China presents a new challenge for Apple, and officials there create a ground-breaking technique for AirDrop spying.

In recent reports, a Chinese organization, purportedly backed by the government, claims to have developed a new method to detect individuals using Apple’s AirDrop feature. This innovation aims to combat unwanted content by bypassing iPhone encryption to identify users sending messages via AirDrop. While this technique has allegedly aided law enforcement in identifying suspects, details on arrests remain undisclosed.

Officials from Beijing cite improved efficiency in resolving cases and curbing the spread of undesirable content as benefits of this method. However, it also reignites discussions about AirDrop’s role in enabling activists during the Hong Kong protests of 2019, where it facilitated the exchange of pro-democracy messages due to its close-range Bluetooth capabilities.

Termed a “technological breakthrough,” this approach adds a layer of complexity to Apple’s operations in China. Apple had previously restricted AirDrop in China after its use during protests. This move follows a pattern of increased limitations on foreign devices by government-backed entities, affecting Apple’s sales and market presence.

In fact, Apple’s iPhone sales in China witnessed a substantial 30% decline in the initial week of 2024, as per Jefferies analysts. This dip significantly contributed to an overall double-digit decrease in China’s smartphone shipments for that period. Meanwhile, domestic competitors like Huawei have sustained relatively steady growth, intensifying the competitive landscape for the U.S. tech giant.

Overall, these developments showcase ongoing challenges for Apple in China’s market, from governmental restrictions on content to growing competition from local tech players.