The discussion between Apple and Chinese officials also focused on potential collaboration in electronics and information technology sectors, highlighting China's strategic role in Apple's global operations.

Chinese officials are encouraging companies to slow down manufacturing shifts abroad and restrict technology transfers to India and Vietnam to preserve advanced manufacturing capacity.

China’s ambassador to the US highlighted the mutual benefits of US companies operating in China, emphasizing that many US firms have chosen China and contribute positively to both economies.

The US-China trade relationship remains tense, with tariffs at 30% on US goods in China and 10% on Chinese goods in the US, and a trade truce set to expire on November 10, risking tariff increases.

Apple's stock has risen about 7% over the past year, with upcoming earnings on October 30 reflecting positive market sentiment despite broader economic uncertainties.

Tim Cook’s recent remarks and diplomatic efforts in China, including cultural engagement and announcing new initiatives like a green energy project, underscore Apple's long-term commitment to the Chinese market.

Apple is reaffirming its commitment to China by increasing investments despite ongoing US-China trade tensions, with CEO Tim Cook emphasizing the importance of China's large market and industrial ecosystem during a meeting with China's industry minister.

In addition to hardware, Apple is shifting its AR/VR focus from the Vision Pro headset to developing smart glasses aimed for a 2027 release, citing market niche and comfort challenges.

Apple's resilience in China is partly due to localized pricing, government subsidies, and a tailored AI ecosystem, helping it maintain a competitive edge amid economic challenges.

While Apple is diversifying its supply chain by expanding production in India and Vietnam, the majority of iPhones are still manufactured in China, primarily through Foxconn and Luxshare, maintaining its deep manufacturing roots there.

Apple is developing its first foldable iPhone, the iPhone Fold, expected in 2026, with design improvements reducing hinge component costs to $70-$80, signaling innovation in its product lineup.

Despite a sluggish Chinese smartphone market, Apple saw a slight 0.6% increase in shipments in China during the third quarter, driven by the iPhone 17 series, making it the only major vendor to grow in that environment.

Apple plans to address U.S. tariffs on Chinese and Indian goods by investing $600 billion in the U.S. over the next four years, part of its broader strategy to balance international trade tensions.