Apple CEO Tim Cook 'Secretly' Signed $275 Billion Deal With China in 2016

[BootsWalking]

Sorta like the secret deal Cook signed with Google for billions a year. In public Cook talks a good game about privacy and liberty but behind closed doors he's signing deals with the same foes he publicly rails against. He's Mister Rogers in public and Gordon Gecko in private.

 

[DNichter]

In 2016, I wouldn't have blamed him. Much different landscape than where we are today. I would bet most of the people screaming about it are just taking their Fox news talking points and dropping them here. Just to be clear, 100% a bad deal, but most wouldn't have known that in 2016.

 

[GMShadow]

In all fairness, China is the future. Its economy will soon be the largest in the world and no major Western company wants to miss out on that. In the 20th century, foreign companies kissed up to the US government in exchange for economic access, in the 21 century, American and Western companies will kiss up to China for access to their economy. It's just how the world works.

Want to make yourself invaluable to most western companies for the next 40 years? Learn mandarin.

China is a few short bad days away from total economic collapse. They're beyond over-leveraged in debt, and Evergrande was just the first domino to fall.

 

[anthogag]

This is hardly surprising. Business is war and this kind of 'deal' is modus operandi for doing business in China. Perhaps now Tim Cook can stop the pure goodness schtick coming out of Apple. Apple took advantage of systemic corruption in China.

This is a bit traterous because China is apparently adversarial towards the West.

Tim Cook could be a billionaire twice-over. He could have a stash in China. No doubt he's well compensated over there...under the table.

 

[hagjohn]

Capitalisms means the government stays out of business. The US is a capitalist society. Politicians may have an opinion, but I can tell you that only one of those parties would complain if government got in the way of business.

Governments interfere with businesses all the time. One example is the FTC is suing to stop the Nvidia/Arm merger.

 

[cb3]

Tim, please put pressure on China to change its ways on human rights and to be kinder on world stage.

It would not surprise me if China lets Apple build up their technology then kicks them out years later.

 

[nortonandreev]

It’s time for him to step down.

 

[orbital~debris]

This is only "secretly" because that's the terminology The Information decided would best boost page views/ad-sales.

In reality, everything a business or corporation does is "secret" until it's announced (future/shipping products) or disclosed (due to regulation, other requirements).

 

[mzeb]

Probably a real good business move but a really really bad PR move, especially in US politics. This won't go over well with either Dems or GOP. I just keep thinking of all the causes Apple supports and how this blows a lot of them out of the water.

What happens when bribing China with money, knowledge and power doesn't work anymore?

Hard to call this a bribe. Yes, China made Apple exempt to some rules for now as Apple helps Chinese industry. This sort of thing is done all the time between governments and business. From oil pipelines to drug policy the US has bent its own rules for companies local and abroad to meet an end. This is nothing new.
Now if China just looked the other way and nothing went through the proper legal channels you’d be on to something.

 

[BeefCake 15]

Disagree, Steve Jobs put a "Hands Off' Board in-place, & it's mostly the same people now as then !

It's detailed in the Walter Isaacson Steve Jobs bio.

The board has to know and if they're hands off that's on them...doesn't matter.

 

[Spock]

Tim, please put pressure on China to change its ways on human rights and less warlike.

While giving him the benefit of the doubt, maybe that is the long term goal. We know how big business lobbying in the US can change things but unfortunately it is not always for the better.

 

[thadoggfather]

Thank you OP for using such a fitting thumbnail:

I've got a better one, and cue the Curb Your Enthusiasm music before roll credits:

 

[SW3029]

Tim, please put pressure on China to change its ways on human rights and less warlike.

This is a nice thought, but no single person or company could influence the CCP. The only thing that will influence their future actions is the people of China themselves.

 

[LogicalApex]

Capitalisms means the government stays out of business. The US is a capitalist society. Politicians may have an opinion, but I can tell you that only one of those parties would complain if government got in the way of business.

That’s actually not capitalism. You need regulations in place in a capitalist marketplace otherwise those with capital will strangle the market until it is dead.

