China

TikTok nears US takeover deal as Washington secures control

The White House has revealed that US companies will take control of TikTok’s algorithm, with Americans occupying six of seven board seats overseeing the platform’s operations in the country. A final deal, which would reshape the app’s US presence, is expected soon, though Beijing has yet to respond publicly.

Washington has long pushed to separate TikTok’s American operations from its Chinese parent company, ByteDance, citing national security risks. The app faced repeated threats of a ban unless sold to US investors, with deadlines extended several times under President Donald Trump. The Supreme Court also upheld legislation requiring ByteDance to divest, though enforcement was delayed earlier this year.

According to the White House, data protection and privacy for American users will be managed by Oracle, chaired by Larry Ellison, a close Trump ally. Oracle will also oversee control of TikTok’s algorithm, the key technology that drives what users see on the app. Ellison’s influence in tech and media has grown, especially after his son acquired Paramount, which owns CBS News.

Trump claimed he had secured an understanding on the deal in a recent call with Chinese President Xi Jinping, describing the exchange as ‘productive.’ However, Beijing’s official response has been less explicit. The Commerce Ministry said discussions should proceed according to market rules and Chinese law, while state media suggested China welcomed continued negotiations.

Trump has avoided clarifying whether US investors need to develop a new system or continue using the existing one. His stance on TikTok has shifted since his first term, when he pushed for a ban, to now embracing the platform as a political tool to engage younger voters during his 2024 campaign.

Concerns over TikTok’s handling of user data remain at the heart of US objections. Officials at the Justice Department have warned that the app’s access to US data posed a security threat of ‘immense depth and scale,’ underscoring why Washington is pressing to lock down control of its operations.

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AI reforms in Hong Kong expected to save millions in public services

Hong Kong will establish a new team to advance the use of AI across government departments, Chief Executive John Lee confirmed during his 2025 Policy Address.

The AI Efficacy Enhancement Team, led by Deputy Chief Secretary Warner Cheuk, will coordinate reforms to modernise outdated processes and promote efficiency.

Lee said his administration would focus on safe ‘AI+ development’, applying the technology in public services and encouraging adoption across different sectors instead of relying on traditional methods.

He added that Hong Kong had the potential to grow into a global hub for AI and would treat the field as a core industry for the city’s economic future.

Examples of AI adoption are already visible.

The government’s 1823 enquiry hotline uses voice recognition to cut response times by 30 per cent, while the Census and Statistics Department applies AI models to trade data and company reports, reducing manual checks by 40 per cent and improving accuracy.

Authorities expect upcoming censuses in 2026 and 2031 to save about $680 million through AI and data science technologies instead of conventional manpower-heavy methods.

The announcement comes shortly after China unveiled its national AI policy blueprint, which seeks widespread integration of the technology in research, governance and industry, with a target of 90 per cent prevalence by 2030.

Hong Kong’s approach is being positioned as part of a wider push for technological leadership in the region.

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Tencent launches scenario-based AI globally to boost industrial efficiency

Tencent has announced the global rollout of scenario-based AI capabilities to help enterprises accelerate industrial efficiency. At its 2025 Global Digital Ecosystem Summit, held in Shenzhen, the company introduced its Agent Development Platform 3.0 (ADP) via Tencent Cloud.

ADP enables businesses to generate autonomous AI agents that can be integrated into workflows, including customer service, marketing, inventory management, and research.

Tencent is also upgrading its internal models and infrastructure, such as ‘Agent Runtime’, to support stable, secure, and business-aligned agent deployment.

Other new tools include the SaaS+AI toolkit, which enhances productivity in office collaboration (for example, AI Minutes in Tencent Meetings) and knowledge management via Tencent LearnShare. A coding assistant called CodeBuddy is claimed to reduce developers’ coding time by 40 percent while increasing R&D efficiency by about 16 percent.

In line with its international expansion, Tencent Cloud announced that its overseas client base has doubled since last year and that it now operates across over 20 regions.

