Tim Cook on Apple’s $1 billion investment in China’s Didi Chuxing

“We are making the investment for a number of strategic reasons, including a chance to learn more about certain segments of the China market. Of course, we believe it will deliver a strong return for our invested capital over time as well.”

“[The deal] reflects our excitement about their growing business … and also our continued confidence in the long term in China’s economy.”

Apple has experienced some recent setbacks in China: a 26% fall in Q2 year-over-year sales in Greater China and more recently the blocking of Apple’s iTunes Movie and iBooks stores in the country by China’s regulatory agencies. But this investment shows China Apple is willing to be a team player and invest in a homegrown Chinese company that is facing heavy competition from Uber, a foreign startup.

The investment could also help Didi continue to stave off Uber, which has a major investor in Google Ventures.