The Strategist

Information: Apple pledged to invest in China's economy in return for authorities's loyalty

12/09/2021 - 06:27

Tim Cook, the CEO of Apple, struck a $275 billion "secret" arrangement with Chinese officials in 2016 to get around the country's limits on his company's activities. Information reported on this, citing unnamed sources.

Pierre Lecourt via flickr
Pierre Lecourt via flickr
Apple promised to invest in China's economy in exchange for the authorities' devotion under the five-year pact. After Apple faced a "series of regulatory proceedings" from the Chinese government, the agreement was made with China's National Development and Reform Commission.

Tim Cook is said to have vowed that his company would collaborate with Chinese scientists and local manufacturers, as well as purchase components from Chinese vendors. Apple committed to "develop with Chinese firms to achieve mutual benefits" in exchange for "essential support and help" from the government.

Shortly after the rumored acquisition, Apple made a one-billion-dollar investment in Didi Chuxing, a Chinese competitor to Uber. Cook signed a substantial deal with Xinjiang Goldwind Science and Technology, the country's leading wind turbine manufacturer, in 2016. In 2017, he also stated that iCloud operations would be relocated to China. A $300 million green energy fund had been formed by the year 2018.

Apple's business in China rebounded in 2016, achieving a quarterly revenue record of $68 billion last summer, despite severe regulatory measures. About one-fifth of Apple's total sales come from China.

Apple announced in early December that it had canceled additional reservations for new smartphones. Demand may have decreased as a result of the COVID-19 pandemic and inflation, according to analysts.