Apple AI Launch in China Delayed Amid Approval Roadblocks and Trade Tensions [Report]

Apple's plans to launch its Apple Intelligence services in China, in collaboration with Alibaba, are reportedly facing delays due to regulatory hurdles in Beijing, according to a new report from the Financial Times. The partnership, intended to power Apple's AI suite with Alibaba's latest models for Chinese users, has seemingly become entangled in the ongoing trade tensions between the U.S. and China.

The two tech giants had submitted multiple co-developed AI products to China's Cyberspace Administration of China (CAC) for approval earlier this year. However, these applications are now stalled, with the Financial Times citing two people familiar with the matter who attribute the delay to increasing geopolitical uncertainties.

This development adds to the challenges Apple has faced, including pressure from U.S. President Donald Trump to shift manufacturing from China back to the United States. Last month, Trump threatened Apple and Samsung with at least a 25% tariff on devices not manufactured in the U.S. for American consumers. This came after he reportedly told Apple CEO Tim Cook he didn't want Apple building more plants in India for U.S.-bound products.


The delay in China could further impact Apple's competitiveness in the region, where it faces strong local rivals. An IDC report for Q1 2025 showed Apple's smartphone market share in China had declined.

All companies seeking to offer generative AI services to the public in China must undergo the CAC approval process, which typically includes official testing of AI models. While the CAC has approved over 300 domestic AI models, the Apple-Alibaba partnership has attracted heightened regulatory scrutiny amid the escalating trade tensions. One source indicated to the Financial Times that US-related deals, particularly in sensitive sectors like AI, are now facing longer review times in Beijing, with final clearance required from the State Council, which is also involved in the U.S.-China trade negotiations. The person added, however, that these delays could be subject to change and applications might be processed more quickly if the State Council gives its approval.

The U.S. Commerce Department's Bureau of Industry and Security has also reportedly expressed concerns about the partnership to both Apple and Alibaba, though it lacks a legal mechanism to block it.

In February, Alibaba Chairman Joe Tsai had confirmed the company would supply technology for Apple's AI-capable iPhones sold in China. Apple, Alibaba, the CAC, and the Chinese State Council did not respond to the Financial Times' requests for comment.


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