- The United States has expressed concern about Apple's agreement with Alibaba in China
- Around one in five of Apple's sales are in China: their second largest market
- Apple has also been criticized for manufacturing in India, not in the United States
Trump's administration and congress are concerned about Apple's agreement with Alibab The New York Times).
Concerns about data exchange and national security implications have been raised, with the potential legal requirements for Apple and Alibaba to adhere to the Chinese regulator rules in the discussion.
In addition, only Alibaba has publicly confirmed the agreement, with Apple in silence: this could indicate a potential uncertainty or an unfinished agreement, or it could be a typical Apple movement of maintaining developments under adjusted wraps until the final moment.
The agreement is being examined in the midst of the continuous tensions of the United States-China, with concerns about helping China's development and improving the abilities of Chinese military that were observed.
“Alibaba is a poster child for the Military-Civil Fusion Strategy of the Chinese Communist Party, and why Apple would choose to work with them in AI is a assumption of anyone,” proclaimed the representative Raja Krishnamoorthi of Illinois.
Apple has already left an agreement with the Chinese manufacturer of Chips YMTC for the pressure of the United States, and the technological giant of Cupertino also faces challenges of tariffs induced by the commercial war and the changes of the Chinese supply chain, with industry experts that warn about strong price wires for consumers who participate in the next cycle of update.
However, China is the second largest market in the company, which represents around a fifth of its sales, highlighting the importance of an agreement not to get lost against local smartphone manufacturers.
The US administration has considered restricting US companies to do business with Alibaba and other Chinese companies, but no details have been confirmed.
Although the company has tried to diversify its supply chain, President Trump has criticized Tim Cook for increasing production in India, urging the national manufacture of the United States, instead, one of the president's final objectives.
Ultimately, Apple risks the problems in any way that the agreement sways, whether it loses millions of Chinese sales or potentially serious implications within the United States. Apple had a intelligent telephone market share of 13% in China during the first three months of 2025 (through Canals), placing it several steps behind Xiaomi, Huawei, Oppo and Vivo.
“The American smartphone market is expected to experience considerable volatility in the next two to three quarters, affected by inventory corrections and weaken consumer's confidence,” explained the Gutys Research Manager, Xuan Chief.
