Apple Made A $275B 'Secret Deal' With Beijing To Avoid Facing Regulatory Heat In China

$Apple (AAPL.US)$ has concluded a secret five-year agreement with the government of China, worth $275 billion, focused on shoring up the country’s economy and more.

What Happened: The Apple-China deal, first reported by The Information (via Apple Insider,) was signed by CEO Tim Cook during a visit to the country in 2016 at a time when the iPhone maker faced regulatory heat.

Cook reportedly personally lobbied Chinese officials through multiple visits and signed the deal with China’s National Development and Reform Commission shortly after announcing a $1 billion investment in $DiDi Global (Delisted) (DIDI.US)$

Why It Matters: China is both an important market for Apple and is also the company’s vital manufacturing base.

Under the secret agreement, Apple agreed to boost the use of Chinese suppliers for device components and to work with Chinese software firms, and invest in the East Asian nation’s tech companies. The company also pledged to work with Chinese universities on new technologies, according to Apple Insider.

On Tuesday, $Tesla (TSLA.US)$ CEO Elon Musk called China the “biggest kid on the block” and said China will have an economy two or three times that of the United States. He said Tesla had a good relationship with the country.