Apple president signs $275 billion deal to placate China, says The Information

Apple’s chief executive, Tim Cook, signed an agreement with authorities in China estimated at around US$ 275 billion (R$ 1.5 trillion, at current prices) to resolve threats that would have harmed the company in the country, it published The Information this Tuesday (7).

Apple did not immediately respond to a request for comment from Reuters.

The five-year deal was struck when Cook visited China in 2016 to overturn a series of regulatory actions against the company, the report published, citing interviews and internal Apple documents.

Cook lobbied Chinese officials, who believed the company was not contributing enough to the local economy, and signed the deal with a Chinese government agency, making concessions to Beijing and obtaining important legal exemptions.

Part of Apple’s investment in China would go towards building new retail stores, research and development centers and renewable energy projects, Information says, citing the deal.

China is one of Apple’s biggest markets, with 83% annual sales growth in the country in the fourth fiscal quarter.

As part of the deal, Apple has pledged to use more components from Chinese vendors in its devices, sign deals with Chinese software companies, collaborate on technology with Chinese universities and invest directly in Chinese technology companies, the Information report says.