Apple’s much-anticipated launch of Apple Intelligence in China has been indefinitely delayed as the company’s AI partnership with Alibaba faces regulatory roadblocks tied to the intensifying trade war between the United States and China, according to a new report.
Trade tensions stall Apple Intelligence rollout in China
Apple has been working closely with Chinese e-commerce leader Alibaba to bring its suite of generative AI features to iPhones in the critical Chinese market. But their joint applications remain stuck in regulatory limbo at China’s Cyberspace Administration (CAC). The delays stem from “increasing political uncertainties” between the two nations as President Donald Trump’s trade policies continue to strain bilateral relations, according to Financial Times.
Trade war impacts tech partnerships
The regulatory holdup comes as Trump’s administration significantly escalated tariffs on Chinese goods, with some fees reaching as high as 145 percent in April. While Apple received exemptions from certain tariffs as well as a 90-day pause, the broader trade conflict continues to intensify.
China recently accused the United States of “severely violating” a trade agreement reached in Geneva by restricting sales of jet engine and semiconductor design software to Chinese companies, controlling chip exports and canceling visas for Chinese students. In response, Trump announced plans to raise steel tariffs back to 50 percent and criticized Chinese President Xi Jinping as “very tough” and “extremely hard to make a deal with.”
Regulatory requirements force Apple’s hand
Chinese regulations prevent Apple from using its own AI technology for Apple Intelligence within the country, forcing the company to rely on locally developed models from partners like Alibaba. This requirement has already contributed to delays in expanding Apple Intelligence to China. That leaves the iPhone maker at a significant disadvantage in one of its most important markets.
Meanwhile, Chinese smartphone manufacturers including Huawei and Xiaomi have already deployed comprehensive AI feature suites for their customers. That widens the competitive gap as Apple waits for regulatory approval.
Potential complications ahead
The situation could challenge Apple even if the Trump administration follows through on reported considerations to place Alibaba, Tencent and Baidu on an entity list, preventing them from engaging in trade with the US. Such a move would severely complicate Apple’s efforts to bring Apple Intelligence to Chinese users through local partnerships.
Industry rumors suggested Apple planned to debut Apple Intelligence in China through an iOS 18.6 update. But the timing remains uncertain given the ongoing approval delays. The regulatory standoff represents a significant setback for Apple’s AI ambitions in a market where artificial intelligence features are increasingly becoming a key differentiator for smartphone buyers.
