The Apple of a Chinese Eye: Big Bucks, Big Secrets
December 28, 2021
This is one way to deal with regulations in a nation famous for its tight control over tech companies. TechSpot reveals, “Tim Cook Reportedly Signed Secret $275 Billion Investment Deal with China to Help Apple Succeed in the Country.” Writer Rob Thubron cites an article from The Information (paywalled) which claims to have interviews and internal documents showing the Apple CEO personally lobbied Chinese officials in 2016. He informs us:
“Cook signed a ‘memorandum of understanding’ with China’s National Development and Reform Commission that involved Apple making concessions in exchange for legal exemptions. Apple’s promise included helping Chinese manufacturers develop advanced manufacturing technologies and support with training of Chinese talents, using more Chinese-sourced components in its devices, signing deals with the country’s software firms, and investing directly in Chinese companies. Additionally, some of the billions of dollars Apple put into the country would go toward retail stores, research and development centers, and renewable energy projects. One of the ways Apple has allegedly benefitted from the deal is its ability to hold onto the encryption keys for iCloud user data in the region. The Chinese government usually forces foreign companies to hand over responsibility for such data to local organizations.”
Yes, never let it be said the Chinese government values its citizens’ digital privacy. Apparently, though, loosening its stranglehold on information is worth it when it comes to Apple. Thubron continues:
“The iPhone maker has a history of kowtowing to the Chinese government, having previously removed thousands of games, apps, and VPNs from its App Store at the behest of local officials. It also purged a protest app and the Quartz news app during the Hong Kong pro-democracy protests.”
It seems this policy of compromising the principles of freedom in the land of censorship is paying off for Apple. We learn its annual sales grew by 83% in China during the fiscal fourth quarter. We are not surprised to see the bottom line is the top priority for the company.
Cynthia Murrell, December 28, 2021
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