China

China’s tech giants take on US rivals in stock market surge

Chinese tech stocks are experiencing a major surge, inspiring catchy nicknames as they rival the United States ‘Magnificent Seven’ tech giants. Driven by excitement around AI startup DeepSeek and perceived state backing following President Xi Jinping’s meeting with business leaders like Alibaba founder Jack Ma, the Hong Kong market has climbed significantly.

The Hang Seng index now ranks among the best-performing major markets this year, with leading firms stepping into the spotlight.

Brokerages have dubbed rising Chinese companies the ‘Seven Sisters,’ likely emerging from sectors like AI, chip-making, and high-end manufacturing. Companies such as Tencent, Alibaba, Xiaomi, and BYD are top contenders.

Another group, the ‘Terrific Ten,’ has also gained attention, with firms like JD.com, Geely, Baidu, and SMIC included, boosting the Hang Seng Tech index by nearly 70% over the past year—outpacing Nasdaq’s 27% gain.

The rivalry pits China‘s rising stars against the US ‘Magnificent Seven,’ a term coined by Bank of America, representing giants like Apple, Meta, and Nvidia.

Meanwhile, UBS has identified eight AI-driven Chinese stocks as the ‘VENUS Eight,’ and DeepSeek features among the ‘Little Dragon’ startups in Hangzhou, signalling China’s growing tech ambitions in the global market.

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TikTok lays off staff in trust and safety restructuring

TikTok is reportedly laying off staff from its trust and safety unit, which is responsible for content moderation, as part of a restructuring effort. The layoffs began on Thursday, affecting teams in Asia, Europe, the Middle East, and Africa. Adam Presser, TikTok’s operations head, sent a memo to staff informing them of the decision, though the company has not yet commented on the move.

The layoffs come at a time when TikTok’s future is uncertain. The app, used by nearly half of all Americans, faced a brief outage last month, followed by a law that came into effect in January, requiring its Chinese owner ByteDance to either sell TikTok or face a national security-related ban. TikTok CEO Shou Chew had previously testified before Congress about the company’s trust and safety measures, pledging to invest more than $2 billion in these efforts.

In line with a shift towards AI-driven content moderation, TikTok had already made significant layoffs in October, including staff in Malaysia. The company currently employs 40,000 trust and safety professionals globally, but the full scope of the recent cuts remains unclear.

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Trump discusses TikTok sale with China

President Donald Trump confirmed on Wednesday that he was in active discussions with China over the future of TikTok, as the US seeks to broker a sale of the popular app. Speaking to reporters aboard Air Force One, Trump revealed that talks were ongoing, underscoring the US government’s desire to address national security concerns tied to the app’s ownership by the Chinese company ByteDance. The move comes amid growing scrutiny over TikTok’s data security practices and potential links to the Chinese government.

The Trump administration has expressed concerns that TikTok could be used to collect sensitive data on US users, raising fears about national security risks. As a result, the US has been pushing for ByteDance to sell TikTok’s US operations to an American company. This would be part of an effort to reduce any potential influence from the Chinese government over the app’s data and operations. However, the process has faced complexities, with discussions involving multiple stakeholders, including potential buyers.

While the negotiations continue, the future of TikTok remains uncertain. If a sale is not agreed upon, the US has indicated that it could pursue further actions, including a potential ban of the app. As these talks unfold, the outcome could have significant implications for TikTok’s millions of American users and its business operations in the US, with both sides working to find a solution that addresses the security concerns while allowing the app to continue its success.

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Ant Group moves into humanoid robotics as China boosts sector

Ant Group, the Alibaba-linked fintech giant, has entered the humanoid robot industry, joining other major Chinese technology firms investing in this rapidly expanding field. The company has begun hiring for robotics-related positions through its subsidiary, Shanghai Ant Lingbo Technology, which was established in late 2024 with registered capital of 100 million yuan ($13.73 million).

The Chinese government has identified humanoid robots as a key driver of economic growth and technological competition with the United States.

Several Chinese companies are advancing in the humanoid robotics sector, with firms like UBTech and Unitree gaining attention for their cutting-edge designs. Unitree has showcased robots capable of walking, climbing, and carrying loads, further fuelling interest in the sector.

President Xi Jinping recently highlighted the importance of the industry by giving Unitree’s founder a front-row seat at a private sector meeting.

Large Chinese corporations are exploring humanoid robotics through direct research or investment. Xiaomi has been developing robots since at least 2022, launching its CyberOne model, while Tencent has supported the industry through strategic investments, such as its 50 million yuan backing of Shenzhen-based Leju Robot in 2018.

As interest in robotics accelerates, China is positioning itself as a global leader in the field.

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Japan’s AI adoption lags behind global trends

Despite 61 percent of Japanese people being aware of generative AI, only 9 percent have used it, a recent survey by the Nomura Research Institute revealed. Younger generations show higher adoption rates, but overall public hesitation remains, particularly among older age groups.

As Japan faces a declining workforce, the government and businesses see AI as a potential solution to boost productivity. However, concerns over privacy, security, and misinformation have slowed adoption. Financial market disruptions and regulatory actions against AI models, such as China’s DeepSeek, have further intensified scepticism.

