Apple CEO Tim Cook signed a $275 billion deal back in 2016 to curry favor with the Chinese; it worked
Cook signed the five-year agreement with the Chinese in 2016 to stop an outbreak of regulatory actions threatened against Apple by the Chinese government. According to documents viewed by The Information, Apple was not doing enough to help the local Chinese government. But the agreement that Cook signed off on said that Apple would help improve China’s economy and technological prowess.
As part of the agreement, Apple agreed to help the Chinese create “the most advanced manufacturing technologies,” use more components from Chinese suppliers, sign deals with software firms in the country, make direct investments in Chinese tech companies, work on research with universities based in China, train the country’s most talented tech workers, and help with about a dozen causes belonging to the Chinese government.
In return for helping the Chinese, Apple received certain benefits that other foreign companies could never hope to receive
Apple also promised to spend billions more in the country than it was already spending to put up new research and development facilities, build retail stores, and work on projects based on renewable energy. The documents browsed through by The Information helped it come to the conclusion that the agreement called on Apple to spend more than $275 billion over a ten-year period.
If both sides had no objections, the pact would automatically extend an additional year and run through May 2022. Other internal documents showed that Apple’s investment in the deal amounted to a commitment of $275 billion over five years instead of 10. Apple has pretty much followed through on the contract and has been able to use its cooperation with the Chinese government to prevent it from limiting Apple’s business opportunities inside the country.
The Information said that Apple relies heavily on Tim Cook to make international deals and that when he does leave Apple, the company could have problems dealing with foreign governments.
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