New Rule In China That Restricts Giant Technology Companies Like Apple

New Rule In China That Restricts Giant Technology Companies Like Apple

Apple Company has become vocal over the operations by technology companies in china. The companies offer an anti-competitive environment to the growth of technologies which negatively affects the operation of the technology companies. This impaired relationship between Apple and Technology companies in China started when China wanted to know how Apple is tracking and managing online content like live streaming. The restrictions in china are not favorable for foreign companies like Apple. This saw Google Company exiting from the market in china so that they can be independent and carry its business smoothly.

The New Rules in China that Upset Apple Company

There are the rules employed in china to control foreign companies which actually hinder the business relationship with the foreign companies. These rules are as discussed below:

1. Secret source code
The Chinese government has employed a new regulation, which requires foreign companies that sell phones and computer equipment to give their secret source code. This secret source code will help them access the personal and professional data for their customers and this is against human rights as you are entitled to privacy. The reason behind the secret code is to fight against cyber-crime as claimed by the China government. This has raised concerned among the foreign companies as they view that the China authorities want to force them out of the market.

2. China’s two internets
China internet filters have developed a new world with two internets which are meant to be used in China and the other countries. This development has led to the splitting of the world technology as there is the internet for Chinese people and another internet to be used by the globally. The companies that make hardware and software are forced to sell their equipment to either China or America or they are forced to make another internet to be used by both countries. This is added cost to the production as it would be cheap to develop equipment that would be a used globally without using the different internet.

China’s two internets

3. Decrypt key
This is a key to be used by the Chinese government to decrypt information from the iPhone users so that they can access information. The employed key is backed by the China government as a reason to access sensitive computer system for the safety of the country. The Apple Company is against this decryption key as it will be infringing people’s rights. It will expose the user’s personal or professional information making the user afraid of enjoying freely the services on the iPhone. This has been difficult for foreign hardware and software manufacturers to run their business in China. This take by the China government makes the foreign companies feel that China is promoting their own technology while denying them an opportunity to grow.

4. Restrictions on Cloud computing
This is where there is a possibility of transfer of intellectual property to the partners. Apple Company is against the transfer of intellectual property to Chinese partners through restrictions on cloud computing. This will lead to the decline of advance technology for the Apple Company and to protect its property, the company is fighting against the transfer of intellectual property.

Ways to build positive business relations between Apple Company and China

For a technological growth and social benefits, the following ways are meant to boost positive ways:

1. Manufacturer of hardware and software without giving the secret source code
This is one way to protect that customer’s professional and personal data so that users are able to navigate through the internet without any fear of cyber-crime. Protection of user’s data also boosts the positive image of the company to help it grow and boost its yearly incomes for faster growth.

2. Use of universal internet
Use of universal internet
This will see the manufacture of equipment that uses one internet whether in china or America. This is the cheapest way that technology company can be able to produce hardware and software to help it be relevant in the market.

3. No decryption of data
There should no decryption of data by any government so that the user’s information is protected. As far as security is concerned, the makers of equipment should be solely responsible for decryption of data to improve its reliability in the market.

Also Read: Apple Claims that the iPad Pro is a Replacement for Laptop


The Apple Company has wary over the China government after this government has employed new regulation. The regulations are not friendly and they do not promote good business relationship between Chinese government and Apple. The regulations expose the user’s professional and personal data which makes him or her not to freely enjoy internet services on his or her iPhone. This will decline sales for the Apple Company and it will see decrease in its income. The regulations also give the Chinese government access to the computer equipment making it hard for the customers to use the equipment. As far as security and cyber-crime are concerned, secret source code should be left in the hands of the manufacturer. Good business relation should exist for improved international co-existence globally