Apple has told its Taiwanese suppliers that China has begun strictly enforcing a longstanding rule that Taiwanese-made parts and components must be labelled as being made in either “Taiwan, China”, or “Chinese Taipei”, according to Nikkei Asia.

The tech giant urged suppliers to treat the matter with urgency to avoid possible disruptions caused by goods and components being held for scrutiny, people familiar with the matter told Nikkei Asia.

The move comes after speaker of the US House of representatives Nancy Pelosi visited Taiwan last week, triggering concern about rising trade barriers.

With China reportedly disputing the sovereignty of Taiwan as an independent state, the timing is particularly sensitive for Apple as its suppliers are preparing components that will go into its next iPhones and other new products set to launch this autumn.

Using the phrase "Made in Taiwan" on any import declaration forms, documents or cartons could cause shipments to be held and checked by Chinese customs, sources told Nikkei. They added that penalties for violating such a rule is a fine of up to 4,000 yuan ($592) or, in the worst-case scenario, a shipment being rejected.

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