The Financial Times revealed on Wednesday that the rollout of artificial intelligence services by Apple and Alibaba (9988.HK) in China has been put on hold by Chinese regulators, marking the latest setback stemming from the ongoing trade conflict initiated under U.S. President Donald Trump.
Earlier this year, the tech giants announced a collaboration to enhance AI-powered features on iPhones in China—a strategic move aimed at reviving Apple’s flagging smartphone sales in a fiercely competitive market. However, according to sources familiar with the situation cited by the FT, approval for these AI capabilities has been delayed by the Cyberspace Administration of China (CAC), reflecting the growing geopolitical friction between Beijing and Washington.
In China, consumer-facing AI technologies require regulatory clearance, and these hold particular importance given the rapid rise of AI in everyday digital experiences. Neither Apple nor Alibaba responded immediately to Reuters’ requests for comment, and attempts to reach the CAC were unsuccessful.
This postponement could prove costly for Apple, which is already struggling with falling iPhone sales amid intensifying rivalry from Chinese manufacturers—especially Huawei, which has integrated DeepSeek’s AI models into its cloud and device ecosystems. Experts highlight that the lack of cutting-edge AI features, a critical attraction in the latest smartphone models, puts Apple at a competitive disadvantage in China.
Moreover, Apple has been relatively slow to introduce “Apple Intelligence,” its suite of AI functions incorporating ChatGPT capabilities, compared to the broader range of AI-powered tools now available on many Android devices.
Adding to the pressure, Trump announced in late May that Apple would face a 25% tariff on iPhones sold in the U.S. but manufactured abroad, further complicating the company’s position.
Apple is set to host its Worldwide Developers Conference (WWDC) from June 9 to 13, where it is expected to unveil software updates that power its devices, including new AI features—although the China rollout remains uncertain.