In a move underlined by the ongoing tensions between Washington and Beijing, Apple has removed WhatsApp and Threads from its app store in China. This action comes following an order issued by China’s internet watchdog, citing national security concerns as the primary reason behind the decision.
“We are obligated to follow the laws in the countries where we operate, even when we disagree,” An Apple spokesperson told CNN. “The Cyberspace Administration of China ordered the removal of these apps from the China storefront based on their national security concerns. These apps remain available for download on all other storefronts where they appear.”
The decision underscores the complex dynamics of the China-US tech war, which continues to impact tech companies from both countries. WhatsApp and Threads, both owned by Meta, were already blocked in China and were not widely used. Access to these apps was limited to individuals who utilized virtual private networks (VPNs) to encrypt internet traffic and disguise their online identity.
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On the other hand, the US has placed restrictions on a handful of Chinese apps, with an ongoing move to ban TikTok – a short-form video app owned by Chinese giant ByteDance. TikTok is popular among young Americans but has been a subject of debate within the US government, with officials being prohibited from the use by some states and the government.
The US is also acting based on national security concerns. The government has maintained that TikTok serves as a conduit for Chinese espionage.
This backdrop means that tech companies from the US and China will continue to experience nationalistic restrictions as they push to expand operations in each other’s domestic markets. As governments prioritize security considerations, regulatory measures may continue to be implemented, potentially impacting the global expansion plans of these companies.
Duncan Clark, chairman of Beijing-based investment advisory BDA China, commented on the repercussions of Apple’s move. He said: “It will cause inconvenience to consumers and businesses (in China) who deal with family, friends or customers overseas. Even if they use VPNs to access their existing WhatsApp apps, these over time will become obsolete and require updating.”
Despite the removal of WhatsApp and Threads, other popular Western social media apps such as X (formerly Twitter), Facebook, Instagram, and Messenger remain available on Apple’s China app store, according to a check by CNN.
This decision by the US tech giant occurs amidst a backdrop of declining iPhone sales in China. According to market research firm IDC, Apple’s smartphone sales plummeted by 10% in the first quarter of this year. Factors contributing to this decline include nationalism, economic challenges, and increased competition from domestic brands such as Huawei, Xiaomi, and OPPO/OnePlus.
To address challenges in the Chinese market, Apple has been exploring strategic partnerships and initiatives. Last month, Apple CEO Tim Cook visited Shanghai to inaugurate the second-largest Apple store in the world. Additionally, Apple has recently collaborated with Chinese search engine powerhouse Baidu to incorporate generative artificial intelligence (AI) technology into its upcoming products, including the iPhone 16.
This collaboration with Baidu underscores Apple’s commitment to leveraging locally-built technology to address rising national security concerns and regulatory pressures in China.
As part of these efforts, the Chinese government has sought to reduce the use of iPhones among state employees, leading to a resurgence of domestic competitors like Huawei.
Despite these challenges, China remains a crucial market for Apple, and the company continues to offer discounts and explore innovative strategies to maintain its presence and competitiveness in the region.