Apple and Alibaba's AI Launch in China Stalled Amid Trade Tensions

Apple and Alibaba’s rollout of artificial intelligence services in China has been delayed by Beijing regulators, according to the Financial Times, as geopolitical tensions between China and the United States continue to impact cross-border tech partnerships.

Credit: APPLE

The companies announced a deal in February to support AI features on iPhones in China, aiming to boost Apple’s performance in a market where its smartphone sales have been declining.

However, their applications have been stalled at the Cyberspace Administration of China (CAC), the Financial Times reported, citing two people familiar with the matter.

AI features are particularly important in China, where consumer-facing AI products require regulatory approval before launch.

The delay could be costly for Apple, which is facing increasing competition from domestic brands such as Huawei. Huawei has already integrated DeepSeek’s AI models into its cloud services and devices.

Industry analysts have noted that the lack of advanced AI features has become a major disadvantage for Apple in China, especially as AI tools are a key selling point in the latest-generation smartphones.

Apple has also been slow to roll out Apple Intelligence, a suite of features that includes access to ChatGPT, while many Android smartphones already offer similar or more advanced AI capabilities.

In late May, former U.S. President Donald Trump said Apple would face a 25% tariff on iPhones sold in the United States but not manufactured domestically.

Apple is set to host its Worldwide Developers Conference (WWDC) from June 9 to 13, where it will unveil updates to the software powering iPhones, iPads and other devices.

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• Apple and Alibaba’s AI rollout in China delayed by Beijing regulators

• Cyberspace Administration of China has not approved the application

• Delay comes amid rising U.S.-China trade tensions

Source: REUTERS