China

Guangdong eyes global role in AI and robotics

Guangdong is stepping up efforts to become a world leader in AI and robotics by offering generous subsidies to attract start-ups and top tech talent.

The province will grant up to 50 million yuan to major AI manufacturing hubs and millions more to smaller firms and developers.

Officials also plan to fund five open-source communities and ten industrial applications of AI each year, with up to 8 million yuan in support for each.

Local tech giants like Huawei and Tencent are expected to play a key role in the ecosystem.

The move follows the rise of AI firm DeepSeek in neighbouring province of China, Zhejiang, whose founder hails from Guangdong.

The government hopes to replicate that success at home by turning the region into a centre for innovation and global competitiveness.

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US robotics firms seek federal support amid China’s rapid growth

Following the US’s first-ever Enterprise Artificial Intelligence Strategy in October 2024, leading robotics companies are urging the government to develop a national robotics strategy and establish a federal office to support the industry.

The push comes as China accelerates its robotics investments, raising concerns about US competitiveness in the global market.

Executives from Tesla, Boston Dynamics, and Agility Robotics showcased their latest innovations on Capitol Hill this week, advocating for policies that bolster domestic production and adoption of robots.

Jeff Cardenas, CEO of Apptronik, highlighted how the United States once led the field but lost ground to Japan and Europe. Tesla’s Jonathan Chen added that manufacturing at scale remains a key challenge.

The Association for Advanced Automation warned that without strong federal leadership, the US risks falling behind in both robotics and AI. Meanwhile, China continues expanding its robotics sector, with a state-backed fund aiming to attract $138 billion over two decades.

According to the International Federation of Robotics, China now leads in industrial robot usage, with 1.8 million in operation as of 2023.

With global investment in robotics projected to exceed $13 billion by 2025, US industry leaders stress that a national strategy is essential to maintaining a competitive edge.

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US fabs to catch up with Taiwan tech

TSMC says future chip factories in the US will take two years or less to complete, a big step forward from the five years needed for its first Arizona plant. The goal is to narrow the technology gap with its cutting-edge Taiwanese fabs.

While the first US fab makes chips on a 4nm process, TSMC aims to start 3nm production in 2028 and reach 2nm ‘before 2030.’ This would bring American output closer to the most advanced nodes used in Taiwan.

For Apple, which relies heavily on TSMC, the move reduces geopolitical risks tied to China–Taiwan tensions. Critics, however, point out that all R&D remains in Taiwan, limiting the US’s chances of true semiconductor leadership.

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Quantum chip network boosts data security

Chinese scientists have developed a compact chip-based quantum digital signature network that drastically improves both speed and efficiency.

The system replaces bulky, expensive equipment with streamlined silicon chips, making it easier to integrate into today’s fibre networks.

The new setup allows multiple users to share a single central detector, reducing cost and complexity. By adopting a star network design and a new cryptographic protocol, the system can handle longer documents with fewer resources and lower delays.

The Chinese experiment outperformed previous quantum signature technologies, achieving reliable performance even over a 200 km fibre link.

Experts say this research opens the door to future applications in quantum e-commerce, secure communication, and digital finance.

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BMW partners with Alibaba to boost AI development

Alibaba and BMW have joined forces to develop advanced AI technologies aimed at shaping the future of mobility in China.

The collaboration brings together Alibaba’s growing AI expertise and BMW’s automotive innovation to produce smarter, more intuitive vehicles tailored to the Chinese market.

The partnership centres on integrating a customised AI engine into BMW’s Intelligent Personal Assistant, using Yan AI—developed by Alibaba’s Banma—as its foundation.

However, this AI-powered assistant is set to debut in BMW’s upcoming Neue Klasse models, manufactured in China from 2026. These vehicles will feature voice-activated controls and real-time assistance, creating a more seamless and personalised driving experience.

BMW plans to introduce two AI agents, Car Genius and Travel Companion, to enhance in-car services such as navigation, traffic updates, and personal scheduling.

The customisable nature of these tools reflects a growing demand for smart, user-friendly features in the automotive space, particularly in tech-savvy markets like China.

As global competition in the electric vehicle sector intensifies, BMW’s strategic pivot towards AI and the Chinese market could strengthen its position against local rivals such as BYD and Geely.

With European subsidies declining, the German carmaker is looking to AI-powered innovation as a key lever to maintain relevance and secure long-term growth.

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China faces Nvidia chip shortages

Chinese server manufacturer H3C has warned of potential shortages of Nvidia’s H20 chip, the most advanced AI processor still legally available in the country under US export controls.

In a notice to clients, the company revealed that its stock of H20 chips was nearly depleted, citing geopolitical tensions as a major factor affecting global supply chains.

New shipments are expected by mid-April, but future availability remains uncertain due to ongoing trade restrictions and supply disruptions.

The demand for H20 chips has surged, particularly as companies race to integrate AI models developed by Chinese startup DeepSeek.

Major tech firms such as Tencent, Alibaba, and ByteDance have significantly increased their orders, leading to further strain on supply.

H3C stated that future chip distribution will prioritise long-term, high-margin customers under a profit-first approach, raising concerns among smaller buyers about access to the critical technology.

The H20 was introduced after the US tightened export controls on high-performance AI chips in October 2023, blocking Nvidia’s most advanced processors from the Chinese market.

Washington has restricted such exports since 2022, citing national security concerns over China’s potential military applications of AI technology.

