Delay in the launch of AI technologies by Apple and Alibaba in China due to the ongoing trade conflict instigated by President Trump, according to recent reports.
In a recent development, the rollout of Apple and Alibaba's artificial intelligence services in China is facing a delay, as reported by the Financial Times. This delay is attributed to regulatory pressures and geopolitical factors, particularly the ongoing trade tensions between the US and China.
Apple, which has been grappling with challenges in China, where its sales dropped by 2% in Q2 2025, is deeply invested in the country's manufacturing sector. The tech giant has invested around $20 billion over the past five years in smart and green manufacturing initiatives within China, and more than 80% of its major suppliers have factories in the country. However, the Cyberspace Administration of China (CAC) has been increasing controls over foreign technology companies, affecting Apple's ability to expand AI services and hardware sales seamlessly.
Apple's AI rollout includes the introduction of "Apple Intelligence," a generative AI platform integrated across iPhone, iPad, Mac, and Vision Pro products. However, the development of its large language models (LLMs) has experienced setbacks with the departure of key AI personnel to competitors like Meta.
Alibaba, another major Chinese tech giant, operates under the stringent regulations imposed by the CAC. China's regulations likely place compliance requirements that govern Alibaba's AI services rollout, balancing state security concerns with innovation. The US-China trade war, while primarily affecting hardware tariffs and chip exports, indirectly impacts Alibaba by limiting supply chains and access to foreign AI-related technologies potentially restricted under US export controls.
The US-China trade war, including tariff fluctuations and export controls, continues to indirectly influence both companies' AI service deployments and supply chains within China. Though tariffs on Chinese goods were drastically reduced from 145% to 30% by the Trump administration with a reciprocal Chinese response, these tariff adjustments provide only temporary relief in trade tensions. US export restrictions on high-end AI chips to China have hampered Chinese tech firms' access to advanced hardware, affecting the broader AI ecosystem in China, including companies like Alibaba.
This situation reflects a complex interplay of regulation by the Cyberspace Administration of China and geopolitical trade issues stemming from the Trump-era trade war, creating cautious yet ongoing engagement by Apple and Alibaba in AI progress within China. Readers can subscribe to a newsletter to receive the latest insights and analysis on this developing story.
The delay was reported on Wednesday, June 5, 2025. The applications for the AI services have been stalled at the Cyberspace Administration of China (CAC). The partnership between Apple and Alibaba was announced in February to support iPhones' AI services offering in China. The article is accessible on smartphones and is published on a website with a community of 2M+ industry professionals, providing industry-related news and analysis.
- The delay in Apple and Alibaba's artificial intelligence services rollout in China, as reported by the Financial Times, is primarily due to regulatory pressures and geopolitical factors, such as the ongoing trade tensions between the US and China.
- Apple, deeply invested in China's manufacturing sector, is facing challenges in expanding AI services and hardware sales due to increasing controls over foreign technology companies by the Cyberspace Administration of China (CAC).
- The tech giant has invested around $20 billion over the past five years in China for smart and green manufacturing initiatives, with more than 80% of its major suppliers having factories in the country.
- The US-China trade war, while primarily affecting hardware tariffs and chip exports, indirectly impacts both companies by limiting supply chains and access to foreign AI-related technologies potentially restricted under US export controls.
- The Cyberspace Administration of China (CAC) has been imposing stringent regulations on Alibaba, one of China's major tech giants, affecting its AI services rollout, balancing state security concerns with innovation.
- The delay in the partnership between Apple and Alibaba, announced in February to support Apple's AI services offering in China, has stalled applications at the Cyberspace Administration of China (CAC).
- Readers can stay updated on this developing story through a newsletter that provides insights and analysis on the intersection of technology, business, policy, and politics, including the impact of war-and-conflicts, policy-and-legislation, and general-news on the tech industry in China.
