Apple’s Cook signed a deal worth $275 billion in 2016 with the Chinese government.
The deal involved investment in tech companies, startups, projects, and more.
Apple CEO Tim Cook signed a $275 billion deal with the Chinese government in 2016 as per a new report. Cook met with Chinese government officials in an attempt to ease regulatory actions that were due to be implemented at the time, and he assured the investment. The agreement aimed to boost China’s economy while also increasing the workforce’s technological skill sets.
The Information (via 9to5Mac) has obtained what appear to be documents pertaining to a five-year agreement forged between Apple and the Chinese government in 2016, as well as spoken with multiple people who corroborate the mutual understanding between the company and the government.
During a series of visits to China, Cook was at the forefront of finalising the deal. However, the need for these visits and, consequently, a deal was necessitated by Apple officials who wanted to calm all of the negative press in China and mend relationships with Chinese officials who believed that Apple was not doing enough to promote the country’s economy. According to internal documents, Cook “personally lobbied officials” to allay concerns about Apple Pay, iCloud, and the App Store.
According to the report, the deal included a $1 billion investment in China’s ride-hailing service Didi Chuxing to appease the government. And, as the transaction progressed, Apple was able to deter the regulations that China was allegedly planning to impose on the iPhone maker. The agreement also put Apple’s operations in China back on track. Meanwhile, the government provided assurances in the form of workforce training, business transactions, and investments in the country’s economy.
Apple pledged to help Chinese manufacturers build “the most advanced manufacturing technologies,” support “the training of high-quality Chinese talents,” use more components from suppliers in China, sign deals with Chinese software companies, collaborate with research in Chinese universities, and directly invest in tech companies in China. The government also asked Apple to help a number of public causes.
Apple pledged to help Chinese manufacturers build “the most advanced manufacturing technologies,” support “the training of high-quality Chinese talents,” use more components from suppliers in China, sign deals with Chinese software companies, collaborate with research in Chinese universities, and directly invest in tech companies in China. The government also asked Apple to assist around a dozen public causes.
Cook also promised the Chinese government “many billions of dollars more” than what the country is currently spending. This would include investments in new retail stores, research and development centres, and renewable energy projects in China. In total, Apple agreed to make a total investment of more than $275 billion over a five-year period.
