Paywalled Report Reveals Apple’s Secret Deal With Chinese Authorities

Paywalled Report Reveals Apple’s Secret Deal With Chinese Authorities

Apple CEO Tim Cook “secretly” signed a $US275 billion ($387 billion) deal with Beijing in 2016 which could last until May 2022.

Interviews and internal Apple documents have provided a peek behind the curtain as to how the company made concessions to Beijing and won key legal exemptions.

Cooke’s secret interventions could well be crucial to why Apple has experienced enormous success in the Chinese market.

The Information revealed that Tim Cook personally lobbied officials to get the best deal for the company after regulatory measures in China started heating up.

Further cementing the need to establish an alliance in one of their biggest markets, Apple executives grew concerned over Chinese officials belief that the company wasn’t contributing enough to the local economy.

Allegedly, internal documents outlined threats made against, Apple Pay, iCloud and the App Store which necessitated Cooke’s “memorandum of understanding,” with powerful Chinese government agency the National Development and Reform Commission.

After a productive dialogue, a short agreement was written by Apple’s government affairs team in China.

Supposedly this deal worth $A387 billion would have Apple actively help China advance its economy and technological profile for a five-year period.

There is also a clause to extend the deal to May 2022 should neither party object to a continuation of the partnership.

Commenting on the matter, political economist, Victor Shih, stated: “The deal was kept secret both by the company’s own culture and by the opaque workings of the Chinese government and was politically wise.”

“Apple likely wanted to avoid the optics of grovelling to the Chinese government,” he added.

As part of their agreement, Apple pledged to:

  • Use more components from Chinese suppliers
  • Sign deals with Chinese software firms
  • Collaborate with research in Chinese universities
  • Directly invest in Chinese tech companies
  • Assist with Chinese government causes

In response to Apple’s pledges, China has said that it would give “necessary support and assistance.”

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