Technology giant Apple has warned suppliers shipping from Taiwan to ensure that they abide by strict Chinese custom regulations – banning them from saying 'Made in Taiwan'.
The company has asked their suppliers to follow China's long-standing rule that anything made in Taiwan has to be labeled as either 'Taiwan, China' or 'Chinese Taipei.'
Tensions have been rising within the US and China, after House Speaker Nancy Pelosi visited Taiwan despite repeated warnings from the Chinese not to, claiming it is a 'violation of the one-China principle.'
She touched down in Taipei earlier this week and was greeted by Foreign Minister Joseph Wu, before China's Ministry of Foreign Affairs immediately blasted the move, calling it a 'serious disregard of China's strong opposition.'
According to a report by Nikkei Asia, the visit 'stoked fears of rising trade barriers,' making Apple nervous about 'possible disruptions.'
The iPhone maker has now warned suppliers that the country has started enforcing their strict customs, so to ensure that they abide by them to prevent further issues.
Apple bosses have reportedly been concerned that any issue with supply could delay the launch of their new iPhone 14 handset in September
The iPhone maker has now warned suppliers that the country has started enforcing their strict customs, so to ensure that they abide by them to prevent further issues
Apple has asked their suppliers to follow China's long-standing rule that anything made in Taiwan has to be labeled as either 'Taiwan, China' or 'Chinese Taipei'
Speaker Nancy Pelosi tweeted a photo of the Congressional delegation's arrival in Taipei with the words: 'Our visit reiterates that America stands with Taiwan: a robust, vibrant democracy and our important partner in the Indo-Pacific'
Apple's iPhone assembler Pegatron Corp confirmed that its mainland China plant is operating normally amid claims that their shipments were being held by officials for scrutiny.
The penalty for violating the rule is a fine of up to 4,000 yuan ($592), or the shipment being rejected, according to the report.
Taiwan is home to the world's biggest producer of computer chips, Taiwan Semiconductor Manufacturing Company (TSMC). TSMC's chips are used in a wide variety of phones, including the iPhone 13; cars including the Renault Arkana SUV; gaming consoles including the Nintendo Switch and Playstation 5; and smart home devices including the Revcook smart toaster.
TSMC's hold on microchip production means that Apple is very reliant on China and Taiwan to make its phone's most crucial component.
The Information reported last year that Apple CEO Tim Cook struck a five-year $275 billion deal with the China in 2016 in order to ease strict regulations on its business in the country. That deal appears to have been rocked by renewed tension between China and Taiwan.
Apple did not immediately respond to DailyMail.com's request for comment.
The company is preparing to launch their next generation of iPhones later this year, with suppliers ramping up manufacturing efforts for the new phone in September.
It comes after major concerns were sparked in the tech industry over supply because of the rising tensions between Taiwan and Chine.
Apple's chipmaker, the Taiwan Semiconductor Manufacturing Company (TSMC), has warned that a war between Taiwan and China would make 'everybody losers,' sparking economic turmoil.
TSMC Chair Mark Liu, pictured, said earlier this week that the chipmaker's plant, which is the world's largest semiconductor manufacturer, would not be able to operate if the Chinese invaded as it cannot be run 'by force'
Amid the intensifying warnings from China over Pelosi's visit, four US ships, including the aircraft carrier USS Ronald Reagan (pictured in a file photo), were positioned in waters east of Taiwan on 'routine' deployments
TSMC Chair Mark Liu said earlier this week that the chipmakers' plant, which is the world's largest semiconductor manufacturer, would not be able to operate if the Chinese invaded.
He told CNN: 'Nobody can control TSMC by force. If you take a military force or invasion, you will render TSMC factory not operable.
'Because this is such a sophisticated manufacturing facility, it depends on real-time connection with the outside world, with Europe, with Japan, with U.S., from materials to chemicals to spare parts to engineering software and diagnosis.'
He urged Bejing to think twice before taking any action, because China accounts for 10 percent of the TSMC's business.
Taiwan manufactured more than 60 percent of the globe's semiconductors last year, with Liu urging all parties to think of ways to avoid war so the 'engine of the world economy can continue humming.'
He added that lessons from the Russian invasion of Ukraine should be learned, as the war there has created a 'lose, lose, lose' situation for the Western world as well as Russia and Ukraine.