Alibaba’s shares drop amid US scrutiny of Apple partnership

Shares of Alibaba Group Holding Ltd. slid on Monday after reports that the Trump administration is scrutinizing Apple’s deal with Alibaba to bring AI features to iPhones in China.

Alibaba’s stock fell as much as 4% on Monday in Hong Kong. Officials are concerned about what user data might be shared with Alibaba and whether the company has made commitments with Chinese regulators.

Lawmakers are publicly pressing Apple for details of the Alibaba deal

Representative Raja Krishnamoorthi, the ranking Democrat on the House Permanent Select Committee on Intelligence, called Alibaba “a poster child for the Chinese Communist Party’s military-civil fusion strategy.” He said it was “extremely disturbing” that Apple “has not been transparent about its agreement.”

Only Alibaba has confirmed the deal in public. Apple has remained silent, and the scrutiny adds to the many ways rising U.S.–China tensions threaten the iPhone maker’s business.

The dispute lands at a rough moment for Alibaba. The e-commerce giant’s shares had already been sliding after its latest quarterly revenue missed analyst expectations, denting enthusiasm that earlier framed the company as a leader in the DeepSeek-fueled AI surge.

Back in February, Chairman Joseph Tsai told investors that future iPhones would use Alibaba’s AI tools, a comment that helped power a sharp rally at the time. His remarks boosted confidence that domestic AI champions could work with global consumer brands.

The overall Asian market drifted lower

Asian equities broadly weakened on Monday as investors weighed mixed signals from the world’s largest economies. Regional risk appetite remained notably cautious.

Australia’s S&P/ASX 200 moved modestly, with traders waiting for Tuesday’s Reserve Bank of Australia decision. Economists expect the RBA to trim its benchmark rate by 25 basis points amid cooling inflation, though they also predict a cautious tone on further cuts because of lingering domestic and global risks.

Japan’s Nikkei 225 slipped 0.3 percent and the broader TOPIX edged down 0.1 percent, extending losses that began after a weak gross domestic product reading on Friday. Markets are now watching April consumer-price figures, due later this week, for guidance on the Bank of Japan’s next move on interest rates.

South Korea’s KOSPI dropped 0.7 percent, while Singapore’s Straits Times Index fell 0.3 percent. Trading volumes across the region were below recent averages as many investors stayed on the sidelines ahead of key economic releases.