Apple is fighting to stay relevant in China and AI may be its biggest weapon
Apple is turning to AI to regain its footing in China, where local smartphone rivals are racing ahead with smarter devices. With Alibaba's help, the iPhone maker is now training its own China-specific AI model as it prepares to bring Apple Intelligence to the market.
For Apple, AI is no longer just about making Siri smarter or adding a few new features to the iPhone. In China, AI has become part of a much bigger battle — one that could determine how competitive Apple remains in one of its most important markets. The company is now taking a big step in that fight. Apple has trained a large language model specifically for China with support from Alibaba, according to people familiar with the matter who spoke to Reuters. The move suggests Apple wants more control over the AI experience on its devices instead of depending entirely on models developed by Chinese technology companies.
That matters because Apple is playing by a different set of rules in China. In markets such as the US, Apple can use technology from companies including OpenAI to power parts of Apple Intelligence. Chinese users, however, cannot access services such as ChatGPT and Anthropic's Claude. That has left Apple with little choice but to work with local AI companies to bring its AI features to Chinese consumers. Now, the company appears to be trying to build something of its own.
Why AI has become so important for Apple in China
Apple's China problem is not simply that its AI features arrived late. The bigger issue is that local smartphone makers have been moving quickly to make AI a visible part of the phone experience. Huawei and other Chinese brands have been adding AI assistants and other intelligent features to their devices, giving consumers reasons to look beyond the iPhone. Apple, meanwhile, has been unable to offer Apple Intelligence on Chinese iPhones while it worked through regulatory requirements.
That puts Apple in an uncomfortable position. It is competing against companies that can move quickly with locally developed AI while its own AI rollout has been held back by the rules governing generative AI in China. This is why Apple's latest move is important. A China-specific model could allow Apple to have greater control over the AI experience while also giving it more room to adapt its features to local requirements. Instead of simply taking an existing model and putting it into an iPhone, Apple can potentially build the technology around the needs and restrictions of the Chinese market.
The exact role of this model is still unclear. It is not known how much of Apple Intelligence will use Apple's own model and how much will continue to depend on Alibaba's Qwen or other local AI technology.
Alibaba is still a key part of Apple's China strategy
Apple's decision to develop its own model does not mean it is walking away from Chinese AI companies. Alibaba remains central to the company's plans. Its Qwen model is expected to be incorporated into the China version of Apple Intelligence, while Apple has also been reported to be working with Baidu on its AI technology.
The Apple-Alibaba relationship dates back to February 2025, when Alibaba chairman Joe Tsai confirmed that the two companies were working together. He said Apple had considered several Chinese companies before choosing Alibaba. The rollout has taken longer than expected, largely because Apple has had to adapt its AI features to China's regulatory requirements. That process appears to have reached an important milestone. China's Cyberspace Administration recently registered Apple's generative AI service, clearing a major hurdle for Apple Intelligence to finally reach Chinese users.
Apple even briefly published a Chinese-language guide explaining how eligible Mac users could connect Alibaba's Qwen model to features such as Siri and Writing Tools. The company later removed the guide without giving a reason.
Apple needs an AI comeback
China remains too important a market for Apple to treat AI as an optional extra. The company has been under pressure from domestic smartphone brands, while the lack of Apple Intelligence has made the iPhone look increasingly behind the curve in a market where AI features are becoming a major selling point. Getting Apple Intelligence into China could therefore do more than add new functionality to the iPhone. It could help Apple make its devices feel competitive again. That explains why the company appears willing to pursue a more complicated AI strategy: Alibaba and other Chinese partners can help Apple navigate the local market, while Apple's own model could give it greater control over the experience.
There is also a larger geopolitical dimension. Apple is attempting to build and deploy proprietary AI technology in China at a time when Washington and Beijing remain locked in a wider technology and trade rivalry. If Apple's China-specific model receives the required approvals, the company could become the first foreign firm allowed by Beijing to offer its own proprietary AI model in the country.
For Apple, AI is no longer just about making Siri smarter or adding a few new features to the iPhone. In China, AI has become part of a much bigger battle — one that could determine how competitive Apple remains in one of its most important markets. The company is now taking a big step in that fight. Apple has trained a large language model specifically for China with support from Alibaba, according to people familiar with the matter who spoke to Reuters. The move suggests Apple wants more control over the AI experience on its devices instead of depending entirely on models developed by Chinese technology companies.
That matters because Apple is playing by a different set of rules in China. In markets such as the US, Apple can use technology from companies including OpenAI to power parts of Apple Intelligence. Chinese users, however, cannot access services such as ChatGPT and Anthropic's Claude. That has left Apple with little choice but to work with local AI companies to bring its AI features to Chinese consumers. Now, the company appears to be trying to build something of its own.
Why AI has become so important for Apple in China
Apple's China problem is not simply that its AI features arrived late. The bigger issue is that local smartphone makers have been moving quickly to make AI a visible part of the phone experience. Huawei and other Chinese brands have been adding AI assistants and other intelligent features to their devices, giving consumers reasons to look beyond the iPhone. Apple, meanwhile, has been unable to offer Apple Intelligence on Chinese iPhones while it worked through regulatory requirements.
That puts Apple in an uncomfortable position. It is competing against companies that can move quickly with locally developed AI while its own AI rollout has been held back by the rules governing generative AI in China. This is why Apple's latest move is important. A China-specific model could allow Apple to have greater control over the AI experience while also giving it more room to adapt its features to local requirements. Instead of simply taking an existing model and putting it into an iPhone, Apple can potentially build the technology around the needs and restrictions of the Chinese market.
