Report: Apple Asks Vendors to Take “Made in Taiwan” Off of Shipments to China

08 AUGUST 2022 - Tension is brewing over three little words: Made in Taiwan. Well… short words. With big significance. I remember hearing this referenced in a movie that came out in 1979. For… well… ever… China has put forth the assertion that Taiwan is part of China and is properly called (according to the Chinese government) either “Chinese Taipei” or “Taiwan, China”. For its part, Taiwan wants to be called either “Taiwan” or the country’s official name, “Republic of China”.

The Chinese government has long required - on paper at least - that imports from Taiwan be labeled either as coming from “Chinese Taipei” or “Taiwan, China”. However, China’s kind of looked the other way when imports came in with “Taiwan” or “Republic of China” listed as points of origin instead. There is concern that they will no longer turn a blind eye, thanks to a recent visit to Taiwan by US Speaker of the House, Nancy Pelosi. According to a report on the issue from Apple Insider:

China's decision to more strictly enforce the rule follows US Speaker Nancy Pelosi's visit to China, which was condemned by Beijing authorities.

Of course, a lot of components for Apple gear are shipped from manufacturers in Taiwan to assemblers in China. According to a piece from The Guardian, “The phrase ‘Made in Taiwan’ can lead to delays, fines, and even the rejection of an entire shipment…” With iPhone 14 expected in the next couple of months… well… really there is no good time for such a disruption, but now would really not be a good time for such a disruption.

“So - how ‘bout you just call yourself China?” Seems a terrible ask. And yet, some say it is what Apple has asked of Taiwan. The Guardian piece cites a report from the Japanese business site Nikkei saying Apple has asked Taiwanese suppliers to label their wares as made in “Chinese Taipei” or “Taiwan, China” to minimize disruption in the supply chain, which has been amazingly disrupted for the past couple of years.

It’s a big ask, but did Apple ask it? It is both easy and difficult to believe the company would. The Nikkei piece names no names. Rather, it cites “sources familiar with the matter,” so who knows who they are? “Apple did not respond to Nikkei Asia's request for comment as of publication time,” according to its report.