As tensions between the US and China escalate, Apple has pledged to increase investment in China.
Chief Executive Officer Tim Cook said Wednesday that the company told China’s Industry Minister Li Lecheng that the iPhone maker would continue to invest in China, according to an official summary of the Beijing talks released by the Chinese government.
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The report did not provide details on the size of the potential investment.
Many U.S. companies are wary of relations with China as the world’s two largest economies clash over tariffs and President Donald Trump seeks to boost manufacturing in the United States rather than elsewhere.
The California-based company has also committed to investing in Washington, D.C., which has so far been relatively unscathed by the U.S.-China trade war. Other companies such as Nvidia and Qualcomm are also targets of Chinese investigations.
The U.S. government has long imposed sanctions on Chinese companies such as Huawei.
A Shanghai-based government affairs consultant, who requested anonymity because he was not authorized to speak to the media, said U.S. companies were wary of appearing too pro-China and risking the wrath of the White House, which could hurt them in the world’s largest consumer market, Reuters reported.
At the same time, they are trying to avoid being seen as disloyal in Beijing, which has pledged to work “in China and for China,” he added.
In August, Cook presented President Trump with a custom-made American plaque mounted on a 24-karat gold stand to commemorate Apple’s “Made in America program” after saying the company would invest an additional $100 billion in domestic manufacturing.
“While this may put Apple in the crosshairs of President Trump and his policies, given Apple’s business operations, this move may have been pre-approved by the administration. Also, given that the specific investments were not disclosed to the public, these vague announcements may not be meaningful and may be purely a public relations strategy,” Babak Hafezi, CEO of international consulting firm Hafezi Capital, told Al Jazeera.
During Cook’s visit to China in March, Apple unveiled plans for a new clean energy fund in the country worth $101 million (720 million yuan).
Meanwhile, Apple, which relies on suppliers and factories in China where most of its iPhones are assembled, is moving some of its manufacturing capacity to India.
“It was a tactic for India to diversify production in its supply chain, increase redundancy and reduce geopolitical risks,” Hafezi said.
Apple Chief Operating Officer Sabi Khan visited Lens Technology Co., a glass supplier to Apple in China, on Tuesday, the Changsha-based company announced in a statement on Wednesday.
Lens Technology produces glass covers for Apple products such as the iPhone and Apple Watch, and has been a partner for 19 years, the company said.
Industry Minister Li Lecheng, who is also in charge of information technology, told Cook that China expects Apple to continue to explore the Chinese market and grow together with Chinese suppliers, adding that China will continue to foster a favorable business environment for foreign companies, including Apple.
Growth in China
Data research firm IDC announced on Wednesday that Apple shipped 10.8 million units in China in the third quarter, up 0.6% year-on-year due to weak demand in China’s smartphone market.
Boosted by the iPhone 17 series, it became the only brand among China’s three largest vendors to achieve an increase in unit shipments during the same period.
As part of his visit to China this week, Cook visited the Apple Store in Shanghai and met with Chinese game developers and the designer of the popular Love Bu dolls, he said in a post on China’s Xwind Weibo.
He said on Monday that pre-orders for the iPhone Air will also be available in China after the Ministry of Industry allows major carriers to support the iPhone Air’s eSIM functionality.
“The business community has always stabilized China-US relations and promoted pragmatic cooperation,” Chinese Ambassador to the US Xie Feng said at an event in Washington on Tuesday.
Xie added that many US companies have “chosen China”, benefiting both countries.
Apple’s stock price is on the rise on Wall Street. As of 11:30 a.m. in New York (3:30 p.m. Japan time), the stock is up about 1%.
The latest comments come amid heightened tensions between Washington and China this week. On Wednesday, U.S. Treasury Secretary Scott Bessent told reporters that the United States is prepared to impose new tariffs on purchases of Russian crude oil.
U.S. Trade Representative Jamieson Greer also expressed his opinion on China’s expansion of restrictions on exports of rare earth minerals. Gurrer said this was a complete repudiation of the U.S.-China trade agreement of the past six months, fueling fears of a setback in trade negotiations.
