China Archives | Digital Watch Observatory

VTC expands AI training across all programmes in Hong Kong

The Vocational Training Council (VTC) has introduced an ‘AI for All’ strategy to integrate AI training across its programmes, aiming to support Hong Kong’s ambition to strengthen its innovation and technology sector.

The initiative aligns with broader policy priorities, including the ‘AI Plus’ approach outlined in national planning frameworks and Hong Kong’s budget, which emphasise integrating AI across industries while addressing a shortage of skilled professionals.

Under the ‘AI+Professional’ model, all Higher Diploma students are required to study IT modules covering prompt engineering, generative AI, and AI ethics and security, with training adapted to disciplines such as engineering, design, and information technology.

The council has also partnered with technology companies through memorandums of understanding. It provides ongoing training for employees in government and industry, while offering internal AI tools and a ‘Virtual Tutor’ platform to support teaching and learning.

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Europe boosts AI, talent and investment to compete with US and China

Efforts to strengthen technological competitiveness in Europe focus on advancing AI capabilities, developing new forms of talent and improving access to investment.

Discussions at the CTx Tech Experience in Seville highlighted a growing consensus that innovation must scale more effectively if the region is to compete globally.

Participants emphasised that Europe continues to face structural challenges, including fragmented markets, regulatory complexity and limited capital for high-growth companies.

These constraints have made it more difficult for startups to expand, prompting calls for stronger coordination between public institutions and private investors.

AI is increasingly viewed as the foundation of the transformation. Industry leaders pointed to the emergence of new business opportunities driven by AI, alongside the need to translate innovation into scalable commercial outcomes.

At the same time, labour market dynamics are shifting towards hybrid skillsets that combine technical expertise with business understanding and critical thinking.

In such a context, strengthening Europe’s innovation capacity is seen as essential to competing with global powers such as the US and China.

As technological competition intensifies, the ability to align talent, capital and policy frameworks will play a decisive role in shaping the region’s position within the global digital economy.

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China approves world-first brain chip to treat paralysis

China has approved a groundbreaking brain implant designed to help people with severe paralysis regain hand movement, marking the first time such a brain–computer interface (BCI) has been authorised for use beyond clinical trials. The device, developed by Shanghai-based Neuracle Medical Technology, targets patients aged 18 to 60 whose paralysis is caused by spinal cord injuries in the neck.

The approval, granted by China’s National Medical Products Administration, is being described as a major milestone in the field of neurotechnology. Experts note that effective treatments for spinal cord injuries remain extremely limited, making advances in BCI technology particularly significant for patients with little hope of recovery.

The device, called NEO, works by detecting brain signals when a person imagines moving their hand. These signals are transmitted to a computer, decoded, and then used to control a soft robotic glove. With this system, patients can perform everyday tasks such as grasping objects, eating, and drinking, activities that were previously impossible for them.

Early results from trials are promising. Researchers report that one patient, after nine months of use, regained the ability to eat and drink independently. Overall, 32 participants who received the implant were able to perform grasping movements with the robotic glove, showing measurable improvements in hand function.

Unlike some competing technologies, NEO is considered minimally invasive. The coin-sized implant is embedded in the skull rather than inserted deep into the brain, which may have contributed to its faster approval. Other companies, including Elon Musk’s Neuralink, are still conducting clinical trials for more invasive devices.

While experts say the technology appears safe and effective, they caution that the number of tested patients remains small. Even so, the approval represents a significant step forward, potentially opening the door to wider use of brain-computer interfaces in restoring lost motor functions.

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China prioritises AI and tech self-reliance in new five-year plan

A new five-year development plan approved by lawmakers in Beijing places innovation and advanced technology at the centre of future economic growth. The strategy is designed to strengthen technological capabilities and position China as a leading global tech power.

The plan outlines ambitions to upgrade China’s industrial sector, expand domestic research capacity, and reduce reliance on foreign technologies. Priority sectors include AI, robotics, aerospace, biotechnology, and quantum computing. Officials see these industries as key drivers of economic growth over the coming decades.

AI features prominently in the strategy, with the term appearing dozens of times in the policy document. Beijing plans to expand AI-related industries, invest in large computing clusters, and support the development of advanced systems capable of performing complex tasks beyond traditional chatbots.

China also aims to increase spending on science and technology, with government research budgets rising by around 10 percent annually. The plan sets a target of expanding research and development investment by at least 7 percent per year, reflecting Beijing’s intention to strengthen domestic innovation capacity.

Efforts to achieve greater technological self-sufficiency come amid continued tensions with the United States over trade and technology restrictions. Export controls on advanced semiconductor technologies have highlighted China’s dependence on foreign chips, prompting the government to pursue breakthroughs across the semiconductor supply chain and emerging technologies.

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Chinese tech hubs promote OpenClaw AI agent

Technology hubs in China are promoting the OpenClaw AI agent as part of new local industry initiatives. Officials in China say the open source tool can automate tasks such as email management and travel booking.

Cities including Shenzhen, Wuxi and Hefei are drafting policies to build an ecosystem around OpenClaw. Authorities in China are offering subsidies, computing resources and office support to encourage AI-driven one-person companies.

OpenClaw has grown rapidly since its release and has become one of the fastest-expanding projects on GitHub. Technology groups say the tool could allow individuals to operate businesses with far fewer employees.

