Apple And Alibaba's AI Launch In China Delayed By US-China Trade Tensions, Regulatory Hurdles

Apple and Alibaba are facing regulatory delays in launching their AI partnership in China due to Beijing withholding approval amid U.S.-China trade tensions, according to the Financial Times. The tech giants submitted several co-developed AI products for Apple Intelligence services to China’s Cyberspace Administration earlier this year, but the approval process has stalled amid growing geopolitical tensions. Apple’s AI rollout delay coincides with a sharp decline in its market share in China’s premium smartphone segment. International Data Corporation data shows Apple’s share fell from 70% in early 2023 to 47% in the first quarter of 2025, while Huawei rose from 13% to 35%. China’s regulations requiring foreign firms to partner with domestic companies for AI services led Apple to choose Alibaba after considering Tencent and ByteDance. Apple and Alibaba did not immediately respond to Benzinga's request for comment.