Apple’s Tim Cook closed secret deal with China worth $ 275 billion in 2016: report – .

0
14
Apple’s Tim Cook closed secret deal with China worth $ 275 billion in 2016: report – .


Apple CEO Tim Cook signed a secret five-year deal with China worth an estimated $ 275 billion in 2016, as the tech giant scrambled to ease regulatory pressure on the key market, according to a report released Tuesday.

The deal included a pledge from Apple to help stimulate the Chinese economy through investment and other business initiatives, The Information reported, citing internal interviews and documents. At the time, Beijing officials believed Apple was not doing enough to help the country’s economic development.

The Apple logo can be seen in an Apple Store, as Apple’s new iPhone 12 5G went on sale in Brooklyn, New York, USA on October 23, 2020. REUTERS / Brendan McDermid / File Photo (Photos Reuters)

The deal came as Apple faced a potential regulatory crackdown that could have hurt its business in China, including key services like Apple Pay and iCloud. Cook personally participated in the negotiations and made several trips to China to lobby government officials on behalf of Apple.

The logo of the American company Apple can be seen on the back of a new MacBook Air. (Alliance Silas Stein/photo via Getty Images / Getty Images)

Apple has received legal exemptions from regulatory action. In return, Apple agreed to a host of investments, including worker training, pledges to help Chinese manufacturers develop “the most advanced manufacturing technologies,” and use Chinese-made components and other concessions intended for to appease the local authorities.

CLICK HERE TO LEARN MORE ABOUT FOX BUSINESS

Apple CEO Tim Cook is holding an iPhone 12 in a new purple finish, in this still image of the main video from a special event at Apple Park in Cupertino, California, United States, released on April 20, 2021. Apple Inc./Handout via REUTERS. NO RESALE. NO ARCHIVES. (Document via REUTERS / Reuters Photos)

Apple did not immediately respond to a request for comment on the report.

China has emerged as a key growth market for Apple in recent years. The company’s sales in the greater China area jumped 83% in fiscal fourth quarter results released in October.

LEAVE A REPLY

Please enter your comment!
Please enter your name here