China

Alibaba launches Qwen3 AI model

As the AI race intensifies in China, Alibaba has unveiled Qwen3, the latest version of its open-source large language model, aiming to compete with top-tier rivals like DeepSeek.

The company claims Qwen3 significantly improves reasoning, instruction following, tool use, and multilingual abilities compared to earlier versions.

Trained on 36 trillion tokens—double that of Qwen2.5—Qwen3 is available for free download on platforms like Hugging Face, GitHub, and Modelscope, instead of being limited to Alibaba’s own channels.

The model also powers Alibaba’s AI assistant, Quark, and will soon be accessible via API through its Model Studio platform.

Alibaba says the Qwen model family has already been downloaded over 300 million times, with developers creating more than 100,000 derivatives based on it.

With Qwen3, the company hopes to cement its place among the world’s AI leaders instead of trailing behind American and Chinese rivals.

Although the US still leads the AI field—according to Stanford’s AI Index 2025, it produced 40 major models last year versus China’s 15— Chinese firms like DeepSeek, Butterfly Effect, and now Alibaba are pushing to close the quality gap.

The global competition, it seems, is far from settled.

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Huawei develops Ascend 910D chip to rival Nvidia

Huawei Technologies is preparing to test its newest AI processor, the Ascend 910D, as it seeks to offer an alternative to Nvidia’s products following US export restrictions. The company has approached several Chinese tech firms to assess the technical feasibility of the new chip.

Extensive testing will follow to ensure the chip’s performance before it reaches the wider market. Sources claim Huawei aims for the Ascend 910D to outperform Nvidia’s H100 chip, widely used for AI training since 2022.

Huawei is already shipping large volumes of its earlier Ascend 910B and 910C models to state-owned carriers and private AI developers like ByteDance. Demand for these processors has risen as US restrictions tightened Nvidia’s ability to sell its H20 chip to China.

Increased domestic demand for Huawei’s AI hardware signals a shift in China’s semiconductor market amid geopolitical tensions. Analysts believe this development strengthens Huawei’s ambition to compete globally in the AI chip market.

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AI educational race between China and USA brings some hope

The AI race between China and the USA shifts to classrooms. As AI governance expert Jovan Kurbalija highlights in his analysis of global AI strategies, two countries see AI literacy as a ‘strategic imperative’. From President Trump’s executive order to advance AI education to China’s new AI education strategy, both superpowers are betting big on nurturing homegrown AI talent.

Kurbalija sees focus on AI education as a rare bright spot in increasingly fractured tech geopolitics: ‘When students in Shanghai debug code alongside peers in Silicon Valley via open-source platforms, they’re not just building algorithms—they’re building trust.’

This grassroots collaboration, he argues, could soften the edges of emerging AI nationalism and support new types of digital and AI diplomacy.

He concludes that the latest AI education initiatives are ‘not just about who wins the AI race but, even more importantly, how we prepare humanity for the forthcoming AI transformation and coexistence with advanced technologies.’

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Trump threatens new tariffs within weeks

President Trump has signalled a potential early end to the current 90-day pause on tariffs for countries and companies not actively seeking trade agreements with the US.

While markets initially reacted positively to signs of easing tension with China, that optimism was short-lived as the administration quickly shifted direction.

Instead of waiting out the full pause period, Trump now suggests new tariffs could be imposed within two to three weeks, with rates possibly rising from 10% to as high as 50%.

The lack of clarity over which nations or firms are targeted adds further uncertainty. Although officials initially claimed around 90 countries were engaged in trade talks, that number reportedly dropped to just 15.

A vagueness like this, combined with the unpredictable nature of US tariff policy, has unsettled international markets and raised alarm across global supply chains.

Apple, among others, has managed to avoid immediate price hikes thanks to temporary exemptions and strategic stock management. However, those exemptions are due to expire shortly, leaving the company vulnerable to rising costs.

Instead of facing only Chinese tariffs, Apple may now contend with broader duties on semiconductors and products manufactured outside China.

If tariff relief fails to materialise soon, consumers could see higher prices on future Apple products, including the upcoming iPhone 17.

Without a clearer and more consistent trade strategy from the White House, global firms may struggle to adapt, and the fragile economic recovery could face renewed strain.

