Apple's AI push in China triggers U.S. national security concerns over Alibaba ties

As Apple gears up to expand its AI capabilities globally, its approach to the Chinese market is now under a growing spotlight in Washington, reported by The New York Times. Reports of a behind-the-scenes partnership with Alibaba have prompted national security concerns among U.S. officials, as fears mount over how such collaboration could intersect with China's military and intelligence apparatus.

Although Apple has remained silent on the matter, Alibaba’s chairman acknowledged earlier this year that the company was working with Apple to support AI infrastructure in China. That statement has drawn the attention of U.S. defense and intelligence agencies, who are currently evaluating the broader implications of Apple depending on Chinese tech firms to power AI services like Apple Intelligence.

The core issue revolves around data sovereignty and access. Under Chinese law, foreign tech firms must rely on approved local providers to operate cloud-based services. For Apple, that means it cannot deploy its U.S.-trained language models directly in China and must instead partner with domestic firms to deliver similar functionality. Officials are concerned this could give companies like Alibaba access to sensitive usage data or insights that could be used to strengthen China's AI systems.

Lawmakers are also weighing whether certain Chinese AI companies should face new restrictions, including potential trade bans. Representative Raja Krishnamoorthi criticized Apple’s lack of public explanation about its strategy, calling it troubling given Alibaba’s reported links to state institutions.

The situation underscores the difficult balance Apple faces between complying with China’s regulatory demands and maintaining trust in its global privacy and security standards. As Apple prepares to launch its next-generation iPhone with AI features built in, how it handles its China operations could have ripple effects far beyond its product line.