China

AMD faces a $1.5 billion loss from US chip curbs

AMD expects to lose around US$1.5 billion in revenue this year because of new US export restrictions on advanced AI chips, which now require a licence to be sold to China.

The US government, under both the Biden and Trump administrations, has tightened curbs on chip exports in an effort to slow China’s progress in developing powerful AI systems, citing national security risks.

China makes up roughly a quarter of AMD’s total revenue, so these measures could reduce AMD’s expected annual earnings by almost 5 per cent.

Despite this setback, AMD posted stronger-than-expected second-quarter revenue guidance, forecasting around US$7.4 billion, likely driven by customers rushing to stockpile chips before the new rules fully take effect.

CEO Lisa Su said the impact from the curbs would be mostly felt during the second and third quarters, yet she still expects revenue from the company’s AI data centre chips to grow by strong double digits in 2024.

AMD’s finance chief Jean Hu clarified the projected US$1.5 billion revenue loss is tied directly to the latest export controls introduced in April.

Although AMD is under pressure, demand for its high-performance chips remains solid, with tech giants like Microsoft and Meta continuing to invest heavily in AI infrastructure.

The company’s data centre division saw sales jump 57 per cent to US$3.7 billion, helping push total revenue up 36 per cent to US$7.44 billion—both figures exceeding analyst expectations. Adjusted earnings stood at 96 cents per share, slightly above estimates.

Rival chipmaker Nvidia has also warned it now requires a licence to export to China and faces an even larger US$5.5 billion hit.

Meanwhile, other tech firms didn’t fare as well—Marvell Technology and Super Micro disappointed investors, with shares falling after they issued weaker outlooks, adding further signs of turbulence in the chip sector.

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China boosts tourism with AI innovations

China’s tourism industry is undergoing rapid transformation as AI technologies become increasingly integrated into both national platforms and regional services. Instead of relying solely on traditional travel planning, tourists can now receive personalised itinerary suggestions in seconds.

Major platforms such as Trip.com use large AI models to assist users before, during and after their journeys—cutting decision-making time from 9 to 6.6 hours, according to Chairman Liang Jianzhang.

Several provinces and cities, including Guizhou and Shanghai, have launched their own AI tourism agents with distinct local features. Guizhou’s Huang Xiao Xi, a digital assistant in ethnic attire, offers tailored travel plans and food ordering options instantly.

Meanwhile, Shanghai’s Hu Xiao You connects tourists with real-time data about venues, traffic, and public amenities, learning from user feedback to improve recommendations over time.

Instead of overwhelming tourists with raw data, these AI agents streamline access to relevant information for a more efficient travel experience.

The rise of wearable AI guides and immersive tech, such as VR, AR, and 3D projections, has also transformed visits to museums and exhibitions. Visitors can now interact with holographic historical figures or animated ancient artworks, blending culture with innovation.

Rather than replacing traditional tourism, China is revitalising it through technology, aiming for improved digitisation, automation and smarter services that meet local development goals.

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Nvidia moves to comply with US export rules

Nvidia is planning to redesign its AI chips to comply with tightened US export restrictions, aiming to retain its foothold in China instead of pulling back.

According to a report by The Information, the chipmaker has already informed major Chinese clients, such as Alibaba, ByteDance, and Tencent, about its revised strategy. The discussions reportedly occurred during CEO Jensen Huang’s visit to Beijing in mid-April.

The visit came just after Washington expanded its curbs on high-performance AI chip exports to China, specifically targeting Nvidia’s H20 chip.

Originally developed to meet earlier US rules, the H20 has now also been deemed too powerful for export under the new regulations. The US government says the move is aimed at preventing China’s military from accessing cutting-edge AI.

Nvidia previously warned that the latest restrictions could cost it up to $5.5 billion in lost revenue. Instead of backing away, the company is now preparing redesigned chips to stay within legal bounds while continuing to serve Chinese tech firms.

Customers have been told that prototype chips could be ready by June.

In addition, Nvidia is developing a tailored version of its next-generation AI chip, Blackwell, specifically for China. These efforts underline Nvidia’s attempt to balance regulatory compliance with its commercial interests in one of the world’s largest AI markets.

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TikTok moves into Japanese E-commerce

Chinese social media giant TikTok is preparing to launch its online shopping service in Japan within the coming months, according to a report by the Nikkei newspaper.

The company plans to begin recruiting sellers soon for TikTok Shop, its e-commerce arm that has already made waves in other regions through livestream-based sales of a wide range of products, from footwear to cosmetics.

The move is part of TikTok’s broader strategy to grow internationally, especially while its future in the US remains uncertain. The platform recently expanded into France, Germany and Italy, pushing further into the European market instead of relying solely on existing user bases.

TikTok Shop is known for offering attractive discounts and allowing users to earn commissions by promoting items in live broadcasts.

In contrast, TikTok’s operations in the US continue to face political and regulatory hurdles. A law passed in 2024 requires ByteDance, TikTok’s China-based parent company, to sell off its US assets by January 19.

Although President Donald Trump indicated a deal might still happen, he also suggested any agreement could be delayed due to shifting dynamics in US-China trade relations.

Despite not immediately responding to media requests for comment, TikTok seems determined to strengthen its foothold in international markets.

By entering Japan’s e-commerce space, the company signals it intends to expand through business innovation and regional diversification instead of waiting for political clarity in the United States.

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Alibaba launches Qwen3 AI model

As the AI race intensifies in China, Alibaba has unveiled Qwen3, the latest version of its open-source large language model, aiming to compete with top-tier rivals like DeepSeek.

