China regulators stall AI collaboration between Apple and Alibaba
BEIJING – The launch of Apple’s artificial intelligence (AI) services in China, in collaboration with Alibaba, has been significantly delayed due to escalating geopolitical tensions between the United States and China.
The strategic partnership was set to introduce “Apple Intelligence”, Apple’s latest suite of AI-powered features backed by Alibaba’s technology. However, the rollout has been obstructed by China’s internet regulator, the Cyberspace Administration of China (CAC).
According to sources familiar with the matter, cited by Investing on Thursday (5/6), the AI service application submitted to the CAC earlier this year has yet to receive approval.
The delay is closely tied to rising trade uncertainties as both countries attempt to defuse a tariff war that has reached peaks of up to 145%.
Apple, the world’s largest technology company with a production base in China, has come under mounting pressure from US President Donald Trump to repatriate its manufacturing operations.
Trump has even threatened to impose a 25% tariff on Apple and Samsung products should they fail to relocate production to the United States.
These developments add to Apple’s challenges in China, where it faces fierce competition from domestic firms such as Huawei, Xiaomi, Oppo, and Vivo.
CAC’s approval process for AI services requires formal testing of all AI models deployed in China. While the agency has so far cleared over 300 domestic AI models, foreign companies—particularly those linked to the US—face significantly longer review timelines.
Another source indicated that final decisions must be approved by China’s State Council, which is also overseeing ongoing trade negotiations with the US.
In addition to Chinese regulatory hurdles, the US Department of Commerce’s Bureau of Industry and Security has raised concerns about the Apple-Alibaba partnership, though it currently lacks the legal basis to block the collaboration.
Joe Tsai, Chairman of Alibaba, previously confirmed that Alibaba would provide AI technology for Apple iPhone models in the Chinese market.
However, Apple’s market position in China appears to be deteriorating.
According to data from the International Data Corporation, Apple’s share of the premium smartphone segment in China fell sharply from 70% at the start of 2023 to 47% in the first quarter of this year, while Huawei surged from 13% to 35%.
While Apple, Alibaba, the CAC, and China’s State Council have not issued official comments, analysts believe that political and economic tensions will continue to shape the fate of this critical technology rollout. (EF/ZH)