The Trump administration and congressional officials have raised concerns about a deal between Apple and Alibaba that would bring Alibaba-powered AI features to iPhones sold in China, according to The New York Times.
The NYT also claimed that White House officials and members of the House Select Committee on China have asked Apple executives directly about the deal, with questions focused on what data would be shared with Alibaba and whether the company was making any commitments to Chinese regulators. The executives were reportedly unable to answer most of those questions, according to anonymous sources.
READ: Trump’s tariffs make Apple lose ‘most valuable company’ title (April 9, 2025)
Apple reportedly has plans to partner with Chinese e-commerce platform Alibaba to roll out artificial intelligence features for iPhone users in China. This has been seen as a strategic move aimed at strengthening Apple’s position in China. By leveraging Alibaba’s AI expertise, Apple can offer advanced functionalities that meet the unique needs of Chinese users, making the iPhone more competitive against local brands like Huawei and Xiaomi. This partnership also makes it easier for Apple to deal with China’s strict AI regulations, which can be challenging for foreign companies to navigate. This deal — which is a big win for Alibaba, which is operating in a highly competitive AI market with rivals including DeepSeek — has been confirmed by Alibaba, but not by Apple.
Rep. Raja Krishnamoorthi, the ranking Democrat on the House Permanent Select Committee on Intelligence, described Alibaba as “a poster child for the Chinese Communist Party’s military-civil fusion strategy” and said it was “extremely disturbing” that Apple had “not been transparent about its agreement,” in a statement.
The U.S. administration is reportedly concerned about how this deal would help a Chinese company to improve its artificial intelligence capacities, broaden the reach of Chinese chatbots with censorship limits and deepen Apple’s exposure to Beijing laws over censorship and data sharing.