The alliance between tech giants Apple and Alibaba is currently under careful examination by the Trump administration and congressional officials. This partnership is designed to bring Alibaba's AI capabilities to iPhones in China, as reported by The New York Times.

The newspaper managed to get the scoop from confidential sources, revealing how figures in the White House and in the House Select Committee on China have been asking Apple's core team probing questions about this collaboration. Their primary concern is the type of data that Apple would allow Alibaba access to. They also want insights into whether there are any sort of promises made to Chinese authorities.

The Apple heads were unable to respond convincingly to most of the queries put forward.

Quoting Congressman Raja Krishnamoorthi, a key Democrat on the House Permanent Select Committee on Intelligence, Alibaba is tagged as the model example of 'military-civil fusion strategy' by 'Chinese Communist Party'. The representative expressed his deep concern about the lack of transparency displayed by Apple concerning their deal with Alibaba.

The only party that has confirmed this deal publicly so far is Alibaba but not Apple. However, this is not the only predicament that Apple is dealing with, amid the increasing strains between China and the U.S. These tensions are impacting Apple's business as they also grapple with the turbulent tariff changes, which have been inconsistent over time.