Apple will boost its investment in China, says Tim Cook amid Trump tariff threats; what this means

Apple CEO Tim Cook on Wednesday said that the iPhone maker will boost its investments in China and step up its cooperation in the country, despite repeated threats from US President Donald Trump to impose tariffs on foreign-made goods.

During a meeting with Chinese Minister of Industry and Information Technology Li Lecheng on Wednesday, Cook said that he will announce the investments on a trip to China.

The Chinese minister also urged Tim Cook to work closely with local suppliers.

China is the biggest market for iPhones and other Apple products outside the US, and also acts as a key manufacturer for the Cupertino, California-based company.

The summary of the meeting between Tim Cook and Li, shared on the WeChat app, did not provide details on how much money Apple will invest in China.

What does China want from Apple?

China hopes Apple will continue to explore the Chinese market, Li Lecheng, who is also in charge of infotech, told Cook, adding that China would continue to foster a good business environment for foreign firms, including Apple.

Tim Cook, who is in China this week, visited Apple’s store in Shanghai and met Chinese game developers and the designer of the popular Labubu dolls, he said in posts on China’s X-like Weibo.

On Monday he said the iPhone Air would be available for pre-order in China after the ministry cleared the way for major telecom operators to support its eSIM functionality.

When Cook visited China in March, Apple unveiled plans for a new clean energy fund there worth 720 million yuan ($101 million).

Apple’s manufacturing issues

While Apple has been diversifying its supply chain away from China over the past few years, including increasing handset operations in India, it still makes the bulk of iPhones in the country with help from Foxconn Technology Group and Luxshare Precision Industry Co.

It’s committed to expanding its manufacturing presence in the US, while also adding production capacity elsewhere. The company is preparing to make new smart home devices in Vietnam to lessen its dependence on China.

But Apple has run into challenges with its diversification efforts. Earlier this year, Foxconn sent hundreds of Chinese engineers at its iPhone plants in India back home, dealing a blow to Apple’s manufacturing push in the South Asian country.