China’s antitrust regulator is reportedly preparing to investigate Apple’s App Store policies and fees, including its 30% commission on in-app purchases and restrictions on external payment services. The move follows recent measures targeting US businesses, including Google and fashion brand Calvin Klein, just as new US tariffs on Chinese goods emerged. Apple’s shares fell 2.6% in premarket trading following the news.
The investigation, led by the State Administration for Market Regulation, comes after ongoing discussions between Chinese regulators, Apple executives, and app developers over the past year. While neither Apple nor the Chinese antitrust regulator has commented on the matter, the move is seen as part of broader scrutiny of US companies operating in China.
In a separate development, Google was also accused of violating China’s anti-monopoly laws, with experts speculating the probe could be linked to Google’s Android operating system and its influence over Chinese mobile manufacturers. Additionally, China’s Commerce Ministry added PVH Corp, the owner of brands like Calvin Klein, to its “unreliable entity” list.
A former Google software engineer faces additional charges in the US for allegedly stealing AI trade secrets to benefit Chinese companies. Prosecutors announced a 14-count indictment against Linwei Ding, also known as Leon Ding, accusing him of economic espionage and theft of trade secrets. Each charge carries significant prison terms and fines.
Ding, a Chinese national, was initially charged last March and remains free on bond. His case is being handled by a US task force established to prevent the transfer of advanced technology to countries such as China and Russia.
Prosecutors claim Ding stole information on Google’s supercomputing data centres used to train large AI models, including confidential chip blueprints intended to give the company a competitive edge.
Ding allegedly began his thefts in 2022 after being recruited by a Chinese technology firm. By 2023, he had uploaded over 1,000 confidential files and shared a presentation with employees of a startup he founded, citing China’s push for AI development.
Google has cooperated with authorities but has not been charged in the case. Discussions between prosecutors and defence lawyers indicate the case may go to trial.
Chinese companies are increasingly backing DeepSeek‘s AI, marking a pivotal moment for the industry. Firms like Moore Threads and Hygon Information Technology are enabling their computing clusters to support DeepSeek’s R1 and V3 models, which use domestically produced graphic processing units (GPUs). Analysts have hailed this as a ‘watershed moment,’ particularly as these models rival those run on global high-end chips.
Huawei has also joined the trend, integrating DeepSeek’s models with its Ascend cloud service and partnering with AI infrastructure start-up SiliconFlow. This integration showcases the growing potential of Chinese-made chips to support competitive large language models, reducing reliance on US hardware. Additionally, major Chinese tech companies such as Alibaba, Baidu, and Tencent have made DeepSeek’s models available through their cloud services.
DeepSeek’s rise has captured significant attention, especially after the launch of its free AI assistant, which surpassed ChatGPT in app downloads within days. The company’s approach, requiring far less computing power than its US counterparts, has further fueled its success. While DeepSeek is gaining traction globally, some countries, including Italy and the Netherlands, have raised privacy concerns, leading to investigations and blocks on its app.
US authorities are considering whether to add Chinese online retailers Shein and Temu to the Department of Homeland Security’s forced labour list, according to a Semafor report. The Trump administration has not reached a final decision and may opt against the move, sources said.
Both companies strongly denied any involvement in forced labour. Shein stated it complies fully with the US Uyghur Forced Labor Prevention Act, while Temu emphasised its strict prohibition of involuntary labour through its Third-Party Code of Conduct.
Discussions on the retailers’ status come as tensions between the US and China escalate. Beijing recently imposed targeted tariffs on US imports and warned companies such as Google about possible sanctions, responding to the latest trade measures introduced by Washington.
China has introduced a series of measures targeting US businesses, including Google, farm equipment makers, and the owner of Calvin Klein, following the implementation of new US tariffs on Chinese goods. Among these measures, China launched an investigation into Google for potential violations of anti-monopoly laws, although no further details were provided. Despite its minimal presence in China, Google continues to collaborate with local advertisers.
China’s Ministry of Commerce also added US firms PVH Corp and Illumina to its ‘unreliable entity’ list, accusing them of actions that harmed Chinese companies. The companies could face significant sanctions, including trade freezes and restrictions on foreign staff. PVH has already been under scrutiny for its ties to the Xinjiang region.
As part of a broader response, China imposed 10% tariffs on US farm equipment, which could impact companies like Caterpillar, Deere & Co., and AGCO. Tesla’s Cybertruck, a model that has yet to receive regulatory approval, could also be affected. These new tariffs, set to take effect on February 10, signal an escalation in trade tensions between China and the US, extending beyond the tech sector.
These moves mark a significant increase in trade restrictions, building on previous actions taken under former US President Biden’s administration. Analysts suggest that these measures may be used as leverage, with the potential for de-escalation if either side chooses to back down.
Next week, Paris will host the AI Action Summit, where representatives from nearly 100 nations, including the US and China, will gather to discuss the future of AI. With the backing of both France and India, the summit aims to address AI development’s safe deployment, focusing on areas where France has a competitive edge, such as open-source systems and clean energy for powering data centres. The summit will also look at AI’s impact on labour markets and the promotion of national sovereignty in the increasingly global AI landscape.
Key industry figures, including top executives from Alphabet and Microsoft, are expected to attend. Discussions will involve a range of topics, including a potential non-binding communiqué that could reflect a global consensus on AI principles. However, it remains uncertain whether the US will align fully with other countries, given the Trump administration’s policies and tensions over issues like AI chip exports to China.
