Trump trade war delays Apple Intelligence's debut in China

AppleInsider

Apple's eventual rollout of Apple Intelligence in China has hit delays, thanks to regulatory issues raised in response to President Trump's tariffs.

Apple Intelligence still isn't available in China, and won't be for some time

Apple has been working with Alibaba to bring its Apple Intelligence suite of generative AI features to iPhones in China. While the two tech giants have worked together on the project, it has hit a roadblock that has forced a delay in its introduction.

According to a report on Wednesday morning by the Financial Times, applications from Apple and Alibaba to release the AI features have not gained the approval of the Cyberspace Administration of China. The regulatory rubber stamp is required in China by law, which prevents Apple from adding them to iOS.

Two sources of the report say that the blockage is due to the increasing tensions between China and the United States. By this, the main reason is said to be the trade war and tariff activity instigated by the current administration of President Donald Trump.

To Apple, the block could be an expensive exercise, since the introduction of the features could help revive sales in the country. With other smartphones and devices already on the market with their own AI features, the gulf in AI technology could widen as the regulators hold off from approving Apple's proposals.

Trouble with tariffs

While the regulator won't publicly confirm it's a move against the tariffs, China does have some form for retaliation when it is attacked. Especially when considering what's happened in 2025 so far.

The April Liberation Day introduction of so-called "reciprocal tariffs" by the U.S. against almost every country, with China hit worst with a 34% reciprocal tariff, bringing its total import tariff to 54%.

The event triggered a tit-for-tat escalation of tariffs that eventually resulted in a U.S. tariff against China of 145%, with China holding a 125% tariff against U.S. goods imports.

After the bloodbath that led to Apple benefiting from a "semiconductor tariff" instead of the usual import tariff, it was revealed that China had did something else to escalate tensions.

By April 14, it was reported that China had placed a series of rare earth minerals and magnets on an export control list, requiring ministerial licenses to ship them out of the country. These minerals are essential to supply chains around the world, especially in the construction of technology-related products.

Mid May saw the two countries decide to try and negotiate a new trade deal, with most of the tariff raises cut back.

Even so, the United States has continued to beat the drum for Apple to shift production out of China and to U.S. shores.

Given China's previous actions when faced with demands from the United States, it's hard not to believe the latest action to be retaliatory in some way.



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9secondkox2

China gonna China. But it's not like everyone is clamoring for th current version of Apple's AI.

blastdoor

9secondkox2 said:

China gonna China. But it's not like everyone is clamoring for th current version of Apple's AI.

Srsly. I use the enterprise version of ChatGPT almost every day for real work. All I’ve used apple intelligence for is Genmoji. 

Anybody arguing Apple isn’t behind is either a hopelessly delusional fan or just knows nothing about what others in this field are doing. 

mikethemartian

blastdoor said:

9secondkox2 said:

China gonna China. But it's not like everyone is clamoring for th current version of Apple's AI.

Srsly. I use the enterprise version of ChatGPT almost every day for real work. All I’ve used apple intelligence for is Genmoji. 

Anybody arguing Apple isn’t behind is either a hopelessly delusional fan or just knows nothing about what others in this field are doing. 

I just use the free version of ChatGPT for engineering analysis and it does really well. It is like having an interactive textbook.

nubus

9secondkox2 said:

China gonna China. But it's not like everyone is clamoring for th current version of Apple's AI.

You're right that the current AI from Apple won't sell products. Which is exactly why this is so important to Apple.
The smartphone market in China is so big that 1% extra market share locally = 1% extra iPhone sales globally. It is the most obvious path towards growth for Apple.

Apple under Cook dropped from #1 to #3 in market cap. Other companies have outperformed Apple and this certainly doesn't help.

9secondkox2

nubus said:

9secondkox2 said:

China gonna China. But it's not like everyone is clamoring for th current version of Apple's AI.

You're right that the current AI from Apple won't sell products. Which is exactly why this is so important to Apple.
The smartphone market in China is so big that 1% extra market share locally = 1% extra iPhone sales globally. It is the most obvious path towards growth for Apple.

Apple under Cook dropped from #1 to #3 in market cap. Other companies have outperformed Apple and this certainly doesn't help.

