Apple set to increase China supply chain investment following Tim Cook’s government visit

Tim Cook has been making rounds in China this week. Among his many meetings, the CEO reportedly met with a Chinese government official. The result? Apple is said to be increasing its investment in China, especially in supply chain development.

China visit comes at key moment for Apple

Apple’s CEO Tim Cook met with China’s IT minister on Wednesday. Per Reuters, topics discussed included “Apple’s development in China, online data security management and cloud services.”

Following that meeting, state news agency Xinhua shared a quote from Cook signaling a renewed commitment to investing more heavily in China moving forward.

From Reuters:

“Apple is keen to seize the opportunities presented by China’s opening up and will continue to increase its investment in the country, thus contributing to the high-quality development of the industrial and supply chains,” Cook was quoted as saying by Xinhua.

For years, Apple has been slowly diversifying its supply chain with increased investment outside of China.

However, whether the reported Cook quote indicates a policy shift or simply an act of political maneuvering, the shifting smartphone landscape in China is almost certainly behind it.

Apple has faced much stronger competition from China-based smartphone makers in the last couple years, leading to struggling iPhone sales.

The iPhone 16 so far is off to a strong start in China, but that’s unlikely to last unless Apple can bring Apple Intelligence to Chinese users in the not-too-distant future.

China and the EU are currently the only two territories where Apple Intelligence is entirely disabled for users. But hopefully, Cook’s government rounds this week have led to progress on that front.

What do you make of this news? Is Apple doubling down on its Chinese supply chain, or simply navigating a complicated political situation? Let us know in the comments.