"Chinese Taipei" Instead of Taiwan... Apple Also Cautious of China Ahead of iPhone 14 Launch

A citizen examining products at the Apple Store. The above photo is not related to any specific content of the article. Photo by Asia Economy

[Asia Economy Intern Reporter Kim Se-eun] Amid escalating US-China tensions following House Speaker Nancy Pelosi's visit to Taiwan, Apple has requested its Taiwanese partners to include China in the country of origin labeling.

According to Japan's Nikkei on the 7th, Apple urged its Taiwanese suppliers to label products as "Made in Chinese Taipei" instead of "Made in Taiwan."

With the upcoming launch of the iPhone 14 series this fall, it is interpreted that Apple is concerned that if China raises issues over the country of origin labeling of Taiwanese components, it could disrupt iPhone production. Apple has some iPhone production lines in China.

Currently, Chinese customs authorities prohibit the use of labels such as "Taiwan" and "Republic of China," which recognize Taiwan as an independent country, on import declarations, packaging, and related documents. According to reports, if the country of origin is labeled as Taiwan, Chinese customs may hold shipments or inspect them and impose fines up to 4,000 yuan (592 USD, approximately 769,000 KRW). In the worst case, shipments may be refused.

The day before, Chinese customs reviewed import declarations for goods headed to the Chinese factory of Pegatron, a Taiwanese iPhone contract manufacturer. This action came just one day after Speaker Pelosi met with senior executives of Pegatron.

The newspaper explained, "As Speaker Pelosi visited Taiwan, fears of China's trade barriers are growing," and "Apple has requested its suppliers to strictly comply with China's tariff regulations."

Meanwhile, amid these Chinese regulations, domestic companies that have factories in mainland China and import parts from Taiwan to assemble finished products are also expected to suffer damage.

According to local sources in China on the 5th, Chinese customs notified that if Korean companies operating local factories use parts labeled as originating from Taiwan, those parts will be fully confiscated. The warning items included key export products such as batteries.

However, China stated that terms implying recognition of "one country, two systems," such as "Taiwan province of China," "Taiwan China," and "Chinese Taiwan," are permitted.

One Country, Two Systems (一國兩制) refers to one country with two systems, meaning the coexistence of two different systems?socialism and capitalism?within one country called China.