Shares of Chinese technology giants Alibaba and Baidu experienced significant gains in Hong Kong trading following the announcement of their partnerships with Apple to deploy AI tools in China [1]. Alibaba's Hong Kong-listed shares rose by 5% after the company confirmed that its Qwen AI model would be integrated into Apple services in China. An Alibaba spokesperson stated that 'Qwen will be integrated into Apple Intelligence experiences within iOS, iPadOS, macOS, and vision OS for users in China,' and U.S.-listed shares of Alibaba also closed slightly higher overnight after this news [1].
Baidu's Hong Kong-listed shares increased by 4% as the company confirmed its collaboration with Apple on Apple Intelligence features for iPhones in China [1]. This development comes amid reports that Baidu's AI chip unit, Kunlunxin, is targeting an initial public offering in Hong Kong, which could value the affiliate at $50 billion [1].
The Cyberspace Administration of China issued a notice on Wednesday that included Apple Intelligence, along with six other smartphone-based AI services such as Huawei Technologies, in a list of approved service providers [1]. According to Alibaba, the integration with Apple will allow users to access Qwen's capabilities, including text and image understanding and generation, without switching between different tools [1].
The partnership occurs against the backdrop of intensifying technological rivalry between China and the U.S., with both countries seeking AI leadership. The U.S. has implemented measures to restrict China's access to advanced chips, while China has moved to limit U.S. investments in its tech sector. A report by RAND highlights that 'AI leadership is becoming central to economic competitiveness, global standard-setting, and the maintenance of democratic governance' [1].
CONCLUSION
The confirmation of Alibaba and Baidu's partnerships with Apple for AI integration in China has driven notable share price increases for both companies. Regulatory approval and the promise of seamless AI experiences for Chinese users signal strong market optimism and reinforce the strategic importance of AI leadership in the ongoing U.S.-China tech rivalry.