Reports last month indicated that Apple and China Mobile had reached or were nearing an agreement that would see a future iPhone developed for the carrier's TD-LTE 4G network. Reports have indicated that the same chips could be used for both LTE and TD-LTE, meaning that Apple could conceivably release a future iPhone capable of running on either standard. Complicating the issue, however, is a lack of full LTE coverage looking out over the next several years, and the consequent difficulties of providing fallback 3G compatibility for different standards.
If Cook is indeed in China talking to executives at China Mobile, it seems likely that significant discussions are underway. While any negotiations of this size would likely take place at the senior executive level, Cook's role as Chief Operating Officer currently in charge of Apple's day-to-day operations in the absence of Steve Jobs would suggest that his direct involvement signals negotiations of the highest importance.
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