China Regulator Stresses Security in Meeting with Apple’s Cook

As the U.S. tech titan – Apple, stumbles in its biggest offshore market – China, security of its users were stressed by the head of China’s industry and technology regulator in a meeting with Apple Inc’s chief executive in Beijing.

Having faced by 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, Apple’s Tim Cook began a charm offensive in Beijing earlier this week during his first visit to the country and its largest offshore market for iPhones.

There has been a campaign to reduce the country’s reliance on foreign tech products, especially in critical industries such as finance and another campaign to promote domestic technology by China’s ruling Communist Party.

“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).

The regulator’s website carried the comments made by Miao from the Tuesday meeting were on Thursday. MIIT did not provide any comments from Cook.

In a move that many experts see as an attempt to curry favor with Beijing, last week, Apple announced a $1 billion deal with ride-hailing app and Uber Technologies Inc rival Didi Chuxing.

“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,” Thomson added.

As Beijing pushes regulations that critics say would favor domestic firms, similar approach of investing in China is being adopted by other U.S. tech firms such as Intel Corp, Qualcomm Inc and Cisco Systems Inc.

An Apple spokeswoman declined to comment.

(Adapted from Reuters)

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