Amid continued escalating tensions between China and the US, a recent Information report said Apple could be affected by retaliatory sanctions from China.

Most likely, Apple will face many objections from Chinese regulators over the App Store app store. In the US, the Trump administration is working to put pressure on TikTok and WeChat, which originated in China, due to national security concerns.

For that reason, the report said "there is a high risk that China will have a tit-for-tat" against US businesses, corporations that are operating or based in the world's most populous country.

At the same time, the country's regulators have also begun to patch the legal loopholes that allow Apple to do business in China, without going through the same rules and regulations as many domestic and foreign competitors.

Under Chinese law, foreign app stores that want to do business in the country must all have a joint venture with a local partner. Or all applications from third-party developers must be carefully screened to comply with applicable laws.

However, Apple does not comply with these regulations. They do not screen apps, nor do third-party developers working with Apple require a "business license and digital content in China". Meanwhile, other competitors are all subject to this regulation strictly.

In 2013, Apple considered establishing a legal entity that protects the App Store in China, but top management rejected the proposal, arguing that "such action could lead to loss. App Store control."

But in the wake of the U.S.-China trade war erupting in 2018, Apple has registered to set up a legal company, but Chinese authorities have not approved the application in the past two years.

It is known that the problem is that Chinese regulators want the right to interfere in the operation of the App Store. Chinese officials say they will not grant licenses until Apple gives in, giving approval for applications and content included in the App Store.

However, the Apple side did not approve the request because it would give Beijing more control, thereby giving the power to the applications they release in China.

At the end of the conclusion, the report said: "Pending the problem to resolve, the authorities may ask Apple to close the App Store in China, which houses nearly 1.5 million applications."
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