Apple's recently formed "global security team" were recruited, reportedly from Pfizer, after the pharmaceutical giant had successfully cracked open an illegal Viagra ring in Asia.
The team works in China and further afield across Asia to crack down on counterfeit goods, produced by back-street pirates and sold in either fake stores or street vendors.
But the Chinese government is not helping as much as it should, the cable adds.
One highlight shows that Beijing "refused to investigate" a manufacturing plant of fake Apple products because it would "threaten local jobs", adding that any raids on a imitation Apple store could drive away shoppers from a local mall.
A former FBI special agent, John Theriault, former Pfizer security lead, now leads the global security unit at Apple. Don Shruhan, who worked under Theriault, now leads the Apple security team in Hong Kong.
But the team was keen to keep a low profile. After Theriault briefed Steve Jobs in 2008, it was agreed that this would not be widely publicised.
Shruhan told the U.S. Embassy in Beijing that he was "afraid" of the scale of the counterfeiting operation of Apple's leading products, and the inability of Apple's lawyers to operate with the Chinese authorities in matters relating to piracy, the cable says.
Apple only has four stores in China -- still an emerging market -- with a new Hong Kong store on the way.