Apple’s potential plan to partner with Alibaba to bring Apple Intelligence to its products in China is raising eyebrows in Washington.
Officials from both Congress and the White House have expressed concerns about plans Apple has to partner with Chinese commerce giant Alibaba to bring Apple Intelligence to China. The company sees such a deal as crucial to remaining competitive there.
A report from The New York Times notes that China accounts for about 20 percent of Apple’s total sales. The company will require a partnership with an AI provider in China in order to compete against China’s own smartphone companies.
Officials in the US are worried that such a deal would help China become even more competitive against US AI companies. Any agreement would likely obligate Apple to further follow Chinese laws that promote censorship and user data-sharing with the government there.
Meanwhile, Apple is under considerable pressure to boost sales of the iPhone in China. Adding Apple Intelligence features is key to that objective.
The company is expected to launch the iPhone 17 lineup in the fall. It will need to bring its AI features to China as part of that rollout.
US government looks closely at Apple’s China ties
Representative Raja Krishnamoorthi of Illinois, the ranking Democrat on the House Permanent Select Committee on Intelligence, is among those who have expressed concerns with the deal. He said that there are “serious concerns” that the partnership will help Alibaba collect data to refine its models.
At the same time, Krishnamoorthi insists this allows Apple to “turn a blind eye” to the fundamental rights of Chinese iPhone users.
Alibaba’s close ties to the Chinese government are at the core of US concerns. According to Greg Allen, director of the Wadhwani AI Center at the Center for Strategic and International Studies, there is an AI race between the US and China.
Allen adds that there’s a view that American companies shouldn’t give Chinese AI firms an advantage in this emerging field.
Apple executives have reportedly been contacted by officials from both the White House and the House of Representatives for more information about the deal. They have apparently been asked whether such a deal would give Chinese companies access to user data or advanced AI models.
US officials have also considered adding Chinese AI companies, including Alibaba, to a list of restricted companies that are not allowed to work with US-based companies.
Apple is also allegedly considering deals with other Chinese AI companies, including Tencent, DeepSeek, and Baidu.