The rollout also includes open-source contributions: multilingual translation models, large multimodal models, and new Hunyuan 3D creative tools have been made available globally.

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China proposes independent oversight committees to strengthen data protection

The Cyberspace Administration of China (CAC) has proposed new rules requiring major online platforms to establish independent oversight committees focused on personal data protection. The draft regulation, released Friday, 13 September 2025, is open for public comment until 12 October 2025.

Under the proposal, platforms with large user bases and complex operations must form committees of at least seven members, two-thirds of whom must be external experts without ties to the company. These experts must have at least three years of experience in data security and be well-versed in relevant laws and standards.

The committees will oversee sensitive data handling, cross-border transfers, security incidents, and regulatory compliance. They are also tasked with maintaining open communication channels with users about data concerns.

If a platform fails to act and offers unsatisfactory reasons, the issue can be escalated to provincial regulators in China.

The CAC says the move aims to enhance transparency and accountability by involving independent experts in monitoring and flagging high-risk data practices.

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Hong Kong to speed up tech hub plan with China

One of S.A.R. of China, Hong Kong, is preparing to accelerate its cross-border technology hub plans with mainland China as the city seeks new growth drivers to offset its fragile economy.

Chief Executive John Lee is set to deliver his annual policy address on Wednesday, with the Northern Metropolis project expected to take centre stage.

The initiative aims to transform a sparsely populated area into a base for advanced industries and innovation, while reducing reliance on finance and real estate.

According to state-owned media, the government will ease financing rules to attract companies in AI, renewable energy and medical technology.

An urgency that comes despite signs of recovery, as the economy of Hong Kong grew at its fastest pace in over a year last quarter. Yet home prices continue to fall, unemployment has risen, and public finances remain stretched.

The administration is unlikely to offer sweeping property incentives, such as tax cuts or looser rules for mainland buyers, given fiscal constraints. Instead, it may revive the long-dormant Tenants Purchase Scheme, first launched in 1998, which allows public housing tenants to buy their flats at reduced prices.

Analysts say that without bold reforms, the housing market will stay under pressure as oversupply and weak sentiment weigh on values.

Hong Kong’s $7.2 trillion stock market could benefit if new listings and inflows are encouraged, especially as developers look to stimulus and lower mortgage rates to support sales.

However, with the economy of China also slowing down, doubts remain over whether deeper integration and technology investments can provide a lasting boost.

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China’s market watchdog finds Nvidia violated antitrust law

China’s State Administration for Market Regulation (SAMR) has issued a preliminary finding that Nvidia violated antitrust law linked to its 2020 acquisition of Mellanox Technologies. The deal was approved with restrictions, including a ban on bundling and ‘unreasonable trading conditions’ in China.

SAMR now alleges that Nvidia breached those terms. A full investigation is underway. Nvidia shares fell 2.4% in pre-market trading after the announcement. According to the Financial Times, SAMR delayed releasing the findings to gain leverage in trade talks with the USA, currently taking place in Madrid.

At the same time, US export controls on advanced chips remain a challenge for Nvidia. Licensing for its China-specific H20 chips is still under review, affecting Nvidia’s access to the Chinese market.

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US and China reach framework deal on TikTok

The United States and China have reached a tentative ‘framework’ deal on the future of TikTok’s American operations, US Treasury Secretary Scott Bessent confirmed during trade talks in Madrid. The agreement, which still requires the approval of Presidents Donald Trump and Xi Jinping, is aimed at resolving a looming deadline that could see the video-sharing app banned in the US unless its Chinese owner ByteDance sells its American division.

US officials say the framework addresses national security concerns by paving the way for US ownership of TikTok’s operations, while China insists any final deal must not undermine its companies’ interests. The Biden administration has long argued that the app’s access to US user data poses significant risks, while ByteDance maintains its American arm operates independently and respects user privacy.

