Apple CEO Tim Cook has signed an agreement with Chinese officials worth approximately $ 275 billion (roughly Rs.20.75,700) to pacify threats that could impede the operation of his devices and services in the country, The Information reported.
Apple did not immediately respond to Reuters’ request for comment.
The five-year deal was struck when Cook visited China in 2016 to overturn a series of regulations against the company, the report said, citing interviews and internal Apple documents.
Cook lobbied Chinese officials who felt the company was not contributing enough to the local economy and signed an agreement with a Chinese government agency making concessions to Beijing and obtaining key legal exemptions. Report added.
Part of Apple’s investment in China will go to new retail stores, research and development centers, and renewable energy projects, it said in a statement citing the agreement.
China is one of Apple’s largest markets, with annual sales growth of 83 percent in the fourth fiscal quarter.
As part of the agreement, Apple has pledged to use more components from Chinese suppliers in its devices, sign agreements with Chinese software makers, collaborate on technology with Chinese universities and invest directly in Chinese tech companies, the white paper said.
© Thomson Reuters 2021