Apple moves production out of China
The meeting between Apple COO Sabih Khan and Chinese Vice Minister of Commerce Li Chenggang in Beijing on December 19, 2025, was more than a courtesy visit. It highlights the complex relationship between global tech giants and the Chinese government, particularly concerning trade, supply chains, and geopolitical pressure.
来源: Own depiction
Introduction
On December 19, 2025, China's international trade negotiator and Vice Minister of Commerce, Li Chenggang, met with Apple's COO Sabih Khan in Beijing. Officially, the discussion was about Apple's business development in China. Reuters picked up the meeting on December 22, 2025 and interpreted it as a signal to foreign companies. Such high-level meetings 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 aspirations for 'high-level opening up' 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 'cultivate' the market, which can be understood as a request for continuity. Khan praised the efficiency and potential of the Chinese supply chain and announced that Apple would remain in China long-term and continue to invest in supply chains, research and development, and social projects. The emphasis on 'supply chain' and 'long-term' underscores the importance of the meeting, as it touches upon the sensitive areas 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. That Khan has officially been COO since the end of July 2025 , explains why his name is mentioned in China meetings – no longer that of Jeff Williams. When China talks about 'cooperation with partners,' it is talking to the person who operationally orchestrates these partner relationships.
Apple's China Strategy
For Apple, China remains simultaneously a workshop, a supplier ecosystem, and a sales market. This is evident in Apple's segment reporting, where 'Greater China' is its own substantial revenue block, which stood at $64.377 billion in 2025. The region saw a decline in 2025 compared to 2024
来源: appleinsider.com
Apple's Global Production 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 dismantling, 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 was even considering initial steps to have iPhone components assembled or packaged in India (OSAT topic) in order to move deeper into the value chain. This makes Beijing's perspective understandable
来源: everstream.ai
Development of Apple's Supplier Base: A diagram shows the relocation of manufacturing sites between 2016 and 2022.
China's Perspective and Regulation
For Apple, China is not just a sales market, but an environment in which 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 Foreign Ministry then stated that there were 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 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 opening up, Apple emphasizes supply chains and long-term commitment.
Geopolitical Context
Apple explicitly cites trade conflicts, tariffs, and international disputes as risks that can burden supply chains, component availability, and margins. At the same time, the US has been intensifying export controls on advanced semiconductor and computing technology towards China for years, which affects the entire tech ecosystem in which Apple operates. The CRS overview of US export controls describes in 2025 new/expanded rules , which are intended 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 surprises in regulation, clearer signals to partners, and a channel in case of friction.
来源: 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 distribution of roles is clear: China addresses opening up and market expectations, Apple addresses supply chains, investments, and long-term commitment. For Apple, this is pragmatic: even if production grows towards India, China remains a central hub for know-how, supplier parts, 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 signals to other multinationals that discussions are 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 capability in a politically charged market. Anyone who wants to understand where things are heading should look less at warm formulations and more at 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.