Apple’s special choice for the Chinese market with Apple Intelligence brought diplomatic and strategic debates in the USA. The company turned to a different local partner in this country, as OpenAI did not operate in China. As a result of the evaluations, Alibaba’s open source intelligence model Qwen is claimed to have an agreement. Although Apple has not yet officially confirmed this cooperation, the Alibaba administration made indirect statements in this direction.
Apple’s artificial intelligence strategy in China has also entered the radar of the US government’s senior institutions. According to Reuters and The New York Times, the White House officials and the Chinese Election Committee of the US House of Representatives in contact with Apple’s executives. During the talks, Chinese laws were recalled by companies that they have the right to access user data, and under these circumstances, the commitments were questioned. In particular, the Chinese government’s dominant attitude towards data control emphasizes the security risks that this agreement may cause.
Some US politicians oppose this cooperation with harsh expressions. Raja Krishnamoorthi, who was in charge of the Intelligence Committee of the House of Representatives, described Apple’s work with a technology company close to the Chinese Communist Party. According to him, such a cooperation means that American companies indirectly develop China’s artificial intelligence capacity. Such criticism also reminds us of discussions that have previously led Tiktok to be banned in the United States.
US officials evaluate taking steps to restrict Alibaba
Along with the White House, the US Department of Defense and intelligence institutions also focused on Alibaba’s connections with the Chinese army. Backstage information, Alibaba and similar Chinese artificial intelligence firms to prohibit business with American companies, a new list of sanctions on the agenda said. This kind of step can affect not only Apple, but also other major technology companies working with the USA. In terms of companies, it becomes more and more difficult to comply with local regulations in a giant market like China and to balance against international political pressures.
Apple is trying to produce special solutions to this market in order to maintain its existence in China. In recent years, iPhone sales have entered a serious decline in China. In particular, the increasing competition of local producers such as Huawei weakens Apple’s position in this market. Apple Intelligence’s effort to find an artificial intelligence partner suitable for local regulations in order to commission in China is also seen as a critical move.
However, Apple’s privacy -oriented technological approach contradicts China’s strict data control policies. According to Chinese laws, companies in the country are obliged to share user data if the state demands. This creates serious contradictions for companies based on the privacy of user data such as Apple. It is still unclear how to manage users’ data and how clear this process will be clear to international audits.
Apple has continued its activities in China as quietly and stable as possible. However, this latest development shows that the company’s strategies in China will now be under the supervision of more public opinion and politics. While new iPhone models are expected to be introduced in autumn, there is no clear information about when and with what functions of Apple Intelligence will be available in China. This uncertainty makes Apple’s position in the market even more complex.