Tim Cook’s Chinese Tour
So far, Tim Cook has met with Chinese Premier Li Qiang and over twenty global leaders, including executives from major corporations like Rio Tinto and Corning.
One of the key aspects of the visit highlights the significance Apple places on its subcontractors and partners. The head honcho from Cupertino emphasized the crucial role these entities play in Apple’s operations, stating that the company’s success would be unattainable without them (and he would find it tough to manage without their support or to state otherwise).
Currently, Apple has about 200 major suppliers, with over 80% of them operating out of China. Given the rather sensitive economic context, his visit comes at a critical time, marked by escalating trade tensions between the United States and China, exacerbated by Donald Trump’s presidential win and his threats to raise tariffs on Chinese goods.
China, a Delicate Situation
Even as it seeks to lessen its reliance, China remains a strategic element for Apple, representing its largest international market and the assembly point for the vast majority of its products. Consequently, the California-based company must exercise extreme caution in its strategy to diversify production to countries like Vietnam and Indonesia, in an effort to reduce its dependence on China.
In light of his participation in this event, Tim Cook must tread carefully to maintain the balance between his ties with China and the need to diversify his supply chains.