Other companies have indeed outperformed Apple in AI, but only in AI. Apple has them beat literally everywhere else. Apple is navigating a fine line between ethical and unethical AI development. google, Open AI and others have just devoured content whether they should or not. In the case of Google, you really are the product, since you agree to give them your content for whatever purposes they want when you use their services. Appel is above that. And people can use Google or Open AI, etc. on apple products, so it's not really a big deal to be behind. the key to remember about apple is that they aren't always first to something. But once they dig in and go after something, they are usually the best. So we will see what they do. I don't think they'll be live-blogging the next wave of AI at all. I think they'll return to the more secretive Apple as the blabbermouth Apple has hurt itself a few time. The Chinese government isn't the most friendly player out there and Apple has navigated that through investments and appeasements. But now, as usual with totalitarian regimes, they are making it harder. The upside is that people don't buy Apple for AI. They buy for reliability, performance, ease of use, aesthetics, privacy, and security. And they can always use the AI of their choice on that best in class Apple product. It's the same principle as using Adobe Creative Cloud, MS Office, etc. Apple doesn't make those, but people prefer to use them on Apple devices.

edited June 4

jfabula1

9secondkox2 said:

nubus said:

9secondkox2 said:

China gonna China. But it's not like everyone is clamoring for th current version of Apple's AI.

You're right that the current AI from Apple won't sell products. Which is exactly why this is so important to Apple.
The smartphone market in China is so big that 1% extra market share locally = 1% extra iPhone sales globally. It is the most obvious path towards growth for Apple.

Apple under Cook dropped from #1 to #3 in market cap. Other companies have outperformed Apple and this certainly doesn't help.

Other companies have indeed outperformed Apple in AI, but only in AI. Apple has them beat literally everywhere else. Apple is navigating a fine line between ethical and unethical AI development. google, Open AI and others have just devoured content whether they should or not. In the case of Google, you really are the product, since you agree to give them your content for whatever purposes they want when you use their services. Appel is above that. And people can use Google or Open AI, etc. on apple products, so it's not really a big deal to be behind. the key to remember about apple is that they aren't always first to something. But once they dig in and go after something, they are usually the best. So we will see what they do. I don't think they'll be live-blogging the next wave of AI at all. I think they'll return to the more secretive Apple as the blabbermouth Apple has hurt itself a few time. The Chinese government isn't the most friendly player out there and Apple has navigated that through investments and appeasements. But now, as usual with totalitarian regimes, they are making it harder. The upside is that people don't buy Apple for AI. They buy for reliability, performance, ease of use, aesthetics, privacy, and security. And they can always use the AI of their choice on that best in class Apple product. It's the same principle as using Adobe Creative Cloud, MS Office, etc. Apple doesn't make those, but people prefer to use them on Apple devices.

Liked your perspective and analysis without going to politics. Is China a reliable supplier? Companies now might think there are other supplier out there, cheap is not always as good. Just my 2 centavo. 

stabitha_christie

blastdoor said:

9secondkox2 said:

China gonna China. But it's not like everyone is clamoring for th current version of Apple's AI.

Srsly. I use the enterprise version of ChatGPT almost every day for real work. All I’ve used apple intelligence for is Genmoji. 

Anybody arguing Apple isn’t behind is either a hopelessly delusional fan or just knows nothing about what others in this field are doing. 

Has Apple ever stated that they even want to compete with ChatGPT? To the best of my knowledge they haven’t. I mean, Apple is also behind in DHCP servers, they are behind on their ride share app, they are behind on a lot of things because they don’t compete in spaces. You are starting from a faulty premise. Why does Apple need a chatbot? No one has really answered they. They just kind of assumed that they do and then declared them behind. ChatGPT is great. I haven’t dabbled much with Gemini, Co-Pilot or whatever Meta calls their thing but I could. All of these things are available on my iPhone and Mac. As a user I am not missing out on anything and all of these chatbots need a platform to run on. Apple has some of the most popular platforms. And going a step further, no one is making a profit off their chat bot. The only company making money is NVIDIA. So, what exactly is the issue, I’d love for someone to explain it without just mindlessly repeating the “Apple is behind”narrative. 

wesley_hilliard

Stabitha_Christie said:

blastdoor said:

9secondkox2 said:

China gonna China. But it's not like everyone is clamoring for th current version of Apple's AI.

Srsly. I use the enterprise version of ChatGPT almost every day for real work. All I’ve used apple intelligence for is Genmoji. 

Anybody arguing Apple isn’t behind is either a hopelessly delusional fan or just knows nothing about what others in this field are doing. 

Has Apple ever stated that they even want to compete with ChatGPT? To the best of my knowledge they haven’t. I mean, Apple is also behind in DHCP servers, they are behind on their ride share app, they are behind on a lot of things because they don’t compete in spaces. You are starting from a faulty premise. Why does Apple need a chatbot? No one has really answered they. They just kind of assumed that they do and then declared them behind. ChatGPT is great. I haven’t dabbled much with Gemini, Co-Pilot or whatever Meta calls their thing but I could. All of these things are available on my iPhone and Mac. As a user I am not missing out on anything and all of these chatbots need a platform to run on. Apple has some of the most popular platforms. And going a step further, no one is making a profit off their chat bot. The only company making money is NVIDIA. So, what exactly is the issue, I’d love for someone to explain it without just mindlessly repeating the “Apple is behind”narrative. 

