Apple CEO Tim Cook held a high-profile meeting with China’s Minister for Industry and Information Technology in Beijing on Tuesday, as the tech giant faces growing regulatory pressures and market challenges in one of its most critical regions.

The meeting comes at a time when Apple is navigating increased scrutiny from Chinese regulators, with the country tightening its grip on foreign technology companies. In recent months, Apple has faced challenges with iPhone sales and compliance issues in China, a market that accounts for nearly 20% of its revenue.

Cook’s visit underscores the importance of maintaining strong relations with Chinese officials as Apple looks to preserve its foothold in the world’s largest smartphone market. China is a key player in Apple’s supply chain and a critical market for its future growth, but the company is also confronting a more complex regulatory environment as China seeks to bolster its domestic tech sector.

While the details of Cook’s discussion with China’s Industry Minister were not disclosed, the meeting likely focused on resolving ongoing compliance matters and ensuring smoother operations for Apple’s manufacturing and retail arms in the country. With competition from local rivals like Huawei heating up, Apple’s ability to maintain favorable ties with Beijing will be crucial to its long-term success.

The meeting also took place against the backdrop of broader US-China tensions, with Apple caught in the crosshairs of geopolitical dynamics that have strained trade relations. As global tech supply chains become more fragmented, Apple may face increased challenges in navigating both regulatory and political landscapes.

Investors are closely watching Apple’s strategy in China, as any disruption in its operations or sales could significantly impact its bottom line. For now, Tim Cook’s diplomatic engagement appears aimed at ensuring the company remains well-positioned in a vital, albeit increasingly complicated, market.