China

Nvidia chief says Chinese military unlikely to use US chips

Nvidia’s CEO, Jensen Huang, has downplayed concerns over Chinese military use of American AI technology, stating it is improbable that China would risk relying on US-made chips.

He noted the potential liabilities of using foreign tech, which could deter its adoption by the country’s armed forces.

In an interview on CNN’s Fareed Zakaria GPS, Huang responded to Washington’s growing export controls targeting advanced AI hardware sales to China.

He suggested the military would likely avoid US technology to reduce exposure to geopolitical risks and sanctions.

The Biden administration had tightened restrictions on AI chip exports, citing national security and fears that cutting-edge processors might boost China’s military capabilities.

Nvidia, whose chips are central to global AI development, has seen its access to the Chinese market increasingly limited under these rules.

While Nvidia remains a key supplier in the AI sector, Huang’s comments may ease some political pressure around the company’s overseas operations.

The broader debate continues over balancing innovation, commercial interest and national security in the AI age.

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Report shows China outpacing the US and EU in AI research

AI is increasingly viewed as a strategic asset rather than a technological development, and new research suggests China is now leading the global AI race.

A report titled ‘DeepSeek and the New Geopolitics of AI: China’s ascent to research pre-eminence in AI’, authored by Daniel Hook, CEO of Digital Science, highlights how China’s AI research output has grown to surpass that of the US, the EU and the UK combined.

According to data from Dimensions, a primary global research database, China now accounts for over 40% of worldwide citation attention in AI-related studies. Instead of focusing solely on academic output, the report points to China’s dominance in AI-related patents.

In some indicators, China is outpacing the US tenfold in patent filings and company-affiliated research, signalling its capacity to convert academic work into tangible innovation.

Hook’s analysis covers AI research trends from 2000 to 2024, showing global AI publication volumes rising from just under 10,000 papers in 2000 to 60,000 in 2024.

However, China’s influence has steadily expanded since 2018, while the EU and the US have seen relative declines. The UK has largely maintained its position.

Clarivate, another analytics firm, reported similar findings, noting nearly 900,000 AI research papers produced in China in 2024, triple the figure from 2015.

Hook notes that governments increasingly view AI alongside energy or military power as a matter of national security. Instead of treating AI as a neutral technology, there is growing awareness that a lack of AI capability could have serious economic, political and social consequences.

The report suggests that understanding AI’s geopolitical implications has become essential for national policy.

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Cyber defence effort returns to US ports post-pandemic

The US Cybersecurity and Infrastructure Security Agency (CISA) has resumed its seaport cybersecurity exercise programme. Initially paused due to the pandemic and other delays, the initiative is now returning to ports such as Savannah, Charleston, Wilmington and potentially Tampa.

These proof-of-concept tabletop exercises are intended to help ports prepare for cyber threats by developing a flexible, replicable framework. Each port functions uniquely, yet common infrastructure and shared vulnerabilities make standardised preparation critical for effective crisis response.

CISA warns that threats targeting ports have grown more severe, with nation states exploiting AI-powered techniques. Some US ports, including Houston, have already fended off cyberattacks, and Chinese-made systems dominate critical logistics, raising national security concerns.

Private ownership of most port infrastructure demands strong public-private partnerships to maintain cybersecurity. CISA aims to offer a shared model that ports across the country can adapt to improve cooperation, resilience, and threat awareness.

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US targets Southeast Asia to stop AI chip leaks to China

The US is preparing stricter export controls on high-end Nvidia AI chips destined for Malaysia and Thailand, in a move to block China’s indirect access to advanced GPU hardware.

According to sources cited by Bloomberg, the new restrictions would require exporters to obtain licences before sending AI processors to either country.

The change follows reports that Chinese engineers have hand-carried data to Malaysia for AI training after Singapore began restricting chip re-exports.

Washington suspects Chinese firms are using Southeast Asian intermediaries, including shell companies, to bypass existing export bans on AI chips like Nvidia’s H100.

Although some easing has occurred between the US and China in areas such as ethane and engine components, Washington remains committed to its broader decoupling strategy. The proposed measures will reportedly include safeguards to prevent regional supply chain disruption.

Malaysia’s Trade Minister confirmed earlier this year that the US had requested detailed monitoring of all Nvidia chip shipments into the country.

