New report reveals Apple’s ‘secret’ agreement with Chinese government

Newly released internal documents have claimed Apple’s CEO personally lobbied Chinese officials in a monster deal behind closed doors.

The logo of an Apple Store turns red for World AIDS Day on November 30, 2021 in Shanghai, China. Picture: Wang Gang/VCG via Getty Images

Newly published internal documents have reportedly outed a massive deal made by Apple chief executive Tim Cook with the Chinese government to bypass restrictions on his company’s operations

The “secret” $US275 billion ($390 billion) deal signed in 2016, reported by The Information this week, shows Mr Cook travelled to China after Apple product sales hit a snag. According to the report, China also believed Apple had not contributed enough to its economy and had placed a “series of regulatory actions” against the tech giant.

The alleged internal documents claim that Mr Cook “personally lobbied officials” in response to the government’s stance against Apple.

Mr Cook signed a five-year agreement with Chinese officials at the National Development and Reform Commission during private negotiations that year, strengthening the fractured relationship between the silicon valley giant and the Communist superpower.

Newly released internal documents have claimed Apple signed a major deal with the Chinese government in 2016.

As part of the agreement, Apple reportedly agreed to build new retail stores, renewable energy projects and research and development centres in China. The tech company also made agreements to “work more closely with Chinese companies and universities”, which involved purchasing components from Chinese suppliers and collaborating with the nation’s top educational institutions.

The agreement also included a pledge to from Apple to assist Chinese manufacturers in developing “the most advanced manufacturing technologies” and to “support the training of high-quality Chinese talents”.

Shortly after the alleged deal, Apple publicly announced its $US1 billion investment into Chinese rideshare company Didi Chuxing. At the time, Mr Cook declared the partnership would offer Apple “a chance to learn more about certain segments of the China market”.

Later in 2016, Apple also revealed a deal with Xinjiang Goldwind Science and Technology, China’s top wind turbine manufacturer.

Now in 2021, Apple has reclaimed the number one smartphone manufacturer mantle in China, setting new records for quarterly revenue last June while building new research and development centres on the mainland.

Apple CEO Tim Cook ‘lobbied officials’ to strengthen ties with China. Picture: Axelle/Bauer-Griffin/FilmMagic

Apple has long been criticised for its close relationship with China, including its reliance on the country for labour and manufacturing after moving offshore in 2001.

A New York Times report in May revealed that Apple has ceded legal ownership of its customers’ data in China to a company controlled by Chinese government officials.

The analysis also found that roughly 55,000 active apps, including ones that give users access to news, private messaging and websites blocked by the Chinese government, have vanished from Apple’s App Store in China since 2017.

“Just as Mr Cook figured out how to make China work for Apple, China is making Apple work for the Chinese government,” the report concluded.

Mr Cook has also attracted criticism for his silence on human rights issues in China, such as the treatment of the Uighur Muslim population or the citizens of Hong Kong. He is, however, a regular champion of progressive causes in the United States such as LGBTQ rights and Black Lives Matter.

Apple has long been criticised for its close ties to China.

According to the NY Post, the Chinese Communist Party uses “the economic dependence of corporations and other countries on the Chinese market to discipline and bend them to the party’s will”.

“Free-world leaders must find ways to reduce their dependence on China,” analyst Clyde Prestowitz said in a column.

“Australia is already showing how as it begins to successfully diversify its markets. A free-world buying consortium could extend this entrepreneurial approach, with democratic countries creating a fund for buying and redistributing free-world exports being blocked by Beijing.

“Similarly, they could provide incentives as Japan is already doing for diversifying production and assembly operations away from China. Initially, some costs might rise, but surely improving human rights on a global scale is worth something.”