TikTok has finalised a deal allowing the app to continue operating in America by separating its US business from its global operations. The agreement follows years of political pressure in the US over national security concerns.
Under the arrangement, a new entity will manage TikTok’s US operations, with user data and algorithms handled inside the US. The recommendation algorithm has been licensed and will now be trained only on US user data to meet American regulatory requirements.
Ownership of TikTok’s US business is shared among American and international investors, while China-based ByteDance retains a minority stake. Oracle will oversee data security and cloud infrastructure for users in the US.
Analysts say the changes could alter how the app functions for the roughly 200 million users in the US. Questions remain over whether a US-trained algorithm will perform as effectively as the global version.
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The European Union has proposed new cybersecurity rules aimed at reducing reliance on high-risk technology suppliers, particularly from China. In the European Union, policymakers argue existing voluntary measures failed to curb dependence on vendors such as Huawei and ZTE.
The proposal would introduce binding obligations for telecom operators across the European Union to phase out Chinese equipment. At the same time, officials have warned that reliance on US cloud and satellite services also poses security risks for Europe.
Despite increased funding and expanded certification plans, divisions remain within the European Union. Countries including Germany and France support stricter sovereignty rules, while others favour continued partnerships with US technology firms.
Analysts say the lack of consensus in the European Union could weaken the impact of the reforms. Without clear enforcement and investment in European alternatives, Europe may struggle to reduce dependence on both China and the US.
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Anthropic chief executive Dario Amodei has criticised the US decision to allow the export of advanced AI chips to China, warning it could undermine national security. Speaking at the World Economic Forum 2026 in Davos, he questioned whether selling US-made hardware abroad strengthens American influence.
Amodei compared the policy to ‘selling nuclear weapons to North Korea‘, arguing that exporting cutting-edge chips risks narrowing the technological gap between the United States and China. He said Washington currently holds a multi-year lead in advanced chipmaking and AI infrastructure.
Sending powerful hardware overseas could accelerate China’s progress faster than expected, Amodei told Bloomberg. He warned that AI development may soon concentrate unprecedented intelligence within data centres controlled by individual states.
Amodei said AI should not be treated like older technologies such as telecoms equipment. While spreading US technology abroad may have made sense in the past, he argued AI carries far greater strategic consequences.
The debate follows recent rule changes allowing some advanced chips, including Nvidia’s H200 and AMD’s MI325X, to be sold to China. The US administration later announced plans for a 25% tariff on AI chip exports, adding uncertainty for US semiconductor firms.
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Exiger has launched a free online tool designed to help organisations identify links to forced labour in global supply chains. The platform, called forcedlabor.ai, was unveiled during the annual meeting of the World Economic Forum in Davos.
The tool allows users to search suppliers and companies to assess potential exposure to state-sponsored forced labour, with an initial focus on risks linked to China. Exiger says the database draws on billions of records and is powered by proprietary AI to support compliance and ethical sourcing.
US lawmakers and human rights groups have welcomed the initiative, arguing that companies face growing legal and reputational risks if their supply chains rely on forced labour. The platform highlights risks linked to US import restrictions and enforcement actions.
Exiger says making the data freely available aims to level the playing field for smaller firms with limited compliance budgets. The company argues that greater transparency can help reduce modern slavery across industries, from retail to agriculture.
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The US administration has approved the export of Nvidia’s H200 AI chips to China, reversing years of tight US restrictions on advanced AI hardware. The Nvidia H200 chips represent the company’s second-most-powerful chip series and were previously barred from sale due to national security concerns.
The US president announced the move last month, linking approval to a 25 per cent fee payable to the US government. The administration said the policy balances economic competitiveness with security interests, while critics warned it could strengthen China’s military and surveillance capabilities.
Under the new rules, Nvidia H200 chips may be shipped to China only after third-party testing verifies their performance. Chinese buyers are limited to 50 per cent of the volume sold to US customers and must provide assurances that the chips will not be used for military purposes.
Nvidia welcomed the decision, saying it would support US jobs and global competitiveness. However, analysts questioned whether the safeguards can be effectively enforced, noting that Chinese firms have previously accessed restricted technologies through intermediaries.
Chinese companies have reportedly ordered more than two million Nvidia H200 chips, far exceeding the chipmaker’s current inventory. The scale of demand has intensified debate over whether the policy will limit China’s AI ambitions or accelerate its access to advanced computing power.
