Apple Intelligence Rollout in China Stalled Amid US-China Trade Tensions

Reviewed byNidhi Govil

7 Sources

Apple's partnership with Alibaba to launch AI services in China faces regulatory hurdles due to escalating trade war between the US and China, potentially impacting iPhone sales in a key market.

Apple's AI Ambitions in China Hit Regulatory Roadblock

Apple's plans to introduce its artificial intelligence services, known as Apple Intelligence, in the Chinese market have encountered a significant setback. The tech giant's partnership with Alibaba, aimed at launching AI-powered features for iPhones in China, is facing delays due to regulatory hurdles amid escalating trade tensions between the United States and China 1.

Source: Financial Times News

Source: Financial Times News

Regulatory Challenges and Geopolitical Uncertainties

The Cyberspace Administration of China (CAC), the country's internet regulator, has stalled the approval process for AI products co-developed by Apple and Alibaba. This delay is attributed to increasing geopolitical uncertainties between China and the US, particularly in light of the ongoing trade war 2. The CAC approval process, which typically involves official testing of AI models, is mandatory for all companies seeking to offer generative AI services to the public in China.

Impact on Apple's Market Position

The delay in launching Apple Intelligence in China could potentially harm Apple's competitive position in a crucial market. Chinese smartphone manufacturers like Huawei, Xiaomi, Oppo, and Vivo already offer AI features to their customers, putting Apple at a disadvantage 3. Apple's market share in China's high-end smartphone market has already seen a decline, dropping from 70% at the start of 2023 to 47% in the first quarter of 2025, while Huawei's share has risen from 13% to 35% during the same period 2.

Trade War Implications

The delay is seen as a direct consequence of the trade war initiated by US President Donald Trump. Recent developments have seen tariffs on Chinese goods reach as high as 145%, although they were later paused for 90 days 4. The situation has further escalated with China accusing the US of violating a trade agreement reached in May, and Trump threatening to raise tariffs on steel back to 50% 4.

Source: MacRumors

Source: MacRumors

Apple's Strategy and Future Prospects

To comply with Chinese regulations, Apple has partnered with Alibaba to use their AI models for the Apple Intelligence suite in China. This collaboration was announced in February 2025 and was initially seen as a strategic move to help Apple ease falling smartphone sales in the Chinese market 1.

However, the partnership has attracted additional scrutiny from both Chinese and US authorities. The US Bureau of Industry and Security has expressed concerns about the collaboration, although it lacks legal means to block it 2. Meanwhile, there are reports that the Trump administration is considering placing Alibaba, along with other Chinese tech giants, on an entity list that would prevent them from engaging in trade with the United States 4.

Uncertain Timeline for Launch

Source: Economic Times

Source: Economic Times

While Apple had initially planned to introduce Apple Intelligence in China with an iOS 18.6 update, the timeline for this release is now uncertain due to the ongoing approval delays 4. The situation remains fluid, with the potential for quick approval if geopolitical tensions ease and the Chinese State Council gives its go-ahead 5.

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