Apple's market capitalization declines around $200 billion due to iPhone restrictions in China

As tensions between the US and China increase, Apple has seen its market capitalization drop by over $200 billion over the past few days. This week, multiple media outlets have reported that Beijing is singling out the iPhone maker. On news that Beijing had ordered an iPhone ban for Chinese state employees, Apple shares dropped 3%, dropping more than 5% for the week.

As reported earlier, China has ordered officials at central government agencies not to use iPhones or other foreign branded phones. Another report also cited six unnamed sources at government institutions and state-owned companies, including a nuclear technology company and a hospital, saying they've been told to stop using Apple phones. The ban widens earlier restrictions on using iPhones for work. 

Beijing is looking to reduce its dependence on US technology, but this (ban) acts as a significant headwind to Apple as China is its largest international market and accounts for about 20 per cent of its revenues. 

Tensions between the US and China have been rising and early last month, President Joe Biden signed an executive order to impose blocks and regulations on US high-tech investment in China, reflecting the intensifying competition between the world's two largest economies. 

White House officials said Biden will use the annual G20 Summit as an opportunity for the US to highlight a proposition for developing and middle-income countries that would increase the lending power of the World Bank and International Monetary Fund by some $200 billion. Biden seeks to drive home that the United States and its like-minded allies are better economic and security partners than China.

The reported ban on the iPhone comes at a bad time for Apple, which is gearing up for its latest product launch next Tuesday September 12, when it is expected to unveil its latest smartphone, the iPhone 15. 

The Chinese tech giant Huawei, which recently unveiled its newest premium phone, the Mate 60 Pro, also poses a danger to Apple. The device is apparently fast and powerful enough to compete with the iPhone and is selling well in China.