Apple’s recent Trump Apple Alibaba AI deal has sparked intense criticism from former President Trump and U.S. lawmakers. The partnership with Alibaba to add AI features to iPhones sold in China raises serious national security and data privacy questions.
Alibaba’s Chairman Joe Tsai confirmed the deal earlier this year, although Apple has stayed quiet publicly. The deal allows Alibaba’s AI technology to power specific iPhone functions tailored for China. This move comes as OpenAI, Apple’s earlier AI partner, does not operate in China.
China remains Apple’s second-largest market, but competition from local brands like Huawei and Xiaomi grows. These rivals already offer sophisticated AI features and enjoy strong Chinese national support. Last year, Apple’s iPhone sales in China dropped to 15%, a point Trump has criticized.
CEO Tim Cook admitted that Apple sells better where AI features are fully functional. The Trump Apple Alibaba AI deal helps Apple offer competitive AI functions to Chinese customers while following China’s strict data laws. The Chinese government demands foreign companies store data locally and share it with regulators.
Trump has long urged Apple to focus more on American manufacturing and investments. He recently slammed Tim Cook for expanding production in India instead of the U.S. Now, the Alibaba AI deal adds fuel to Trump’s criticism, as it risks U.S. national security interests.
The U.S. government views AI as a key military and economic asset. It has increased restrictions on China’s access to AI chips and technology. Apple’s partnership with Alibaba contradicts these efforts, triggering scrutiny from Trump and Congress.
Apple remains silent amid growing backlash. Analysts say Apple tries to protect its global privacy reputation while complying with China’s rules. However, this tightrope walk risks further angering Trump and U.S. officials.
Meanwhile, Alibaba gains credibility and investor confidence from the deal. The company competes fiercely in China’s AI market alongside firms like Deepseek.
With the Trump administration’s tough stance on China, Apple may face renewed pressure. The Trump Apple Alibaba AI deal highlights the conflict between global business ambitions and U.S. national security priorities.
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