Apple CEO Tim Cook will be announcing new products on April 20, 2021.
The Information published a lengthy report about Apple CEO Tim Cook's efforts to establish strong relationships with Chinese government officials.
The report states that Apple committed to investing heavily in technology infrastructure and training in China in a $275 billion deal that was signed in the mid-2010s.
The five-year deal was signed by Cook during his visit to China in 2016 and was made partially to prevent regulatory action by the Chinese government that would have had a negative effect on Apple's operations and business in the country.
The Chinese government priorities were included in the 1,250-word deal.
They pledged to support the training of high-quality Chinese talents and to help Chinese manufacturers develop the most advanced manufacturing technologies.
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In addition, Apple promised to use more components from Chinese suppliers in its devices, sign deals with Chinese software firms, collaborate on technology with Chinese universities and directly invest in Chinese tech companies. Apple promised to invest a lot more in China than it is currently spending. Some of the money would be used to build new retail stores, research and development centers and renewable energy projects.
Apple has mostly honored its part of the agreement, and the article details exceptional cases when Apple has benefited from the strong relationship in successfully circumventing limitations that would normally be imposed on foreign companies.
The government tried to encourage foreign companies to hand over responsibility for user data to Chinese companies, but Apple controls the encryption keys for the region. Apple has often complied with requests to delist apps and content that run counter to the state's priorities and goals, as part of a commitment to adhere to Chinese government regulations and policies.
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China is one of the world's largest and fastest-growing consumer markets, but its economy and government are very different from those in capitalist Western democracies. Deals like this are not uncommon for foreign companies in China.
Chinese officials have historically sought to emphasize the health of local and national businesses and have at times imposed or announced intentions to impose regulations that dramatically hamper foreign companies out of a desire to ensure success for Chinese businesses. Foreign corporations need to make a strong case that their success will be shared with local companies.
The report states that Apple has performed better in China than most comparable American tech companies thanks to Cook's lobbying, dealmaking, and relationship building. Some members of Apple's leadership worry about the company's future success if Cook steps down in the future because of his strength in this area.
Cook may be remembered most for turning Apple into a more advanced, efficient, and profitable global business than ever before, even though Steve Jobs may be best known for trailblazing and popularizing new product categories. This kind of dealmaking and a strong mastery of supply line logistics would make it possible. Cook was the chief architect of Apple's current product supply chain, which is based in China.
The Information states that China is now 19 percent of Apple's total sales, up four points from a year ago. According to Counterpoint Research, Apple has recently become China's largest smartphone brand.
