• By The Financial District

Apple Cut Deal With China To Make Bogus Maps, Share Tech

Apple CEO Tim Cook struck a deal with the Chinese government in 2016 amid a regulatory crackdown that hobbled the company's business there, according to a new report from The Information, Sarah Jackson reported for Business Insider.


Photo Insert: Construction of an Apple Store in China



The five-year agreement is estimated to be worth more than $275 billion and was intended to placate Chinese government officials who believed Apple wasn't doing enough for the country's economy, according to internal documents viewed by The Information.


Throughout 2016, Cook lobbied government officials over actions that would have threatened services like the App Store, Apple Pay, and iCloud, The Information reports. He made the deal during the first of several visits to China that year that were spurred by regulators' actions which had tanked iPhone sales.



The deal included commitments from Apple to help Chinese manufacturers build "the most advanced manufacturing technologies" and train workers. It also included vows to tap Chinese suppliers for more parts for Apple devices, strike deals with Chinese software companies, work with Chinese universities on technology, and invest "many billions of dollars more" than Apple was already pouring into China, according to The Information.


All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

Some investments were to go toward Chinese technology companies; other outlined beneficiaries included new retail stores, renewable energy projects, and research and development centers.


In line with China's 13th Five-Year Plan, Apple further committed to help develop China's IT industries and promote science, technology, education, and environmental protection.


Business: Business men in suite and tie in a work meeting in the office located in the financial district.

In exchange, China agreed to offer "necessary support and assistance." Apple also made other concessions with China to keep business running. By early 2015, China's State Bureau of Surveying and Mapping had directed Apple Maps to make the Diaoyu Islands, or Senkaku Islands, which China and Japan both claim to own, look big even when zoomed out.


Regulators said they'd refuse to approve the Apple Watch if Apple didn't comply, according to documents viewed by The Information. The company ultimately accommodated the demand.



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