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Secret Deal Between China And Apple CEO Tim Cook Worth $275 Billion


08/12/2021


Secret Deal Between China And Apple CEO Tim Cook Worth $275 Billion
According to a claim made in ‘The Information’, Apple CEO Tim Cook had "secretly" inked a $275 billion pact with Chinese officials which was reportedly aimed at Apple assisting China in improving its economy and technical skills.
 
The Information disclosed in a detailed paywall article based on interviews and supposed internal Apple papers that Tim Cook personally formed a five-year deal with the Chinese government during a series of in-person visits to the country in 2016.
 
The urge to strive for a stronger partnership with the Chinese government was apparently driven by a number of Apple executives concerned about negative PR the company was receiving in China and the company's poor relationship with Chinese officials who thought Apple was not contributing enough to the local economy.
 
According to alleged internal papers as claimed in the report, Cook had "personally lobbied officials" in China about the dangers to Apple Pay, iCloud, and the App Store. Cook intended to utilise a "memorandum of understanding" between Apple and the National Development and Reform Commission, a prominent Chinese government body, to legally commit to a number of concessions in exchange for regulatory exemptions.
 
The 1,250-word agreement was drafted by Apple's government affairs team in China and was overseen by Cook during meetings with Chinese authorities.
 
According to the report, Cook said in May 2016 that Apple will spend $1 billion in the Chinese ride-hailing firm Didi Chuxing in an effort to appease regulators.
 
A meeting between Cook, Apple Chief Operating Officer Jeff Williams, and government affairs director Lisa Jackson and top Chinese officials in Zhongnanhai, the Communist Party of China's central headquarters, followed soon. 
 
Cook's discussions resulted in the successful signing of the multibillion-dollar agreement, which exempted the firm from a variety of regulatory proceedings and granted access to the Chinese market in exchange for large investments, commercial partnerships, and worker training in the nation.
 
Under the agreement, Apple promised to come to the aid of manufacturers in China for developing "the most advanced manufacturing technologies," and "support the training of high-quality Chinese talents."
 
The agreement also included greater use by Apple of components made by Chinese companies and striking partnerships with Chinese software companies. Cook also pushed Apple to agree to assist the Chinese government on about a dozen other issues. 
 
The deal also carried the option of an extension by an additional year until May 2022 if none of the sides to the agreement raised any objections. 
 
Apple has pledged to invest "many billions of dollars more" in China than it is already spending, including on new retail outlets, R&D centres, and renewable energy initiatives. According to other internal documents, Apple's promise amounted to more than $275 billion in investment over a five-year period.
 
According to The Information, Apple is significantly reliant on Cook for foreign discussions, and the corporation may encounter issues dealing with government relations if Cook steps away as CEO.
 
(Source:www.theguardian.com)


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