The Trump administration and congressional officials are examining an agreement between Apple and Alibaba that would integrate Alibaba-powered AI capabilities into iPhones sold in China, as reported by The New York Times.

According to anonymous sources cited by the NYT, White House officials and members of the House Select Committee on China have directly questioned Apple executives about the agreement, focusing on the type of data that would be shared with Alibaba and whether the company has made any commitments to Chinese regulatory bodies. However, the executives were reportedly unable to provide clear answers to most of these questions.

In a statement, Representative Raja Krishnamoorthi, the ranking Democrat on the House Permanent Select Committee on Intelligence, referred to Alibaba as “a prime example of the Chinese Communist Party’s strategy to fuse military and civil endeavors” and expressed concern that Apple has “lacked transparency regarding its agreement” with the company, describing the situation as “extremely disturbing”.

So far, only Alibaba has publicly confirmed the deal, while Apple has remained silent. This development is just one of the challenges Apple faces due to rising tensions between the United States and China, as the company also deals with recurring tariffs that impact its business.