Apple’s (NASDAQ:AAPL) big bet on its AI platform, Apple Intelligence, is hitting turbulence in China. Beijing’s regulators have made it crystal clear: foreign companies face a tough, drawn-out approval process unless they team up with local partners. CEO Tim Cook, fresh off his third trip to China this year, is knee-deep in talks with heavyweights like Baidu and ByteDance to make this work. But here’s the catchthis bureaucratic slog is pushing Apple’s timeline for a full AI rollout in China to late 2025 or beyond, leaving rivals like Huawei free to dominate the market with their homegrown AI-powered devices.

China is Apple’s second-largest market, pulling in 17% of its revenue last year, but the company is feeling the squeeze. iPhone sales in the region are down 8% as a mix of rising competition and a nationalist push against foreign tech takes its toll. Meanwhile, Huawei is stealing the spotlight, surging back with 5G devices and AI integration that’s eating into Apple’s market share. Cook’s charm offensive in Chinameeting regulators, pledging investments, and strengthening supply chain tiesshows how critical this market remains, even as Apple tries to spread its manufacturing footprint elsewhere.

For investors, this is a high-stakes waiting game. Apple’s AI strategy could be a game-changer globally, but in China, it’s a waiting game laced with risk. Partnering with local firms might unlock doors, but it also raises questions about control over proprietary tech. Add in Huawei’s momentum and Beijing’s tight grip on generative AI policies, and the path ahead is murky. Still, Apple’s resilience and focus on innovation might keep it in the gamebut don’t expect this to be a short-term win.

This article first appeared on GuruFocus.