Today, Apple CEO Tim Cook, along with over 20 other executives, engaged with the premier of China to tackle potential trade disruptions that may arise once Trump assumes office in January.
However, reports indicate that the meeting may not have been particularly fruitful, with some attendees suggesting it felt rehearsed and lacked concrete plans…
Risks for Apple
Apple significantly relies on China as its manufacturing hub, with around 80% of the world’s iPhones produced in a single facility located there. Any trade disputes between the US and China could pose serious risks for the Cupertino giant.
During Trump’s previous administration, various import tariffs were enacted on numerous goods coming from China, which included products manufactured in China for US companies. Cook effectively communicated to Trump the detrimental effects these tariffs could have on Apple and other American enterprises, leading to adjustments that exempted most high-tech items, including the iPhone.
Now, with Trump again hinting at increasing tariffs on Chinese imports, it remains uncertain if Apple products would be affected.
Tim Cook and Fellow CEOs Meet with Chinese Premier
Bloomberg reports that Cook was part of a delegation of over 20 CEOs who met with Li Qiang to address these concerns.
On his third visit to China this year, Cook joined other prominent leaders from global companies, including Rio Tinto Plc, Corning Inc., and Charoen Pokphand Group, for talks with Li Qiang, as noted by state media. The meeting also included Chinese corporate leaders from firms such as Lenovo Group and ICBC, focusing on supply chain and trade challenges.
This gathering marked the first high-level dialogue between foreign businesses and a senior official in Beijing since Donald Trump was re-elected for his second term. Firms worldwide are preparing for the president-elect’s threats to escalate tariffs on Chinese products.
However, the reports suggest that the meeting yielded minimal outcomes.
The session lasted over an hour and felt quite scripted, according to sources familiar with the event, who requested anonymity due to the private nature of the gathering. At one point, Li referenced Adam Smith’s perspective that the tendency to trade, barter, and exchange is a fundamental aspect of human nature, according to attendees.
Li encouraged executives to provide him with feedback, expressing that he would take it seriously, one source revealed.
After the meeting, Cook emphasized that Apple holds China in high regard, asserting that “we could not operate as we do without our partners in China.”
Photo by CJ on Unsplash
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