China has intensified its restrictions on the use of iPhones by state employees, further straining its relationship with Apple.

This move follows an initial ban imposed more than two years ago and is indicative of mounting challenges for the U.S. tech giant, which relies heavily on China for both revenue growth and manufacturing.

Sources, who requested anonymity due to the sensitivity of the situation, told Reuters that employees in at least three ministries and government bodies have been instructed not to use iPhones while at work.

Notably, a specific deadline for the cessation of iPhone use has not been provided as yet.

These developments have sent ripples through the market, with Apple’s shares plummeting over 3% in early trading after a 3.6% drop in the previous session when reports of China’s expanded ban initially emerged.

Neither Apple nor China’s State Council Information Office, responsible for media queries on behalf of the government, has issued a formal response to these reports.

However, the extent to which the ban is being enforced remains unclear.

A source from one of the three ministries stated that they were still using an iPhone and had not been informed of any restrictions.

Another source at a Chinese regulatory body disclosed that they had not been explicitly barred but had been cautioned about potential consequences if issues arose due to their use of iPhones.

This development is not entirely surprising, as Apple has faced challenges in China before.

In 2020, Chinese state-owned publication Economic Observer reported that some government agencies had already imposed rules prohibiting officials from using iPhones due to Apple’s stringent privacy policies, which can hinder anti-corruption investigations.

Furthermore, this situation unfolds against the backdrop of escalating tensions between the United States and China, raising concerns of potential tit-for-tat actions.

It remains to be seen how Apple will navigate this evolving landscape and whether these restrictions will have a significant impact on the company’s operations in one of its most critical markets.