Regulators have also warned about security and data protection risks linked to AI agents. Draft rules in China propose limits on access to sensitive data and stronger oversight of cross-border information flows.

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Europe risks falling behind in the global robotics race

China’s dominance in humanoid robotics was on full display at the start of 2026, with Hangzhou-based Unitree at the forefront of innovation and 87% of all humanoid robots delivered in 2025 were made in China.

Germany’s Chancellor Friedrich Merz witnessed a live display of robots dancing and doing backflips during a visit to Hangzhou, returning home to warn that Germany was ‘simply no longer productive enough.’

European robotics startups face a stark funding gap compared to their US and Chinese rivals. Rodion Shishkov, founder of the London-based construction technology company All3, described having to ‘literally fight’ for tens of millions of euros, whilst similarly positioned American counterparts could secure billions of dollars with the same effort.

Barclays’ research suggests the global humanoid robotics market, currently worth $2–3 billion, could reach $200 billion by 2035, making the stakes of falling behind significant.

Andrei Danescu, CEO of the logistics robotics startup Dexory, warned that Europe should not confuse a strong industrial tradition with genuine momentum. He called on European regulators to set clearer standards, establish liability frameworks for autonomous systems, and align public investment levels with the strategic ambitions of other global players.

One industry analyst noted that achieving hardware independence from Chinese supply chains in robotics would be ‘naive’ to expect, but argued that Europe still has significant ground to claim on the intelligence and data side of the sector.

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China strengthens online safeguards for minors

Chinese authorities have introduced new rules to classify online content that could affect the health and well-being of minors. Set to take effect on 1 March, the measures aim to adapt to a rapidly evolving internet landscape.

Top government bodies, including those in cyberspace, education, publishing, film, culture, tourism, public security, and radio and television, jointly released the initiative. Together, they outlined four categories of content that could negatively impact minors and specified their key characteristics.

Recent issues, such as the misuse of minors’ images, have been integrated into the regulatory framework. Authorities also established preventive guidelines to manage risks from emerging technologies, including algorithmic recommendations and generative AI.

Internet platforms and content producers are now required to take both proactive and corrective measures against harmful content. The rules emphasise that platforms must monitor, block, or remove information that could affect minors’ well-being.

The Cyberspace Administration of China pledged to continue purifying the online environment. Authorities will urge platforms to assume their primary responsibilities and strengthen governance of content affecting young users, aiming to create a safer and healthier digital space for children.

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Global AI race intensifies as China claims leadership in strategic technologies

China asserted its position as the global leader in AI and strategic technology R&D, pledging to accelerate advancement toward technological autonomy. The assertion was prominently featured in government reports presented to the National People’s Congress.

A National Development and Reform Commission report states that China leads international research, development, and implementation in AI, biomedicine, robotics, and quantum technology. The report also references advancements in domestic chip innovation as proof of progress.

Competition between China and the United States for dominance in advanced technologies has escalated. Washington imposed export controls on advanced chips, while Beijing retaliated with restrictions on rare earth resources, escalating trade tensions over strategic technologies.

The report also highlighted the country’s global leadership in open-source AI models and its expansion into emerging technology sectors, including industrial robots and drones. Authorities pledged to nurture future industries such as quantum technology, embodied AI, and 6G networks, while promoting large-scale AI deployment across key sectors.

Officials also plan to launch new data centres, coordinate nationwide computing capacity, and establish mechanisms to prevent AI security risks. The strategy places particular emphasis on embodied AI to boost productivity and performance across sectors. Although US firms command larger investment resources, Beijing is relying on supply chains, manufacturing capacity, and rapid R&D cycles to scale emerging industries despite questions about long-term growth.

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China expands oversight of youth online safety

China has introduced new measures to regulate online information that could affect the physical and mental health of minors. Authorities in China said the rules will take effect on 1 March and aim to improve protection for young internet users.

The regulators identified four categories of online information that may harm minors. The authorities have also addressed emerging risks linked to algorithmic recommendations and generative AI technologies.

The framework in China requires internet platforms and content creators to prevent and respond to harmful material. Regulators said companies must strengthen the monitoring and governance of content affecting minors.

Authorities said the measures are designed to create a cleaner online environment for children. Officials also stressed greater responsibility for platforms that manage digital content used by minors.

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Safety and ethics standards for robotics established in China

China has introduced its first national standards for humanoid robots and embodied AI, marking a key step in regulating the growing industry. The framework covers the full industrial lifecycle, from design to deployment, ensuring safe, ethical, and high-quality development.

The standard system, released at the Humanoid Robots and Embodied Intelligence Standardisation (HEIS) meeting in Beijing, includes six components: commonality, brain-like and intelligent computing, limbs and components, complete machines and systems, applications, and safety and ethics.

It was developed collaboratively by over 120 research institutions, enterprises, and industry users under the Ministry of Industry and Information Technology.

Brain-like computing standards manage data, model training, and deployment, while application standards oversee development, operation, and maintenance. Safety and ethics protocols cover the entire industrial lifecycle, providing assurance of compliance as the sector evolves.

Following rapid growth in 2025, with over 140 domestic manufacturers producing more than 330 models, the new standards aim to guide China’s humanoid robot industry toward sustainable and regulated development.

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