Tim Cook reportedly signed secret $275 billion investment deal with China to help Apple...

midian182

Posts: 7,770   +79
Staff member
In brief: A new report claims that Apple CEO Tim Cook signed a secret five-year deal worth $275 billion with Chinese officials that would see Cupertino invest in the country’s economic and technological development. In exchange, Apple’s operations and services wouldn’t face the same extensive regulatory scrutiny Chinese agencies often heap on foreign companies.

The Information reports that Cook personally signed the deal in 2016 during his visits to China. It’s claimed that interviews and internal Apple documents show he "personally lobbied officials" over threats of regulatory action against Apple Pay, iCloud, and the App Store.

Cook signed a "memorandum of understanding" with China’s National Development and Reform Commission that involved Apple making concessions in exchange for legal exemptions.

Apple’s promise included helping Chinese manufacturers develop advanced manufacturing technologies and support with training of Chinese talents, using more Chinese-sourced components in its devices, signing deals with the country’s software firms, and investing directly in Chinese companies. Additionally, some of the billions of dollars Apple put into the country would go toward retail stores, research and development centers, and renewable energy projects.

One of the ways Apple has allegedly benefitted from the deal is its ability to hold onto the encryption keys for iCloud user data in the region. The Chinese government usually forces foreign companies to hand over responsibility for such data to local organizations.

Apple has found more success in China than most US firms; it saw an annual sales growth of 83% in the country during the fiscal fourth quarter. But then the iPhone maker has a history of kowtowing to the Chinese government, having previously removed thousands of games, apps, and VPNs from its App Store at the behest of local officials. It also purged a protest app and the Quartz news app during the Hong Kong pro-democracy protests.

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Bullwinkle M

Posts: 672   +537
The deal involved Apple making concessions in exchange for legal exemptions.

What does that mean?
The concessions will be permanent while the legal exemptions are likely temporary

What a waste
 

Puiu

Posts: 5,463   +4,392
TechSpot Elite
The deal involved Apple making concessions in exchange for legal exemptions.

What does that mean?
The concessions will be permanent while the legal exemptions are likely temporary

What a waste
It's not a waste for them if they can easily make their investment back and then some. Apple is most likely looking at making trillions there.
 

kiwigraeme

Posts: 980   +717
I wonder how the Irish feel about their company doing that ?
Trump apparently all by himself got Apple to invest 350Bn in The USA

Companies like Apple are international - they'll invest anywhere they need to buy favour - China , USA, E.U. etc-They all flex China , USA , Apple we can manufacture in Vietnam .
I imagine China's long term game - to usurp Apple at home and everywhere , and go for market share with cheap HQ stuff.
You can't dump anymore like The USA and Japan did - still will be interesting .
China is part of the Capitalist/consumer system .
They will match hardware in time or be good enough , suppose will be funny to see Chinese companies employing lots of Americans , Europeans etc in the future to localise their products. .

I think main threat to apple - is and open software system - where all the best games are on mobile/tablets etc and lose the kids .
My prediction - Apple will make a hand held gaming device like switch/steam in the next 5 years in 10 it will be agnostic ie dual boot to apple /open
Add-on phone function may become super cheap - so why need a phone with addons -
For just phone - well a watch could do that , or a any shape small thing - who knows - think things will change depending on demographics
 
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Squid Surprise

Posts: 5,297   +4,938
My prediction - Apple will make a hand held gaming device like switch/steam in the next 5 years in 10 it will be agnostic ie dual boot to apple /open
Add-on phone function may become super cheap - so why need a phone with addons -
For just phone - well a watch could do that , or a any shape small thing - who knows - think things will change depending on demographics
They already have... Apple Arcade plays exclusively on iOS devices...
 

Adorerai

Posts: 96   +60
Doesn’t apple also provide apple maps data that only shows People’s Republic of China as the country name in disputed territories?
 

Avro Arrow

Posts: 2,203   +2,591
TechSpot Elite
First there was Moscow Mitch...

Now there's Taoist Tim...

Capitalism and whatever China is these days work very well together if the people involved are of a like mind. In this case, they're both greedy psychopaths.

Kinda makes me wonder if Capitalism and whatever China is these days would work very well together if only good people were involved.
 
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Ludak021

Posts: 673   +503
Then they should move to China and become a Chinese Corporation and we will ban them and all their products here!

Win/Win

They are "American Company" only on paper. Slave labor from Asia has been real Apple and all their profits for over a decade. The most disgusting thing is - Chinese also like to buy Apple products knowing well who made them. You can forgive an American for not knowing or caring about where something was made, but Asians know.
 

BadThad

Posts: 994   +1,124
Good old Commie Cook! The money he forked over is little more than a bribe. The communists are CORRUPT LIARS, they work hand in hand with the ignorant woke CEO's in America. As long as Apple turns over encryption keys so the communists can go after dissenters, it's all good. COMMUNISM SUCKS
 

p51d007

Posts: 3,084   +2,550
Corporations anymore care about ONE thing. PROFIT. Many want to keep the stock price going up and up and up so the stockholders are happy and the CEO's, board members keep getting those bonus payments.

Andrew Carnegie was one of the wealthest people in the world when he sold his company to JP Morgan. By the time he died, he had given away $350,695,653 (approximately US$5.24 billion (in 2020 dollars). Yeah, he was (and a lot of the monopoly types of that era) an a-hole, but at least he gave a lot of his wealth away.
Some say he had a philosophy like this.
To spend the first third of one's life getting all the education one can.
To spend the next third making all the money one can.
To spend the last third giving it all away for worthwhile causes.

I'd rather see CEO's do the right thing, but they won't. Provide a service where you can become wealthy, but not dripping uber rich, provide a good job and a service for a fair price.
 

kiwigraeme

Posts: 980   +717
They already have... Apple Arcade plays exclusively on iOS devices...
Cheers - I looked at it - no controller support yet - that may change - Apple will compete with good pricing etc when they have too - ipod & ipads were and are well priced .
You don't own the games - but cloud may well become de facto norm.

Still I think Apple will lose kids - no IP like Nintendo, no cool pirating of 100 000 games , modding etc

Why buy an apple gaming device in 10 years - when a thingumajig does nearly everything -all the way up to PS4 games and does phone calls if you get that option .
Apples appstore with it's huge markups may have to be even more subscription than Apple Arcade with it's limited range vs everything else except the AAA machines PS6,PS5 , PC rtx5080, 4080 3080 etc
Everything else is going subscription big time .

Apple should think of hooks for the teens - like herding lambs, calves or the young of any animal - it's not that easy - unlike animals kids won't follow the Judas sheep - That's why Nike etc have been studying and employing teens for a long time