An AI collaboration between Apple and Chinese tech powerhouse Alibaba has caught the eye of the Trump administration and key Congress members, sparking new worries about data privacy, national security, and U.S.-China tech ties. The New York Times reports that the deal would add Alibaba-powered AI features to iPhones sold in China. 

It has also sparked concern from both parties in the White House and on Capitol Hill. Officials Ask Apple to Explain The Times, quoting unnamed sources close to internal talks, says that high-ranking White House officials and House Select Committee on China members have asked Apple executives about the deal.

Lawmakers want to know what user data might be shared with Alibaba and if Apple has made any promises to Chinese regulators to move the deal forward. Apple executives couldn’t answer many of these questions, sources say, a fact that has increased doubts in Washington. Congress Reacts: “Very Worrying” Representative Raja Krishnamoorthi, the top Democrat on the House Permanent Select Committee on Intelligence, criticized the deal in a statement given to reporters.

Raja Krishnamoorthi, the ranking Democrat on the House Intelligence Committee, referred to Alibaba

“a poster child for the Chinese Communist Party’s military-civil fusion strategy”

and stated that its silence and failure to speak about the lack of transparency was “extremely disturbing.”

On the other hand, Alibaba has confirmed the deal, while Apple has reportedly remained mum and has not responded to inquiries posed by Congress.

U.S.-China Tensions and Increased Pressure

The reported deal has surfaced during considerable tensions between the U.S. and China with regard to AI, data security, and trade, while Apple blazes a very tortuous trail through an unpredictable tariff environment amid pressure from Washington to cut back on its Chinese dependency. The partnership would only intensify calls from various quarters for increased scrutiny on American tech firms operating in China.

Loose for Apple

Confirmed, the entrenchment of Alibaba’s AI in Chinese iPhones could place Apple under regulatory scrutiny and public-image peril in America. This would be a sort of radical shift for a company that has really leaned on privacy and keeping tight control of its ecosystem. Legislators fear it might open up to some extent the chances of the Chinese state gaining access to user data.

The Bottom Line

The Apple-Alibaba AI deal is proving to be something beyond a regional tech play-it’s fast becoming a test case for how U.S. tech companies negotiate their way across a growing digital divide between Washington and Beijing.