ByteDance’s AI Phone Faces Blockade from Top Chinese Apps
A new conflict regarding online security, user data, and the management of consumer attention is emerging among China’s largest technology firms. According to the sources, the catalyst for concern is ByteDance’s new AI-powered smartphone, which has faced pushback from significant competitors apprehensive about security risks and the potential loss of users. Last week, ByteDance unveiled its inaugural AI-enabled smartphone, the Nubia M153, in collaboration with device manufacturer ZTE. The phone operates on an Android-based system and is centered around the Doubao Mobile Assistant, which is powered by ByteDance’s Doubao large language model. The assistant can be activated by users through the Doubao app, using a voice command, or by pressing a dedicated side button. A demonstration video published by the company illustrates the integration of the AI. Doubao has the capability to recognize a product featured in a social media post, evaluate prices across multiple e-commerce platforms, and even facilitate an order on the most affordable option — although users are required to finalize the payment independently. The assistant is capable of cleaning up messy backgrounds in photos through a voice command and can store personal preferences once the user enables its memory function. The device was launched in a restricted quantity — only 30,000 units — with a price tag of 3,499 yuan ($495). The phones sold out swiftly, and resellers allegedly started pricing them at an additional 1,000 yuan.
Shortly after its launch, users indicated that Doubao faced restrictions from several prominent applications, including banking platforms, Tencent’s WeChat, Alibaba’s Taobao, and Ant Group’s Alipay. These companies stated that the restrictions were a result of standard security protocols. WeChat stated it “had not taken any specific action to restrict Doubao”, indicating that it was automatically flagged by routine risk controls. A senior security executive conveyed to Nikkei Asia that “to us, [Doubao] has been granted excessively broad permissions, so extensive that it can open virtually any app without relying on an API.” His greatest concern was accountability. “If a user claims they transferred money to the wrong person after instructing Doubao to do so, who is responsible: the user, Doubao, or us?” he inquired. He also emphasized that financial apps encounter significantly more stringent regulations compared to other services, and banks function under even more rigorous rules. He added that another serious concern is data control. He stated that Beijing would not permit sensitive financial information — including personal savings or frequent fund-transfer recipients — to be handled by a private tech giant like ByteDance. What prompted ByteDance to collaborate with ZTE for the launch of the Nubia M153? An executive at a prominent e-commerce company stated, “ByteDance likely chose ZTE as its partner because popular manufacturers like Huawei and Xiaomi would never grant Doubao such extensive permissions.” The report indicated that these companies are creating their own AI assistants and would refrain from granting excessive access to a competitor’s AI.
In response to increasing scrutiny, ByteDance declared on Doubao’s official WeChat account that it would temporarily halt various AI functionalities, encompassing gaming, banking, and online payment capabilities. The company characterized the decision as “a necessary step to ensure the technology has a more solid and far-reaching future.” It stated that ByteDance will persist in collaborating with hardware manufacturers to establish “clear and secure AI operating behaviour guidelines,” and it has no intentions of producing its own smartphones. Doubao has emerged as a formidable force within China’s AI ecosystem. In the third quarter, it recorded 159 million monthly active users, surpassing competitor DeepSeek, according to the report. Experts indicated that although security and privacy concerns provide the most justifiable reasons for limiting Doubao, the more significant issue lies in business competition. Doubao’s capability to execute tasks poses a direct challenge to the ad-driven and app-based business models of firms such as Meituan, Tencent, and Alibaba. The report stated that Zhou Hongyi, co-founder of Beijing-based firm Qihoo 360, remarked that apps might alter their interfaces to mislead AI tools, obscure essential information behind additional steps, or implement dynamic verification measures. E-commerce companies might limit third-party access, compelling users to remain within their app “walled gardens.”
Meanwhile, smartphone manufacturers such as Huawei and Xiaomi are anticipated to advance their proprietary operating systems and AI assistants. Collaborations between major model developers and smartphone manufacturers have a long-standing history. Alibaba is currently in collaboration with Oppo and Honor. Earlier this year, Oppo unveiled a “flash note” feature designed to summarise content and monitor expenses. However, by October, users indicated that WeChat had limited the feature — yet another indication of the rapid escalation in AI competition.
