From Apple (AAPL) to Ford Motor Company (F): Why Global Giants Can’t Quit Chinese Technology

Global companies are increasingly relying on Chinese technology despite Washington tightening restrictions. Apple Inc. (AAPL) is now turning to Alibaba and Baidu for AI in China, while Ford Motor Company (F) is utilizing CATL for batteries. This shift is not new, as both companies have been using Chinese technology for years.

China has moved from a market Western firms sell into to a source of technology they can't avoid. This raises questions about whether this dependence is temporary or a structural shift. IDC China's Kitty Fok suggests that Apple's partnership with Alibaba and Baidu is non-negotiable due to foreign AI provider restrictions in China. A survey of European companies found security, compliance, and performance as top reasons for extensive Chinese AI adoption.

Apple's dependence on Chinese tech shows real strength, as it has benefited from this relationship for over a year. Apple CEO Joe Tsai mentioned choosing Alibaba in February 2025, and the partnership deepened through 2026. However, Apple's hold in China's regulatory system remains limited, and its execution has been inconsistent.

Ford Motor Company is counting on CATL's lithium-iron phosphate battery technology at a Michigan plant. This supplier has completed a structural shift in EV batteries that is hard to reverse quickly. Analysts note that switching battery suppliers takes years of engineering and testing. While Ford's reliance on CATL may become harder to undo if trade tensions escalate, the company faces a 52.5% US tariff on the China-built Lincoln Nautilus.

Both Apple and Ford are betting that operational benefits outweigh the long-term risks of dependence on Chinese technology. Despite the potential of AAPL as an investment, some analysts believe other AI stocks offer greater upside potential and less downside risk.