The Trump administration and congressional officials are scrutinizing a deal between Apple and Alibaba that would bring Alibaba-powered AI features to iPhones sold in China, according to The New York Times.
Citing anonymous sources, the NYT says White House officials and members of the House Select Committee on China have asked Apple executives directly about the deal, with questions focused on what data would be shared with Alibaba and whether the company was making any commitments to Chinese regulators. The executives were reportedly unable to answer most of those questions.
In a statement, Representative Raja Krishnamoorthi (the ranking Democrat on the House Permanent Select Committee on Intelligence) described Alibaba as “a poster child for the Chinese Communist Party’s military-civil fusion strategy” and said it was “extremely disturbing” that Apple had “not been transparent about its agreement.”
The deal itself has only been publicly confirmed by Alibaba, not Apple. This is far from the only challenge that rising tensions between the United States and China presents to the iPhone maker’s business, as the company faces on-again, off-again tariffs.