Apple's CEO met with the Commerce Minister of China on Monday to talk about the importance of the company's relationship with the country. The conversation also revolves around stabilizing the industrial and supply chains despite the increasing tensions between Washington and Beijing.
Meeting with China's Minister of Commerce
Apple's Chief Executive Officer Tim Cook and China's Commerce Minister Wang Wentao have met to discuss China's reopening and broader supply and industrial chains issues. Reuters reported that Apple relies on the country for about 20% of overall sales, with most of its products still made mostly in China.
As per a statement from Wang's ministry regarding the meeting between the two, "The two sides exchanged views on issues such as Apple's development in China and the stabilization of the industrial and supply chains." Cook was also told that China is opening its hands as they continue to provide good services to foreign companies, including Apple.
China Development Forum
CNBC reported that the meeting with China's Minister of Commerce comes after Cook's attendance at the government-ran China Development Forum (CDF) last March 24th, along with a handful of top American and European executives who also met the minister.
this event is showcased by the government as they reopen after years of COVID-Zero regulations. Wang was appointed to his role this year and met so far with leaders and executives from Nestle SA, BMW, AG, Mercedes-Benz Group AG, Pfizer Inc., and Qualcomm Inc.
The Apple executive stated during CDF that the company and China have grown their relationship together, and he described it as "symbiotic." His trip to China included a visit to an Apple retail store in Beijing with Retail Chief Deirdre O'Brien and other executives of the company.
Bloomberg reported that ever since Apple expanded its services in the country, products from the company gained popularity in the regions and now count for 20% of its sales in China. However, the relationship between the two has become unraveled over time.
Factory closures because of COVID lockdowns became a challenge for the company as they suffered unprecedented snags in production last year. This caused setbacks including the limiting supply of iPhone 14 Pro.
Apple has also been shifting production away from the country as it seems like the company is making India a new place for its new expansion. This comes after the $9 billion worth of smartphones exported from the country between April 2022 to February this year.
Pegatron Corp is already in its developing phase with a second India factory in the southern city of Chennai in Tamil Nadu state, as the company diversifies its production away from China. As of the moment, Pegatron accounts for 10% of Apple's production of iPhones in India every year.
Related Article : Apple Continues to Shift Production Away from China, Looking to Open Second Factory in India
