World

Apple has invested $275 billion into Chinese economy over last five years, report shows

A report released on Tuesday outlined Apple CEO Tim Cook’s role in negotiating with the Chinese government as he has additionally built relationships with other world leaders.

Cook reportedly paved the way for the tech giant to invest at least $275 billion into the Chinese economy over the past five years.

Cook struck an agreement with the Chinese government to allow Apple to grow the majority of its operations in China since 2016. The agreement, which had not been made public at the time it was made, said Apple promised to “do its part to develop China’s economy and technological prowess through investments, business deals and worker training.”

Some regulators in China had said Apple “wasn’t contributing enough to the local economy,” which led to the deal being made.

Apple relies strongly on China for many parts of its business as a large portion of the parts for iPhones, iPads, and Mac computers are made in the country. Manufacturers in China like Foxconn are also responsible for the assembly of many Apple products, and Chinese customers constitute Apple’s third largest geographic market at $68 billion. Europe and the Americas are first and second in the company’s market. 

It is not clear what portion of the $275 billion stands out from the tech companies costs of operations conducting research and development, manufacturing, customer support and logistics in China, but the total amount exhibits the magnitude of Apple’s total operation.

Many have watched Apple’s relationship with the Chinese government closely over the years, especially as Apple reportedly reduced privacy protections for Chinese iPhone, iPad and Mac owners to make sure it can continue operating and marketing products there. Apple, on the other hand, has flaunted efforts to educate low-wage workers in the country.

ARTICLE: ELIZABETH HERTZBERG

MANAGING EDITOR: CARSON CHOATE

PHOTO CREDITS: SUPCHINA.COM

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