Amid escalating tariff tensions between the United States and China, a resurfaced video of Apple CEO Tim Cook has reignited the long-standing debate over Apple’s manufacturing presence in China. The clip, from a 2017 interview with Fortune Magazine, sheds light on why the tech behemoth continues to rely heavily on Chinese manufacturing, despite growing political pressure to bring production back to American soil.
“It’s not cheap Labour”
Dispelling a widely held belief, Cook firmly rejected the idea that Apple manufactures in China to save on labour costs. “The popular conception is that companies come to China because of low labour costs. I’m not sure what part of China they go to, but the truth is China stopped being a low labour cost country years ago,” he said in the video, which has gained renewed traction online.
Cook clarified that China’s appeal lies not in affordability but in capability. According to him, the country offers an unparalleled level of technical expertise, particularly in high-precision tooling and materials handling — areas that are essential for the complex manufacturing processes Apple requires.
“It’s the skill”
Highlighting the core reason for Apple’s reliance on Chinese manufacturing, Cook emphasised the deep pool of skilled labour available in a concentrated region. “The products we require need advanced tooling and the precision that you have to have in tooling and working with materials that we do are state-of-the-art. Tooling skill in China is very deep,” he said.
Cook also pointed to the stark contrast in the availability of skilled tooling engineers between China and the United States. “In the US, you could have a meeting of tooling engineers, and I’m not sure we could fill the room. In China, you could fill multiple football fields,” he remarked, painting a vivid picture of the vast disparity in vocational expertise.
Political pressure mounts
The video has resurfaced at a time when the former US President Donald Trump has renewed his calls to re-shore manufacturing, particularly in high-tech sectors. Last week, Trump’s campaign spokesperson Karoline Leavitt said the former president wants Apple to begin building its devices domestically. “If Apple didn’t think the US could do it, they probably wouldn’t have put up that big chunk of change,” she said, referencing Apple’s recent commitment to invest $500 billion in the US over the next four years.
More Read
While Apple’s domestic investments are indeed significant, industry experts argue that recreating the scale, speed, and skill of Chinese manufacturing in the US would require not just capital, but also time and talent development.
India’s growing role
Interestingly, while Cook’s explanation supports China’s continued dominance in Apple’s supply chain, the company is gradually diversifying its production base. India, in particular, has emerged as a promising alternative. According to Bloomberg, Apple assembled $22 billion worth of iPhones in India from April 2024 to March 2025, marking a staggering 60 per cent year-on-year increase.
Apple’s partners are currently building what will become the world’s second-largest iPhone factory in India, underlining the company’s intent to reduce its dependency on China. While India’s workforce may not yet match China’s in terms of technical depth, Apple appears committed to long-term capability building in the region.
Conclusion
As the US and China continue their tit-for-tat tariff escalations, Apple finds itself in a geopolitical bind. While political sentiment pushes for a homecoming of production lines, Tim Cook’s earlier remarks serve as a potent reminder: advanced manufacturing is not simply about geography or economics—it’s about skill. And for now, China remains the epicentre of that skillset.
