Apple’s plan to launch a new artificial intelligence service in China, in collaboration with Alibaba, faces delays as Beijing’s top internet regulator failed to approve the application.
The two companies were working together to bring “Apple Intelligence,” the iPhone manufacturer’s suite of AI tools to Chinese users, to use Alibaba’s latest AI models to power their systems. This year, Apple and Alibaba submitted several jointly developed AI products to Cyberspace Management (CAC) in China for permission.
However, according to two, these submissions remained during review at CAC sauce Those familiar with the issue pointed to the growing political tension between China and the US as an important driver of the hold-up.
Apple was hit hard by growing tensions in US-China relations
Chief Executive Tim Cook met with US officials to get support in Washington, but Apple’s reliance on its Chinese factories attracted criticism from President Donald Trump. Over the past few months, Trump has repeatedly urged Apple to return much of its production to the US. In May, he warned that if Apple and Samsung did not shift manufacturing from China, they could face 25% tariffs on devices.
at the same time, Apple stock price This year, it has been struggling with the company’s AI capabilities as the global capabilities were slower than expected. These AI services were intended to be a major selling point for the latest iPhone models.
Investors are also concerned about regulatory and legal challenges that could threaten Apple’s marginal services, such as the App Store. With the AI updates held in China, Apple is at a disadvantage against local competitors such as Huawei, Xiaomi, Oppo and Vivo, and has already introduced new AI capabilities to its devices.
The delays will affect Apple as negotiations between the US and China aim to roll back the enormous tariffs imposed on both sides that are imposed on each other. At one point, the tariffs reached 145% for certain items. While Washington and Beijing have been in talks to cut down these duties, CAC’s delayed approval process could slow Apple’s competitive ability in China’s rapid smartphone market.
Regulators take longer than expected
Under China’s regulations, companies that want to provide general AI services to the public must clear official reviews by CAC, including testing of AI models. So far, CAC has approved over 300 domestic AI models. By partnering with Albaba, Apple wanted to quickly track approvals. but, Trade tensions It’s intensifying, and the partnership itself is under scrutiny, forcing regulators to spend extra time. Beijing also resumed probes to several US high-tech companies, including Nvidia and Google, gaining leverage in trade debate.
It is currently taking some time for Beijing to confirm US-related partnerships. One source explained, especially in important areas such as AI. The final sign-off of AI applications must come from a higher body under China’s State Council, which remains involved in US-China tariff consultations. The same source said that the State Council could quickly lift the delays once approval was given, but the timing remains uncertain.
Meanwhile, the second insider said the US Department of Commerce’s Office of Industrial Security (BIS) raised concerns about the Apple-Alibaba project despite lacking direct authority to block the alliance. These concerns are shared with both companies.
In February, Alibaba chairman Joe Tsai confirmed that his company would offer Apple’s AI-enabled iPhone models with technology sold in China. His announcement helped raise Alibaba’s shares at the time. However, Apple’s unique market position in China has weakened. In early 2023, Apple accounted for around 70% of China’s high-end smartphone market, compared to 13% in China, according to research firm IDC. By the first quarter of 2025, Apple’s share had fallen to 47% and Huawei had risen to 35%.
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