China’s Commerce Minister Wang Wentao welcomed U.S. tech giant Apple to further strengthen its presence in the Chinese market during a meeting with CEO Tim Cook on Friday, according to a ministry statement. This sentiment echoed recent discussions between China’s Minister of Industry and Information Technology and Cook in Beijing, where both parties committed to advancing high-quality development within the industrial supply chain shared by both nations, the ministry added.
“China will firmly promote high-level opening up and continue expanding market access, focusing on achieving win-win development,” the ministry statement quoted Wang as saying. It added that China will also continue to optimize the business environment and provide quality services for foreign enterprises.
The comments reflected an ongoing dialogue between the two sides amid tensions between Washington and Beijing over trade, security and terr, and territorial disputes in the South China Sea. The deteriorating relations between the world’s two largest economies have weighed on investor confidence in technology companies. The tussle over China’s role in the global economy has increased concerns about a possible economic slowdown.
But, as China’s market continues to grow, many multinationals cannot afford to abandon it. Apple has been stepping up operations in the country this year, and last month, it opened a new flagship store in downtown Shanghai. In April, the South China Morning Post reported that it is also introducing more suppliers from China to its mainland supply chain, compared with the number it cut, to increase R&D and market growth.
Although Apple’s shipments to China flatlined in the third quarter, its market share remains second behind Huawei Technologies Co Ltd, according to International Data Corporation. Moreover, Chinese smartphone makers are stepping up efforts to compete with Apple in the premium segment. Huawei’s latest mobile phone, the Mate 20 Pro, has a foldable screen designed to be used as a tablet computer.
Meanwhile, Apple has been reiterating its commitment to China even as it tries to revive its sluggish iPhone sales with discounts and its own augmented reality software, Apple Intelligence. The product, which will allow users to use their phones to perform tasks, is scheduled to launch in the United States this fall but has not yet been released in China because of Chinese regulations and a lack of infrastructure.
Nevertheless, the company is expected to maintain strong momentum in the fourth quarter, as the launch of its new products, such as the iPhone XS and the iPad mini 4, has generated much consumer interest, according to analysts. In addition, China’s economic recovery is expected to boost consumer spending and further fuel demand for electronic devices in the coming months. That is good news for Apple, the biggest U.S. tech company regarding revenue and its suppliers. The company is expected to report quarterly earnings on Nov. 9.
