As a sign of escalating problems for Apple Inc. in its biggest overseas market and base of global production, China intends to extend the restriction on iPhone use in classified areas to government-backed agencies and state-owned businesses.

Beijing also plans to apply this limitation much more broadly to several state-owned companies and other government-controlled organizations.

Beijing’s extraordinary blockage, if it continues, will be the result of years of work to end the use of foreign technology in sensitive settings, which coincides with Beijing’s efforts to lessen reliance on US software and circuits.

It poses a threat to Apple’s dominance in a market that accounts for approximately a fifth of its revenue and where the company produces the majority of the world’s iPhones in vast factories with millions of Chinese workers.

There haven’t yet been any official or written bans, so it’s unclear how many businesses or organizations will eventually be able to place limitations on the use of personal devices.

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