Large company signs agreement with key country, gets things in return. This could be the way to summarize the “secret” agreement between Apple and China revealed by The Information. One in which Apple would have committed to investing 275,000 million dollars in the Asian country in five years (55,000 million dollars annually). The scandal here comes from the fact that some have interpreted the agreement as a simple disbursement of money to the Chinese government. A kind of bribery to high officials to have permission to operate in the country. The small print, as is often the case in these cases, makes the matter much less conspicuous.
What is the agreement between Apple and China? The company owes much of its success to CEO Tim Cook, who laid the foundation years ago by secretly signing an agreement, estimated at more than $ 275 billion, with Chinese officials promising that Apple would support the development of the economy and Chinese technology through investments, contracts and employee training. So it was not a bribe, but investments to get something in return: to be able to manufacture and sell products in the country. For this and according to the article, Apple committed and executed the following: Assist in the development of the most advanced manufacturing technology. Train a high-performance Chinese talent. Use components from Chinese companies. Sign agreements with Chinese software companies. Collaborate in the development of technologies with Chinese universities. Invest in Chinese companies, like Didi, where Apple invested $ 1 billion. Apple’s investments in China benefit the company itself, directly or indirectly In addition, Apple promised to build more stores in the country. It currently has 50 stores in China, for a total of 504 around the world (271 in the US).