Apple leans on China to steady supply chain amid US tariff risks

Apple Inc. is treading a fine line between political pressure from Washington and the economic realities of its dependence on Chinese manufacturing.

During his latest visit to China, CEO Tim Cook reaffirmed the company’s long-term commitment to the world’s second-largest economy, signalling that Apple will continue strengthening local partnerships even as it expands operations elsewhere.

Bloomberg reports that Cook met with Li Lecheng, China’s Minister of Industry and Information Technology, on Wednesday.

The minister encouraged Apple to maintain close cooperation with local suppliers. Cook responded by pledging to “boost cooperation” and expand investment in the country.

China remains Apple’s largest market outside the United States, and a crucial hub for assembling its iPhones and other devices.

Apple reinforces China ties while expanding elsewhere

Apple’s latest move underscores the challenges facing its global diversification plans.

Despite recent efforts to reduce reliance on China, including ramping up production in India and exploring new operations in Vietnam, the company still relies on Chinese partners such as Foxconn Technology Group and Luxshare Precision Industry Co. for the bulk of its iPhone assembly.

During his trip, Cook visited Shanghai’s flagship Apple Store and met artist Kasing Lung, the creator of the popular character Labubu.

He also announced a donation to Tsinghua University, one of China’s top academic institutions, reinforcing Apple’s long-term presence in the country.

Meanwhile, the company continues investing in the United States, adding manufacturing capacity for future product lines.

Apple has also begun preparations to make new smart home devices in Vietnam, a move designed to spread production risk amid trade uncertainty.

Geopolitics complicate Apple’s diversification

Cook’s visit comes at a time when US President Donald Trump has renewed threats to impose tariffs on foreign-made products, including those manufactured by Apple.

The potential duties could affect devices made in China, which continue to dominate Apple’s global production network.

Beijing, in turn, has been encouraging companies to slow the pace of manufacturing relocation. According to Bloomberg, Chinese officials have verbally urged regulatory agencies and local governments to restrict technology transfers and equipment exports to countries like India and Vietnam.

These moves appear aimed at discouraging the outflow of advanced manufacturing capacity from China.

India ambitions face early challenges

Apple’s diversification to India has also faced early setbacks. Earlier this year, Foxconn sent hundreds of Chinese engineers from its Indian iPhone plants back to China, highlighting the operational hurdles of replicating China’s well-established manufacturing ecosystem.

Despite this, Apple’s India expansion remains part of its broader long-term strategy.

But for now, the latest developments suggest the company’s immediate priority lies in sustaining smooth operations in China — a key to its global revenue and product pipeline — even as it looks to mitigate geopolitical risk elsewhere.

The post Apple leans on China to steady supply chain amid US tariff risks appeared first on Invezz