Summary in Seconds: Amidst the backdrop of President Trump’s tariff war with China, a recently resurfaced video featuring Apple CEO Tim Cook clarifies the company’s rationale for manufacturing its electronics in China. According to Cook, the decision is not driven by low labor costs, as commonly believed, but rather by China’s unparalleled advantages: a vast pool of highly skilled workers, cutting-edge tooling capabilities, and an exceptionally efficient supply chain. These critical components, Cook argues, are difficult to replicate elsewhere.
In a 57-second clip that recently resurfaced, Apple CEO Tim Cook clarifies that the company’s decision to manufacture in China is not driven by cheap labor, as is commonly believed.
When Donald Trump launched his tariff war with China, he expressed hopes that major companies like Apple would shift production to the United States. However, industry experts and critics argued that large-scale manufacturing in America is impractical for several reasons. Amid this debate, an old video of Tim Cook has resurfaced on social media, in which he explains why Apple continues to manufacture its products in China.
In the video, Mr. Cook debunks the widely held belief that companies move to China solely for low labor costs. Instead, he emphasizes the importance of China’s extensive supply chain, advanced infrastructure, and highly skilled workforce in meeting Apple’s manufacturing demands.
Mr. Cook states, “There is confusion about China. And let me at least give you my opinion. The popular conception is that companies come to China because of low labor costs. I am not sure what part of China they go to, but the truth is, China stopped being a low labor cost country many years ago.”
He further highlights China’s unique advantage: a large pool of highly skilled workers concentrated in a single location. He emphasizes that Apple’s products require advanced tools and high precision—capabilities in which China excels due to its deep expertise in tooling.
“The reason is because of the skill, the quantity of skill in one location, and the type of skill it is. The products we make require really advanced tooling, and the precision that you have to have in tooling and working with the materials we use is state-of-the-art,” he adds.
Mr. Cook contrasts this with the U.S., joking that a meeting with American tooling engineers might not fill a room, whereas in China, “you could fill multiple football fields” with such talent.
Reacting to the video, one user wrote, “True, it is about scale, speed, and precision. China has a massive pool of highly skilled tooling and manufacturing engineers. It’s not just labor—it is a full ecosystem built over decades, with deep supply chains and rapid turnaround that is hard to replicate elsewhere.”
Another commented, “Totally agree with Tim. Companies exploited China’s cheap labor earlier, but it was China’s rapid development of manufacturing tech that put it far ahead of the U.S. and Germany.”
Notably, Apple relies on China’s vast manufacturing network for the mass production of its iPhones and other devices. In recent years, however, the company has also begun to diversify its manufacturing base, focusing on key markets such as India. With its growing electronics manufacturing ecosystem, supportive government incentives, and a large skilled workforce, India has become an increasingly attractive location for Apple’s production facilities.
This brings us to the broader question: How did China achieve its success in electronics manufacturing?
China’s electronics industry is a powerful example of rapid industrial modernization. Driven by a national strategy aimed at promoting informatization, the sector expanded significantly after economic liberalization. Although rising labor costs have helped improve living standards, the industry still faces challenges such as labor exploitation and poor working conditions.
By the 2020s, China had become the world’s leading manufacturer of liquid crystal displays (LCDs), with domestic firms like BOE Technology, TCL-CSOT, TIANMA, and Visionox emerging as global leaders. Local governments played a key role in this transformation by investing heavily in LCD production through state-owned enterprises. This shift reduced China’s reliance on imports and made consumer electronics more affordable, fueling growth in adjacent sectors such as smartphones. Companies like Huawei and Xiaomi have thrived as a result.
China’s transformation from a war-torn agrarian society in 1949 to a technological powerhouse in the 21st century reflects a dynamic mix of state planning, market reforms, and strategic innovation. The journey has not been without setbacks—from the failures of the Great Leap Forward* to ongoing concerns over labor rights—but China’s ability to adapt and evolve has been central to its industrial rise. As it continues to advance the frontiers of technology and global influence, China’s industrial strategy remains a defining aspect of its national identity and international stature.
Sources & Remarks
Singh, Ritu. “In Resurfaced Video, Tim Cook Explains Why Apple Makes iPhones In China: ‘Truth Is…’” NDTV, April 14, 2025.
Mathur, Prajvi. “Apple CEO Tim Cook’s Old Video Resurfaces Explaining Why Companies Manufacture in China Amid Trade War.” WION, April 14, 2025.
* The Great Leap Forward, was a socio-economic campaign launched by Chinese leader Mao Zedong between 1958 and 1962, aimed at rapidly transforming China from an agrarian society into an industrialized socialist nation. However, the movement led to widespread famine, economic disruption, and the deaths of an estimated 15 to 45 million people, making it one of the deadliest policy failures in history.