Apple boss back in China: creating a good mood just before Trump
China is of great importance to Apple. CEO Tim Cook regularly visits the country – again, partly because of the change of administration in the White House.
Tim Cook at Foxconn in China – here during an earlier visit.
(Image: Apple)
Tim Cook has another suitcase in Beijing – or so it seems. The Apple CEO has now visited the People's Republic for the third time this year. This time he came as part of a group of top managers from various Western companies who met the Chinese Premier Li Qiang. In addition to Cook, the group included the bosses of glass manufacturer Corning (known for its Gorilla Glass, which is also used in the iPhone) and mining company Rio Tinto (Australia/UK). The CEOs of major Chinese companies such as Lenovo and ICBC were also present, writes the financial news agency Bloomberg. The meeting took place on Monday of this week.
Before an important export trade fair
Cook's specific aim is said to have been to spread a positive mood ahead of the change of government in the USA. In January, President Donald J. Trump will take office for his second term at – and is expected to toughen the course towards China, particularly in the area of trade, after a rather icy wind had already blown under his predecessor Joe Biden. The meeting, which was attended by a total of two dozen top managers from many sectors, was the first at this level since Donald Trump won the US presidential election in early November. The meeting took place shortly before the start of the "Supply Chain Expo", an important export trade fair in Beijing.
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The meeting, which apparently left little time for personal discussions, is said to have lasted an hour in total. Li encouraged the managers present to approach him directly with feedback, saying that he takes their problems seriously. However, the new import tariffs planned by Trump were not mentioned in the official program, according to people who attended. A report by the state news agency Xinhua stated that Li had spoken out against a "decoupling" between China and the West. The stability of global supply chains must be maintained, he said. He will continue to develop China's economy.
Central importance for Apple
China is of central importance to Apple for several reasons. The company still has most of its products –, from iPhones to Macs, including accessories – manufactured in China, even though it is trying to switch to India, Vietnam and, most recently, Indonesia. However, many preliminary products and components also come from China. At the same time, China is Apple's – second most important market after the USA, sometimes alternating with Europe –.
Apple survived the last Trump presidency largely unscathed, thanks in part to direct lobbying of the president by Tim Cook, and there were no major import tariffs on Apple products. In a brief statement on Chinese social media, Cook emphasized how important the Chinese supply chain is for Apple. "I really appreciate them. We couldn't do without it," he told Chinese state television.
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