Tim Cook Pledges Further Investments in China
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During his recent visit to China, Apple CEO Tim Cook pledged to increase the company’s investments in the country and reaffirmed Apple’s commitment to maintaining a strong manufacturing presence, even as Apple continues shifting production to other countries.
According to Reuters, Cook met with Chinese officials earlier this week, assuring Industry Minister Li Lecheng that Apple plans not only to maintain but also to expand its investment in Chinese suppliers and operations. Lecheng, in turn, said Beijing hopes Apple will “grow together with Chinese suppliers,” and pledged to promote a more favorable business environment for foreign companies like Apple.
Cook’s visit and assurances to the Chinese government come amid the ongoing US–China trade tensions over stiff tariffs being imposed on Chinese imports by President Donald Trump. The Trump administration also continues to push US firms like Apple to return their manufacturing to the United States.
While Washington has encouraged firms to bring back domestic production through initiatives such as the CHIPS and Science Act, Beijing has been working to reaffirm its ties with foreign investors in the face of slowing economic growth.
This has put Apple in a difficult position as it continues to navigate murky economic waters. The iPhone maker has been diversifying its supply chain over the past several years by moving pieces of its production puzzle to countries like India and Vietnam to reduce its reliance on China. Still, economics and resistance from Beijing have made it difficult to leave. Most iPhones and other key products are still assembled by China-based partners, leaving it an integral part of Apple’s global operations.
Meanwhile, the US government and regulators have increased scrutiny of American firms operating in China, even as the Chinese government ramps up oversight of foreign tech firms. So far, Apple has managed to avoid intense scrutiny from its Chinese overseers, while other American firms like Nvidia and Qualcomm have been the targets of regulatory investigations in the country.
A Shanghai-based government affairs consultant, who asked not to be named, told Reuters that US companies are afraid of angering Trump’s White House, which could make them appear to be “too pro-China,” hurting them in the domestic consumer market. On the other side of the coin, those same firms don’t want to appear insincere to Beijing officials, to whom they have pledged to be “in China, for China,” the consultant added.
Cook recently promised President Trump that Apple’s “American Manufacturing Program” will invest an additional $100 billion in manufacturing in the United States.
During a March visit to China, Cook announced plans for a new clean energy fund, which would invest 720 million yuan ($101 million) in the country. Apple’s new chief operating officer, Sabih Khan, accompanied Cook on his most recent visit to China, where they met with Lens Technology, the longtime Chinese supplier responsible for producing the glass covers used on the iPhone and Apple Watch.
