[News] China Tightens Export Checks on U.S. Tech Giants Like Apple, Disrupting Southeast Asia Supply Chains

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According to a report from ijiwei, citing Nikkei, sources indicate that China is intensifying export inspections on Apple and other U.S. tech companies, hindering these American companies’ expansion efforts in Southeast Asia and India.

The enhanced customs checks are reportedly related to dual-use technology export controls introduced by China in early December, as the report indicates. These stringent inspections have caused delays of several days or even weeks for shipments of production equipment and materials from U.S. tech companies destined for Vietnam and India.

The situation recalls the challenges recently faced by Foxconn at its Indian plant. According to a report from Rest of the World, Foxconn has suspended new work rotations for employees from China, as Chinese workers are currently unable to travel to the company’s iPhone manufacturing facility in India. Additionally, shipments of manufacturing equipment have been delayed in China. These measures hinder Apple’s efforts to produce iPhones in India with Foxconn and complicate its strategy to diversify production away from China amid escalating U.S.-China tensions.

As noted in the Nikkei report, on December 3, China’s Ministry of Commerce issued an announcement to strengthen export controls on related dual-use items to the U.S.. The announcement highlighted that exports of dual-use items to U.S. military users or for military purposes are prohibited. Additionally, it imposed stricter restrictions on the export of gallium, germanium, antimony, ultra-hard materials, and graphite-related dual-use items, subjecting them to more rigorous end-use reviews.

The heightened scrutiny coincides with President-elect Donald Trump’s proposal to impose a 10% tariff on all Chinese goods, which has accelerated the efforts of U.S. tech companies to shift their operations away from China, as the report highlights.

Apple, Microsoft, Google, Amazon, HP, and Dell, among other U.S. companies, have been actively expanding their production capacities in Southeast Asia and India over the past five to six years, as the report notes. Despite having shifted some production, the report highlights that these companies remain dependent on exporting materials and equipment from China to establish new production lines outside of China.

The report further notes, citing industry sources, that since August of 2024, sporadic cases of Chinese customs detaining shipments of production equipment destined for Southeast Asia or India have been reported, without providing specific reasons. Since early December, the situation has escalated, with Chinese customs officials conducting stricter inspections under the pretext of new export controls.

Some items and tools, even those not listed as dual-use, have faced stricter customs inspections simply because they share similar HS (Harmonized System) codes. Even devices used for smartphone speed testing, for instance, have reportedly been flagged as potentially related to military use, according to sources cited in the report.

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