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Case Study Of Compromise Between Apple And The Chinese Business In China

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Compromise is a very important strategy for a negotiation. During the negotiation process, various stalemates and contradictions must be resolved through the compromise of all parties, so that a real win-win situation can be achieved. It embodies the negotiators' use of the initiative to meet the needs of the other party in exchange for the spirit that they need to be satisfied. Let's look at the two-year iCloud negotiations between Apple and the Chinese government. Apple eventually compromised its interests in China. On February 28, 2018, Apple announced that iCloud will be located in China. Apple's iCloud service in China will be serviced by the Chinese data company Guizhou-Cloud Big Data Industry Development Co., Ltd., and the data will…show more content…
In order to maximize the protection of consumer rights, sensitive data must be stored in domestic servers. . Moreover, the law clearly stipulates that all Chinese citizen or regional data related to broadly defined national security issues are sensitive data, and that cloud service operators must be local enterprises. Apple's construction of a data center in China cannot bypass the enactment and implementation of this law, and it is almost impossible for Apple to ignore this law. Taking into account that terrorists like to use the security threat posed by Apple's mobile phone, the introduction of this law is the last straw that killed the camels. Because the personal information and important data collected and generated by Apple mobile phones are very large, they must be stored in China. In addition, the Internet data center does not allow foreign-funded enterprises to operate and they need to issue licenses. Apple is doing so to meet the relevant provisions of China's cloud services, apparently not even a joint…show more content…
After two years of negotiations, the two sides finally finalized the migration plan and were approved by relevant Chinese ministries and commissions. Second, building a data center in China is also in the interest of Apple itself. Apple can improve the user experience of iCloud in China. Through the data center stored locally, the speed and reliability of services will be greatly improved, and it may also radiate to Southeast Asia in the future. Previously, because iCloud service did not have a data center in China, users who want to access iCloud would need to connect to Apple’s data center in North Carolina, and then jump back to China. Far distance brings network delays, timeouts, and inaccessibility. Third, investment is not much, about one billion US dollars, with the reduction of operating costs, in the future Apple may cut iCloud related service fees. The data center is an Internet infrastructure. Because of its high energy consumption characteristics, it is more dependent on the external environment. Most of the energy consumption is due to air conditioning charges. Guizhou has high altitude and the average summer temperature is below 25°C. With abundant water resources, it is naturally endowed with unique natural resources. Conditions to build data centers, which can significantly reduce operating costs, Apple chose Guizhou is a pure business
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