Xi Jinping and Tim Cook
Xi Jinping and Tim CookAssociated Press
  • Apple told suppliers not to refer to Taiwan as an independent country, according to the report.

  • Some Apple components were held for review in China.

  • Nancy Pelosi angered China when she visited Taiwan.

According to a report from Nikkei, Apple told suppliers to not label products from Taiwan as made in Taiwan.

According to a Japanese business news outlet, the tech company told its suppliers that products or parts made in Taiwan must be identified as made in either Taiwan, China or Chinese Taipei.

As the company prepares to receive components from Taiwan that will be used for new products, Apple made the decision to avoid supply chain disruptions from Chinese scrutiny over the labels.

The components were held for review to make sure they were labeled to China's satisfaction.

Insider asked Apple for comment before publication.

Nancy Pelosi went to Taiwan in a visit that caused a strong reaction from China. Even though China has never controlled Taiwan, the nation claims it as its own.

China's assistant minister of foreign affairs said Pelosi's actions were a challenge to China's sovereignty. Ahead of the visit, the Chinese President warned that the Biden administration would be destroyed. A series of military drills were launched by Beijing.

She supports Taiwan's independence.

At a press event on Wednesday, Pelosi said that they want Taiwan to have freedom with security.

China and Taiwan are Apple's main suppliers of components. Over 25% of the company's suppliers were located in China last year. Tim Cook helped pioneer the process of assembling Apple products in China.

Cook struck a five-year $275 billion deal with the Chinese government in order to ease regulatory scrutiny of its business in Asia, according to a report last year.

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Business Insider has an article on it.