Apple made secret 5-year $275B deal with Chinese government2021-12-08 12:03 by Daniela
Tags: Apple, China
Apple Inc Chief Executive Tim Cook signed an agreement with Chinese officials, estimated to be worth about $275 billion, to placate threats that would have hobbled its devices and services in the country, The Information reported on Tuesday, citing interviews and internal Apple documents.
According to the report Cook made a series of in-person visits in 2016, helping to broker a five-year deal "to quash a sudden burst of regulatory actions against Apple's business." The report claims Apple execs were "scrambling" to salvage Apple's relationship with China, which "believed the company wasn't contributing enough to the local economy."
The deal would have Apple working to improve China's economy and technological profile with investments, training up its workforce, and various beneficial business deals. It is alleged that the total value of the five-year agreement was worth $275 billion.
The deal was kept secret both by the company's own culture and by the opaque workings of the Chinese government, and was politically wise according to political economist Victor Shih. It is thought that as Apple has to appease China as both a major market and a manufacturing base, it had to keep the government happy while also not appearing to other countries as appeasing China.
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