Apple and Micron Executives Visit China Amid Escalating US Chip Restrictions

Apple and Micron Leaders Visit Beijing As US Intensify Advanced Semiconductor Sanctions: Report - Micron Technology (NASDAQ:MU)

Apple and Micron executives met with senior Chinese officials. Apple Inc AAPL COO Jeff Williams and Micron Technology Inc MU President Sanjay Mehrotra recently visited Beijing to meet with senior Chinese officials as the U.S. considers stricter tech curbs against China. On Monday, the executives joined a U.S. business delegation meeting with Vice-Premier He Lifeng and Foreign Minister Wang Yi. He Lifeng urged American companies to "participate aggressively in China's further reform and modernization process," Bloomberg reports. During a separate meeting, Wang Yi discussed the outcomes of the Chinese Communist Party's Third Plenum, highlighting the country's economic direction. He also expressed a desire for members of the U.S.-China Business Council in Beijing to foster "a correct understanding" of China in the U.S. Both Williams and Mehrotra are directors of this group. The visit coincided with the U.S. intensifying advanced semiconductor sanctions against China. Apple increased its China-based suppliers and manufacturing sites in 2023. The company opened a new Apple store in Shanghai, and CEO Tim Cook attended the China Development Forum in Beijing. Apple also explored integrating Baidu Inc's BIDU advanced generative artificial intelligence (AI) technology into its devices within China, according to Bloomberg. In 2023, Apple negotiated with China Mobile, a leading telecom provider, to introduce its Apple TV+ video streaming service nationwide. Earlier in 2024, Micron CEO Sanjay Mehrotra met with China's Minister of Commerce to discuss expanding Micron's operations and new investments in China. Apple depends on China for about a fifth of its sales, while Micron has faced challenges since Beijing banned its products from critical infrastructure last year. After posting weak GDP growth in the second quarter, China recently slashed the key interest rates to boost the economy. Price Actions: AAPL shares traded lower by 0.06% at $223.83 premarket at the last check on Tuesday. MU is down 0.52% at $114.68. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo via Shutterstock Market News and Data brought to you by Benzinga APIs

Apple, Micron executives visit China amid tightening US chip restrictions

Apple's (NASDAQ:AAPL) Chief Operating Officer Jeff Williams and Micron Technology's (NASDAQ:MU) President Sanjay Mehrotra went on a low-key trip to China to meet with senior Chinese government ministers, Bloomberg News reported. The companies' executives went along a U.S. business delegation meeting Vice-Premier He Lifeng and Foreign Minister Wang Yi, amid a time when the U.S. is thinking of imposing ever stricter tech export restrictions on the Asian nation, the report added. The officials urged U.S. companies to "participate aggressively in China's further reform and modernization process," the report noted citing state-owned media. In a separate meeting, Wang discussed the outcomes of the ruling Chinese Communist Party's Third Plenum, a vital meeting which sets China's economic course, and showed a desire for members of the U.S.-China Business Council in Beijing to help steer "a correct understanding" of China in the U.S. Mehrotra and Williams and are directors in the group, according to the report. The Chinese foreign ministry's readout did not have the name of the executives from Apple and Micron, however, they were seen in photos of the meeting, the report added. The meeting comes amid the U.S. thinking of imposing additional restrictions on China's access to chip technology used for AI. The U.S. and its allies including the Netherlands, Germany, South Korea and Japan have all been tightening curbs on the Asian country's access to advanced semiconductor technology. The U.S. companies are still trying to navigate the waters of export curbs as China still provides a production base and a vital market for their products. Apple's iPhone shipments in China surged in May and April, after having seen revival in March. The U.S. tech giant's phones had seen a 37% slump in the first two months of 2024. Apple relies on China for about 20% of its sales, while Micron saw Beijing banned its products from critical infrastructure last year. The tighter export U.S. controls have helped Chinese companies such as Huawei Technologies and Honor to make their mark in the local market for flagship smartphones. Huawei is also developing AI chips, which compete with products from Nvidia (NVDA) in the Chinese market. On Monday, it was reported that Nvidia was working to make a version of its new flagship AI chips for the Chinese market which would adhere to the current U.S. export curbs.