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Home » Apple-Alibaba AI Deal Raises Data Security and Regulatory Concerns

Apple-Alibaba AI Deal Raises Data Security and Regulatory Concerns

May 27, 2025
in China, News, Regulation
Reading Time: 2 mins read
Apple AI

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Apple recently decided to partner with Alibaba, one of China’s biggest tech companies, to bring AI features to iPhones sold in China. This move helps Apple follow China’s rules, which require foreign companies to use Chinese-made AI models when offering AI-based services in the country.

Apple first tried to work with Baidu, another Chinese AI company, but those talks failed. So, Apple explored other options like Tencent and ByteDance before finally choosing Alibaba. Apple made this choice because it needed to stay competitive in China, where local smartphone brands already offer advanced AI tools approved by the government.

To get the green light from Chinese regulators, Apple and Alibaba submitted their AI technology for official review. This step is necessary in China to make sure the AI follows local laws and content guidelines. But this also raises concerns about what kind of data Apple might have to share and what changes it had to make in its technology to meet these rules.

Consent Foundation

While Alibaba confirmed the partnership, Apple has stayed quiet about the deal’s details. Still, the news quickly caught the attention of U.S. lawmakers and government agencies. They are worried that user data from iPhones in China could be accessed by Chinese authorities.

Representative Raja Krishnamoorthi, a top Democrat on the House Intelligence Committee, criticized Apple. He said Alibaba has strong ties to the Chinese government and military. He also accused Apple of not being transparent about how this deal might affect data privacy and security.

The U.S. government is now investigating the Apple-Alibaba partnership. Officials want to know whether Apple is risking American intellectual property or user data by complying with China’s demands. This case reflects the growing tech conflict between the U.S. and China, especially around data sovereignty and supply chains.

Industry experts believe this deal could impact future global tech partnerships. It might force other Western companies to rethink how they work in countries with strict digital laws.

For Apple, this is more than a sales strategy—it’s a delicate balancing act between two powerful countries. Apple must follow China’s rules to sell iPhones there, but it also faces pressure from the U.S. to protect user data and national interests.

Also Read: Microsoft Teams Collects Students’ Biometric Data for Weeks, NSW Education Unaware

Tags: AI PrivacyData securityTech giantsTechnology

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