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Innovations across China are moving rapidly from laboratories into everyday use, spanning robotics, autonomous vehicles and quantum computing. Airports, hotels and city streets are increasingly becoming testing grounds for advanced technologies.
In Hefei, humanoid cleaning robots developed by local start-up Zerith are already operating in public venues across major cities. The company scaled from prototype to mass production within a year, securing significant commercial orders.
Beyond robotics, frontier research is finding industrial applications in energy, healthcare and manufacturing. Advances from fusion research and quantum mechanics are being adapted for cancer screening, battery safety and precision measurement.
Policy support and investment are accelerating this transition from research to market. National planning and local funding initiatives aim to turn scientific breakthroughs into scalable technologies with global reach.
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China’s AI sector could narrow the technological AI gap with the United States through growing risk-taking and innovation, according to leading researchers. Despite export controls on advanced chipmaking tools, Chinese firms are accelerating development across multiple AI fields.
Yao Shunyu, a former senior researcher at ChatGPT maker OpenAI and now Tencent’s AI scientist, said a Chinese company could become the world’s leading AI firm within three to five years. He pointed to China’s strengths in electricity supply and infrastructure as key advantages.
Yao said the main bottlenecks remain production capacity, including access to advanced lithography machines and a mature software ecosystem. Such limits still restrict China’s ability to manufacture the most advanced semiconductors and narrow the AI gap with the US.
China has developed a working prototype of an extreme-ultraviolet lithography machine that could eventually rival Western technology. However, Reuters reported the system has not yet produced functioning chips.
Sources familiar with the project said commercial chip production using the machine may not begin until around 2030. Until then, Chinese AI ambitions are likely to remain constrained by hardware limitations.
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The US administration’s new AI action plan frames global development as an AI race with a single winner. Officials argue AI dominance brings economic, military, and geopolitical advantages. Experts say competition is unfolding across multiple domains.
The United States continues to lead in the development of advanced large language and multimodal models by firms such as OpenAI, Google, and Anthropic. American companies also dominate global computing infrastructure. Control over high-end AI chips and data-centre capacity remains concentrated in US firms.
Chinese companies are narrowing the gap in the practical applications of AI. Models from Alibaba, DeepSeek, and Moonshot AI perform well in tasks such as translation, coding, and customer service. Performance at the cutting edge still lags behind US systems.
Washington’s decision to allow limited exports of Nvidia’s H200 AI chips to China reflects a belief that controlled sales can preserve US leadership. Critics argue the move risks weakening America’s computing advantage. Concerns persist over long-term strategic consequences.
Rather than a decisive victory for either side in the AI race, analysts foresee an era of asymmetric competition in AI. The United States may dominate advanced AI services, but China is expected to lead in large-scale industrial deployment within the evolving AI race.
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China’s cyberspace regulator has proposed new limits on AI ‘boyfriend’ and ‘girlfriend’ chatbots, tightening oversight of emotionally interactive artificial intelligence services.
Draft rules released on 27 December would require platforms to intervene when users express suicidal or self-harm tendencies, while strengthening protections for minors and restricting harmful content.
The regulator defines the services as AI systems that simulate human personality traits and emotional interaction. The proposals are open for public consultation until 25 January.
The draft bans chatbots from encouraging suicide, engaging in emotional manipulation, or producing obscene, violent, or gambling-related content. Minors would need guardian consent to access AI companionship.
Platforms would also be required to disclose clearly that users are interacting with AI rather than humans. Legal experts in China warn that enforcement may be challenging, particularly in identifying suicidal intent through language cues alone.
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Chinese President Xi Jinping said 2025 marked a year of major breakthroughs for the country’s AI and semiconductor industries. In his New Year’s address, he said that Chinese technology firms had made significant progress in AI models and domestic chip development.
China’s AI sector gained global attention with the rise of DeepSeek. The company launched advanced models focused on reasoning and efficiency, drawing comparisons with leading US systems and triggering volatility in global technology markets.
Other Chinese firms also expanded their AI capabilities. Alibaba released new frontier models and pledged large-scale investment in cloud and AI infrastructure, while Huawei announced new computing technologies and AI chips to challenge dominant suppliers.
China’s progress prompted mixed international responses. Some European governments restricted the use of Chinese AI models over data security concerns, while US companies continued engaging with Chinese-linked AI firms through acquisitions and partnerships.
Looking ahead to 2026, China is expected to prioritise AI and semiconductors in its next five-year development plan. Analysts anticipate increased research funding, expanded infrastructure, and stronger support for emerging technology industries.
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