As the global race for AI dominance intensifies, Washington appears determined to tighten enforcement and limit Beijing’s access to advanced computing power.

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Chinese-linked hackers target French state in Ivanti exploit campaign

A sophisticated cyber campaign linked to Chinese threat actors has targeted French government, defence and media organisations by exploiting zero-day vulnerabilities in Ivanti’s server software, France’s national cyber agency has revealed.

The French National Agency for Information Systems Security (ANSSI) reported that attackers exploited flaws in an end-of-life version of Ivanti’s Cloud Services Appliance. Victims include public agencies, telecoms, finance firms and media outlets. ANSSI dubbed the threat ‘Houken.’

Hackers used tools developed by Chinese-speaking actors, operated during Chinese working hours and pursued both espionage and financial gain. In one case, they deployed a cryptominer—an unusual move for state-linked actors.

The campaign that targeted France relied on chaining Ivanti zero-days (CVE-2024-8190, CVE-2024-9380 and CVE-2024-8963) to deploy a novel rootkit. Attackers then used webshells, fileless backdoors, and anonymising services like NordVPN.

ANSSI noted similarities to activity by UNC5174, a Chinese initial access broker tracked by Mandiant. This actor, also known as ‘Uteus,’ reportedly works with the Ministry of State Security in China.

Evidence suggests that Houken not only sells access to compromised networks but also carries out direct data exfiltration. One victim included the foreign ministry of a South American country.

The Paris Prosecutor’s Office is investigating a possible botnet linked to Chinese state hackers, though it’s unclear if it’s connected to Houken.

ANSSI warns that both Houken and UNC5174 are still active and likely to continue exploiting exposed infrastructure worldwide.

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DeepSeek struggles to launch R2 amid NVIDIA chip shortage

The launch of DeepSeek’s next-generation AI model, R2, is expected to face delays due to a shortage of NVIDIA H20 chips in China.

These chips, designed specifically for the Chinese market following US export restrictions, are essential for running DeepSeek’s highly optimised models.

The ban on H20 shipments in April has triggered widespread concern among cloud providers about the scalability of R2, especially if it outperforms existing open-source models.

CEO Liang Wenfeng has reportedly held back the model’s release, expressing dissatisfaction with its current performance.

Engineers continue refining R2, but the lack of compatible hardware poses a deeper challenge. DeepSeek’s reliance on NVIDIA architecture makes switching to Chinese chips inefficient, as the models are tightly built for NVIDIA’s software and hardware ecosystem.

Some Chinese firms have begun using workarounds by flying engineers to Malaysia, where NVIDIA chips are still available in local data centres.

After training their models abroad, teams return to China with trained systems. Others rely on gaming GPUs like the RTX 5090, which are easier to access via grey markets despite restrictions.

While Chinese tech giants ordered 1.2 million H20 chips earlier in 2025 to meet demand sparked by R1’s success, inventory is still unlikely to support a full R2 rollout.

Companies outside China may launch R2 more easily without facing the same export hurdles.

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China pushes quantum computing towards industrial use

A Chinese startup has used quantum computing to improve breast cancer screening accuracy, highlighting how the technology could transform medical diagnostics—based in Hefei, Origin Quantum applied its superconducting quantum processor to analyse medical images faster and more precisely.

China is accelerating efforts to turn quantum research into industrial applications, with companies focusing on areas such as drug discovery, smart cities and finance. Government backing and national policy have driven rapid growth in the sector, with over 150 firms now active in quantum computing.

In addition to medical uses, quantum algorithms are being tested in autonomous parking, which has dramatically cut wait times. Banks and telecom firms have also begun adopting quantum solutions to improve operational efficiency in areas like staff scheduling.

The merging of quantum computing with AI is seen as the next significant step, with Origin Quantum recently fine-tuning a billion-parameter AI model on its quantum system. Experts expect the integration of these technologies to shift from labs to practical use in the next five years.

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DeepSeek under fire for alleged military ties and export control evasion

The United States has accused Chinese AI startup DeepSeek of assisting China’s military and intelligence services while allegedly seeking to evade export controls to obtain advanced American-made semiconductors.

The claims, made by a senior US State Department official speaking anonymously to Reuters, add to growing concerns over the global security risks posed by AI.

DeepSeek, based in Hangzhou, China, gained international attention earlier this year after claiming its AI models rivalled those of leading United States firms like OpenAI—yet at a fraction of the cost.

