Apple Inc.’s (NASDAQ:AAPL) CEO Tim Cook said the iPhone maker will continue to “increase investment” in China during his visit to the world’s second-largest economy, at a time when U.S. President Donald Trump has threatened to slap tariffs on imports.
China Is A Big Market For Apple
Cook met China’s Minister of Industry and Information Technology Li Lecheng on Wednesday, according to a statement released by the ministry.
He said the company would further improve the level and quality of cooperation with China. During his trip, Cook also posted about meeting Labubu-creator Kasing Lung and visited an Apple store in Shanghai.
Li said China would create a favorable business environment for foreign firms, including Apple, and urged Cook to continue to explore the market.
China is one of Apple's biggest markets outside the U.S. and remains a key manufacturing hub for the company. It brings in about 17% of Apple’s annual sales.
Caught in Crossfire As US-China Tensions Escalate
Cook’s comments come just days after Trump threatened to impose a sweeping 100% tariff on all Chinese imports. That came in retaliation for Beijing’s decision to tighten export controls on rare earths.
Though exports of smartphones from China are currently exempt from tariffs, Cook has sought to diversify supply chains. The company has turned to India and Vietnam over the past few years, but it still makes the bulk of iPhones in China, through Foxconn Technology Group and Luxshare Precision Industry Co.
Apple has also pledged to spend more than $500 billion in the U.S. over the next four years to appease Trump’s calls to bring investment back home.
Price Action: Apple shares have risen about 7% over the past year. The company will report fourth-quarter results on Oct. 30 after markets close.
Benzinga’s Edge Rankings show that despite the weak fundamentals in value and growth, the price trend is positive across all time frames, indicating consistent bullish sentiment.
Read Next:
Image via Shutterstock
