Topline
Apple will increase investment in China, the nation’s Ministry of Industry and Information Technology said in a statement after meeting with the company’s CEO Tim Cook, making a commitment to continuing business in the nation while the Trump administration threatens 100% tariffs on Chinese imports.
Neither China nor the iPhone maker have provided details on what the investment will look like.
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Key Facts
Cook met with Li Lecheng, China’s minister for industry and information technology in Beijing on Wednesday for a discussion about “Apple’s business development in China.”
Lecheng said he hoped Apple would “deepen its presence in the Chinese market” and collaborate with Chinese companies.
Cook agreed to “continue increasing investment in China” and further cooperate with the nation, according to the statement—but the ministry did not provide further details on the size of the investment.
Apple did not immediately return a request for comment from Forbes.
Key Background
Cook’s trip to China is taking place while President Donald Trump escalates a trade dispute with the nation, recently threatening 100% tariffs on China after it enacted export controls over rare earths. China is the world’s largest rare earth exporter, and the U.S. imports an estimated 70% of its minerals from the country, according to the U.S. Geological Survey. These minerals are essential for production of electronics, including iPhones. However, Apple recently said it would purchase $500 million worth of recycled rare earths from American firm MP Materials—the rare earth mining company the U.S. government purchased a controlling stake in for $400 million in July.
How Has Apple Dealt With Trump?
Apple manufactures iPhones abroad, primarily in China and India. This immediately put the company at odds with Trump’s goals of returning manufacturing to the United States, and the president has repeatedly demanded the company produce their devices in the U.S. Manufacturing iPhones in the U.S. could make the phones 25% more expensive, CNBC reported. Since Trump took office in January, Apple has repeatedly promised further investments in the United States to placate the administration. In February, Cook met with Trump and promised to invest $500 billion at home over the next four years, including building a new manufacturing center in Houston. In August, Trump said the company promised another $100 billion on top of the first massive investment.