Apple and Tesla romance with China fading as users encouraged to avoid western products

Tesla and Apple are facing the potential loss of millions of customers in China, as the country encourages a shift towards domestic products, prompting these Western technology giants to offer discounts to compete with their Chinese counterparts. Many individuals in China are reportedly opting for devices manufactured by local companies, as revealed by various sources to the Financial Times.

During China's annual Communist Party gathering, Zhan Wenlong, a nuclear physicist and party delegate, emphasized the push for domestic phone usage, citing concerns about the safety of phones like Apple. He stated, "[Apple phones] are made in China, but we don’t know if the chips have back doors." Another employee from a government-funded think tank mentioned that he and his colleagues were instructed to cease using Apple devices and opt for Huawei alternatives.

Describing the transition, he noted, "They gave us a deadline with a month and day by which we would have to stop using iPhones. They didn’t give us any subsidies; instead, one day Huawei people came into our office with boxes of phones to sell, all 20 percent off. Our whole building was fighting to get the phones."

The trend extends beyond individuals, with schools also directed to use Chinese phones to support domestic companies, according to Nong Jiagui, a teacher in Yunnan province. This shift in consumer preferences is not limited to tech giants; even Western brands like Nike and Adidas have experienced a decline in sales in China amid competition from local products.

In a significant development, Tesla's Chinese competitor, BYD, has surpassed Elon Musk's company in global electric vehicle sales. Speaking on their expansion plans, BYD's Chief Executive Stella Li stated, “We’re not planning to come to the US. It’s an interesting market, but it is very complicated." 
This marks a notable shift in the competitive landscape, as Chinese companies gain traction both domestically and globally.