Why did Apple give in to pressure from Chinese officials?10. December 2021
Why did Apple give in to pressure from Chinese officials?
San Francisco, 10.12.2021
According to the news – portal “The Information”, in 2016 Apple CEO Tim Cook signed an agreement with Chinese officials worth more than $275 billion to support the development of the Chinese economy and develop “the most advanced manufacturing technologies”.
The portal had seen internal documents showing that Cook’s intention was to appease Chinese government officials who felt Apple was not doing enough to support the country’s economy in the face of declining product sales.
According to The Information, Apple CEO Tim Cook signed a five-year contract in China in the mid-2010s in an effort, it was said, to build a closer business relationship with the Asians. In reality, the deal was designed to prevent or mitigate potential regulatory actions by the Chinese government that would have negatively impacted Apple’s sales in China.
Before the agreement was signed, the Chinese also pushed for Apple to make the controversial Senkaku islands appear larger in Apple Maps. Finally, the software giant agreed to invest “many billions of dollars more” in China, pledging to work more closely with Chinese universities and businesses, source more parts from Chinese suppliers, and build new research and development centers, retail stores and renewable energy projects.
In its fourth-quarter results released in October, Apple reported 83% annual revenue growth in Greater China, which includes Taiwan and Hong Kong.