Apple CEO Tim Cook Signed $275-Billion Deal to Appease China
According to The Information, Apple CEO Tim Cook signed an agreement with Chinese officials worth approximately $275 billion to avert threats that would have hampered the company’s devices and services in the country.
Apple did not immediately respond to a request for comment from Reuters.
The five-year agreement was reached during Cook’s visits to China in 2016 to resolve a slew of regulatory actions against the company, according to the report, which cited interviews and internal Apple documents.
Cook lobbied Chinese officials, who thought the company wasn’t contributing enough to the local economy, and signed the agreement with a Chinese government agency, making concessions to Beijing and gaining key legal exemptions, according to the report.
According to the agreement, some of Apple’s investment in China will go toward new retail stores, research and development centers, and renewable energy projects.
China is one of Apple’s largest markets, with annual sales increasing by 83 percent in the fiscal fourth quarter.
According to the report, as part of the agreement, 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.
