The Taiwan Daily reports on a significant development concerning China's approach to artificial intelligence (AI) technology as a means of asserting control over international tech giants. According to South Korea’s Chosun Ilbo, the Chinese government is leveraging its vast market as a strategic tool to "tame" foreign technology companies aiming to market AI-equipped smartphones within the country. These companies are increasingly required to integrate Chinese-developed AI technologies to counteract the implications of US AI sanctions.
In a notable instance, Apple CEO Tim Cook has recently made his third visit to China, driven by plans to launch the iPhone and other AI products that incorporate Apple's proprietary AI model, known as Apple Intelligence. However, this initiative faces daunting regulatory hurdles. The Financial Times has highlighted the words of a senior official from China's Cyberspace Administration, who indicated that foreign entities must collaborate with local firms to avoid protracted and complex approval processes. The official stated, “Utilising major language models pre-approved by Chinese enterprises will expedite the approval process. Collaborating with local enterprises is the best option.”
This unfolding scenario evidently points to a direct requirement for Apple to utilise local AI models. Given that the Chinese market accounts for approximately 17% of Apple’s total sales, it is critical for the company to navigate these challenges rather than forgo this lucrative market. As part of this strategic move, reports suggest that Apple is in discussions with notable Chinese firms, including Baidu, ByteDance, and the Beijing-based AI startup, "Moon Dark Technology."
Further complicating matters, Samsung Electronics is also adapting its strategy according to the market demands in China. While the company has launched its Galaxy smartphones globally, inclusive of the Google Gemini AI, it has opted to partner with Baidu for its large language model (LLM) specifically within the Chinese market. Meanwhile, the US-developed ChatGPT has been restricted in China, prompting developers to circumvent these limitations for research and learning purposes, which ultimately resulted in a total ban in July.
Analysts believe that China's efforts to "tame large tech enterprises" are part of a broader strategy to establish its own AI ecosystem amidst pressures from US sanctions. The report observes that, while China’s AI development has lagged behind US firms such as OpenAI, Google, and Meta, the Chinese government is working to provide substantial support for domestic companies while keeping foreign businesses in check.
Source: Noah Wire Services