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Apple's Tim Cook began a charm offensive in Beijing earlier this
week after his company hit a flurry of problems in China, from
weakening smartphone sales to the loss of an iPhone trademark
dispute and the suspension of some of its online entertainment
services.
China's ruling Communist Party has also embarked on a campaign
to promote domestic technology, which it sees as more secure,
and reduce the country's reliance on foreign tech products,
especially in critical industries such as finance.
"I hope Apple can expand its business in China, deepen its
cooperation in research and development and industrial supply
chains, and provide a convenient and secure user experience for
Chinese consumers," said Miao Wei, the head of China's Ministry
of Industry and Information Technology (MIIT).
Miao's comments from the Tuesday meeting were posted on the
regulator's website on Thursday. MIIT did not provide any
comments from Cook.
Last week, Apple announced a $1 billion deal with ride-hailing
app and Uber Technologies Inc [UBER.UL] rival Didi Chuxing, a
move many experts see as an attempt to curry favor with Beijing.
"China has set a clear precedent with nearly every other tech
company that operating in the country comes with certain strings
attached, including significant investment in China's tech
sector," said Ben Thompson, an analyst who writes at
Stratechery.com.
"Apple has largely escaped this requirement, thanks to its
appeal to customers instead of big business, but it seems likely
the Chinese government is trying to end that exemption."
Other U.S. tech firms such as Intel Corp, Qualcomm Inc and Cisco
Systems Inc have adopted a similar approach of investing in
China as Beijing pushes regulations that critics say would favor
domestic firms.
An Apple spokeswoman declined to comment.
(Reporting by Paul Carsten; Editing by Christopher Cushing)
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