China's Cyberspace Administration has approved Apple Intelligence for use in the country, clearing a regulatory hurdle that had delayed the service for two years since its 2024 debut1,2. The approval, reported on July 16, does not yet include a launch date.
To comply with Chinese regulations, Apple is integrating domestic AI models rather than the technology stack used in other markets. Alibaba's Qwen model and Baidu's models will power Apple Intelligence features on iOS, iPadOS, macOS, and visionOS in China. CNBC confirmed the Alibaba partnership, and a Baidu spokesperson confirmed to TechCrunch that Baidu is also working with Apple on developing Apple Intelligence features for Chinese users.
Apple has been testing technology capable of shrinking Alibaba's open-source Qwen model to approximately 4 GB — small enough to run locally on an iPhone. ANALYSIS On-device execution at that size would allow Apple to deliver AI features without routing queries through cloud infrastructure, a meaningful consideration in a market where data-handling rules are strict.
The approval covers Apple Intelligence features broadly but is not yet a green light for Siri AI to operate on Chinese iPhones. Apple still needs to work separately with Chinese regulators before rolling out its revamped assistant. Apple is also said to be exploring integrations with DeepSeek and ByteDance.
The regulatory clearance arrives at a commercially favorable moment. Apple generated $20.5 billion in sales in Greater China in the second quarter, up 28% year over year. The company also recently regained the No. 2 position in China's smartphone market following discounts during a recent shopping festival. The approval follows two consecutive quarters of strong growth in the region after two difficult years.
Elsewhere, Apple uses a Gemini-powered Apple Intelligence stack. In Europe, Apple has shown little willingness to make similar concessions by opening its platform to rival AI models, and the company remains locked in a different regulatory standoff there. ANALYSIS The partnership structure — substituting Alibaba's Qwen and Baidu's models for the Gemini-powered stack offered elsewhere — represents a localized approach to AI deployment that differs from Apple's posture in other regulated markets.
Both the Alibaba and Baidu deals had been rumored previously. Reports at the time indicated Apple was facing issues adapting its models for Chinese customers. The Alibaba deal was rumored to be in the works last year.
Apple's stock was trading more than 3% higher on the morning of the announcement, with the company running neck-and-neck with Nvidia on market capitalization.