The National Legal and Policy Center (NLPC) has submitted a new filing with the SEC, using Apple shareholders to support a proposed “China Entanglement Audit.”
Not surprisingly, as 9to5Mac notes, Apple wants shareholders to vote against the proposal. The tech giant argues that “the requested report is unnecessary given we already provide extensive information on our international operations,” and that “the proposal is highly prescriptive and attempts to inappropriately restrict Apple’s ability to manage its own ordinary business operations and business strategies.”
Here’s some info from the NLPC’s filing: For over a decade, Apple has constructed a business model that links to the People’s Republic of China (PRC). This entanglement is no longer merely an operational choice; It has become an existential vulnerability. While the Company’s Board of Directors argues in its opposition statement that current disclosures are “extensive,” these disclosures fail to provide the quantified, scenario-based financial analysis required for shareholders to assess the resilience of their investment in an increasingly volatile geopolitical climate.
The NLPC filing isn’t surprising. Apple has often been accused of kowtowing to China’s government. For example, in December 2024 GreatFire’s AppleCensorship.com, in collaboration with ARTICLE 19 ASIA, published a report into the complex landscape of app censorship in China, including the broader human rights implications, and what policymakers can do to address these Big Tech harms.
Key findings from the report:
- Among the 100 most downloaded apps worldwide, only four are also among the most downloaded in China’s App Store, all of which are Chinese.
- 66 out of the 108 most downloaded apps worldwide (61%) were found unavailable to Chinese iOS users. This number has recently increased.
- In contrast, only 8 apps (7%) were unavailable in the U.S. App Store.
- Categories such as Games, Utilities, Education, Entertainment, and Lifestyle are proportionally represented in the list of unavailable apps in China, aligning with their prevalence in the App Store. However, News, Books, and Social Networking categories are disproportionately unavailable, suggesting targeted censorship.
- Sensitive categories like VPNs, Privacy & Digital Security, LGBTQ+ & Dating, News & Information, Social Media & Communication, Tibet & Buddhism, Uyghur, and Religion apps are particularly affected by censorship in China.
Adding to the report’s urgency, recent actions by Apple have intensified the conversation about digital freedom and censorship. As of April 19, 2024, the tech giant has removed widely-used apps such as WhatsApp and Instagram from its China App Store, citing national security concerns in line with the Chinese government’s stringent regulations.
GreatFire — a site that monitors and challenges Internet censorship — says this move illustrates an increasing trend of digital isolation for Chinese iOS users and creating even more barriers for foreign journalists and other members of civil society who used to access these apps via a VPN.
I hope you’ll help support Apple World Today by becoming a patron. Almost all our income is from Patreon support and sponsored posts. Patreon pricing ranges from $2 to $10 a month. Thanks in advance for your support.
