Apple (AAPL) plans to increase its investment in China and establish an independent research center there, according to Chinese state media reports following a meeting between the iPhone maker's CEO, Tim Cook, and Chinese Vice Premier Zhang Gaoli.
Apple's interest in expanding research and development in China comes after its $1 billion investment in Chinese ride-hailing service Didi Chuxing, announced in May. U.S.-based rival Uber Technologies recently sold its business in China to Didi Chuxing, which is backed by Chinese internet giants Alibaba Group (BABA) and Tencent (TCEHY).
Chinese state broadcaster CCTV didn't provide details on what kind of R&D center Apple might build.
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Apple's sales in Greater China fell 33% year over year to $8.85 billion in its fiscal Q3 ended June 25. Greater China had been Apple's second-largest market after the Americas, but it fell to third last quarter, behind Europe.
Apple's June-quarter iPhone sales in China fell 32%, according to market research firm IDC.
Apple also faces a tougher regulatory climate in China. The Chinese government forced Apple to shut down its e-book and movie download services in a crackdown on foreign companies distributing media in the country. China has also asked Apple and other U.S. technology companies to store their data in local data centers.
Apple stock closed down 0.1% to 109.38 in the stock market today after hitting a 4-month high intraday. Shares are up less than 5% in 2016.
