American lawmakers have expressed growing concern over a reported agreement between Apple Inc. and Chinese technology conglomerate Alibaba Group involving the integration of Alibaba’s artificial intelligence systems into iPhones sold within mainland China.
The development, first reported by The New York Times on 19 May, has triggered scrutiny from both the White House and key congressional committees.
According to sources cited by The New York Times, the administration of President Donald Trump, along with members of the House Select Committee on the Chinese Communist Party, have initiated inquiries into the nature and scope of the partnership. Their primary focus is to determine what data may be transmitted to Alibaba, and whether Apple is under any binding obligations to Chinese regulatory authorities as a result of the arrangement.
Thus far, Apple has reportedly declined to answer the bulk of these questions. The company has not issued any public comment confirming or denying the existence of the AI partnership with Alibaba. Similarly, Alibaba has not responded to requests for clarification.
The use of artificial intelligence in smartphones is a fast-expanding field, particularly in the context of virtual assistants, image recognition, and predictive services. Apple has previously relied on its proprietary AI systems such as Siri, integrated into its iOS operating system. The reported collaboration with Alibaba would mark a notable deviation from its traditional approach, raising questions about the extent to which Apple is willing to localise its services to accommodate Beijing’s regulatory and technological environment.
Representative Raja Krishnamoorthi, the top Democrat on the House Intelligence Committee, issued a formal statement in response to the reports. He described Alibaba as “a prime example of the Chinese Communist Party’s military–civil fusion strategy,” a reference to Beijing’s policy of leveraging private sector innovation for both civilian and military purposes. Krishnamoorthi further expressed “serious concern over Apple’s lack of transparency” regarding the alleged agreement, and called for further scrutiny.
Concerns centre on whether sensitive user data, including voice inputs, location information, and behavioural analytics, could be accessed by Chinese authorities through Alibaba’s involvement in Apple devices. Although Apple has maintained a firm stance on data privacy in Western markets, including high-profile disputes with the FBI over encryption, its policies in China have diverged due to the country’s legal and political requirements.
In recent years, Apple has taken several steps to comply with Chinese regulations, including hosting Chinese user data on servers operated by state-owned companies and removing certain applications from its App Store at the request of local authorities. The reported deal with Alibaba would appear to follow this pattern, potentially enhancing the functionality of Apple products in the Chinese market, while simultaneously raising red flags in Washington.
The scrutiny comes at a time of renewed tensions in US–China relations, particularly in the fields of technology and national security. American officials have grown increasingly vocal about the strategic risks posed by Chinese tech companies, especially those perceived to be aligned with state policy objectives. Alibaba, while technically a private enterprise, has long faced allegations of close coordination with Chinese governmental initiatives, particularly in fields related to data management and artificial intelligence.
The House Select Committee on the CCP, formed to monitor Beijing’s global influence and activities, has made technological cooperation between US and Chinese firms a central focus of its work. Lawmakers on both sides of the aisle have warned that partnerships involving advanced computing technologies and user data must be carefully vetted to avoid inadvertent compliance with foreign intelligence services.
While the reported Apple–Alibaba arrangement appears to be limited to the Chinese market, its implications may be broader. If elements of the AI system require communication with cloud infrastructure controlled by Alibaba, questions arise regarding how such communication is isolated geographically and whether there is potential for cross-border data exposure.
The development also coincides with wider debates over the role of AI in consumer electronics, and the increasing geopolitical significance of control over data. The Biden administration, prior to Trump’s return to office in January 2025, had issued executive orders aimed at regulating outbound investment in sensitive technologies, and restricting certain exports related to semiconductors and AI platforms. The Trump administration is expected to continue, and possibly expand, such initiatives.
As of now, neither the Department of Commerce nor the Office of the United States Trade Representative has announced formal action regarding the Apple–Alibaba deal. However, congressional aides familiar with the issue have confirmed that additional briefings and potentially public hearings are under consideration.
If confirmed, the partnership would represent a rare instance of a major US technology company embedding foreign AI into its core products, albeit within a regional market. Given the broader strategic competition between Washington and Beijing, the issue is likely to remain under close observation.
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