The company claims Qwen3 significantly improves reasoning, instruction following, tool use, and multilingual abilities compared to earlier versions.

Trained on 36 trillion tokens—double that of Qwen2.5—Qwen3 is available for free download on platforms like Hugging Face, GitHub, and Modelscope, instead of being limited to Alibaba’s own channels.

The model also powers Alibaba’s AI assistant, Quark, and will soon be accessible via API through its Model Studio platform.

Alibaba says the Qwen model family has already been downloaded over 300 million times, with developers creating more than 100,000 derivatives based on it.

With Qwen3, the company hopes to cement its place among the world’s AI leaders instead of trailing behind American and Chinese rivals.

Although the US still leads the AI field—according to Stanford’s AI Index 2025, it produced 40 major models last year versus China’s 15— Chinese firms like DeepSeek, Butterfly Effect, and now Alibaba are pushing to close the quality gap.

The global competition, it seems, is far from settled.

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Huawei develops Ascend 910D chip to rival Nvidia

Huawei Technologies is preparing to test its newest AI processor, the Ascend 910D, as it seeks to offer an alternative to Nvidia’s products following US export restrictions. The company has approached several Chinese tech firms to assess the technical feasibility of the new chip.

Extensive testing will follow to ensure the chip’s performance before it reaches the wider market. Sources claim Huawei aims for the Ascend 910D to outperform Nvidia’s H100 chip, widely used for AI training since 2022.

Huawei is already shipping large volumes of its earlier Ascend 910B and 910C models to state-owned carriers and private AI developers like ByteDance. Demand for these processors has risen as US restrictions tightened Nvidia’s ability to sell its H20 chip to China.

Increased domestic demand for Huawei’s AI hardware signals a shift in China’s semiconductor market amid geopolitical tensions. Analysts believe this development strengthens Huawei’s ambition to compete globally in the AI chip market.

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AI educational race between China and USA brings some hope

The AI race between China and the USA shifts to classrooms. As AI governance expert Jovan Kurbalija highlights in his analysis of global AI strategies, two countries see AI literacy as a ‘strategic imperative’. From President Trump’s executive order to advance AI education to China’s new AI education strategy, both superpowers are betting big on nurturing homegrown AI talent.

Kurbalija sees focus on AI education as a rare bright spot in increasingly fractured tech geopolitics: ‘When students in Shanghai debug code alongside peers in Silicon Valley via open-source platforms, they’re not just building algorithms—they’re building trust.’

This grassroots collaboration, he argues, could soften the edges of emerging AI nationalism and support new types of digital and AI diplomacy.

He concludes that the latest AI education initiatives are ‘not just about who wins the AI race but, even more importantly, how we prepare humanity for the forthcoming AI transformation and coexistence with advanced technologies.’

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Trump threatens new tariffs within weeks

President Trump has signalled a potential early end to the current 90-day pause on tariffs for countries and companies not actively seeking trade agreements with the US.

While markets initially reacted positively to signs of easing tension with China, that optimism was short-lived as the administration quickly shifted direction.

Instead of waiting out the full pause period, Trump now suggests new tariffs could be imposed within two to three weeks, with rates possibly rising from 10% to as high as 50%.

The lack of clarity over which nations or firms are targeted adds further uncertainty. Although officials initially claimed around 90 countries were engaged in trade talks, that number reportedly dropped to just 15.

A vagueness like this, combined with the unpredictable nature of US tariff policy, has unsettled international markets and raised alarm across global supply chains.

Apple, among others, has managed to avoid immediate price hikes thanks to temporary exemptions and strategic stock management. However, those exemptions are due to expire shortly, leaving the company vulnerable to rising costs.

Instead of facing only Chinese tariffs, Apple may now contend with broader duties on semiconductors and products manufactured outside China.

If tariff relief fails to materialise soon, consumers could see higher prices on future Apple products, including the upcoming iPhone 17.

Without a clearer and more consistent trade strategy from the White House, global firms may struggle to adapt, and the fragile economic recovery could face renewed strain.

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BMW partners with DeepSeek for in-car AI features

BMW has announced plans to integrate AI developed by China’s DeepSeek into its vehicles sold in the Chinese market.

The announcement was made by CEO Oliver Zipse during the Shanghai Auto Show, aligning BMW with local brands such as Geely and Zeekr that have adopted similar AI technologies.

The DeepSeek-R1 model has been increasingly used across Chinese automotive sector to power intelligent cockpit systems, voice controls, and driving assistance.

Geely showcased its ‘Full-Domain AI for Smart Vehicles’, which includes AI-powered chassis control and driver interaction capabilities.

DeepSeek’s influence extends beyond automotive applications, with its technology now used in Chinese courtrooms, healthcare, and customer service.

A successor model, DeepSeek-R2, is expected soon and promises multilingual reasoning and enhanced coding capabilities, rivalling Western counterparts.

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Baidu rolls out new AI agent Xinxiang for Android

Chinese tech giant Baidu has launched a new AI agent, Xinxiang, aimed at enhancing user productivity by assisting with tasks such as information analysis and travel planning.

The tool is currently available on Android devices, with an iOS version still under review by Apple.

According to Baidu, Xinxiang represents a shift from traditional chatbot interactions towards a more task-focused AI experience, providing streamlined assistance tailored to practical needs.

The move reflects growing competition in China’s rapidly evolving AI market.

However, the launch highlights Baidu’s ambition to stay ahead in AI innovation and offer tools that integrate seamlessly into everyday digital life.

As regulatory reviews continue, the success of Xinxiang may depend on user adoption and the speed at which it becomes available across platforms.

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