Apple CEO Tim Cook reportedly signed a “secret” $275 billion deal with Chinese authorities to bypass restrictions on his company’s operations, according to newly published internal documents.
According to the Information on Tuesday’s report, the huge five-year deal was signed in 2016. It included an Apple promise to help boost China’s economy by investing and other businesses.
The deal was said to have been signed with China’s National Development and Reform Commission after Cook made several trips to the country, during a time when Apple faced a “series of regulatory actions”According to the outlet, officials from Beijing thought the company had suffered a negative impact on its business. “wasn’t contributing enough to the local economy.”
Cook attempted to lobby the Chinese government throughout 2016, as it was implementing measures that would have damaged his company’s App Store, iCloud and Apple Pay systems, and which resulted in decreased iPhone sales for some time.
In addition to agreeing to set up a string of new retail locations, renewable energy initiatives and R&D centers across China, Cook purportedly pledged that his firm would work alongside Chinese academics and local manufacturers, and even buy components from suppliers in-country. In exchange for “necessary support and assistance”Apple will receive a government grant. “grow together with Chinese enterprises to achieve mutual benefits and a win-win situation.”
Apple declared soon after the supposed deal a $1Billion investment in DidiChuxing, a Chinese Uber competitor. Cook said that it would bring about a new level of Uber service. “a chance to learn more about certain segments of the China market.” The same year, it also announced a major deal with the country’s top wind turbine producer, Xinjiang Goldwind Science and Technology, and made plans to move iCloud operations over to China in 2017. 2018 saw the establishment of a green energy fund worth $300 million, which was in keeping with the agreement’s five-year terms.
Apple’s business in China appears to have recovered significantly since the regulatory crackdown in 2016, setting a quarterly revenue record of $68 billion there last summer while continuing to open new storefronts and research centers. China now makes up for about one-fifth of Apple’s total sales, according to the report.
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