Apple CEO Tim Cook allegedly signed a discrete $275 billion agreement with China back in 2016, in an an effort to appease the country’s authorities that were threatening to halt the distribution of Apple devices and services.
According to a comprehensive report published by The Information on Tuesday, which cited people familiar with the matter as well as internal Apple documents, Cook secretly entered into a five-year agreement with China via in-person visits throughout 2016. The objective of the deal was to appease the Chinese government, which threatened Apple with bad publicity and accused the US-based tech company of not doing enough for the country’s economy.
Internal Apple documents reveal that the company’s CEO “personally lobbied officials” to create a “memorandum of understanding” with the National Development and Reform Commission, in exchange for regulatory immunity. The agreement was allegedly devised by Apple’s Chinese government affairs team, was personally served by Cook to Chinese officials, and amounted to more than $275 billion in spending.
The agreement comprised of a pledge to aid Chinese authorities in advancing their manufacturing capabilities, support domestic talent training, collaborate on research at Chinese universities, sign deals with local suppliers, and make direct investments in Chinese-based tech companies. In addition to that, Apple also agreed to spend billions of more dollars beyond its initial agreement, including setting up new retail locations, exploring renewable energy projects, and creating research and development facilities.
Information for this briefing was found via The Information. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.