Apple has asked that Taiwanese suppliers label their products as being made in China to avoid disruptions from Chinese customs inspections sparked by Nancy Pelosi's visit to Taiwan.
According to Nikkei, Apple told suppliers on Friday that China has begun to enforce its rule that Taiwanese products be labeled as being made in "Taiwan, China" or "Chinese Taipei," both of which indicate that the island is a part of China.
Apple has responded to the matter with urgency, as production issues could cause delays to new products like the coming iPhone 14, set to launch in the fall.
Items labeled "Made in Taiwan", including documents, declaration forms, or packaging could cause shipments to be held by Chinese customs, Nikkei reports.
"Penalties for violating such a rule is a fine of up to 4,000 yuan ($592) or, in the worst-case scenario, the shipment being rejected, one of the sources said" to Nikkei Asia.
Taiwan, however, also requests that all of its exports be labeled with product of origin, meaning products would have to carry the words "Taiwan" or "Republic of China" if parts are being sent from Taiwan to China.
The warning from Apple comes after parts were held for review to see if they were labeled with "Taiwan" or "Republic of China" tags. Taiwan is viewed by Beijing as being part of Chinese territory and is strongly opposed to its independence being recognized.
Over the weekend, they fired missiles over the Taiwan Strait and filled the area with military ships.
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