Shares of Apple, the world’s largest market capitalization, fell nearly 3 percent on Thursday after reports that China had banned the use of iPhones in some government departments and state-owned companies, AFP reported.

If continued, such measures will be a problem for the iPhone maker, given that China is not only its largest overseas market, but also its main manufacturing center.

On Wall Street on Wednesday, the Cupertino-based company’s market capitalization fell by more than $100 billion in a single session.

Shares fell 3.58% to $182.91, corresponding to a market capitalization of $2.749 billion.

Shares were down 3.33 percent at $176.82 as of 3:55 p.m.

An article published in the Wall Street Journal on Wednesday reported that authorities have banned government employees from using iPhones at work or even bringing Apple smartphones to work.

Asked by AFP on Thursday, Apple has not yet commented on the information.

“Apple’s growth is highly dependent on China, and if Beijing’s crackdown intensifies, it could become a big problem for a number of tech companies that also depend on China,” said Edward Moya, an analyst at Oanda.

Investors are concerned that the Chinese restrictions will affect Apple’s revenue outlook. (photo: Ifeelstock, Dreamstime.com)

However, for Wedbush’s Dan Ives, the iPhone’s presence in Chinese government offices is only a small part of Apple’s market in China.

“At worst, it will target 500,000 devices out of an estimated 45 million to be sold in China over the next 12 months,” the analyst said.

According to media reports, the Chinese measures come as Beijing has already asked its central government to replace foreign-brand computer equipment with “made in China” computers by 2022.

Late last year, the Biden administration introduced new export controls aimed at limiting Beijing’s ability to buy and manufacture high-performance chips used for military purposes.

As of Thursday morning, the White House had not commented on the Chinese authorities’ decision.