Apple is pushing ahead with artificial intelligence in China by partnering with Alibaba, but Washington is raising alarms. U.S. officials fear the deal gives Beijing access to American tech advantages and compromises user privacy. The concern cuts deeper than trade as it touches national security and rising geopolitical tensions.
Apple hasn’t publicly confirmed the deal, but Alibaba’s chairman, Joe Tsai, acknowledged it in February. The partnership is intended to bring generative AI to Chinese iPhones, matching capabilities already available in U.S. models through Apple’s alliance with OpenAI. But Apple’s need for a local partner to comply with China’s strict data and censorship rules has triggered fresh scrutiny from the White House and Congress.
Washington Pushes Back
Officials from the Trump administration and lawmakers on Capitol Hill are pressing Apple for answers. According to The New York Times, three sources familiar with the discussions say U.S. agencies are examining whether the deal helps China enhance its AI capabilities, especially in military or surveillance applications.
The White House and the House Select Committee on China have questioned Apple executives directly, asking what data will be shared with Alibaba and whether any legal concessions were made to Chinese regulators. Apple reportedly struggled to provide answers during a March meeting.
Representative Raja Krishnamoorthi criticized Apple’s silence. “Alibaba is a poster child for the Chinese Communist Party’s military-civil fusion strategy,” he said, warning that the partnership could let Alibaba refine its AI systems with iPhone user data.
Stakes Are High for Apple
China represents nearly 20% of Apple’s global sales. Falling behind domestic competitors like Huawei and Xiaomi in AI could shrink that share further. Apple Intelligence, launched last year, includes features such as smarter notifications and a more capable Siri. Without a local AI engine, Chinese users will see a downgraded experience.
As reported by The New York Times, U.S. defense and intelligence agencies are reviewing Alibaba’s links to the Chinese military. Washington is also considering adding Chinese AI firms to restricted trade lists, which could block deals like Apple’s.
Despite the pressure, Apple is betting that Alibaba’s reach and regulatory standing will help it survive in China’s tightly controlled tech landscape. But the backlash from Washington shows the growing cost of balancing global markets with national interests.