Digital standards

Retail stocks slump after tariff shock

Retail giants are facing sharp declines in after-hours trading as new tariffs from the US on imports from China, the European Union, and Vietnam begin to rattle markets. Walmart and Amazon both saw their shares fall, with Nike also heavily impacted due to its dependence on Chinese manufacturing.

Walmart’s drop of over 4% reflects its heavy reliance on Chinese imports, with roughly 70% of its merchandise tied to the country. Amazon, similarly exposed through its third-party sellers, dipped close to 5% amid fears that rising costs will force sellers to raise prices, dampening consumer demand. These developments could severely affect the upcoming holiday shopping season.

Nike, meanwhile, saw shares fall by more than 6% as news emerged that many of its products, including popular sneakers, are produced in China and Vietnam. Although the company has been diversifying production to Vietnam, the move offers little relief now, as Vietnam faces an even steeper 46% tariff. The new policies may force widespread price hikes, putting further pressure on consumers and the broader retail sector.

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Chinese tech firm Honor bets big on AI devices

Chinese smartphone maker Honor has unveiled a $10 billion investment plan aimed at advancing AI technologies across its product ecosystem. The announcement was made by CEO James Li at the Mobile World Congress in Barcelona, where he outlined the company’s ambition to evolve beyond smartphones and expand into AI-powered PCs, tablets, and wearables.

The major funding initiative comes as Honor prepares for a public listing, following a shareholder restructuring completed in December. While a date for the IPO has yet to be confirmed, the company appears to be positioning itself as a key player in China’s AI race, spurred by growing domestic interest in large language models like those developed by DeepSeek.

Despite slipping to fourth place in China’s smartphone market last year, Honor continues to receive strong backing from the Shenzhen local government. Support has included R&D funding, tax incentives, and assistance with international expansion. The company’s strategic pivot to AI reflects broader trends in China’s tech sector, as firms seek to integrate smart features into a wider range of consumer devices.

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AI transforms autism therapy in China

In Shenzhen, a quiet breakthrough is unfolding in autism rehabilitation as AI-powered tools begin to transform how young children receive therapy.

At a local centre, a therapist guides a three-year-old boy through speech exercises, while an AI system documents progress and instantly generates a tailored home-training plan, offering much-needed support to both therapists and families.

China faces a severe shortage of autism therapists, with only around 100,000 professionals serving a community of over 10 million individuals, including 3 million children.

Traditional diagnosis and treatment rely on time-consuming behavioural assessments. Now, AI is streamlining this process.

Centres like Dami & Xiaomi, in partnership with Amazon Web Services, have developed RICE AI, a system trained on over 80 million behavioural data points to generate faster, personalised interventions and even custom visual materials for home learning.

By dramatically reducing workloads and enhancing precision, AI is helping to close the gap in early intervention and support.

More facilities are following suit, with efforts underway to unify and open-source these tools across the country. As one mother tearfully recalled her autistic son’s first spoken word, the emotional impact of this technological shift was clear, AI is not replacing care, but deepening it.

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Japan targets Apple and Google with new law

The Japan Fair Trade Commission (JFTC) announced on Monday that it has designated Apple Inc., its Japanese subsidiary iTunes K.K., and Google LLC under the new smartphone software competition promotion law.

The law targets dominant IT companies in the smartphone app market, regulating areas like smartphone operating systems, app stores, web browsing software, and search engines.

The primary aim of the law is to prevent these giants from blocking market entry for other companies or giving preferential treatment to their own services. The law will take full effect in December, with the designated companies required to correct any problematic practices.

Apple will be required to allow other companies into the App Store business instead of monopolising it, fostering price competition. Google will be prohibited from displaying its services in search results instead of favouring them.

In response, both companies expressed concerns, with Apple questioning the impact on user experience and Google vowing to engage in discussions to ensure fairness.

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Chinese brain chip project accelerates human trials

A Chinese brain chip project has expanded its human trials, aiming to implant 13 patients with its semi-invasive Beinao No.1 device by the end of the year.

Backed by the Chinese Institute for Brain Research and NeuCyber NeuroTech, the project may soon overtake Elon Musk’s Neuralink in patient numbers.

Early results have shown paralysed patients using the chip to control robotic arms and transmit thoughts to a computer screen. The developers from China plan a larger clinical trial next year with 50 participants, pending regulatory approval.

The team is also working on a more advanced wireless chip similar to Neuralink’s, expected to begin human testing within 18 months.

While funding remains a challenge, scientists stress their focus is on helping patients, not profit.

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Guangdong eyes global role in AI and robotics

Guangdong is stepping up efforts to become a world leader in AI and robotics by offering generous subsidies to attract start-ups and top tech talent.

The province will grant up to 50 million yuan to major AI manufacturing hubs and millions more to smaller firms and developers.

