Benzinga | Dec 30, 2021 11:11AM EST

Read Why Apple Is Leaning Towards China's Supply Chain Partners

* Apple Inc (NASDAQ:AAPL) has increased its reliance on Chinese supply chain partners, including Luxshare, which could oust Foxconn Technology Co Ltd (OTC:FXCOF) as Apple's primary supplier, Apple Insider reports.

* Apple reportedly forged a secret deal worth $275 billion with the Chinese government to invest in local companies.

* The $275 billion investment deal between Apple and China allows the Cupertino tech giant to cut costs and "curry favor with Beijing."

* Related Content: Apple Enlists More Asian Suppliers to Ramp Up iPhone 13 Production as Launch Schedule Looms: Report

* Apple has shifted more of its supply chain business to China-based companies.

* Apple tapped Luxshare to assemble AirPods, ending the dominance of Taiwanese-based firms in Apple's assembly chain.

* Luxshare, which already exceeds Foxconn in market capitalization, could displace Foxconn as an Apple supply chain heavy-hitter.

* Price Action: AAPL shares traded higher by 0.25% at $179.82 on the last check Thursday.