Apple’s secret 5B agreement with China

The Information website reveals that in 2016 Tim Cook agreed to invest $ 275 billion in the country over five years to ensure that Beijing does not interfere with its operations

Apple CEO Tim Cook signed a secret agreement with China in 2016 under which he promised to invest $ 275 billion in the country for five years, The Information reported yesterday (Tuesday). Cook signed the agreement during his visits to the country five years ago in order to secure That China will not curtail Apple’s steps after banning the use of iTunes and threatening to do the same for other services of the company – App store, Apple Pay and iCloud. Apple did not respond to the report.

The 1,250-word agreement is defined as a “memorandum of understanding” between Apple and the National Commission for National Development and Reform in China. The report, which is based on interviews and internal documents from Apple, shows that the technology giant has promised to invest in building new stores, setting up research and development centers and projects in the field of energy. In addition, it has promised to integrate more components from Chinese manufacturers into its devices, sign agreements with local software developers, collaborate with Chinese universities and invest directly in Chinese technology companies. For example, she invested in the travel sharing company Didi.

Ties with China are important to Apple for two reasons: This is the country where it manufactures most iPhones and also in one of its major markets. In October, research firm Counterpoint Research reported that Apple had become the country’s most successful smartphone maker for the first time since 2015, after overtaking local Vivo. Now it turns out that Apple was willing to invest huge sums to maintain a presence in the country, while competing technology companies like Google, Meta and Twitter were excluded from it.

Close relations with China have in the past led to criticism of Apple: Earlier this year the New York Times reported that in order to please the regime in Beijing, the company agreed to reduce privacy protections for iPhone, iPad and Mac users in the country. The Times also reported that since 2017, 55,000 apps have been removed from AppStore in China – most of which have remained available to users in other countries. In 2019, for example, Apple unveiled the app that targeted anti-regime protesters in Hong Kong.

By Editor

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