Today, Apple CEO Tim Cook, along with over 20 other executives, met with China’s premier to address potential trade disruptions anticipated with the incoming Trump administration in January.
However, reports indicate that the meeting may not have been productive, with some participants suggesting it felt rehearsed and lacked concrete discussions.
Apple’s Vulnerability
Apple relies heavily on China as a manufacturing hub, with around 80% of the world’s iPhones produced in a single facility there. Any trade tensions between the United States and China could pose serious challenges for the Cupertino-based company.
During Trump’s previous presidency, various import tariffs were implemented on many Chinese goods, impacting products made for U.S. companies. Cook effectively conveyed to Trump the negative implications these tariffs could have on Apple and other U.S. firms, resulting in modifications that excluded most high-tech items, including the iPhone.
Nevertheless, Trump has signaled intentions to introduce even more tariffs on Chinese imports, which may affect Apple products, leaving the situation uncertain.
Cook and CEOs Engage with China’s Premier
Bloomberg reports that Cook was among more than 20 CEOs who met with Li Qiang to discuss the looming threats.
During his visit, which marks at least the third time this year, Cook joined leaders from global companies, such as Rio Tinto Plc, Corning Inc., and Charoen Pokphand Group for a discussion with Li Qiang, according to state media. Notable Chinese corporate heads, including those from Lenovo and ICBC, also participated in the dialogue, which primarily focused on supply chain and trade challenges.
This gathering was the first significant engagement between international corporations and a senior official from Beijing since Trump secured a second term. Companies around the world are preparing for the president-elect’s threats to raise tariffs on Chinese imports.
Despite the meeting, reports suggest that little was accomplished.
The session lasted over an hour and seemed largely scripted, according to sources familiar with the event, who chose to remain anonymous. Li highlighted Adam Smith’s perspective that the propensity to trade is an inherent human trait, as described by attendees.
Li encouraged the executives to provide any feedback directly to him, indicating he would take it seriously, as per one of the sources.
After the meeting, Cook expressed that Apple holds China in high regard, stating, “We could not do what we do without our partners in China.”
Photo by CJ on Unsplash
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