Despite these measures, Nvidia has reportedly shipped around one million H20 units in 2024, generating more than $12 billion in revenue. Meanwhile, domestic alternatives from Huawei and Cambricon are emerging as potential substitutes amid the ongoing supply crunch.

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Trump weighs tariff cuts to secure TikTok deal

US President Donald Trump has indicated he is willing to reduce tariffs on China as part of a deal with ByteDance, TikTok’s Chinese parent company, to sell the popular short-video app.

ByteDance faces an April 5 deadline to divest TikTok’s US operations or risk a nationwide ban over national security concerns.

The law mandating the sale stems from fears in Washington that Beijing could exploit the app for influence operations and data collection on American users.

Trump suggested he may extend the deadline if negotiations require more time and acknowledged China’s role in the deal’s approval. Speaking to reporters, he hinted that tariff reductions could be used as leverage to finalise an agreement.

China’s commerce ministry responded by reaffirming its stance on trade discussions, stating that engagement with Washington should be based on mutual respect and benefit.

The White House has taken an active role in brokering a potential sale, with discussions centring on major non-Chinese investors increasing their stakes to acquire TikTok’s US operations. Vice President JD Vance has expressed confidence that a framework for the deal could be reached by the April deadline.

Free speech advocates, meanwhile, continue to challenge the law, arguing that banning TikTok could violate the First Amendment rights of American users.

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US report highlights China’s growing military capabilities

A US intelligence report has identified China as the top military and cyber threat, warning of Beijing’s growing capabilities in AI, cyber warfare, and conventional weaponry.

The report highlights China’s ambitions to surpass the US as the leading AI power by 2030 and its steady progress towards military capabilities that could be used to capture Taiwan.

It also warns that China could target US infrastructure through cyberattacks and space-based assets.

The findings, presented to the Senate Intelligence Committee, sparked tensions between Washington and Beijing. Chinese officials rejected the report, accusing the US of using outdated Cold War thinking and hyping the ‘China threat’ to maintain military dominance.

China’s foreign ministry also criticised US support for Taiwan, urging Washington to stop backing separatist movements.

Meanwhile, Beijing dismissed accusations that it has failed to curb fentanyl shipments, a key source of US overdose deaths.

The report also notes that Russia, Iran, and North Korea are working to challenge US influence through military and cyber tactics.

While China continues to expand its global footprint, particularly in Greenland and the Arctic, the report points to internal struggles, including economic slowdowns and demographic challenges, that could weaken the Chinese government’s stability.

The intelligence report underscores ongoing concerns in Washington about Beijing’s long-term ambitions and its potential impact on global security.

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China’s AI industry is transforming with open-source models, challenging the OpenAI proprietary approach

China’s AI landscape is witnessing a profound transformation as it embraces open-source large language models (LLMs), largely propelled by the innovative efforts of DeepSeek. The startup’s R1 model, released under the highly permissive ‘MIT License,’ has sparked a significant shift away from proprietary approaches dominated by major American tech firms, paving the way for increased accessibility, collaboration, and innovation.

That transition is likened to an ‘Android moment’ for China’s AI industry, highlighting the sector’s move towards more available and flexible AI development. The ripple effects of this open-source movement are evident across China’s tech giants. Baidu, long a proponent of proprietary models, has announced its shift to open-source by making its AI models, Ernie 4.5 and Ernie X1, freely available and plans to release them as open-source.

The following strategic pivot reflects the competitive pressure of disruptors like DeepSeek, prompting companies to revise their business models to maintain market relevance. Alibaba and Tencent are also joining this trend by open-sourcing their AI offerings, while smaller firms like ManusAI are following suit, embracing the open-source ethos to drive innovation and market presence.

The shift towards open-source models in China starkly contrasts the OpenAI’s continued focus on proprietary strategies bolstered by hefty investments. The open-source trend underscores a growing discourse on the future of AI development, investment, and competitive dynamics, with open-source frameworks emerging as potential harbingers of sustainable growth and inclusive technological advancement.

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US tightens controls on China’s tech sector amid security fears

The United States has added six subsidiaries of China’s leading cloud computing firm, Inspur Group, along with dozens of other Chinese entities, to its export restriction list.

Washington accuses the companies of aiding China’s military by developing supercomputers and advanced AI technologies. The move is part of a broader strategy to curb China’s progress in high-performance computing, quantum technology, and hypersonic weapons development.

Other companies from Taiwan, Iran, Pakistan, South Africa, and the UAE were also included in the latest restrictions. China has strongly condemned the US decision, calling it an attempt to ‘weaponise trade and technology.’

The Chinese foreign ministry has vowed to take necessary measures to protect its firms, while the Beijing Academy of Artificial Intelligence, which was also targeted, called for the restrictions to be withdrawn.

Companies added to the US Entity List require special licences to access American technology, which are unlikely to be granted. The restrictions could impact major Chinese tech firms linked to AI and computing, such as Huawei and Sugon.

The United States Commerce Department argues that these measures are necessary to prevent China and other countries from using American technology for military applications. Officials insist they will not allow adversaries to strengthen their military capabilities with US-made components.

The latest crackdown follows a 2023 decision to blacklist Inspur Group, which led to scrutiny of its business ties with major US chipmakers such as Nvidia and AMD. Washington also aims to block Iran’s procurement of drone and missile technology as part of its broader national security efforts.

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