compliance with the Chinese customs regulations regarding how the island is named.

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

According to a report by Nikkei Asia, Pelosi’s visit “stoked fears of rising trade barriers,” making Apple nervous about “possible disruptions” if crucial shipments are delayed or even blocked in customs due to a failure to appease China’s labelling demands:

Apple told suppliers on Friday that China has started strictly enforcing a long-standing rule that Taiwanese-made parts and components must be labeled as being made either in “Taiwan, China” or “Chinese Taipei,” sources familiar with the matter told Nikkei Asia, language that indicates 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 held and checked by Chinese customs, the sources added. Penalties for violating such a rule is a fine of up to 4,000 yuan ($592) or, in the worst-case scenario, the shipment being rejected, one of the sources said.

This presents a dilemma for suppliers who need to ship materials, components or parts from Taiwan to China, however, as the democratically governed island also requests that all exports be labeled with product of origin, which means they must carry the words “Taiwan” or “Republic of China,” the island’s official name, according to suppliers and logistics companies.

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

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

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Sarah Rumpf joined Mediaite in 2020 and is a Contributing Editor focusing on politics, law, and the media. A native Floridian, Sarah attended the University of Florida, graduating with a double major in Political Science and German, and earned her Juris Doctor, cum laude, from the UF College of Law. Sarah's writing has been featured at National Review, The Daily Beast, Reason, Law&Crime, Independent Journal Review, Texas Monthly, The Capitolist, Breitbart Texas, Townhall, RedState, The Orlando Sentinel, and the Austin-American Statesman, and her political commentary has led to appearances on television, radio, and podcast programs across the globe. Follow Sarah on Bluesky and Threads.