12:44 PM EDT, 06/04/2025 (MT Newswires) -- Apple's ( AAPL ) rollout of its artificial intelligence services in China, developed with Alibaba Group ( BABA ) , is being held up by Chinese regulators, as US-China trade tensions intensify, the Financial Times reported Wednesday, citing people familiar with the situation.

The AI suite, called "Apple Intelligence," relies on Alibaba's ( BABA ) latest models and is part of Apple's ( AAPL ) strategy to expand its presence in China's competitive smartphone market, the report said.

The companies have submitted multiple AI products to the Cyberspace Administration of China for approval this year, but the process has stalled, two sources told the FT.

President Donald Trump has threatened steep tariffs unless Apple ( AAPL ) shifts manufacturing back to the US, as the company faces AI rollout delays and growing competition from Chinese brands like Huawei, the FT said.

Final clearance for Apple Intelligence in China must come from China's State Council, which is also involved in ongoing trade negotiations with the US. However, decisions could accelerate if broader diplomatic conditions improve, the report said.

Apple ( AAPL ) declined to comment to the FT, while Alibaba ( BABA ), the Cyberspace Administration of China and the Chinese State Council did not respond.

Apple ( AAPL ), Alibaba ( BABA ), and the Chinese State Council didn't immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: 202.73, Change: -0.54, Percent Change: -0.27