<div id="readability-page-1"><div><div><div><p><strong>Apple Inc. </strong><span>AAPL</span> and <strong>Alibaba Group Holding Ltd – ADR</strong> <span>BABA</span> are facing regulatory delays in launching their artificial intelligence partnership in China, as Beijing withholds approval amid complex U.S.-China trade dynamics.</p><p><strong>What Happened:</strong> The tech giants submitted multiple AI products co-developed for Apple Intelligence services to China’s Cyberspace Administration this year, but applications remain stalled due to increasing geopolitical uncertainties, reported the Financial Times, citing sources.</p></div><p>Apple’s AI rollout delay comes as the company battles declining market share in China’s premium smartphone segment. International Data Corporation data shows Apple’s high-end market share dropped from 70% in early 2023 to 47% in the first quarter of 2025, while<strong> Huawei Technologies</strong> climbed from 13% to 35%.</p><p>The partnership represents Apple’s second attempt at AI integration in China after its collaboration with <strong>Baidu Inc. </strong><span>BIDU</span> failed to meet expectations. </p><p>China requires international companies to partner with domestic firms for AI services, prompting Apple to team with Alibaba after exploring options including <strong>Tencent Holdings Ltd. </strong><span>TCEHY</span> and <strong>ByteDance</strong>.</p><p>Apple and Alibaba did not immediately respond to Benzinga's request for comment.</p><p><strong>Latest Startup Investment Opportunities</strong>:</p><div><div><div><div><div><div><ul><li><div><div><p><span><img src="https://imageproxy.pbkrs.com/https://cdnwp-s3.benzinga.com/wp-content/uploads/2025/01/06125138/IMG_5682-edited.jpeg/query-YXV0bz13ZWJwJmF1dG89d2VicCZkcHI9MSZkcHI9MiZvcHRpbWl6ZT1tZWRpdW0md2lkdGg9MTA4MD9vcHRpbWl6ZT1tZWRpdW0md2lkdGg9Mzg0MA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1000" height="563" original-src="https://imageproxy.pbkrs.com/https://cdnwp-s3.benzinga.com/wp-content/uploads/2025/01/06125138/IMG_5682-edited.jpeg/query-YXV0bz13ZWJwJmF1dG89d2VicCZkcHI9MSZkcHI9MiZvcHRpbWl6ZT1tZWRpdW0md2lkdGg9MTA4MD9vcHRpbWl6ZT1tZWRpdW0md2lkdGg9Mzg0MA"/></span></p></div><div><div><p><span></span></p><div><div><div><p><span>Min. Investment</span><span>$1,000</span></p><p><span>Industry</span><span>AI</span></p></div></div></div>Get Offer <p></p></div></div></div></li><li><div><div><p><span><img src="https://imageproxy.pbkrs.com/https://cdnwp-s3.benzinga.com/wp-content/uploads/2025/01/12011752/Screenshot-2025-01-11-at-10.17.30%E2%80%AFPM.jpg/query-YXV0bz13ZWJwJmRwcj0yJm9wdGltaXplPW1lZGl1bSZ3aWR0aD0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="7680" height="4130" original-src="https://imageproxy.pbkrs.com/https://cdnwp-s3.benzinga.com/wp-content/uploads/2025/01/12011752/Screenshot-2025-01-11-at-10.17.30%E2%80%AFPM.jpg/query-YXV0bz13ZWJwJmRwcj0yJm9wdGltaXplPW1lZGl1bSZ3aWR0aD0zODQw"/></span></p></div><div><div><p><span></span></p><div><div><div><p><span>Min. Investment</span><span>$974</span></p><p><span>Industry</span><span>Tech</span></p></div></div></div>Get Offer <p></p></div></div></div></li></ul></div></div></div></div></div></div><p><strong>Why It Matters: </strong>President <strong>Donald Trump</strong>‘s trade policies have particularly impacted Apple, with threats of 25% tariffs on devices unless manufacturing returns to the U.S. Despite this pressure, Apple continues expanding its India operations through <strong>Foxconn</strong> with a $1.5 billion investment.</p><p>The CAC typically approves AI models through official testing and has cleared over 300 domestic models. However, US-related partnerships now face extended review periods requiring State Council approval, according to the report, which is engaged in ongoing trade negotiations.</p><p><strong>Read Also:</strong></p><ul> <li><strong>Steve Ballmer Says He ‘Didn’t Speak’ To Bill Gates For A Year After Becoming Microsoft Chief: Reveals Power Struggle And Rift Over ‘Real CEO’ Role</strong></li> </ul><p><em>Image via Shutterstock</em></p></div></div></div>

<p>Apple Inc. and Alibaba Group are experiencing delays in launching their AI partnership in China due to regulatory hurdles amid U.S.-China trade tensions. Their AI product applications are stalled as Beijing withholds approval, impacting Apple's market share in China's premium smartphone segment. This partnership follows a previous unsuccessful collaboration with Baidu. The delays are exacerbated by trade policies and require extended review periods for U.S.-related partnerships. Despite these challenges, Apple is investing in India operations.</p>

- Apple Inc. and Alibaba Group are experiencing regulatory delays in their AI partnership in China due to U.S.-China trade tensions.  
- The companies submitted AI products for approval, but applications are stalled amid geopolitical uncertainties, impacting Apple's market share in China's premium smartphone segment.  
- Apple's previous AI collaboration with Baidu failed, leading to this partnership with Alibaba, while ongoing trade negotiations complicate the approval process for U.S.-related partnerships.

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Apple And Alibaba's AI Launch In China Delayed By US-China Trade Tensions And Regulatory Hurdles: Report