Apple to Boost its Investment in China Despite Trump’s Tariff Threats: What it Means for the Firm’s Presence in the Country?

Amid continuous threats from US President Donald Trump to impose tariffs on foreign-made goods, Apple CEO Tim Cook said on Wednesday that the company is going to boost its investments in China and accelerate its cooperation in the country

While attending a meeting with Chinese Minister of Industry and Information Technology Li Lecheng, the head of the iPhone manufacturer said that he will soon announce the investments on a trip to China. Additionally, the Chinese minister also requested Cook to work closely with local suppliers, as per a Mint report.

Currently, China is the biggest market for iPhones and other Apple products after the US. The South Asian Country also serves as a key manufacturer for the Cupertino, California-based company.

The details of the discussion between Tim Cook and the Chinese Minister were shared on the WeChat app but it did not provide details on how much money Apple will invest in China.

What China Wants from Apple?

China expects Apple to continue exploring the Chinese market, Li Lecheng, who is also in charge of infotech told Cook, while also mentioning that his country would continue to foster a good business environment for foreign firms, including Apple.

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

He also stated on Monday that 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.

According to a Mint report, when Cook visited China in March, Apple launched plans for a new clean energy fund there worth 720 million yuan ($101 million).

What are the Manufacturing Issues with Apple?

Even though Apple has been diversifying its supply chain away from China over the last few years, which included their move of increasing handset operations in India, it still continues to manufacture the bulk of iPhones in the country with help from Foxconn Technology Group and Luxshare Precision Industry Co.

The iPhone maker is committed to expand its manufacturing presence in America while also adding production capacity elsewhere. The company is also preparing to make new smart home devices in Vietnam so that it can lessen its dependence on China.

However, despite their diversification efforts, Apple has run into challenges. 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.