The exact role of this model is still unclear. It is not known how much of Apple Intelligence will use Apple's own model and how much will continue to depend on Alibaba's Qwen or other local AI technology.
Alibaba is still a key part of Apple's China strategy
Apple's decision to develop its own model does not mean it is walking away from Chinese AI companies. Alibaba remains central to the company's plans. Its Qwen model is expected to be incorporated into the China version of Apple Intelligence, while Apple has also been reported to be working with Baidu on its AI technology.
The Apple-Alibaba relationship dates back to February 2025, when Alibaba chairman Joe Tsai confirmed that the two companies were working together. He said Apple had considered several Chinese companies before choosing Alibaba. The rollout has taken longer than expected, largely because Apple has had to adapt its AI features to China's regulatory requirements. That process appears to have reached an important milestone. China's Cyberspace Administration recently registered Apple's generative AI service, clearing a major hurdle for Apple Intelligence to finally reach Chinese users.
Apple even briefly published a Chinese-language guide explaining how eligible Mac users could connect Alibaba's Qwen model to features such as Siri and Writing Tools. The company later removed the guide without giving a reason.
Apple needs an AI comeback
China remains too important a market for Apple to treat AI as an optional extra. The company has been under pressure from domestic smartphone brands, while the lack of Apple Intelligence has made the iPhone look increasingly behind the curve in a market where AI features are becoming a major selling point. Getting Apple Intelligence into China could therefore do more than add new functionality to the iPhone. It could help Apple make its devices feel competitive again. That explains why the company appears willing to pursue a more complicated AI strategy: Alibaba and other Chinese partners can help Apple navigate the local market, while Apple's own model could give it greater control over the experience.
There is also a larger geopolitical dimension. Apple is attempting to build and deploy proprietary AI technology in China at a time when Washington and Beijing remain locked in a wider technology and trade rivalry. If Apple's China-specific model receives the required approvals, the company could become the first foreign firm allowed by Beijing to offer its own proprietary AI model in the country.
For Apple, AI is no longer just about making Siri smarter or adding a few new features to the iPhone. In China, AI has become part of a much bigger battle — one that could determine how competitive Apple remains in one of its most important markets. The company is now taking a big step in that fight. Apple has trained a large language model specifically for China with support from Alibaba, according to people familiar with the matter who spoke to Reuters. The move suggests Apple wants more control over the AI experience on its devices instead of depending entirely on models developed by Chinese technology companies.
That matters because Apple is playing by a different set of rules in China. In markets such as the US, Apple can use technology from companies including OpenAI to power parts of Apple Intelligence. Chinese users, however, cannot access services such as ChatGPT and Anthropic's Claude. That has left Apple with little choice but to work with local AI companies to bring its AI features to Chinese consumers. Now, the company appears to be trying to build something of its own.
Why AI has become so important for Apple in China
Apple's China problem is not simply that its AI features arrived late. The bigger issue is that local smartphone makers have been moving quickly to make AI a visible part of the phone experience. Huawei and other Chinese brands have been adding AI assistants and other intelligent features to their devices, giving consumers reasons to look beyond the iPhone. Apple, meanwhile, has been unable to offer Apple Intelligence on Chinese iPhones while it worked through regulatory requirements.
That puts Apple in an uncomfortable position. It is competing against companies that can move quickly with locally developed AI while its own AI rollout has been held back by the rules governing generative AI in China. This is why Apple's latest move is important. A China-specific model could allow Apple to have greater control over the AI experience while also giving it more room to adapt its features to local requirements. Instead of simply taking an existing model and putting it into an iPhone, Apple can potentially build the technology around the needs and restrictions of the Chinese market.
The exact role of this model is still unclear. It is not known how much of Apple Intelligence will use Apple's own model and how much will continue to depend on Alibaba's Qwen or other local AI technology.
Alibaba is still a key part of Apple's China strategy
Apple's decision to develop its own model does not mean it is walking away from Chinese AI companies. Alibaba remains central to the company's plans. Its Qwen model is expected to be incorporated into the China version of Apple Intelligence, while Apple has also been reported to be working with Baidu on its AI technology.
The Apple-Alibaba relationship dates back to February 2025, when Alibaba chairman Joe Tsai confirmed that the two companies were working together. He said Apple had considered several Chinese companies before choosing Alibaba. The rollout has taken longer than expected, largely because Apple has had to adapt its AI features to China's regulatory requirements. That process appears to have reached an important milestone. China's Cyberspace Administration recently registered Apple's generative AI service, clearing a major hurdle for Apple Intelligence to finally reach Chinese users.
Apple even briefly published a Chinese-language guide explaining how eligible Mac users could connect Alibaba's Qwen model to features such as Siri and Writing Tools. The company later removed the guide without giving a reason.
Apple needs an AI comeback
China remains too important a market for Apple to treat AI as an optional extra. The company has been under pressure from domestic smartphone brands, while the lack of Apple Intelligence has made the iPhone look increasingly behind the curve in a market where AI features are becoming a major selling point. Getting Apple Intelligence into China could therefore do more than add new functionality to the iPhone. It could help Apple make its devices feel competitive again. That explains why the company appears willing to pursue a more complicated AI strategy: Alibaba and other Chinese partners can help Apple navigate the local market, while Apple's own model could give it greater control over the experience.
There is also a larger geopolitical dimension. Apple is attempting to build and deploy proprietary AI technology in China at a time when Washington and Beijing remain locked in a wider technology and trade rivalry. If Apple's China-specific model receives the required approvals, the company could become the first foreign firm allowed by Beijing to offer its own proprietary AI model in the country.
