Apple CEO Cook signed agreement of $275 bn with Chinese officials: Report

Apple Inc’s CEO Tim Cook signed an agreement with Chinese officials worth about $275 billion, to placate threats that would have hobbled its devices and services in the country, according to media reports.

According to recent reports, the five-year agreement was made when Cook visited China in 2016 to quash a host of regulatory action against the company. The report also cited interviews and internal Apple documents to back-up the investigation.

“Cook lobbied Chinese officials, who believed that the company was not contributing enough to the local economy, and signed the agreement with a Chinese government agency, making concessions to Beijing and winning key legal exemptions,” a report in The Information said.

Also read: Now you can repair your own iPhone or Mac. Check out the details

“Some of Apple’s investment in China would go toward building new retail stores, research and development centers and renewable energy projects,” the report said, citing the agreement.

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

“As part of the agreement, Apple promised to use more components from Chinese suppliers in its devices, sign deals with Chinese software firms, collaborate on technology with Chinese universities and directly invest in Chinese tech companies,” the report said.