Apple Intelligence launches in China via Alibaba's Qwen AI

On Wednesday, China's Cyberspace Administration approved Apple Intelligence, the iPhone maker's generative AI platform, for launch in the country. The approval hinges on a deal between Apple and Alibaba under which Alibaba's Qwen AI model will be integrated directly into Apple's operating systems: iOS, iPadOS, macOS, and visionOS.

The integration has been anticipated since last year. Alibaba confirmed the arrangement to CNBC, stating that Qwen would be "integrated into Apple Intelligence experiences" and would support AI capabilities including "text and image understanding and generation." However, Alibaba did not announce a specific launch date for the feature in China.

The approval marks a crucial step for Apple in a market of immense importance. In the second quarter, Apple's sales in Greater China increased 28% to $20.5 billion（約3.3兆円）. The company also recently returned to the No. 2 position in China's smartphone market following a shopping festival that offered discounts on iPhone models. Prior to settling on Alibaba, Apple had explored partnerships with Baidu but faced difficulties adapting models for Chinese customers. The company also investigated integrations with DeepSeek and ByteDance, according to reports. These negotiations and technical hurdles contributed to delays in bringing Apple Intelligence—which debuted globally in 2024—to Chinese users.

The news was well received by investors. U.S. shares of Alibaba rose 4% in pre-market trading and were up over 6% at the time of publication.

Apple's approval to launch Apple Intelligence in China represents a watershed moment for the company's AI expansion in a market that generated $20.5 billion（約3.3兆円） in revenue in Q2 alone. The delay in reaching this point—Apple Intelligence debuted in 2024, yet China remained without it until now—underscores the unique regulatory and technical hurdles facing foreign tech companies in the country. Apple's exploratory discussions with Baidu, DeepSeek, and ByteDance all ran into complications, whether adapting model capabilities or navigating regulatory compliance, before Alibaba emerged as the viable partner.

The timing is strategically important for Apple's smartphone ambitions. The company recently reclaimed the No. 2 position in China's smartphone market following a promotional shopping festival, a rank it holds alongside surging overall sales in Greater China. Introducing AI features now reinforces Apple's competitive position during a period of momentum, allowing the company to match the localized AI offerings of rivals operating in the market. Alibaba's brief statement—confirming the integration but offering no launch window—suggests the arrangement may still require final optimization or regulatory clearance before features reach end users.