Unlike previous AI summits, which focused on safety regulations, the Paris event will not be creating new rules. Instead, the emphasis will be on how to ensure the benefits of AI reach developing nations, particularly through affordable AI models. In addition, France plans to showcase its clean energy capabilities, leveraging its nuclear power sector to address the growing energy demands of AI technologies, with some commitments expected from businesses and philanthropies to support public-interest AI projects globally.
Indian entrepreneur Bhavish Aggarwal is investing $230 million into Krutrim, an AI startup he founded, as part of India’s push to establish itself in the global AI market. The company, which develops large language models (LLMs) for Indian languages, aims to raise a total of $1.15 billion by next year, with Aggarwal seeking additional funding from external investors.
In a significant move, Krutrim has made its AI models open source and announced plans to build India’s largest supercomputer in partnership with Nvidia. The firm recently introduced Krutrim-2, a 12-billion parameter model that has demonstrated strong performance in Indian language processing and code generation. It has also launched BharatBench, a new evaluation framework designed to assess AI models’ proficiency in Indian languages.
The investment follows the launch of Krutrim-1, India’s first large language model, and aligns with broader efforts to position India as a key player in AI, traditionally dominated by the US and China. Krutrim has also begun hosting Chinese AI lab DeepSeek’s models on domestic servers, signalling India’s growing role in the AI ecosystem. With a supercomputer set to go live in March, the company is poised for rapid expansion in the coming months.
Chinese internet users have been captivated by the DeepSeek AI app, which has gained immense popularity since its launch during the Lunar New Year holiday. Users have explored its predictive and analytical capabilities, with some posing questions on politics, economics, and even personal matters. For example, law professor Wang Jiangyu asked how China should respond to US President Donald Trump’s tariffs, receiving a comprehensive seven-point answer that included potential new tariffs on US industries and other strategic moves. The model’s detailed responses have impressed users, though it censors certain politically sensitive topics, such as questions about Xi Jinping or the Tiananmen Square protests.
DeepSeek’s low-cost yet powerful AI has made waves in the tech sector, surpassing ChatGPT in downloads on the Apple App Store. The Hangzhou-based startup has become a source of national pride, with users sharing personal experiences, such as using the app to predict their fortunes or interpret dreams. This surge in popularity has drawn attention to the company’s rapid growth, and its founder, Liang Wengfeng, has emerged as a pop culture figure.
Despite its success, DeepSeek’s claims about the minimal cost of training its latest AI model—less than $6 million in computing power—have raised scepticism among some experts. Nevertheless, the platform’s effectiveness has prompted comparisons to the billions invested by US tech giants in AI development. The app’s rapid rise has also led to investigations by authorities in several countries, including Japan, South Korea, and several European nations, over concerns about its handling of personal data.
SoftBank Group CEO Masayoshi Son announced on Monday that he has agreed with OpenAI CEO Sam Altman to establish a joint venture in Japan, called SB OpenAI Japan, to offer AI services to corporate clients. This venture will be jointly owned by OpenAI and a company set up by SoftBank and its telecoms arm. In addition, SoftBank will pay $3 billion annually to integrate OpenAI’s technology across its group companies.
Son’s involvement with OpenAI is deepening, with reports indicating that SoftBank plans to invest between $15 billion and $25 billion in the company. SoftBank is also committing $15 billion to Stargate, a joint venture with OpenAI and Oracle to build AI capacity in the US. Son’s support for OpenAI follows a period of retrenchment for the investment giant, but he is reasserting his influence in the tech sector after setbacks in SoftBank’s tech portfolio.
In the context of rising competition, China’s DeepSeek has prompted some investors to question the immense funds being poured into US-based AI companies. However, Altman believes global demand for AI computing power will continue to surge. Son and Altman also met with Japanese Prime Minister Shigeru Ishiba on Monday to discuss further developments.
DeepSeek, a Chinese AI company, is shaking up the ΑΙ landscape by offering technology at a significantly lower cost compared to US competitors like OpenAI. Hemanth Mandapati, CEO of German startup Novo AI, recently switched to DeepSeek’s chatbot services, noting that the transition was quick and easy, and the cost savings were substantial. Mandapati reported that DeepSeek’s pricing was five times lower than what he was paying, with no noticeable difference in user performance. Analysts estimate that DeepSeek’s prices are 20 to 40 times cheaper than OpenAI’s, making it an attractive option for many startups.
The rise of DeepSeek is seen as a potential game-changer, particularly in Europe, where tech startups have struggled to compete with their US counterparts due to limited funding. Some believe DeepSeek’s low-cost offerings could democratise AI and help level the playing field with major tech companies. However, concerns about DeepSeek’s data practices, particularly regarding the potential copying of OpenAI’s data or censorship of Chinese content, have raised regulatory questions across Europe.
Despite scepticism around the actual cost of DeepSeek’s training and data usage, the company has garnered significant attention, especially after its model topped the productivity app rankings on the Apple App Store. Industry leaders argue that this shift in pricing could spark a broader movement in AI, with smaller companies gaining more access to advanced technologies without needing large budgets. This could foster innovation across the sector, although major corporations remain cautious due to security and integration concerns.
As the cost of AI continues to fall, competition is intensifying. For example, Microsoft recently made OpenAI’s reasoning model available for free to users of its Copilot platform. While price is becoming a dominant factor in AI adoption, industry experts suggest that trust and security certifications will still play a critical role for larger businesses when choosing their AI partners.
