Overview

• Apple's agreement with Alibaba, confirmed in February 2025, aims to integrate Alibaba's AI services into iPhones sold in China.
• U.S. authorities are concerned the deal could enhance Alibaba's AI capabilities and expand the reach of censored Chinese chatbots.
• Lawmakers worry the partnership increases Apple's vulnerability to Beijing's censorship rules and data-sharing mandates.
• The White House and congressional committees are formally scrutinizing the agreement, with potential regulatory actions under consideration.
• The partnership reflects Apple's strategy to comply with Chinese regulations and address declining iPhone sales in the region.