The launch of artificial intelligence services by Apple and Alibaba in China is experiencing delays due to scrutiny from a Beijing regulatory body, according to a report by the Financial Times published on Wednesday. The partnership’s progress has suffered amid the ongoing trade tensions initiated by U.S. President Donald Trump.
In February, the two tech giants announced a collaboration aimed at enhancing AI services for iPhones in China, a strategic move that was expected to assist Apple in countering declining smartphone sales in this crucial market.
However, the approval process for their applications is currently stalled at the Cyberspace Administration of China (CAC), as reported by FT, citing sources familiar with the situation. This slowdown is largely attributed to the increasing geopolitical tensions between China and the United States.
The importance of AI features in China cannot be overstated, with consumer-facing AI products necessitating regulatory approval before they can be released to the public.
Neither Apple nor Alibaba provided immediate comments in response to inquiries from Reuters, and the CAC was also unavailable for immediate contact.
Should the rollout of these AI features experience further delays, it could significantly impact Apple, which is facing reduced iPhone sales in China due to intensified competition from local companies. Huawei, for instance, has incorporated DeepSeek’s AI models into its cloud offerings and devices, presenting a formidable challenge.
Industry experts have highlighted that the lack of advanced AI functionalities—critical selling points in contemporary smartphones—places Apple at a disadvantage in the Chinese marketplace.
Furthermore, Apple has been relatively slow to introduce its Apple Intelligence suite, which includes features leveraging ChatGPT, while several advanced AI tools are already available on competing Android devices.
In late May, Trump announced that Apple would incur a 25 percent tariff on iPhones sold in the United States that were not manufactured domestically.
Apple’s Worldwide Developers Conference (WWDC) is scheduled for June 9 to 13, during which the company will showcase updates to the software that powers its iPhones, iPads, and other devices.
© Thomson Reuters 2025
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