U.S. Lawmakers Alarmed: Apple-Alibaba AI Deal Could Surrender Your Data to Beijing

Why is Apple’s planned AI partnership with Alibaba in China causing such a stir? The tech giant’s potential deal has raised serious concerns among U.S. lawmakers and government officials who fear American user data could end up in the hands of the Chinese government.

Members of Congress and the White House have voiced alarm over this partnership. The House Permanent Select Committee on Intelligence has specifically highlighted “serious concerns” about how Alibaba might collect and use data. They worry the deal could boost China’s AI capabilities and make them more competitive against American companies.

A major concern is that Apple may have to follow Chinese laws that require data sharing with the government. Under these rules, user information from Apple devices could be accessible to Chinese authorities. Critics say this could help China improve its AI models using data that comes from U.S.-linked technology.

For Apple, the stakes are high. China makes up about 20% of the company’s global sales. The tech giant has seen declining sales in the Chinese market and views this AI partnership as important for recovery. Apple believes that having AI features available in China is essential for the upcoming iPhone 17 launch and to compete with local smartphone makers.

Alibaba also stands to gain considerably. The partnership would strengthen its position in China’s competitive AI sector and provide access to more user data through Apple devices. This would be a major win over other Chinese AI competitors like DeepSeek. Representative Raja Krishnamoorthi has specifically reached out to Apple seeking clarification on implications of the partnership for user privacy and data rights.

U.S. officials are also worried that integrating Alibaba’s AI could enforce Chinese-style censorship on Apple devices in China. Chinese AI chatbots must follow content moderation rules set by the government. This could mean Apple would need to restrict information access to comply with Chinese regulations.

The White House continues to monitor the situation closely as the partnership undergoes security review, with no recent official comments from either Apple or Alibaba addressing these concerns. Some experts compare this controversy to the TikTok situation which led to a partial ban in the United States over similar data security worries.