China Tightens Export Controls as Tech Companies Seek Supply Chain Diversification

China has intensified scrutiny of exports by Apple and other American tech companies, complicating their efforts to diversify supply chains amid growing geopolitical tensions. This move comes as companies prepare contingency plans for potential Trump administration return in 2024. Despite the challenges, Apple maintains strong ties with China, increasing its China-headquartered suppliers to 52 in 2023, up from 48 in 2022. The tech giant operates in a delicate balance, with 84% of its top 187 suppliers having facilities in China, while simultaneously expanding operations in Southeast Asian countries like Vietnam and India.

Source: Nikkei Asia