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When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. China blocks Apple-Alibaba AI venture in retaliation for the US trade war Hamid Ganji Neowin @HamidGanji_ · Jun 5, 2025 05:28 EDT iPhones sold in China, Apple's second biggest market, still lack AI features. While Apple tried to solve the issue by forming an AI venture with China's e-commerce giant Alibaba, the move has faced setbacks from China's regulator, presumably to get back at the US trade war under the Trump administration. According to a new report by Financial Times, citing people familiar with the matter, Apple and Alibaba have been working on their AI venture over the past few months, hoping to bring some AI features to iPhones sold in China. However, the Cyberspace Administration of China hasn't approved the collaboration. "Apple's rollout of artificial intelligence services in China with Alibaba is being held up by a Beijing regulator, as the tech partnership becomes the latest casualty of Donald Trump's trade war. The tech giants have been working together to launch Apple Intelligence, the iPhone-maker's suite of AI services, for Chinese users. The system would be supported by Alibaba's latest models." Every new iPhone sold worldwide has built-in ChatGPT as a result of the Apple and OpenAI partnership. Since OpenAI has no official presence in China, Apple must partner with local tech companies like Alibaba to offer AI capabilities on iPhones sold in the country. The move could help Apple navigate China's regulatory restrictions, but it's now stalled due to the US-China trade war. The Cyberspace Administration of China doesn't publicly confirm whether halting the Apple-Alibaba AI venture is a response to the US trade war. Still, sources claim this is China's response to the recent tariff clash with the US. China also has a pretty solid record of retaliating against the US reciprocal tariffs. However, the Apple and Alibaba AI partnership also has some opponents in the US. Lawmakers and government officials in Washington have raised concerns about the AI deal. They fear that this collaboration could significantly bolster China's AI capabilities. Tags Report a problem with article Follow @NeowinFeed