Tim Cook says Apple would increase its investment in China in response to Trump's tariff threats; what this means

Cook stated that he will make the announcements while visiting China on Wednesday, when he met with Li Lecheng, the Chinese Minister of Industry and Information Technology.

Despite repeated threats from US President Donald Trump to impose tariffs on items created abroad, Apple CEO Tim Cook announced on Wednesday that the company will increase its investments and cooperation in China.

Cook stated that he will make the announcements while visiting China on Wednesday, when he met with Li Lecheng, the Chinese Minister of Industry and Information Technology.

Tim Cook was also asked by the Chinese ministry to collaborate closely with regional suppliers.

China serves as a major manufacturer for the Cupertino, California-based corporation and is the largest market for iPhones and other Apple products outside of the US.

The amount of money Apple will invest in China was not specified in the WeChat app's account of Tim Cook and Li's meeting.

What is China hoping to get out of Apple?

Li Lecheng, who is also in charge of infotech, told Cook that China hopes Apple will keep exploring the Chinese market and that China will continue to create a favorable business climate for international companies like Apple.

According to posts on China's X-like Weibo, Tim Cook, who is in China this week, met Chinese game developers and the creator of the well-known Labubu dolls while at Apple's Shanghai shop.

Following the ministry's approval for major telecom operators to enable the iPhone Air's eSIM feature, he announced on Monday that the device would be available for pre-order in China.

Apple announced plans to establish a new renewable energy fund in China worth 720 million yuan ($101 million) during Cook's March visit.

Apple's problems with manufacturing

Apple still produces the majority of its iPhones in India with assistance from Foxconn Technology Group and Luxshare Precision Industry Co., despite diversifying its supply chain away from China in recent years and expanding its handset operations there.

In addition to increasing production capacity abroad, it is dedicated to growing its manufacturing footprint in the US. In an effort to reduce its reliance on China, the company is getting ready to produce new smart home appliances in Vietnam.

However, Apple has encountered difficulties in its attempts to diversify. A blow to Apple's manufacturing effort in South Asia came earlier this year when Foxconn moved hundreds of Chinese engineers back home from its iPhone operations in India.