Apple Inc. has announced plans to increase its investment in China, signaling its commitment to the world’s largest smartphone market even as US-China trade tensions intensify. The announcement comes amid looming tariffs, geopolitical risks, and efforts by US President Donald Trump to encourage domestic manufacturing.

Tim Cook Reaffirms Commitment to China

During a recent meeting in Beijing with China’s Industry Minister Li Lecheng, Apple CEO Tim Cook pledged to continue investing in the Chinese market. According to an official Chinese government summary, the tech giant reaffirmed its strategy to grow alongside local suppliers while contributing to the country’s economic development.

The company has not disclosed the exact size of the planned investment. However, industry analysts suggest that maintaining strong ties in China is crucial for Apple, given that most iPhones and Apple Watches are assembled in Chinese factories.

Navigating Geopolitical Challenges

US companies face increasing scrutiny as relations with China become strained. Apple, unlike some peers such as Nvidia and Qualcomm, has largely avoided direct conflict with Chinese authorities. At the same time, it continues to fulfill US domestic investment commitments, including a pledge to invest an additional $100 billion in American manufacturing.

Babak Hafezi, CEO of Hafezi Capital, suggested that Apple’s announcements may serve public relations purposes, balancing US political expectations with its long-term strategic interests in China.

“This may place Apple in the crosshairs of President Trump’s policies, but given Apple’s operations, it is possible this move was pre-approved by the administration,” Hafezi told Al Jazeera.

Diversifying Supply Chains

While China remains a critical hub, Apple is gradually diversifying its supply chain, particularly in India. Hafezi noted that shifting some manufacturing capacity to India is intended to mitigate geopolitical risks, increase production redundancy, and reduce reliance on a single country.

Additionally, Apple’s COO, Sabih Khan, recently visited Lens Technology in Changsha, a longstanding partner that produces glass covers for Apple devices. China hopes that companies like Apple will continue investing locally, reinforcing the message of a stable and cooperative business environment.

Growth in the Chinese Market

Despite broader challenges in China’s smartphone market, Apple has maintained modest growth. According to IDC, Apple shipped 10.8 million units in China during Q3 2025, a 0.6% increase compared to the previous year. The iPhone 17 series contributed to this growth, making Apple the only major brand among the top three vendors in China to see an increase in shipments.

During his visit, Cook also engaged with Chinese game developers and designers, including creators of the popular Labubu dolls, highlighting Apple’s interest in integrating with China’s cultural and digital ecosystem.

Broader Context: US-China Trade Tensions

Apple’s China strategy comes as US Treasury Secretary Scott Bessent signaled potential new tariffs over Russian oil imports, and US Trade Representative Jamieson Greer criticized China’s export controls on rare earth minerals. These developments exacerbate concerns over the stability of US-China trade relations.

China’s ambassador to the US, Xie Feng, emphasized that the business community serves as a stabilizing force in bilateral relations. “Many US companies have chosen China and are benefiting both countries,” he said.

Stock Market Reaction

Apple’s stock has responded positively to the news, with shares trending upwards on Wall Street, reflecting investor confidence in Apple’s strategic balancing of domestic and international interests.