Secret agreement between Apple and China revealed

Politically, China has long been a red rag for the USA. This is made clear not least by severe economic sanctions. For example, US companies are prohibited from cooperating with the giant Chinese electronics group Huawei. But the Land of the Rising Sun does not seem to be a thorn in the side of all Americans. After all, there are immense sales opportunities in the Far East. Apple is also interested in these and very successful, as recently published figures make clear. The Californian company has managed to become the cell phone manufacturer with the highest sales in China. Whether the iPhone inventor has earned this success independently must now be doubted.

Apple secured “support and help”

As has now come to light, there was a personal meeting between Apple CEO Tim Cook and high-ranking representatives of the Chinese government in 2016. Here Apple was desperately looking for a solution to avoid possible sanctions by China. This already started with the press work of government-related media institutes. They had Apple in their sights and accused the company of doing business in a way that was hostile to China. In the end, however, things did not turn out as badly as feared. But how did the company manage to pull itself out of the noose?

Apple not only had to guarantee compliance with legal regulations. On top of that, the company was also required to strengthen the Chinese economy. This seems a bit like Apple has let itself be intimidated by Chinese politics. What is certain is that both sides have something to gain from the secret agreement. While China can be happy about a strengthening of domestic companies, Apple is said to have been promised extensive “support and help”. This let the sales skyrocket.

Comprehensive package of commitments

The support received Apple in return for a comprehensive package of promises. The successful Californian company had to promise to work primarily with Chinese suppliers. On top of that, it was to consider talent from China in particular when looking for new employees. China also wanted to cooperate with Chinese universities. In particular, new technologies should be tested or even developed in the relevant institutes. But Apple also simply assured China of financial support. As can be seen from the documents published by “The Information”, it was a matter of “many billions of dollars”. In numbers, Apple’s pledge package includes a whopping 275 billion dollars. This immense sum is said to have migrated to China within five years. Incidentally, the corresponding contract was concluded in 2016 and expired in mid-2021. However, China and Apple were not positive about an extension option. In the end, they decided against it.

Curious demands from China

If one takes a look at the contents of the contract that have come to light, they make a bizarre impression in some cases. For example, China demanded that the “Diaoyu Islands” be shown enlarged. Apple is even said to have gotten into trouble with the Chinese authority for surveying. They demanded a correction. There has been a big dispute between China and Japan for quite some time about the affiliation of the group of islands. Consequently, China does not only want to strengthen its economic policy with the agreements. On top of that, geopolitical strengthening is to be brought about. If Apple had not implemented the demand of the surveying authority, China would probably have put obstacles in the way of the market launch of the Apple Watch. Thus, it is not surprising that the archipelago is still presented too large today.