The Chinese government did not prohibit its officials from using any brand of phones; however, it confirmed that authorities are aware of media reports about security incidents concerning Apple's iPhones, Chinese Foreign Ministry spokesperson Mao Ning told reporters on Wednesday.

"China has not issued any laws or regulations banning the purchase and use of phones of foreign brands, including Apple; however, recently we indeed took notice of multiple media reports covering security incidents involving Apple's phones," Mao said.

The Wall Street Journal WSJ reported last week that Beijing had instructed officials in central government agencies not to bring iPhones or other foreign-branded mobiles into their offices or use them for work purposes.

Read more: US executive order prohibits or restricts investment in Chinese tech

Moa stressed that Beijing attaches great importance to information and internet security, and its treatment toward Chinese and foreign companies is equal in this regard, adding that all mobile companies operating in China must respect the country's privacy laws and prevent "any person or organization" from stealing its customers' data.

Following the publication, the tech giant's shares plunged by over 6 percent following the report - equivalent to nearly $200 billion (£160 billion).

China stands as Apple's third-largest market, contributing 18 percent of its total revenue last year. Additionally, the majority of the company's products are manufactured by its Chinese-based primary supplier Foxconn. But in January, the American firm announced intentions to have approximately 25 percent of all of its products assembled outside of China by 2025 in neighboring Asian countries.

Over the past decade, China has been actively working to reduce its reliance on foreign technology. The government has mandated that state-affiliated enterprises, such as banks, use locally developed software and has been encouraging the domestic manufacturing of computer chips.

As data security concerns mounted, Beijing stepped up its campaign in 2020, proposing a "dual circulation" growth model to achieve self-sufficiency amid the Washington-led global campaign to cripple China's tech industry, which included imposing restrictions on Huawei - China's largest technology company.

As a culmination of these efforts, Huawei China's leading chipmaker surprised Western countries by announcing the development of an advanced 7-nanometer processor earlier this month. This move was seen as a significant step toward creating a "domestic chip ecosystem," effectively circumventing US sanctions.

Read more: US to stick to hardline stance to deny China access to microchips