Apple CEO Tim Cook has “secretly” signed an agreement worth more than $275 billion with Chinese officials, as per a new report from The Information.
It adds that Apple is promising to help develop China’s economy and technological capabilities.
The five-year agreement was made when Tim Cook visited China in 2016 to quash a host of regulatory actions against the company. For its claims, the report is citing interviews and internal Apple documents.
The multibillion-dollar agreement included quashing a number of regulatory actions against the company with exemptions and enabling access to the Chinese market, in exchange for significant investments, business deals, and worker training in the country.
Tim Cook personally forged a five-year agreement with the Chinese government during a series of in-person visits. Apparently, multiple Apple executives were concerned about bad publicity in China and the company’s poor relationship with Chinese officials, who believed that Apple was not contributing enough to the local economy.
It is alleged that Tim Cook “personally lobbied officials” in China over threats made against Apple Pay, iCloud, and the App Store.
Attempting to modify authorities, Apple announced an investment to the tune of $1 billion in Didi Chuxing. Shortly after, Tim Cook, along with Apple COO Jeff Williams, and government affairs head Lisa Jackson met senior government officials in Zhongnanhai, the central headquarters of the Communist Party of China.
As a part of the agreement, Apple promised to use more components from Chinese suppliers in its devices, sign more deals with Chinese software firms, collaborate on technology with Chinese universities, and directly invest in Chinese tech companies.
The company has also promised to invest “many billions of dollars more” than its current expenditure in China, including on new retail stores, research and development facilities, and renewable energy projects.
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