Officials also plan to fund five open-source communities and ten industrial applications of AI each year, with up to 8 million yuan in support for each.

Local tech giants like Huawei and Tencent are expected to play a key role in the ecosystem.

The move follows the rise of AI firm DeepSeek in neighbouring province of China, Zhejiang, whose founder hails from Guangdong.

The government hopes to replicate that success at home by turning the region into a centre for innovation and global competitiveness.

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AI technology sparks debate in Hollywood

Hollywood is grappling with AI’s increasing role in filmmaking, with executives, actors, and developers exploring the technology’s potential. At a recent event, industry leaders discussed AI-generated video, heralded as the biggest breakthrough since the advent of sound in cinema.

Despite its growing presence, AI’s impact remains controversial, especially after recent strikes from actors and writers seeking protection from AI exploitation.

AI technology is making its way into movies and TV shows, with Oscar-nominated films like Emilia Perez and The Brutalist using AI for voice alterations and actor de-aging. AI’s capacity to generate scripts, animation, and even actors has led to fears of job displacement, particularly for background actors.

However, proponents like Bryn Mooser of Moonvalley argue that AI can empower filmmakers, especially independent creators, to produce high-quality content at a fraction of traditional costs.

While Hollywood is still divided on AI’s potential, several tech companies, including OpenAI and Google, are lobbying for AI models to access copyrighted art to fuel their development, claiming it’s vital for national security.

The push has met resistance from filmmakers who fear it could undermine the creative industry, which provides millions of jobs. Despite the opposition, AI’s role in filmmaking is rapidly expanding, and its future remains uncertain.

Some in the industry believe AI, if used correctly, can enhance creativity by allowing filmmakers to create worlds and narratives beyond their imagination. However, there is a push to ensure that artists remain central to this transformation, and that AI’s role in cinema respects creators’ rights and protections.

As AI technology evolves, Hollywood faces a critical choice: embrace it responsibly instead of the risk of being overtaken by powerful tech companies.

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Dutch police struggle with cyberattacks and underfunding

A leaked report has revealed serious financial and digital failings within the Dutch police, including unchecked spending on IT and cybersecurity.

Auditors from Ernst & Young found that the force must cut €160 million, raising concerns over national security and officer safety.

The Dutch Police Union warns that chronic understaffing, daily cyberattacks and a lack of digital resilience have pushed the system to breaking point.

A September data breach affected nearly all officers, and experts say over €300 million is needed to restore proper infrastructure.

Police Chief Janny Knol acknowledged the force underestimated the costs of digital transformation.

Merged systems from 24 regional departments have caused spiralling maintenance issues, while key tech projects run over budget and behind schedule. Urgent reforms are now planned.

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MetaAI launches in Europe amid data concerns

Meta has resumed the roll-out of its MetaAI across Europe after halting the launch last year due to regulatory uncertainty.

The Irish Data Protection Commission (DPC) still has questions regarding Meta’s AI tool, particularly in relation to its use of personal data from Facebook and Instagram users to train large language models.

The company has been in discussions with the DPC, but instead of an agreement, it remains under review as the tool continues to roll out.

MetaAI was first introduced in the US in September 2023, followed by India in June 2024, and the UK in October. It enables users to interact with a chat function across Facebook, Instagram, Messenger, and WhatsApp.

However, its expansion in Europe faced delays last summer due to concerns raised by the Irish privacy watchdog.

The company has expressed confidence in its compliance with the EU’s data protection laws and has been transparent with the DPC about its launch. However, failure to comply with the General Data Protection Regulation (GDPR) could lead to significant fines.

Additionally, certain aspects of MetaAI fall under the scope of Europe’s Digital Services Act (DSA), which requires the company to meet specific standards on user safety and transparency.

The European Commission has indicated it is waiting for a risk assessment from Meta to ensure that the tool complies with DSA obligations. While initial elements may not be directly relevant to the DSA, the Commission will continue to monitor the deployment closely.

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European Commission charges €58.2 million in fees for DSA enforcement

The European Commission has charged the largest online platforms in the EU a total of €58.2 million in supervisory fees for their enforcement under the Digital Services Act (DSA).

These fees, which apply to platforms with over 45 million users per month, aim to fund the Commission’s activities for DSA enforcement, including administrative and human resource costs.

Meta, TikTok, and Google have filed five pending court cases against the fees, challenging the charges.

The DSA, designed to increase platform accountability, became fully applicable in February 2024, and the Commission has designated 25 Very Large Online Platforms, including major players like Amazon and LinkedIn.

During the 2024 period, the Commission launched formal proceedings against several platforms and sent over 100 requests for information.

However, instead of these fees fully covering the Commission’s expenses, they led to a deficit of €514,061. Investigations into platforms like X are ongoing, with transparency issues being a key concern.

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