Closing the AI Divide: Huawei Steps in to Fill Apple’s Void in China

After Apple’s announcement that Siri AI would not be launched in China, Huawei introduced HarmonyOS 7 in Dongguan, marking the beginning of the agent era. This move by Huawei fills the gap left by Apple with an architecture specifically designed for the Chinese market.

Understanding the Impact of HarmonyOS 7

The key change brought by HarmonyOS 7 is the HarmonyOS Intelligent Agent Framework 2.0. This framework reorganizes the operating system around an “intent-as-service” model, enabling users to perform tasks with a single natural-language command instead of multiple app navigations.

At the core of HarmonyOS 7 is Xiaoyi, Huawei’s AI assistant, now transformed into a system-level intelligence agent. Xiaoyi can now control more than 2,100 system-level capabilities and collaborate with over 2,000 third-party AI agents within Huawei’s developer ecosystem.

Richard Yu, chairman of Huawei’s Consumer Business Group, emphasized HarmonyOS 7 as a significant milestone, stating, “In 2019, HarmonyOS was introduced. In 2023, native HarmonyOS apps were launched. In 2026, HarmonyOS transitions into the Agent era.”

HarmonyOS 7 features openPangu 2.0, Huawei’s updated foundation model, offering 505 billion parameters in its Pro version and 92 billion in the Flash variant. These models support 512K context windows and are expected to be available on Kirin chips by autumn 2026. Huawei claims a performance improvement of over 15% compared to HarmonyOS 6.1, although independent verification of this claim is pending.

Market Trends and Positioning

Recent data presented at HDC 2026 indicates a significant shift in the market landscape. In Q1 2026, HarmonyOS captured 19% of China’s smartphone OS market share, surpassing Apple iOS at 16% and trailing behind Android at 65%. HarmonyOS first surpassed iOS in China in Q2 2025, as reported by Counterpoint Research.

This market positioning is crucial, especially in China, where Apple’s AI capabilities are limited, and Huawei has strategically optimized its offerings. Xiaoyi’s agent network includes partnerships with Ctrip for travel planning and Ant Medical for health data analysis, services deeply integrated into the Chinese consumer ecosystem.

Challenges and Opportunities

While HarmonyOS 7 is currently in developer beta, with a stable consumer release expected in autumn, the platform’s 2,000-plus AI agents are primarily rooted in the Chinese app ecosystem. Huawei aims to expand internationally, but the platform’s reach is still limited compared to Apple’s extensive App Store offerings.

Despite the unique features of HarmonyOS 7, there are design similarities with Apple’s iOS and Samsung’s One UI, reflecting a convergence in visual language across different platforms.

The Evolution of HarmonyOS

HarmonyOS emerged in response to US sanctions that restricted Huawei’s access to Google’s Android in 2019. By January 2026, over 90% of Huawei devices were running the fully developed HarmonyOS. This strategic independence has positioned Huawei favorably in a market where Apple’s AI features are currently unavailable.

The platform’s growth was propelled by sanctions and regulatory challenges, paving the way for its success in the Chinese market.

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