Apple CEO Tim Cook has cultivated strong relationships with Chinese officials and developers.
Apple’s potential collaboration with Alibaba to integrate Apple Intelligence into its products in China is drawing scrutiny in Washington.
Concerns have been raised by officials from both Congress and the White House regarding Apple’s plans to partner with Alibaba, a major player in Chinese commerce, to enhance the company’s competitiveness in China.
According to a report by The New York Times, China makes up approximately 20% of Apple’s total sales, necessitating a partnership with a local AI provider to compete with domestic smartphone manufacturers.
US officials are apprehensive that such an agreement could bolster China’s competitiveness against American AI firms. Additionally, any deal may require Apple to comply with Chinese legal frameworks that promote censorship and data sharing with the government.
At the same time, Apple is facing substantial pressure to increase iPhone sales in China, making the incorporation of Apple Intelligence features essential for achieving this goal.
The company is anticipated to launch the iPhone 17 lineup this fall, with AI functionalities expected to be included in that release.
US Government Monitors Apple’s Engagement in China
Representative Raja Krishnamoorthi of Illinois, the leading Democrat on the House Permanent Select Committee on Intelligence, has voiced concerns about the partnership, stating there are “serious concerns” that it may enable Alibaba to enhance its data models.
He argues that this could lead Apple to neglect the fundamental rights of Chinese iPhone users.
The close relationship between Alibaba and the Chinese government is central to US apprehensions. Greg Allen, director of the Wadhwani AI Center at the Center for Strategic and International Studies, notes that there is a competitive AI race between the US and China.
Allen emphasizes that American firms should not afford a competitive edge to Chinese AI enterprises in this fast-evolving sector.
Reports indicate that Apple executives have been approached by officials from both the White House and the House of Representatives for further clarification on the partnership, particularly its potential implications for user data and advanced AI models.
Additionally, US officials have discussed the possibility of adding Chinese AI firms, including Alibaba, to a list of restricted companies banned from collaborating with US entities.
Apple is reportedly also exploring partnerships with other Chinese AI firms, including Tencent, DeepSeek, and Baidu.