China’s Cyberspace Administration has approved Apple’s generative AI services, clearing the way for Apple Intelligence to operate in China. Reuters reported that the approval followed an agreement to integrate Alibaba’s Qwen AI model into Apple’s operating systems, including iOS, iPadOS, macOS and visionOS.
What the deal does
Under the arrangement, Alibaba’s Qwen model will be integrated into Apple Intelligence experiences to provide capabilities such as text and image understanding and generation. Alibaba confirmed the integration to CNBC but did not provide a timetable for when the services will go live in China.
Why this matters to Apple
China is a key market for Apple: in the second quarter, sales in Greater China rose 28% year-on-year to $20.5 billion. Apple also recently regained the No. 2 position in China’s smartphone market following discounts on iPhone models during a recent shopping festival.
Background and delays
According to reports, Apple had previously explored partnerships with other Chinese AI providers. Talks with Baidu reportedly encountered difficulties in adapting models for Chinese users, and Apple also considered integrations with DeepSeek and models from ByteDance. These efforts and technical adaptation challenges contributed to delays in bringing Apple Intelligence — which debuted in 2024 — to the Chinese market.
Market reaction
On news of the deal, U.S. shares of Alibaba rose 4% in pre-market trading and were up by over 6% at the time the report was published.
Summary
The Alibaba Qwen integration and regulatory approval pave the way for Apple Intelligence’s entry into China, but Alibaba has not given a launch date. Prior partner searches and model-adaptation issues indicate the rollout required both technical and regulatory coordination.
