What’s Up With That Secret $275 Billion Deal With China To Skirt Regulators In 2016 Tim Cook?

  • Apple CEO Tim Cook struck a secret deal with the Chinese government in 2016 during a regulatory crackdown that was stepping on the company’s business there.
  • The five-year agreement is estimated to be worth more than $275 billion and was crafted to boost the Chinese economy while freeing up restrictions on Apple.
  • In 2015, Chinese regulators said they’d refuse to approve the Apple Watch if Apple Maps didn’t make the Diaoyu Islands appear large even while zoomed out.

Sarah Jackson from Insider writes:

“Apple CEO Tim Cook struck a deal with the Chinese government in 2016 amid a regulatory crackdown that hobbled the company’s business there, according to a new report from The Information.

The five-year agreement is estimated to be worth more than $275 billion and was intended to placate Chinese government officials, who believed Apple wasn’t doing enough for the country’s economy, according to internal documents viewed by The Information.

Throughout 2016, Cook lobbied government officials over actions that would have threatened services like the App Store, Apple Pay , and iCloud, The Information reports. He made the deal during the first of several visits to China that year that were spurred by regulators’ actions which had tanked iPhone sales.

Apple’s government affairs team in China created a memo of understanding with the country’s National Development and Reform Commission to sweeten relations with Chinese leaders, and company leaders made it a priority to meet with top Chinese officials after the 2016 crackdown hit iTunes books and movies, a person familiar with the deal told The Information…”

See full story here.



Categories: Business, Economy, Government, International, Politics, Tech

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