GoKawiilTim Cook touched down in Chengdu, China, this week for an Apple Store event tied to the company's 50th anniversary, a carefully choreographed visit that comes at a pivotal moment in the iPhone maker's complicated relationship with the world's largest smartphone market.
Tensions between U.S. and China have been ratcheting up, in part due to the Iran war and and the U.S. announcing a new investigation into Chinese trade practices after the Supreme Court struck down President Donald Trump's biggest tariffs, which included major levies on imports from China.
But China has remained a critical market for Apple even as the company navigates increasing geopolitical challenges and mounting antitrust pressure there. Days before Cook's visit, Apple cut its mainland China App Store commission from 30% to 25% on in-app purchases and paid transactions, effective March 15. Apple also reduced fees for smaller developers and mini-app partners to 12% from 15%. In a memo last week, the company attributed the changes to "discussions with the Chinese regulator."
Those aren't the only concessions China wants from Apple.
People's Daily, the Chinese Communist Party's official newspaper, published a commentary arguing Apple needs to go much further, according to an analysis by TMTPost. The paper said Chinese users and developers still lack access to third-party payment systems and alternative app distribution, and called for regulators to keep pushing Apple to open up its ecosystem.
Separately, China's State Administration for Market Regulation has been probing Apple's app fee policies and its ban on external payment services, according to a report previously covered by CNBC.