Will agreement of Apple make China Happy ?

December 9, 2021 by No Comments

Apple CEO Tim cook shared his effort to establish a strong relationship between Apple and Chinese government officials and agencies. According to interviews and direct access to internal Apple documents a $275 billion deal is described in which Apple is committed in investing heavily in technology infrastructure and training in the country.

A five-year deal was signed by Cook during a 2016 visit to China to mitigate or prevent regulatory action by the Chinese government that would have had significant negative effects on Apple’s operations and business in the country.

Up to now Apple has mostly kept its part of the agreement, and the article details exceptional cases when Apple has benefited from the strong relationship in successfully avoiding limitations that would normally be imposed on foreign companies.

For example, encryption keys for iCloud user data for the region are controlled by Apple, despite the government’s efforts to encourage, pressure, or force foreign companies to hand over responsibility for that data to Chinese companies. However, a commitment by Apple to adhere to Chinese government regulations and policies was part of the deal, and Apple has often complied with requests to delist apps and content that run counter to the state’s priorities and goals.

Deals like this are not uncommon for foreign companies operating in China, China is one of the world’s largest and fastest-growing consumer markets. Compared to other American tech companies Apple has performed better in China. China represents 19 percent of Apple’s total sales which in itself is a large number, comparing to a year earlier its up four points. The former Apple CEO Steve Jobs may be best-known for effectively popularizing new product categories, Cook will be mostly remembered for or turning Apple into a more advanced, efficient, and profitable global business than ever before.

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