Is Apple's Latest Investment In China Politically Motivated?

Loading...
Loading...

Apple Inc. AAPL may have had political motivations behind its $1 billion investment in China-based Didi Chuxing, at least according to The Information's founder Jessica Lessin.

Speaking as a guest on CNBC, Lesson said her sources are confirming there is a "political motivation" behind Apple's $1 billion investment because the company has been in "hot water" in China and its investment in a homegrown Chinese companies "goes a long way towards making the government happy."

Related Link: Apple Just Invested $1 Billion In Uber's Biggest Rival

She added that Apple's investment "messes a lot of alliances up" as Uber's CEO Travis Kalanick was expected to visit Apple's office to discuss a partnership.

Channing Smith, a portfolio manager at Capital Advisors Growth Fund was also a guest on CNBC. He said the Chinese market will provide tremendous growth over the next few years and it's "important to have good will with the government."

Smith also noted that even though the $1 billion figure is "a drop in the bucket" it's still a positive move for the company.

Shares of Apple were trading higher by 0.63 percent at $90.91 Friday afternoon.

Market News and Data brought to you by Benzinga APIs
Posted In: CNBCPoliticsTechMediaGeneralAppleApple ChinaCNBCSquawk on the Street
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...