A top Chinese official has urged tech giant Apple to deepen its presence and investment in innovation in the world’s second largest economy at a time when supply chains and companies are shifting production and operations away from China.

As U.S.-China geopolitical tensions simmer and tech competition between Beijing and Western countries intensifies, foreign investment in China shrunk in 2023 to its lowest level in three decades, according to government statistics.

The United States has banned the export of advanced technology to China and Beijing’s crackdown on spying in the name of national security concerns has spooked investors.

On Wednesday, Jin Zhuanglong – China’s Minister for Industry and Information Technology – told Apple CEO Tim Cook he hoped that, “Apple will continue to deepen its presence in the Chinese market,” urging Cook to “increase investment in innovation, grow alongside Chinese firms, and share in the dividends of high-quality investment,” according to a ministry statement.

At the meeting Jin also discussed “Apple’s development in China, network data security management, (and) cloud services,” according to the statement.

China has the world’s largest market for smartphones, and Apple is a leading competitor. However, increasingly the iPhone producer has lost market share in the country due to an increasing number of local rivals in the smartphone sector.

In the second quarter of this year, AFP reports that Apple ranked sixth among smartphone vendors in China, holding a 16% market share, marking a drop of three positions compared to its ranking during the same period last year, according to analysis firm Canalys.

Jin also repeated a frequent pledge from officials in Beijing that China would strive to provide a “better environment” for global investors and “continue to expand high-level opening up.

Cook’s trip to China was his second of the year. His posts on the X-like Chinese social media platform Weibo showed he visited an Apple store in downtown Beijing, visited an organic farm, and toured ancient neighborhoods with prominent artists such as local photographer Chen Man.

Cook added that he met with students from China’s Agricultural University and Zhejiang University to receive feedback on how iPhones and iPads can help farmers adopt more sustainable practices. 

Some information in this report came from Reuters and AFP.