Two Chinese Giants Unite for iPhone, Breaching Xi Jinping's Blockade

Jakarta, CNBC Indonesia – Two Chinese giants, Alibaba and Baidu, have confirmed partnerships with Apple. Under the deal, Apple users in China will be able to access the AI technologies owned by both companies.

An Alibaba spokesperson has confirmed the news. The company’s Qwen model will be integrated into iOS, iPadOS, macOS and VisionOS.

“Qwen will be integrated into Apple Intelligence on iOS, iPadOS, macOS and VisionOS for users in China,” the Alibaba spokesperson said, quoted by CNBC International on Friday (17/7/2026).

The spokesperson explained that the combination of Apple and Qwen would allow users to access capabilities such as text and image understanding and generation. Users will be able to do so without having to switch between devices.

Similarly, Baidu has also confirmed it is working with Apple on the Apple Intelligence feature for iPhones in China.

Shares of both companies rose on Thursday following news of the partnership. Alibaba’s Hong Kong-listed shares climbed 5%, while Baidu gained 4%.

Previously, the Cyberspace Administration of China included Apple Intelligence on its list of approved service providers in the country. Six mobile-based AI services made the list, including Huawei Technologies.

The partnership comes at a time of intensifying technological competition, including in AI, between the United States and China. Both countries continue their efforts to win global AI dominance.

The United States, for instance, has restricted China’s access to the advanced chips available within its borders. Meanwhile, China has blocked American investment in local technology companies.

This dominance matters, as a report from research organisation RAND notes, because the winner could gain economic advantages and set global standards.

“AI leadership is critical for economic competitiveness, setting global standards, and maintaining democratic governance,” RAND explained.