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

Apple CEO Tim Cook said on Wednesday that the iPhone maker will increase investments in China and step up cooperation in the country despite US President Donald Trump’s constant threats to impose tariffs on foreign goods.

Cook said he would announce the investments during his trip to China during his meeting with Chinese Minister of Industry and Information Technology Li Lecheng on Wednesday.

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

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

The summary of the conversation between Tim Cook and Li shared on the WeChat application did not include details about how much money Apple would invest in China.

What does China want from Apple?

Li Lecheng, who is also in charge of information technology, told Cook that China hopes Apple will continue to explore the Chinese market, adding that China will continue to promote a good business environment for foreign companies, including Apple.

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

The iPhone Air will be available for pre-order in China after the ministry cleared the way for major telecom operators to support eSIM functionality, the company said on Monday.

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

Apple’s production problems

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

The company is committed to expanding its manufacturing presence in the U.S. while also increasing manufacturing capacity elsewhere. The company is preparing to produce new smart home devices in Vietnam to reduce its dependence on China.

But Apple has faced difficulties in its diversification efforts. Earlier this year, Foxconn sent hundreds of Chinese engineers to iPhone factories in India, dealing a blow to Apple’s manufacturing push in the South Asian country.