Apple Intelligence China Approval Lifts Alibaba and Baidu Shares

Alibaba and Baidu shares rallied on Thursday after Apple secured regulatory approval to introduce its Apple Intelligence platform in China, a major step toward expanding its artificial intelligence services in one of the world's largest smartphone markets.

Hong Kong-listed shares of Alibaba Group rose nearly 5%, while Baidu gained around 4% following confirmation that China's cyberspace regulator approved Apple's on-device generative AI technology for use on iPhones. The approval clears a key regulatory hurdle, as all generative AI services must receive government authorization before being released to the public in China.

According to a Reuters report citing a source familiar with the matter, Apple Intelligence in China will integrate Alibaba's Qwen large language model alongside Baidu's AI technologies. Alibaba later confirmed that its Qwen AI model will power Apple Intelligence features across Apple's ecosystem, including iOS, iPadOS, macOS, and visionOS, for users in mainland China.

The partnership marks a significant milestone for Apple as it seeks to strengthen its competitive position in China. The company has faced increasing pressure from domestic smartphone makers such as Huawei and Xiaomi, both of which have aggressively rolled out AI-powered features in recent years.

Industry analysts believe the launch of Apple Intelligence could help Apple narrow the technology gap with local rivals and improve the appeal of its devices among Chinese consumers. The integration of Alibaba's and Baidu's AI capabilities also highlights Apple's strategy of partnering with leading domestic technology companies to comply with China's regulatory requirements while delivering advanced AI experiences.

The regulatory approval is expected to benefit not only Apple but also its Chinese AI partners, reinforcing investor confidence in Alibaba and Baidu's artificial intelligence businesses. As AI adoption continues to accelerate, the collaboration could further strengthen the companies' positions in China's rapidly evolving AI and smartphone markets while supporting Apple's long-term growth strategy in the region.