Samsung Galaxy Note 4
A visitor holds a new Samsung Galaxy Note 4 smartphone at the Unpacked 2014 Episode 2 event ahead of the IFA Electronics show in Berlin, September 3, 2014. Reuters/Hannibal Hanschke

Galaxy Note 4 China debut halted as officials issue a ban on the company. China has become one of the fastest growing smartphone market in the world but company like Samsung and Apple may have hit a roadblock due to regulatory problems in the country.

A report from Chinese state-run China Daily reveals that China has asked its officials to refrain from using Samsung phones. Several reports have referred to this latest move as China "banning" Samsung, citing an ITHome report as their source, but this report also limits the prohibition to Chinese government officials.

According to the ITHome report, Secretary General for the China Center for International Economic Exchanges Wei Jianguo has asked government employees in Shanghai to use Huawei devices from now on. Samsung has been named one of the foreign brands discouraged for use by government officials and employees. China Daily USA cites a source saying top government officials in Shanghai "are already using an encrypted telecom service."

Security Issues

One of the main reasons for the ban cited in the report is to protect state secrets. Just last month, Phone Arena reported that China has officially prohibited government structures and employees from using Apple products due to US National Security Agency (NSA) spying concerns. China has also previously banned Microsoft Windows 8 for the same reasons.

"Handsets introduced by Huawei Tecnologies Co Ltd, ZTE are ready to take market share away from Apple Inc and Samsung Electronics Co Ltd as industry insiders look into the possibility of a government-led ban on global brands in the name ofnational security," wrote Gao Yuan in the China Daily USA report.

The ban against Samsung is the latest in a string of foreign brand prohibitions imposed by the Chinese government following Edward Snowden's revelations about the NSA's cyber surveillance programs.

Furthering Local Brands

Another reason cited by the government in both the China Daily and ITHome reports is to promote support for and push the growth of local Chinese brands. According to Android Authority, this just makes Huawei - already the largest smartphone provider in China - even bigger. It also gives other local brands like Lenovo and Xiaomi an edge, although according to Android Authority, Xiaomi is currently under investigation by the Chinese government for NSA spying susceptibility.

The prohibition makes penetrating the Chinese market even harder for Samsung. Even with notable products like the Note 4 set to entice the general public, Samsung will not find an audience in different government structures as long as the government claims they have security issues with Samsung's devices.

However, China Daily USA cites Charlie Dai, the principal consulting analyst at Forrester Research Inc., saying that the government ban will be difficult to implement because employees use their personal funds to purchase devices. Dai said it is also unlikely that the state will fund phone replacements for government officials.