Apple Inc. reportedly want to avoid the disruption from strict Chinese Communist Party (CCP) customs inspections as a result of the speaker of the U.S. House of Representatives Nancy Pelosi’s visit to Taiwan last week. The company has asked its Taiwanese suppliers to strictly enforce this by labeling parts and components made in “Taiwan, China” or “Chinese Taipei” to avoid potential confusion when goods and parts are detained by CCP customs for review.
The announcement comes at a time when Apple is set to launch iPhone 14 and other new products in September.
Any item, document or cardboard box with the words “Made in Taiwan” could result in the goods being delayed or rejected by the CCP’s customs authorities, and in a worst-case scenario, a fine of 4,000 yuan ($592) may also be imposed, according to a media reported quoting sources. The U.S. technology giant has been placing heavy bets on factories in India and Brazil and trying to reduce its reliance on Chinese factories.
However, the iPhone 14 production capacity in India won’t be enough to fill the gap caused by production challenges in China in the short term.
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