Apple pays billions to China: What is in the secret contract

Apple pays billions to China: What is in the secret contract

It's about 275 billion US dollars: Tim Cook is said to have negotiated an explosive contract with China for Apple, as internal documents show. Apple has bought itself free of important rules, it is said. The secret contract has paid off for the group.

Report: Apple signed a secret treaty with China

Based on internal Apple documents and interviews with people involved, The Information reports a secret contract between Apple and the Chinese government . Tim Cook personally negotiated with China in 2016 in order to buy himself free from new Chinese regulations. Otherwise Apple services would be severely affected.

Unlike many tech companies, Apple is doing very well in China. The secret contract could answer why this is so. Although this only consists of around 1,250 words, it still has a lot to offer. Apple is committed to multi-faceted services in China, which experts put at around 275 billion US dollars. That's around 244 billion euros . The contract has a term of five years and was extended by one year without changes in May 2021 (source: The Information).

In addition to Apple's direct investments in Chinese brands, the contract focuses primarily on Chinese suppliers. They not only receive an extensive training and further education program, but are also financially supported in the further development of their production technologies. Basically, it is a technology transfer to China . In return, Apple is given a free hand.

China also plays an important role in the production of the iPhone 13:

Apple: Lobbying in China is paying off

Apple is extremely profitable in China and could recently point to an annual growth of 83 percent . It is probably due to Cook's lobbying that China is one of Apple's most important sales markets today.

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