Apple shifts production from China
The meeting between Apple's COO Sabih Khan and China's Vice Minister of Commerce Li Chenggang on December 19, 2025, in Beijing was more than a courtesy visit. It highlights the complex relationship between global tech giants and the Chinese government, particularly regarding trade, supply chains, and geopolitical pressure.
Source: Own Representation
Introduction
On December 19, 2025, China's international trade negotiator and Vice Minister of Commerce, Li Chenggang, met with Apple COO Sabih Khan in Beijing. Officially, the discussion was about Apple's business development in China. Reuters picked up on the meeting on December 22, 2025 and interpreted it as a signal to foreign companies. Such high-level appointments are rarely coincidental and indicate deeper strategic interests.
The Chinese Ministry of Commerce described the conversation as an exchange about the development of Apple's business in China. Li Chenggang emphasized that Apple's presence aligns with China's pursuit of 'high-level opening' and offers additional opportunities for foreign firms. At the same time, he urged Apple to remain 'deeply' integrated with Chinese partners and to continue to 'work' the market, which can be understood as a request for continuity. Khan praised the capabilities and potential of the Chinese supply chain and announced that Apple will remain in China long-term and will continue to invest in supply chains, research/development, and social projects. The emphasis on 'supply chain' and 'long-term' underscores the importance of the meeting, as it touches upon the sensitive area of production, suppliers, and export capabilities.
Role of the COO
As COO, Sabih Khan is responsible for Apple's global operations. He oversees the operational interplay of procurement, manufacturing, logistics, and partnerships. Apple itself describes him as a long-term architect of the global supply chain who has managed Apple's supply chain for years. The fact that Khan has officially been COO since the end of July 2025 explains why his name is mentioned in China appointments – no longer that of Jeff Williams. When China talks about 'cooperation with partners,' it talks to the person who operationally orchestrates these partner relationships.
Apple's China Strategy
For Apple, China remains simultaneously a workbench, a supplier ecosystem, and a sales market. This is evident in Apple's segment reporting, where 'Greater China' is a distinct, material revenue block that stood at USD 64.377 billion in 2025. The region recorded a decline in 2025 compared to 2024
Source: appleinsider.com
Apple's global manufacturing sites: A map illustrates the distribution of production in China, India, and Brazil.
In parallel, Apple has been reducing its 'China concentration' in manufacturing for years, not as a withdrawal, but for redundancy. Reuters reported in April 2025 that Apple intended to have most iPhones for the US market manufactured in India by the end of 2026. In December 2025, it became known that, according to Reuters, Apple is even considering initial steps towards having iPhone components assembled or packaged in India (OSAT topic) to go deeper into the value chain. This makes Beijing's perspective understandable
Source: everstream.ai
Development of Apple's supplier base: A diagram shows the shift in manufacturing locations between 2016 and 2022.
China's Perspective and Regulation
For Apple, China is not just a sales market, but an environment where authorities can exert indirect pressure. Reuters reported in 2023 that Chinese authorities had prohibited employees in central government agencies from using iPhones and other foreign devices for work. The Chinese Ministry of Foreign Affairs subsequently stated that there are no laws or regulations prohibiting the purchase and use of foreign mobile phone brands. In addition, there is the App Store issue : Reuters reported in February 2025 that China's antitrust authority (SAMR) was preparing a possible investigation into Apple's App Store rules and fees. In October 2025, Reuters reported on a formal antitrust complaint filed by Chinese consumers against Apple regarding App Store practices. Against this backdrop, the Beijing meeting is to be understood as a 'stability talk': China emphasizes opportunities and openness, Apple emphasizes supply chain and long-term commitment.
Geopolitical Context
Apple explicitly names trade conflicts, tariffs, and international disputes as risks that can strain supply chains, component availability, and margins. At the same time, the US has been tightening export controls on advanced semiconductor and computing technology to China for years, affecting the entire tech ecosystem in which Apple operates. The CRS overview of US export controls describes new/expanded rules in 2025 to further limit China's access to advanced chips and AI computing. In such a climate, every high-level meeting acts as an attempt to reduce operational friction: fewer regulatory surprises, clearer signals to partners, and a channel in case of difficulties.
Source: user-added
Distribution of Apple's production sites and suppliers worldwide. China continues to dominate the supply chain.
Conclusion
There is no indication of 'new rules' in the sense of a concrete, immediate policy change – the official statement remains deliberately general. However, the division of roles is clear: China addresses opening and market expectations, Apple addresses supply chains, investments, and long-term commitment. For Apple, this is pragmatic: even if manufacturing shifts towards India, China remains a central hub for know-how, components, capacity, and speed – especially during ramp-ups. For China, it is also pragmatic: a visible commitment from a top operator like Khan stabilizes trust with local partners and sends a signal to other multinationals that dialogue is possible and desired.
The meeting between Li Chenggang and Sabih Khan is not a 'friendly photo opportunity,' but a sober piece of risk management on both sides: China is seeking commitment and investment, while Apple is securing operational capacity in a politically charged market. Anyone who wants to understand where things are headed should focus less on warm phrasing and more on who is speaking: When the COO comes, it's about supply chain reality – and thus about the core of what 'West-Tech vs. China' actually means in everyday life.