Why ByteDance's AI phone is getting blocked by China's biggest apps

ByteDance's Doubao-powered AI phone is facing app blocks over broad permissions and data risks; the episode is exposing a bigger fight among China's tech giants for users and control

A new battle over online security, user data and control of consumer attention is unfolding among China’s biggest technology companies. The trigger is ByteDance’s new AI-powered smartphone, which has drawn resistance from major rivals worried about security risks and the threat of losing users, Nikkei Asia reported.

 

Last week, ByteDance launched its first AI-enabled smartphone, the Nubia M153, in partnership with device maker ZTE. The phone uses an Android-based system and is built around the Doubao Mobile Assistant, powered by ByteDance’s Doubao large language model. Users can activate the assistant through the Doubao app, by voice command, or via a dedicated side button.

 

A demo video released by the company shows how the AI is integrated. Doubao can identify a product from a social media post, compare prices across several e-commerce platforms, and even place an order on the cheapest one — though users must still complete the payment themselves. The assistant can also clean up messy backgrounds in photos using a voice command and store personal preferences once the user allows its memory function.

 

The device was released in limited numbers — just 30,000 units — priced at 3,499 yuan ($495). The phones sold out quickly, and resellers reportedly began listing them for 1,000 yuan more.

 

Which apps restricted Doubao, and what reasons did they give?

 

Soon after launch, users reported that Doubao was blocked by several major apps, including banking platforms, Tencent’s WeChat, Alibaba’s Taobao and Ant Group’s Alipay. These companies said the restrictions stemmed from standard security protocols.

 

WeChat said it “had not taken any specific action to restrict Doubao”, suggesting it was automatically flagged by routine risk controls.

 

A senior security executive told 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 biggest worry 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 asked. He also stressed that financial apps face far tighter regulations than other services, and banks operate under even stricter rules.

 

Another serious concern, he added, is data control. Beijing would not allow sensitive financial information — such as personal savings or frequent fund-transfer recipients — to be managed by a private tech giant like ByteDance, he said.

 

Why did ByteDance partner with ZTE for the Nubia M153 launch?

 

An executive at a major e-commerce company said ByteDance likely chose ZTE as its partner because popular manufacturers like Huawei and Xiaomi would never grant Doubao such extensive permissions. These companies are developing their own AI assistants and would avoid giving a rival’s AI too much access, the news report said.

 

What functions did ByteDance suspend after the backlash?

 

Facing rising criticism, ByteDance announced on Doubao’s official WeChat account that it would temporarily suspend several AI functions, including gaming, banking and online payment features. The company described the move as “a necessary step to ensure the technology has a more solid and far-reaching future”.

 

It added that ByteDance will continue to work with hardware makers to set up “clear and secure AI operating behaviour guidelines”, and it has no plans to manufacture its own smartphones.

 

Is this really about security, or competition for users and revenue?

 

Doubao has become a strong player in China’s AI ecosystem. In the third quarter, it recorded 159 million monthly active users, beating competitor DeepSeek, the news report said.

 

Nikkei Asia quoted experts as saying that while security and privacy concerns offer the most reasonable grounds for restricting Doubao, the bigger issue is business competition. Doubao’s ability to perform tasks directly threatens the ad-driven and app-based business models of companies like Meituan, Tencent and Alibaba.

 

What could change next as the AI race shifts inside apps?

 

The news report quoted Zhou Hongyi, co-founder of Beijing-based firm Qihoo 360, as saying that apps may redesign their interfaces to confuse AI tools, hide crucial information behind more steps, or add dynamic verification measures. E-commerce companies may restrict third-party access, forcing users to stay inside their app “walled gardens”.

 

Meanwhile, smartphone makers like Huawei and Xiaomi are expected to push their own operating systems and AI assistants.

 

Partnerships between big model developers and phone makers are not new. Alibaba already collaborates with Oppo and Honor. Earlier this year, Oppo introduced a “flash note” feature that could summarise content and track expenses.

 

But by October, users reported that WeChat had restricted the feature — another sign of how fast the AI competition is escalating.