Apple’s efforts to expand artificial intelligence capabilities in China have hit a political roadblock. U.S. lawmakers are voicing serious concerns over the company’s decision to partner with Alibaba Cloud to power AI features on iPhones sold in China.
While the deal could help Apple stay competitive in one of its most important markets, critics argue that the partnership could risk user data privacy and raise national security issues.
Why Apple Turned to Alibaba in China
Generative AI is one of the most competitive tech battlegrounds today, and Apple has been working to catch up. In markets outside China, Apple is reportedly in talks with companies like OpenAI and Google to integrate their AI models into iOS features.
However, Chinese regulations around data privacy and cloud computing require international companies to use local providers when handling data or deploying certain cloud services. As a result, Apple chose to team up with Alibaba Cloud, one of China’s largest tech providers, to deliver its AI-powered features locally.
Lawmakers Concerned About Data and National Security
This strategic move hasn’t gone unnoticed in Washington. Members of Congress and senior officials have begun asking tough questions about what the deal means for American technology interests and user privacy.
Representative Raja Krishnamoorthi, a senior Democrat on the House Intelligence Committee, said he found the situation “extremely disturbing.” He cited concerns about Alibaba’s close alignment with the Chinese government and its role in China’s broader military-civil fusion strategy.
Apple executives reportedly struggled to give lawmakers clear answers about how the company would manage user data and comply with Chinese rules while still protecting customer privacy. This lack of transparency has fueled suspicion and triggered bipartisan calls for further scrutiny.
Apple Remains Quiet, While Alibaba Confirms Deal
Interestingly, while Alibaba confirmed the partnership back in February, Apple has remained silent publicly. This silence has only added to the unease in Washington, especially as tensions between the U.S. and China continue to grow across multiple fronts—from trade and tariffs to semiconductor restrictions and global tech leadership.
Apple has long walked a delicate line in China. The country accounts for nearly 20% of its total revenue, and the company relies heavily on Chinese manufacturing partners. But that relationship has grown more complicated as geopolitical tensions rise and domestic Chinese competitors, such as Huawei and Xiaomi, make aggressive moves in the smartphone and AI sectors.
What This Means for the Future of AI in Global Tech
The Apple-Alibaba deal highlights the challenges global tech companies face when navigating strict local regulations in countries like China. It also reveals the growing pressure on U.S. firms to clarify how they handle data, partnerships, and national security concerns abroad.
For Apple, this may be just the beginning of a deeper conversation around transparency, trust, and the trade-offs of operating in different regulatory environments. As AI becomes more embedded in our daily devices, the scrutiny surrounding how and where these features are powered will only intensify.
