China government’s commitment to maintaining tight AI control is a hurdle to all U.S. companies. … [+]
Apple CEO Tim Cook recently made his third trip to China, underscoring that country’s critical role in the company’s global strategy. This visit comes as Apple seeks to integrate its Apple Intelligence suite into devices sold in the region, navigating a complex regulatory environment that demands careful negotiation and local partnerships.
In the U.S., Apple has already begun rolling out Apple Intelligence, an AI-powered suite designed to enhance user experiences across its ecosystem. However, deploying similar technology in China is far more challenging. According to sources familiar with the matter, Apple has even explored operating its large language models (LLMs) in the country.
I have made many visits to China and worked with companies that have had to deal with China’s regulatory bodies. In many of the cases I was involved with, it was clear that China’s objections or rules were entirely parochial and designed to ensure that China has ultimate control of the technology that favors them regardless of the outside technology that could be superior.
China’s regulatory landscape for generative AI poses significant hurdles. A senior Cyberspace Administration of China (CAC) official recently revealed that foreign companies like Apple face a “lengthy and complex approval process” to run their own models. The official emphasized that collaborating with local Chinese tech companies—whose LLMs have been vetted—would provide a much faster and more straightforward path to compliance.
Collaborating with local Chinese companies and using their “approved by Chinese government” LLMs is a veiled attempt to make sure China has more control over AI content.
Cook’s visit aligns with reports that Apple has been in talks with Chinese tech firms to integrate approved AI solutions into its devices. This approach reflects Apple’s broader strategy of balancing innovation with local sensitivities in one of its largest and most important markets. By leveraging partnerships, Apple can sidestep the lengthy regulatory scrutiny required for foreign-operated AI systems while delivering enhanced functionality to users in China. While Apple will not be happy that they can’t use their LLMs, this may be the price Apple has to pay to deliver any enhanced AI functionality in China.
The CAC’s comments were made on the sidelines of the World Internet Conference in Wuzhen, an annual event that has become a focal point for China’s digital policy discussions. The official noted that any company offering generative AI services in China must undergo rigorous testing and approval for their models, reinforcing the government’s commitment to maintaining tight control over AI development within its borders.
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