Apple (AAPL) -) shares extended declines on Thursday, following the stock's biggest one-day slump in more than a month, amid reports that Beijing is implementing a broader crackdown on iPhone usage by government employees.
Bloomberg reported on Wednesday that government officials would expand their ban on iPhone usage to state-owned companies and regional agencies.
It's yet another sign that U.S. Commerce Secretary Gina Raimondo's highly anticipated visit to China has yet to influence trade relations between Washington and Beijing,
The report follows a similar update from The Wall Street Journal on Wednesday, which first indicated that senior officials have banned government employees from using iPhones, or any other foreign-made handsets, when they're doing state business.
New Huawei phone might pressure Apple in China
Bank of America notes also that reports of the iPhone ban fall closely in line with the launch of China-based tech group Huawei's new handset, the Mate 60, which puts added potential pressures on Apple's China sales.
China remains the most import market for Apple in a host of different ways, including generating around a fifth of its overall revenue but also playing a crucial role in its supply chain and providing the location for much of the iPhone's assembly.
The ban could suggest that Raimondo's China visit, which ended late last week, has failed to engender trust between Washington and Beijing.
The U.S. and China have been at odds on trade -- and regional security -- since the administration of former President Donald Trump in 2018 imposed billions of dollars of new tariffs on China-made goods coming into the U.S.
During her final news conference in Shanghai, Raimondo in fact said the "greatest thing accomplished on both sides is a commitment to communicate more."
But she noted that the U.S. would not waiver from its recent decision to impose export restrictions on American companies selling new technologies to Chinese customers.
Apple shares were marked 4.21% lower in early Thursday trading to change hands at $175.14, a move that would indicate the biggest two-day slide for the stock in around 3 years.
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