Apple Intelligence Approved in China with Alibaba and Baidu Partnership

Breaking Through China's AI Gate

Apple Inc. on Wednesday received long-awaited government approval to roll out Apple Intelligence in China, potentially giving it a boost in the world's most competitive smartphone market. The Cyberspace Administration of China (CAC), the country's internet watchdog, published a notice on Wednesday confirming the licence for Apple Intelligence – the AI feature used to summarise emails, draft reports, edit images and perform other tasks.

Strategic Partnership Details

On Wednesday, Reuters reported that China's regulator, the Cyberspace Administration of China, approved Apple's AI services in the country, on the back of a deal to integrate Alibaba's Qwen AI model into Apple's operating systems, including iOS, iPadOS, macOS, and visionOS. An Alibaba representative told the South China Morning Post on Wednesday that its Qwen large-language model would "be integrated into Apple Intelligence experiences within iOS, iPadOS, macOS and visionOS for users in China". A Baidu representative also told the SCMP on Wednesday that it was working with Apple to develop AI features for Apple Intelligence in China.

Market Impact and Significance

In the second quarter, Apple sales in Greater China increased 28% to $20.5 billion. This led to delays in getting Apple Intelligence features, which debuted in 2024, to the Chinese market. The approval matters because Apple Intelligence has been unavailable in mainland China since its 2024 debut, leaving Apple behind local rivals such as Huawei and Xiaomi. Apple shares rose about 1%, Alibaba surged around 4%, and Baidu climbed nearly 1% premarket after the news.

Road Ahead

The regulatory approval clears a major hurdle, though no specific launch date has been announced. The partnership represents Apple's most direct path to serving its massive Chinese customer base with AI-powered features while complying with strict local regulations.