BEIJING – Apple Inc Chief Executive Tim Cook plans to visit Beijing later this month to meet high-level government officials, at a time when it is facing some setbacks in its most important overseas market, a source familiar with the matter said.

Cook has frequently travelled to China since taking the helm of Apple five years ago, but his latest visit comes during a critical period.

From weakening smartphone sales to the loss of an iPhone trademark dispute and the suspension of some of its online entertainment services, the US technology giant has been facing a flurry of problems in recent weeks in its second-largest market after the United States.

That has raised concerns over Apple’s growth momentum, as the company reported last week its first quarterly revenue drop in 13 years.

Last week, billionaire activist investor Carl Icahn said in an interview with cable television network CNBC that he had sold his entire stake in Apple, citing China’s economic slowdown and worries about whether the government could make it very difficult for Apple to conduct business.

During his China visit, Cook plans to meet senior government and Communist Party leaders – including officials in charge of propaganda, said the source, who declined to be named as the plan is not public yet.

Apple did not respond to Reuters’ requests for comments.

STRICT CURBS

In recent weeks, the company has wandered into the crosshairs of the government’s ongoing campaign to control Web content and ensure localisation of data storage.

Apple’s online book and film services were shut in China last month, cutting off a potential source of income, following Beijing’s introduction of regulations in March imposing strict curbs on online publishing, particularly for foreign firms.

Under President Xi Jinping, China is also trying to shift away from its dependence on foreign technology, especially in critical sectors like banking and insurance. Foreign businesses have staunchly opposed new regulations that they say threaten to cut them out of such industries.

Harsh censorship also has shut down the online services of many foreign tech companies, sparking outcry from overseas governments and business groups.

The Chinese government could “come in and make it very difficult for Apple to sell there,” Icahn said in the interview with CNBC last week.

Apple’s refusal to co-operate with the US authorities to provide source code to help them crack open the iPhone that was linked to a mass shooting in San Bernardino also has raised skepticism among some Chinese officials.

In China, Apple has been asked by authorities in the last two years to hand over its source code but the company refused, according to Apple’s top lawyer.

Despite growing concerns over its China business – Apple reported its revenue from Greater China, which includes Hong Kong and Taiwan, dropped 26 per cent last quarter – Cook has been optimistic.

“I see China as may not have the wind at our backs that we once did but it’s a lot more stable than what I think is the common view of it,” he said during the company’s earnings call last week.

“We remain really optimistic on China.”

BEIJING – Delegates from China were absent from North Korea’s once-in-a-generation party congress, Chinese media said Friday, in a potential sign of fraying ties between Pyongyang and its most important ally.

Beijing is a key supporter of the hermit kingdom, providing an economic lifeline that has allowed it to ride out waves of international sanctions.

But China’s representatives were not invited to the gathering of North Korea’s top political leaders, according to the Global Times, a newspaper with close ties to the Chinese Communist Party.

“North Korea wants to maintain its independent stance,” Zheng Jiyong, director of the Centre for Korean Studies at Fudan University told the newspaper.

“It can’t decide who to invite because it involves the interests of many sides.” Details about the secretive party congress have been scant, and it is not clear if any foreign delegates were invited to attend.

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Reuters

The relationship between the two nations, once said to be as close as lips and teeth, has become increasingly strained since the death of North Korea leader Kim Jong-Il.

His son, Kim Jong-Un, has yet to visit China and frequently thumbs his nose at his ally, despite Pyongyang’s reliance on Chinese trade.

A recent string of nuclear and ballistic missile tests have tried Beijing’s patience.

But it has been reluctant to take measures against North Korea, fearing that they could destabilise the regime, creating a refugee crisis and swinging the regional balance of power towards the United States.

A large Chinese delegation attended the last Workers’ Party congress in 1980, headed by Li Xiannian, later China’s official head of state.

Beijing’s foreign ministry spokesman Hong Lei declined to confirm that no Chinese officials were attending this time.

But he said that China hopes North Korea can “achieve national development” and “heed the calls of the international community and work with us to maintain the peace and stability of northeast Asia”.

Kim may want to use the congress to adjust the balance of power between the military and the party, Zheng told the Global Times, adding: “Kim may want to replace old cadres with younger ones who are able to better execute his orders.” In an editorial, the paper said that China’s relationship with the country was complicated.

Beijing is “resolutely opposing Pyongyang’s nuclear development”, it said.

“Many forces are now cursing the country, but China will never be one of them.”