Congress Letter Could Force Apple to Ditch BOE Displays, Raising National Security Concerns
Washington, D.C. – A letter from Congress to the Department ofDefense (DoD) could be the first step in forcing Apple to sever ties with Chinese display manufacturer BOE Technology Group, raising concerns about national security and the potentialimpact on Apple’s global supply chain.
The letter, penned by Rep. John Moolenaar (R-MI), chairman of the House Select Committee on theChinese Communist Party, accuses China of unfairly subsidizing display producers, creating an unfair advantage and posing a national security risk to the United States. The letter specifically targets BOE and Tianma Microelectronics, alleging they are tied to the People’s LiberationArmy (PLA) and could be used to compromise American technology.
The PRC engages in aggressive state-sponsored subsidization of the two primary display technologies: liquid crystal display (LCD) and organic light-emitting diode (OLED) display, Moolenaar writes. These subsidies help push other companies not aided by subsidies from the market, and increases the PRC’s dominance in the industry.
The letter further claims that BOE, founded in 1993, was initially a military and defense supplier, and has continued to supply PLA-affiliatedcompanies, including HiSense. Moolenaar requests that the Pentagon designate both BOE and Tianma as national security threats and place them on the DoD 1260h blacklist, a list of Chinese military companies that face restrictions on trade and investment.
This move could have significant implications for Apple, which relieson BOE for displays in some of its products, including the rumored iPhone SE 4. If BOE is blacklisted, Apple would be forced to find alternative suppliers, potentially disrupting its production and increasing costs.
The letter’s accusations are not without precedent. In 2020, Apple removed BOEas a supplier for iPhone 12 displays due to quality control issues. However, the current situation raises the stakes significantly, with national security concerns taking center stage.
The DoD is yet to respond to the letter, but the move has already sparked debate about the role of Chinese companies in the global technology supply chain.Some argue that the US needs to diversify its supply chains to reduce dependence on China, while others warn that such measures could lead to trade wars and economic instability.
The situation highlights the complex geopolitical landscape surrounding technology and the increasing scrutiny of China’s role in the global economy. As the US and China continue to vie fortechnological dominance, the battleground for innovation and control is shifting, with potential consequences for both consumers and businesses alike.
References:
- Moolenaar, J. (2024). Letter to Secretary of Defense Lloyd Austin. Retrieved from [link to letter]
- Owen, M. (2024). Letter from Congress could be first step in forcing Apple to stop using BOE displays. Retrieved from [link to article]
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