A controversy has erupted over a deal between Apple and Alibaba, where Alibaba-powered AI features would be integrated into iPhones sold in China. The White House and congressional officials are questioning the terms of the agreement, specifically what data would be shared with Alibaba and whether Apple has made commitments to Chinese regulators.
Representative Raja Krishnamoorthi called Alibaba “a poster child for the Chinese Communist Party’s military-civil fusion strategy,” describing the deal as “extremely disturbing” due to Apple’s lack of transparency. The deal, confirmed only by Alibaba, adds to Apple’s existing challenges with tariffs imposed on its products amid rising tensions between the US and China.
Source: https://techcrunch.com/2025/05/18/u-s-lawmakers-have-concerns-about-apple-alibaba-deal