Apple is really far behind in electric bikes, stoves, and pens. They better get on it.

nubus

9secondkox2 said:

Other companies have indeed outperformed Apple in AI, but only in AI. Apple has them beat literally everywhere else. 

To investors Cook is delivering the worst performance during his tenure of the top 3. He spent a decade on not delivering Car and the company is stuck with phones and accessories (covers, services) without any growth.

Cook is penny-pinching and trying to win by fighting the battles of yesterday. How did that strategy work for IBM, Intel, or Xerox?

thedba

nubus said:

9secondkox2 said:

Other companies have indeed outperformed Apple in AI, but only in AI. Apple has them beat literally everywhere else. 

To investors Cook is delivering the worst performance during his tenure of the top 3. He spent a decade on not delivering Car and the company is stuck with phones and accessories (covers, services) without any growth.

Cook is penny-pinching and trying to win by fighting the battles of yesterday. How did that strategy work for IBM, Intel, or Xerox?

He also spent a decade solidifying Apple’s position with

1) Airpods

2) Apple Music

3) Apple Silicon 

4) Apple TV+

5) Apple Watch

Besides, when did he stand on stage and promise anyone, “The Apple Car” will be delivered ….

avon b7

9secondkox2 said:

nubus said:

9secondkox2 said:

China gonna China. But it's not like everyone is clamoring for th current version of Apple's AI.

You're right that the current AI from Apple won't sell products. Which is exactly why this is so important to Apple.
The smartphone market in China is so big that 1% extra market share locally = 1% extra iPhone sales globally. It is the most obvious path towards growth for Apple.

Apple under Cook dropped from #1 to #3 in market cap. Other companies have outperformed Apple and this certainly doesn't help.

Other companies have indeed outperformed Apple in AI, but only in AI. Apple has them beat literally everywhere else. Apple is navigating a fine line between ethical and unethical AI development. google, Open AI and others have just devoured content whether they should or not. In the case of Google, you really are the product, since you agree to give them your content for whatever purposes they want when you use their services. Appel is above that. And people can use Google or Open AI, etc. on apple products, so it's not really a big deal to be behind. the key to remember about apple is that they aren't always first to something. But once they dig in and go after something, they are usually the best. So we will see what they do. I don't think they'll be live-blogging the next wave of AI at all. I think they'll return to the more secretive Apple as the blabbermouth Apple has hurt itself a few time. The Chinese government isn't the most friendly player out there and Apple has navigated that through investments and appeasements. But now, as usual with totalitarian regimes, they are making it harder. The upside is that people don't buy Apple for AI. They buy for reliability, performance, ease of use, aesthetics, privacy, and security. And they can always use the AI of their choice on that best in class Apple product. It's the same principle as using Adobe Creative Cloud, MS Office, etc. Apple doesn't make those, but people prefer to use them on Apple devices.

Apple has them beat in literally everything else?

You need to widen your perspective. 

Apple has literally been behind, and basically across the board, for years.

Every WWDC for the last few years has been one long presentation of longstanding Android/HarmonyOS ideas.

Hardwarewise it's been a similar story. Cameras, batteries, charging, finish... 

And they only upped the base memory options on iPhone because of AI. 

Even the switch from notch to cutout. 

Satellite voice calls to high orbit satellites? 

Does Apple have NearLink?

Take long hard look at what is actually out there on non-iOS devices (including cars!). You will be very surprised. 

Apple's problems in China, for example are only exacerbated by the lack of AI. AI isn't the only issue. 

saarek

Doubt it’ll be a problem for sales. Apple Intelligence is shit, just like Siri, and everyone knows it.

williamlondon

thedba said:

nubus said:

9secondkox2 said:

Other companies have indeed outperformed Apple in AI, but only in AI. Apple has them beat literally everywhere else. 

To investors Cook is delivering the worst performance during his tenure of the top 3. He spent a decade on not delivering Car and the company is stuck with phones and accessories (covers, services) without any growth.

Cook is penny-pinching and trying to win by fighting the battles of yesterday. How did that strategy work for IBM, Intel, or Xerox?

He also spent a decade solidifying Apple’s position with

1) Airpods

2) Apple Music

3) Apple Silicon 

4) Apple TV+

5) Apple Watch

Besides, when did he stand on stage and promise anyone, “The Apple Car” will be delivered ….

Armchair CEOs love cherry picking items to justify their "I'm better than the real CEO" attitudes.