To avert regulatory actions, Apple’s CEO inked $275 billion deal with Chinese officials, says report
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Even as US and China have been at loggerheads over various issues for a long time, a report has made headlines claiming that Apple Inc Chief Executive Tim Cook had signed an agreement worth $275 billion with Chinese officials. The five-year deal seems to have been made to placate threats, which may have hit its devices and services in the country
Even as US and China have been at loggerheads over various issues for a long time, a report has made headlines claiming that Apple Inc Chief Executive Tim Cook had signed an agreement worth $275 billion with Chinese officials.
The five-year deal seems to have been made to placate threats, which may have hit its devices and services in the country, a report by The Information said on Tuesday.
In 2016, the deal was reached when the CEO visited China to avert regulatory actions against the company, the report said, citing internal documents of Apple and interviews.
To influence officials in China, who thought Apple was not doing enough for local economy, the CEO was forced to lobby and sign deal with an agency of Chinese government. Through this, concessions were made to China and it also got important legal exemptions in return, the report claimed.
This investment of the company would be utilised to come up with new research and development centers, retail stores and renewable energy projects, the report added.
Not just this, the company, as part of the agreement, also promised to utilise more components from Chinese suppliers in its devices, cooperate on technology with Chinese universities, ink deals with Chinese software firms, invest in tech companies of the country, the report also said.
(With inputs from agencies)