AAPL Apple Inc

By Tripp Mickle 

Apple Inc. said it would launch a $300 million clean-energy fund for China with 10 of its suppliers, extending the U.S. tech giant's commitment to China at a time of mounting trade tension between its home country and its most important overseas market.

The China Clean Energy Fund, which Apple said it and its partners will fund over four years, will invest in and develop-clean energy projects totaling more than 1 gigawatt of renewable energy in the country. Those investments will be used to power operations of the 10 participating suppliers, including Taiwan-based Pegatron Corp. and Wistron Corp., which assemble iPhones.

Apple has gone on a charm offensive in China in recent years as it has looked to shore up its relationship with the Chinese government and consumers. Chief Executive Tim Cook, who travels regularly to the country, last year spoke at a major Chinese government conference, around the time Apple announced investment in two research-and-development centers in Shanghai and Suzhou.

Those efforts have taken on added importance amid an intensifying trade battle between the U.S. and China.

The Trump administration early this month imposed a 25% tariff on $34 billion in Chinese imports and has scheduled another $16 billion to hit later this month. China has responded with tariffs on 545 items, including agricultural products.

The trade fight thrusts Apple into a difficult position. The Cupertino, Calif.-based company assembles most of its iPhones in China and imports them to the U.S., which accounts for about 30% of its $229 billion in total sales, according to analysts. Meanwhile, China has grown to become one of its largest markets, accounting for about 20% of total sales.

Write to Tripp Mickle at Tripp.Mickle@wsj.com

(END) Dow Jones Newswires

July 12, 2018 19:15 ET (23:15 GMT)

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