Apple Inc. AAPL CEO Tim Cook has met with China’s commerce minister Wang Wentao for the second time in 2023, against a backdrop of growing concerns regarding a potential iPhone ban by the Xi Jinping administration, as they discuss the company’s operations in the country and the broader U.S.-China relations.
What Happened: On Wednesday, during the discussion with Cook, Wentao underscored China’s commitment to further open its markets and foster cooperation with multinational companies like Apple.
This commitment aims to create a win-win development for both parties, reported Reuters, citing a statement released by the Chinese commerce ministry.
Apple’s presence in China has been facing some challenges, with the latest iPhone 15 range failing to replicate the success of its predecessor, the iPhone 14.
Additionally, Cupertino has protested against new Chinese regulations mandating App Store developers to obtain licenses, though the company has started to comply with these regulations.
The situation became more concerning with reports suggesting the Xi Jinping administration’s intention to broaden the iPhone ban.
Initially targeting government employees, this ban possibly extended to individuals working in other state-run agencies and government-controlled organizations.
The White House had accused China of implementing this iPhone ban as part of a pattern of retaliatory measures amid ongoing trade tensions between the two nations.
The National Security Council spokesman John Kirby expressed concern and called for increased transparency regarding China’s actions.
Why It’s Important: Previously, in March this year, Cook visited China, marking his participation as one of the few American CEOs at the country’s recently resumed annual business summit. At the time, the Apple CEO also met with Wentao.
During the March meeting, the tech giant was reportedly advised to enhance its security protocols.
China is an important market for Apple, accounting for about 20% of its sales.
The company has reportedly brought in over $40 billion in China-based revenue annually since 2015 and almost $75 billion in sales last fiscal year.
Photo by John Gress Media Inc on Shutterstock
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