 

[toobravetosave]

Americans talks a big game about Chinese human rights abuses yet has the highest prison population in the world and is engaged in perpetual warfare, curious

 

[citysnaps]

I see no issue as long as he's not violating US laws.

So much outrage...Wondering how much is real and how much is faux?

Will anyone here be voting with their wallets and purchase phones/tablets/computers from Apple competitors? Yeah, that's what I thought.

 

[thadoggfather]

Americans talks a big game about Chinese human rights abuses yet has the highest prison population in the world and is engaged in perpetual warfare, curious

It's important to separate people from their rulers.

Most of us, that criticize China are criticizing CCP not its poor citizens who are as far as I can tell hard working good people.

But a virtue signaling communist will easily conflate it all as 'racist' so discussion can be stifled before it even begins.

 

[SSDGUY]

"It's all about the money, boys!"

 

[4743913]

I see no issue as long as he's not violating US laws.

So much outrage... Will anyone here be voting with their wallets and purchase phones/tablets/computers from Apple competitors? Yeah, that's what I thought.

pay no mind to the virtue signalling people who give their cash to a virtue signalling company that is the "wokest".

its all kabuki theater.

 

[I7guy]

In the Court of Public Opinion, at least here in the Sates, I think Tim Cook may (now) be in BIG trouble !

Without even thinking about it! No.

 

[Maximara]

In all fairness, China is the future. Its economy will soon be the largest in the world and no major Western company wants to miss out on that. In the 20th century, foreign companies kissed up to the US government in exchange for economic access, in the 21 century, American and Western companies will kiss up to China for access to their economy. It's just how the world works.

Want to make yourself invaluable to most western companies for the next 40 years? Learn mandarin.

Except China is either cutting off access or doing things that making investment there very risky. India is now looking like the new place to have cheap goods made.

Also China has the problem many Western countries have - an aging population. As outlined in Time magazine's China’s Aging Population Is a Major Threat to Its Future:

"If current trends continue, China’s population will peak at 1.44 billion in 2029 before entering “unstoppable” decline, according to a Chinese Academy of Social Sciences study released in January."

"All signs suggest the country will get old before it gets rich–and the impact is already making itself felt."

Then there is China's 'it can't go on forever' housing bubble - China’s Real Estate Bubble Started With ‘State Capitalism’ That market has already seen a mammoth slowdown (new home sales dropped by a third)

China's command economy can only stave off the 'here is what happened to the US in 2008' moment for so long and barring some major restructuring (which would require loosing face as they would be admitting to the world they messed up) a major contraction of China's economy in the next 20 years is very possible.

 

[boss.king]

Not sure if the people who think this is bad are apple users in general. More head in the sand types will be incensed

Why do you say that? Do you not think someone can criticise a company for doing something they think is bad while still using their products?

 

[toobravetosave]

It's important to separate people from their rulers.

Most of us, that criticize China are criticizing CCP not its poor citizens who are as far as I can tell hard working good people.

But a virtue signaling communist will easily conflate it all as 'racist' so discussion can be stifled before it even begins.

That's all well and good but it seems criticizing china is often just virtue signaling as well. People posting here from their slave labor phones and laptops created with metals destructively mined from indigenous lands and shipped across the world in gas guzzling cargo ships. But yeah, we can pretend to care about china

 

[LonestarOne]

Does anyone in this thread have any background in business? It doesn’t seem that any of the commenters understand what a Memorandum of Understanding is.

An MoU is not a “deal”. It’s not a commitment to do anything. It is just what the name says: A memo containing certain facts that both parties agree are true.

Once again, MacRumors is overhyping a story to generate page views. “Journalistic ethics? What journalistic ethics?”

 

[Karma*Police]

Here's a crazy thought: how about investing in the country in which your company is based out of?

Offensive, I know. Not feasible, I know. Ballsy to even mention... I know.

They do… and it seemed to accelerate after Trump called out American companies (Apple, by name) on their lack of investments in this country. Not sure if it was Trump or already in Apple’s plans, but they made a few announcements after that and were pretty prolific in sharing how much they were investing in America during Trump’s presidency.

Maybe that’s what American companies need. Just some good ol’ fashion stick and carrot incentives.