The Trump administration and congressional leaders are closely examining a partnership between Apple and Alibaba that plans to integrate Alibaba’s AI technologies into iPhones sold in China, according to The New York Times.
Unnamed sources cited by the NYT indicate that officials from the White House and members of the House Select Committee on China have directly questioned Apple executives regarding the deal. Their inquiries focused on the nature of data sharing with Alibaba and any commitments made to Chinese regulators. Reports suggest that Apple executives struggled to provide satisfactory answers.
Representative Raja Krishnamoorthi, the ranking Democrat on the House Permanent Select Committee on Intelligence, criticized Alibaba as emblematic of the Chinese Communist Party’s military-civil fusion approach. He expressed concern over Apple’s lack of transparency regarding the agreement.
So far, only Alibaba has publicly acknowledged the deal, while Apple has remained silent. This situation adds to the challenges Apple faces amidst the fluctuating trade tensions between the U.S. and China, including ongoing tariff issues.