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Apple is one of the few Western companies to have maintained a good relationship with the Chinese government. However, all this could change as Apple is currently looking for ways to navigate around a recent Chinese regulation, which would restrict foreign apps on the App Store without government approval.
According to the Wall Street Journal, Apple is currently engaging in discussions with the Chinese government, expressing its concerns regarding the new regulation announced by China’s Ministry of Industry and Information Technology (MIIT) in August of this year, which mandates that all mobile app makers on platforms like the App Store, must submit their business details to the government.
Why is this rule a big concern?
To understand the significance of the new rule, it is important to note that China does not operate like any other Western country. This is because the Chinese government exercises strict control over internet access and has previously banned several Western services, such as Instagram, X (formerly Twitter), Facebook, YouTube, and WhatsApp.
Despite these bans, Chinese iPhone users have managed to access these apps on the App Store, albeit through VPN access. However, with the new regulation in effect, app developers now need to disclose their business information before publishing their apps. Additionally, compliance with this regulation also means adhering to China’s data transfer and censorship requirements.
While Android platforms like Tencent, Huawei, and Xiaomi have already begun complying with the new rule, Apple has not followed suit. This discrepancy may arise from the fact that, unlike Android users who can download apps from third-party stores, iPhone users are confined to the App Store. So, if Apple were to comply, it could significantly impact the user experience and potentially lead to a drop in sales figures.
However, it is important to note that failure to comply with the requirements could result in legal consequences for app providers after the grace period ends in March 2024. Moreover, Apple itself could face consequences for hosting unregistered apps on the platform.