However, US officials now say that the firm has shared data with Chinese surveillance networks and provided direct technological support to the People’s Liberation Army (PLA). According to the official, DeepSeek has appeared in over 150 procurement records linked to China’s defence sector.

The company is also suspected of transmitting data from foreign users, including Americans, through backend infrastructure connected to China Mobile, a state-run telecom operator. DeepSeek has not responded publicly to questions about these privacy or security issues.

The official further alleges that DeepSeek has been trying to access Nvidia’s restricted H100 AI chips by creating shell companies in Southeast Asia and using foreign data centres to run AI models on US-origin hardware remotely.

While Nvidia maintains it complies with export restrictions and has not knowingly supplied chips to sanctioned parties, DeepSeek is said to have secured several H100 chips despite the ban.

US officials have yet to place DeepSeek on a trade blacklist, though the company is under scrutiny. Meanwhile, Singapore has already charged three men with fraud in investigating the suspected illegal movement of Nvidia chips to DeepSeek.

Questions have also been raised over the credibility of DeepSeek’s technological claims. Experts argue that the reported $5.58 million spent on training their flagship models is unrealistically low, especially given the compute scale typically required to match OpenAI or Meta’s performance.

DeepSeek has remained silent amid the mounting scrutiny. Still, with the US-China tech race intensifying, the firm could soon find itself at the centre of new trade sanctions and geopolitical fallout.

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China’s robotics industry set to double by 2028, led by drones and humanoid robots

China’s robotics industry is on course to double in size by 2028, with Morgan Stanley projecting market growth from US$47 billion in 2024 to US$108 billion.

With an annual expansion rate of 23 percent, the country is expected to strengthen its leadership in this fast-evolving field. Analysts credit China’s drive for innovation and cost efficiency as key to advancing next-generation robotics.

A cornerstone of the ‘Made in China 2025’ initiative, robotics is central to the nation’s goal of dominating global high-tech industries. Last year, China accounted for 40 percent of the worldwide robotics market and over half of all industrial robot installations.

Recent data shows industrial robot production surged 35.5 percent in May, while service robot output climbed nearly 14 percent.

Morgan Stanley anticipates drones will remain China’s largest robotics segment, set to grow from US$19 billion to US$40 billion by 2028.

Meanwhile, the humanoid robot sector is expected to see an annual growth rate of 63 percent, expanding from US$300 million in 2025 to US$3.4 billion by 2030. By 2050, China could be home to 302 million humanoid robots, making up 30 percent of the global population.

The researchers describe 2025 as a milestone year, marking the start of mass humanoid robot production.

They emphasise that automation is already reshaping China’s manufacturing industry, boosting productivity and quality instead of simply replacing workers and setting the stage for a brighter industrial future.

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Taiwan tightens rules on chip shipments to China

Taiwan has officially banned the export of chips and chiplets to China’s Huawei and SMIC, joining the US in tightening restrictions on advanced semiconductor transfers.

The decision follows reports that TSMC, the world’s largest contract chipmaker, was unknowingly misled into supplying chiplets used in Huawei’s Ascend 910B AI accelerator. The US Commerce Department had reportedly considered a fine of over $1 billion against TSMC for that incident.

Taiwan’s new rules aim to prevent further breaches by requiring export permits for any transactions with Huawei or SMIC.

The distinction between chips and chiplets is key to the case. Traditional chips are built as single-die monoliths using the same process node, while chiplets are modular and can combine various specialised components, such as CPU or AI cores.

Huawei allegedly used shell companies to acquire chiplets from TSMC, bypassing existing US restrictions. If TSMC had known the true customer, it likely would have withheld the order. Taiwan’s new export controls are designed to ensure stricter oversight of future transactions and prevent repeat deceptions.

The broader geopolitical stakes are clear. Taiwan views the transfer of advanced chips to China as a national security threat, given Beijing’s ambitions to reunify with Taiwan and the potential militarisation of high-end semiconductors.

With Huawei claiming its processors are nearly on par with Western chips—though analysts argue they lag two to three generations behind—the export ban could further isolate China’s chipmakers.

Speculation persists that Taiwan’s move was partly influenced by negotiations with the US to avoid the proposed fine on TSMC, bringing both countries into closer alignment on chip sanctions.

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