Apple returns to China to celebrate region's ties

Tim Cook returned to China to attend the high-profile China Development Forum to celebrate the iPhone maker's ties to the region, even though tensions between Beijing and Washington grow.

Cook said Apple and China have grown together during the state-sponsored showcase on Saturday, during an onstage discussion on technology and education. He pointed out the company's concerns about the abuse of technology, given recent advances in artificial intelligence and augmented reality.

Cook said that this is a symbiotic relationship that I think we both enjoyed. Apple plans to increase the spending on its rural education program in China to 100 million yuan $15 million, he said, adding that it was important for children to improve their coding and critical thinking skills in a fast-changing world.

He said that innovation will only speed up, and that the creators of technology need to use them in the right way to help humanity, not against it. It is a tremendous responsibility for any creator to do that. Cook stopped at an Apple retail store in Beijing earlier in the day, with Deirdre O Brien, the company's retail chief, and other executives.

Cook also met with Chinese government officials during his trip to China. Cook seeks to maintain a mutually beneficial relationship with the Chinese government by attending the event, along with his attendance at the event. Apple is able to operate dozens of stores, sell products and run multiple online services in China, boosting the local economy, and has unique access to the Chinese market.

Since Cook orchestrated an expansion in China about a decade ago, Apple's products have grown in popularity in the region. The company now counts on Greater China for about 20% of its sales. The Cupertino, California-based company has brought in more than $40 billion in China-based revenue each year since 2015 and nearly reached $75 billion in China sales in the last fiscal year.

The relationship is showing signs of fraying. Apple has been in China for over two decades, and has been unaffected by Foxconn or Hon Hai Precision Industry Co. The company has suffered snags in production in recent years due to a US and China trade war, Covid-triggered factory closings, delaying launch of products like the 2022 MacBook Air and limiting supply of the iPhone 14 Pro.

The partnership exposed Apple to criticism at home about its compliance with Chinese laws on censorship and data storage. In recent years the company has made changes to its products to address Beijing's concerns, including limiting the AirDrop file sharing feature in a way that is widely seen as a way to deter protests.

The Chinese economy is expected to grow at a rate of 5% this year because of Apple's efforts to shift some production outside of China. The Chinese President Xi Jinping has said he wants to boost high-end manufacturing.

With help from Mark Gurman and Debby Wu.

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