Apple is experiencing challenges as it attempts to launch Apple Intelligence in China, with regulators cautioning that foreign companies face a "difficult and long process" for approval unless they partner with local firms, according to a new Financial Times report.
A senior official at the Cyberspace Administration of China told the FT that foreign device makers would find a "simple and straightforward approval process" if they utilize already-approved large language models (LLMs) from Chinese companies, rather than attempting to implement their own AI systems.
The regulatory situation has reportedly prompted Apple to engage in discussions with several Chinese tech companies, including search giant Baidu, ByteDance, and AI startup Moonshot, to potentially power Apple Intelligence features in devices sold in mainland China.
Apple CEO Tim Cook arrived in China on Monday to attend a CEO summit with Chinese Premier Li Qiang, in what could be an attempt by Cook to personally navigate the complex regulatory landscape. During his previous visit to Beijing, Cook acknowledged the specific regulatory requirements, stating that Apple was "working hard" to bring Apple Intelligence to Chinese consumers.
The company has been gradually rolling out Apple Intelligence features in the US and elsewhere since October, with things like Writing Tools and enhanced Siri using a combination of on-device processing and its Private Cloud Compute servers, along with OpenAI's ChatGPT for more complex queries. But if Apple can't secure approval for its own AI models in China, it may need to rely on Chinese partners' LLMs to host AI features on devices sold there.
According to JP Morgan analyst Samik Chatterjee, the regulatory uncertainty could delay the launch of Apple Intelligence in China until "well into the second half of 2025" or later, unless Apple adopts a flexible approach involving multiple Chinese partnerships to expedite approval.
China represents 17% of the company's revenue but saw an 8% decline in sales over the past year. The company faces increasing competition from Huawei, which has already integrated its own AI features into its latest smartphones.