The law mandating a sale or ban, upheld by the Supreme Court earlier this year, is due to take effect on 17 September. Although the framework marks progress, key details remain unresolved, particularly over whether TikTok’s recommendation algorithm and user data will be fully transferred, stored, and protected in the US.

Experts warn that unless strict safeguards are included, the deal may solve ownership issues without closing potential ‘backdoors’ for Beijing. Concerns also remain over how much influence China retains, with negotiators linking TikTok’s fate to wider tariff discussions between the two powers.

If fully implemented, the agreement could represent a breakthrough in both trade relations and tech governance. But with ByteDance among China’s most powerful AI firms, the stakes go far beyond social media, touching on questions of global competition, national security, and digital sovereignty.

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China creates brain-inspired AI model

Chinese scientists have unveiled SpikingBrain1.0, the world’s first large-scale AI language model to replicate the human brain. The model reduces energy use and runs independently of Nvidia chips, departing from conventional AI architectures.

Developed by the Chinese Academy of Sciences, SpikingBrain1.0 uses spiking neural networks to activate only the required neurons for each task, rather than processing all information simultaneously.

Instead of evaluating every word in parallel, it focuses on the most recent and relevant context, enabling faster and more efficient processing. Researchers claim the model operates 25 to 100 times faster than traditional AI systems while keeping accuracy competitive.

A significant innovation is hardware independence. SpikingBrain1.0 runs on China’s MetaX chip platform, reducing reliance on Nvidia GPUs. It also requires less than 2% of the data typically needed for pre-training large language models, making it more sustainable and accessible.

SpikingBrain1.0 could power low-energy, real-time applications such as autonomous drones, wearable devices, and edge computing. The model highlights a shift toward biologically-inspired AI prioritising efficiency and adaptability over brute-force computation.

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China and India adopt contrasting approaches to AI governance

As AI becomes central to business strategy, questions of corporate governance and regulation are gaining prominence. The study by Akshaya Kamalnath and Lin Lin examines how China and India are addressing these issues through law, policy, and corporate practice.

The paper focuses on three questions: how regulations are shaping AI and data protection in corporate governance, how companies are embedding technological expertise into governance structures, and how institutional differences influence each country’s response.

Findings suggest a degree of convergence in governance practices. Both countries have seen companies create chief technology officer roles, establish committees to manage technological risks, and disclose information about their use of AI.

In China, these measures are largely guided by central and provincial authorities, while in India, they reflect market-driven demand.

China’s approach is characterised by a state-led model that combines laws, regulations, and soft-law tools such as guidelines and strategic plans. The system is designed to encourage innovation while addressing risks in an adaptive manner.

India, by contrast, has fewer binding regulations and relies on a more flexible, principles-based model shaped by judicial interpretation and self-regulation.

Broader themes also emerge. In China, state-owned enterprises are using AI to support environmental, social, and governance (ESG) goals, while India has framed its AI strategy under the principle of ‘AI for All’ with a focus on the role of public sector organisations.

Together, these approaches underline how national traditions and developmental priorities are shaping AI governance in two of the world’s largest economies.

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TSMC faces curbs on shipping US tech to China

The United States has revoked Taiwan Semiconductor Manufacturing Company’s licence to ship advanced technology from America to China. The decision follows similar restrictions on South Korean firms Samsung and SK Hynix, increasing uncertainty for chipmakers operating Chinese facilities.

TSMC confirmed that Washington has notified that its authorisation will expire by the end of the year. The company said it would discuss the matter with the US government and stressed its commitment to keeping operations in China running without disruption.

The curbs are part of broader US measures to limit China’s access to advanced semiconductors. While they could complicate shipments and force suppliers to seek individual approvals, analysts suggest the direct impact on TSMC will be limited, as its sole Chinese plant in Nanjing makes older-generation chips that contribute only a small share of revenue.

Chinese customers may increasingly turn to domestic chipmakers, even if their technology lags. Such a shift could spur innovation in less performance-critical areas, while global suppliers grapple with higher costs and regulatory hurdles.

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