Apple CEO Tim Cook reiterated the company’s commitment to China during a meeting with Industry and Information Technology Minister Jin Zhuanglong during his second visit to China this year.
In a post on Chinese messaging app WeChat, the ministry said Apple “will continue to expand its investments in China and support the high-quality development of its supply chain.” The IT Minister also called on Mr Cook to continue investing in China to drive innovation and to work with Chinese companies to share development gains.
The visit comes amid sluggish Apple iPhone sales in the country and domestic competition to gain market share. U.S. companies also face hurdles from the Chinese government and regulators.
AI features developed with OpenAI, which will be included in some of the latest iPhone models, will not be available in China until next year. Cook told local news outlet Jiemian that Apple first needs to complete a thorough regulatory process. OpenAI has previously restricted access to ChatGPT in China. The country has very strict rules and restrictions on AI products, which must reflect “core socialist values” and avoid “undermining national unity.”
Some consumers are reluctant to buy the new iPhone 16 because they don’t have access to AI systems available in other regions.
Despite this reluctance, sales of the iPhone 16 surged 20% in the first three weeks of its release. This was a welcome development for Apple, whose sales in China have been declining in the face of government regulations and increased domestic competition. According to Counterpoint Research, overall iPhone sales in China were still down 2% year-on-year over the same period due to low interest in older models.
In September 2023, the Chinese government ordered employees to stop bringing foreign devices, including iPhones, to work.
Cook’s visit comes as the United States leads a global effort to separate Western countries from China, particularly when it comes to technology. The United States is currently considering rules that would cover foreign investment in China in the areas of AI, semiconductors, microelectronics, and quantum computing.
Apple has faced criticism from U.S. lawmakers in the past over its relationship with China. In 2019, at the height of the pro-democracy movement, an unlikely ally, Republican Sen. Ted Cruz, Democratic Rep. Alexandria Ocasio-Cortez, and other bipartisan members of Congress called They called on the company to “censor the app” by issuing an order. Hong Kong.
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“Apple promises more China investments amid rising tech regulations” was originally created and published by Investment Monitor, a brand owned by GlobalData.
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