The Trump administration and congressional officials are deeply examining a deal between Apple and Alibaba to integrate AI features into iPhones sold in China. Concerns have arisen about the potential sharing of data with Alibaba and Apple's commitments to Chinese regulations. Reports indicate that Apple executives struggled to provide satisfactory answers to congressional inquiries. Representative Raja Krishnamoorthi criticized Alibaba’s affiliations with the Chinese Communist Party and expressed alarm over Apple's lack of transparency regarding the agreement. This development underscores the ongoing challenges that U.S.-China tensions pose for Apple's business operations.
Citing anonymous sources, the NYT says White House officials and members of the House Select Committee on China have asked Apple executives directly about the deal, with questions focused on what data would be shared with Alibaba and whether the company was making any commitments to Chinese regulators.
In a statement, Representative Raja Krishnamoorthi described Alibaba as "a poster child for the Chinese Communist Party's military-civil fusion strategy" and said it was "extremely disturbing" that Apple had "not been transparent about its agreement."
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