The rollout of artificial intelligence services by Apple and Alibaba in China is facing delays due to scrutiny from a Beijing regulator, according to a report by the Financial Times. This setback exemplifies the challenges that partnerships are currently experiencing amidst the ongoing trade tensions instigated by US President Donald Trump.
In February, the two technology giants announced a collaboration aimed at enhancing AI services for iPhones in China, an initiative anticipated to assist Apple in revitalizing its smartphone sales within this pivotal market.
However, their applications have encountered hold-ups at the Cyberspace Administration of China (CAC), as reported by FT, citing sources familiar with the developments. This delay is attributed to the escalating geopolitical tensions between China and the US.
AI functionalities hold significant importance in China, with consumer-oriented AI products mandating approval from regulatory bodies.
Both Apple and Alibaba did not respond immediately to inquiries from Reuters, and the CAC was also unavailable for comment.
The postponement in launching these AI features could be detrimental to Apple, which is already grappling with diminishing iPhone sales in China amid stiff competition from domestic companies, particularly Huawei, which has incorporated DeepSeek’s AI models into its cloud offerings and devices.
Industry experts have highlighted that the lack of advanced AI capabilities—a crucial aspect for the latest smartphone models—poses a considerable disadvantage for Apple in the Chinese landscape.
Additionally, Apple has been slow to introduce Apple Intelligence, a suite of features that include access to ChatGPT, leaving many sophisticated AI tools in the hands of competing Android smartphones.
In late May, Trump announced that Apple would incur a 25 percent tariff on iPhones that are sold in the United States but are not manufactured domestically.
The company is set to host its Worldwide Developers Conference (WWDC) from June 9 to June 13, where it will showcase updates to the software used in iPhones, iPads, and other Apple devices.
© Thomson Reuters 2025
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
