Apple has always seen China's market as important to its success. A huge army of potential consumers and a large factory for assembling devices all combine in this country. So it makes sense that Apple would try to placate and please the Chinese authorities so that nothing would threaten Cupertino's well-being. There are those who believe that the company is unnecessarily coddling the Chinese authorities.
The other day it was revealed that Apple's success in China has its price, and not least of all due to the favorable climate that has been created for the company not without the involvement of Chinese authorities. It turned out that five years ago Tim Cook personally visited China in order to sign a five-year, $275 billion agreement with that country's government. This put an end to aggressive Chinese regulatory actions that could have seriously complicated the company's life in that country.
The whole thing is that at the time the Chinese government blocked the operation of iBooks and iTunes Movies in China, the company had problems with the use of the trademark "iPhone", sales of "Apple" devices have plummeted in this country and it has resulted in a drop of almost 10% in the value of Apple shares.
Under the terms of a bilateral agreement between Apple and the Chinese government, the Cupertino concern has taken it upon itself to help the economy and technology development in China. In particular, the company has agreed to help the Chinese create "cutting-edge technology," to use more components made in China in their products, to invest in Chinese companies, to train talented engineers and to work with software developers in China.
Apple is also committed to helping create research and development centres in China, setting up retail shops and investing in renewable energy. Experts agree that the company has delivered on its commitments and that its investment has more than paid off.
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