While some companies, particularly in labour-strapped industries, are beginning to implement AI, a shortage of specialists and a lack of reliable information present significant challenges. Despite these hurdles, Japan is pushing forward with AI development, with initiatives like SoftBank’s partnership with OpenAI and government plans to regulate and promote AI use in a ‘safe and secure’ manner.

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Vision pro to get AI and guest mode upgrade in April

Apple is set to introduce AI-driven features to its Vision Pro headset, including a new spatial content app and an enhanced guest user mode. The update, expected in April, may be available in beta for developers as early as this week, according to sources cited by Bloomberg.

The AI integration, dubbed ‘Apple Intelligence,’ will bring tools such as Writing Tools, Genmojis, and the Image Playground app to the Vision Pro. This move aligns with Apple’s broader push to incorporate AI into its ecosystem, as the company also explores AI partnerships for iPhones in China.

The Vision Pro, which launched in February 2024 with a hefty price tag of $3,499, initially saw strong sales but has since faced slowing demand. By enhancing its software with AI and new content features, Apple hopes to reignite consumer interest and better compete with more affordable alternatives, such as Meta’s Quest headsets.

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Tiger Brokers embraces AI with DeepSeek integration

Tiger Brokers has integrated DeepSeek’s AI model into its TigerGPT chatbot, marking a significant step in the race to adopt AI in the financial industry. The DeepSeek-R1 model is already being used by over 20 Chinese brokers and fund managers, transforming areas such as market analysis, risk management, and client interaction. The technology, developed at a fraction of the cost of Western AI models, is expected to revolutionise how financial firms operate, with DeepSeek tapping into valuable data to enhance decision-making and trading strategies.

Tiger Brokers, supported by investors like Xiaomi and Jim Rogers, views this AI breakthrough as a game changer. The upgraded TigerGPT, which will initially be available for free in China and Singapore, now offers enhanced logical reasoning capabilities, allowing for more accurate market predictions and investment opportunities. CEO Wu Tianhua described the impact as transformative, helping users understand market shifts and boosting the overall investment experience.

As AI adoption accelerates, financial IT spending in China is forecasted to rise by 24% in the next five years, a trend expected to benefit tech companies like Hundsun Technologies. The integration of DeepSeek’s models is reshaping the financial industry, with firms such as Sinolink Securities and CICC Wealth Management already exploring AI’s potential to improve efficiency, from risk management to investment advisory services.

Despite the promise, the financial industry faces challenges in standardising data for AI models. However, companies are moving quickly to implement AI solutions, eager to unlock the full potential of their data and enhance their internal operations, marketing, and investing strategies.

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Ray-Ban Meta sales drive smart glasses growth

EssilorLuxottica is set to ramp up production of its smart glasses, driven by the success of its Ray-Ban Meta range developed in partnership with Meta. Since their launch in September 2023, over two million units have been sold, with growing user engagement indicating a shift towards mainstream adoption.

The eyewear giant, which has collaborated with Meta since 2019, aims to expand its smart glasses portfolio with new brands and features. The company is also considering subscription-based services and additional functionalities to enhance user experience.

To meet rising demand, EssilorLuxottica plans to increase production capacity to 10 million units annually by the end of next year. Manufacturing will be expanded across China and Southeast Asia, enabling the company to support future product releases, including the development of Nuance Audio glasses with integrated hearing solutions.

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AI push in China planned by Apple

Apple is preparing to introduce its AI features to iPhones in China by mid-year. Efforts include significant software adaptations and collaboration with local partners to meet the country’s unique requirements.

Teams based in China and the US are actively working to customise the Apple Intelligence platform for the region. Insiders suggest the launch could happen as early as May, provided technical and regulatory challenges are resolved.

Regulatory compliance remains a critical hurdle for Apple. The project reflects the company’s growing emphasis on localising its technology for key international markets, including China.

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Trump administration eyes changes to CHIPS Act deals

The Trump administration is reevaluating the conditions of CHIPS and Science Act subsidies, which allocate $39 billion to boost domestic semiconductor production. Sources indicate that ongoing projects under the 2022 law are being reviewed for compliance with new policy priorities, potentially leading to renegotiations or delays.

GlobalWafers, a Taiwanese company set to receive $406 million for projects in Texas and Missouri, noted that Washington has not yet communicated any changes.

However, new White House policies are reportedly under review, including those related to unionised labour and childcare for factory workers. Each subsidy agreement has unique milestones that recipients must meet to secure funding.

Concerns over companies expanding operations in China despite receiving CHIPS funding have also emerged. Intel, for example, announced a $300 million investment in a Chinese facility after receiving substantial subsidies.

The Semiconductor Industry Association has expressed its willingness to collaborate with the Trump administration to streamline program requirements and maintain progress.

Industry giants such as TSMC, Samsung, and Intel continue to navigate the shifting landscape of the CHIPS Act, with no immediate clarity on how changes will affect existing agreements. The White House has yet to respond to requests for further comment on these developments.

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