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BMW partners with DeepSeek for in-car AI features

BMW has announced plans to integrate AI developed by China’s DeepSeek into its vehicles sold in the Chinese market.

The announcement was made by CEO Oliver Zipse during the Shanghai Auto Show, aligning BMW with local brands such as Geely and Zeekr that have adopted similar AI technologies.

The DeepSeek-R1 model has been increasingly used across Chinese automotive sector to power intelligent cockpit systems, voice controls, and driving assistance.

Geely showcased its ‘Full-Domain AI for Smart Vehicles’, which includes AI-powered chassis control and driver interaction capabilities.

DeepSeek’s influence extends beyond automotive applications, with its technology now used in Chinese courtrooms, healthcare, and customer service.

A successor model, DeepSeek-R2, is expected soon and promises multilingual reasoning and enhanced coding capabilities, rivalling Western counterparts.

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Baidu rolls out new AI agent Xinxiang for Android

Chinese tech giant Baidu has launched a new AI agent, Xinxiang, aimed at enhancing user productivity by assisting with tasks such as information analysis and travel planning.

The tool is currently available on Android devices, with an iOS version still under review by Apple.

According to Baidu, Xinxiang represents a shift from traditional chatbot interactions towards a more task-focused AI experience, providing streamlined assistance tailored to practical needs.

The move reflects growing competition in China’s rapidly evolving AI market.

However, the launch highlights Baidu’s ambition to stay ahead in AI innovation and offer tools that integrate seamlessly into everyday digital life.

As regulatory reviews continue, the success of Xinxiang may depend on user adoption and the speed at which it becomes available across platforms.

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Chinese AI sector eyes Huawei’s powerful 910C chip

Huawei is preparing to begin large-scale shipments of its new AI chip, the 910C, as early as next month.

The move is seen as a critical development in China’s ongoing effort to reduce reliance on US technology, especially after recent export restrictions on Nvidia’s H20 chip.

The 910C delivers performance on par with Nvidia’s H100 by combining two of Huawei’s earlier 910B chips in a single integrated package.

These enhancements, which include increased computing power and memory capacity, have attracted interest from Chinese AI developers scrambling for alternatives.

Despite Huawei’s refusal to confirm the reports, sources say sample shipments have already taken place. Some chips are being produced domestically using SMIC’s 7nm process, while others may involve components originally manufactured by TSMC, raising fresh regulatory scrutiny.

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TSMC struggles to block chip exports to China

Taiwan Semiconductor Manufacturing Company (TSMC) has acknowledged it faces significant challenges in ensuring its advanced chips do not end up with sanctioned entities in China, despite tightening export controls.

The company admitted in its latest annual report that its position as a contract chipmaker limits its visibility into how and where its semiconductors are ultimately used.

Instead of directly selling finished products, TSMC manufactures chips for firms like Nvidia and Qualcomm, which are then integrated into a wide range of devices by third parties.

Α layered supply chain structure like this makes it difficult for the company to guarantee full compliance with export restrictions, especially when intermediaries may divert shipments intentionally.

TSMC halted deliveries to a customer last year after discovering one of its AI chips had been diverted to Huawei, a Chinese tech giant on the US sanctions list. The company promptly notified both Washington and Taipei and has since cooperated with official investigations and information requests.

The US continues to tighten restrictions on advanced chip exports to China, urging companies like TSMC and Samsung to apply stricter scrutiny.

Recently, Washington blacklisted 16 Chinese entities, including firms allegedly linked to the unauthorised transfer of TSMC chips. Despite best efforts, TSMC says there is no assurance it can completely prevent such incidents.

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Temu and Shein to raise US prices due to new tariffs

Fast fashion giants Temu and Shein have warned US shoppers to expect price hikes from next week, as sweeping new tariffs on Chinese imports come into effect under Donald Trump’s trade policy.

Both companies will lose access to the ‘de minimis’ exemption, which has allowed packages under $800 to enter the US duty-free. That change, taking effect from 2 May, will significantly raise costs for low-cost retailers who depend on cheap cross-border shipments.

The tariffs, which now reach up to 145%, are part of Trump’s escalating trade war with China. His revised plans impose a tax of $75 per item, rising to $150 by June, for shipments that were previously exempt.

Shein has told customers its operating expenses have risen and prices will be adjusted from 25 April in an effort to maintain product quality while absorbing the new costs.

In response to the tariffs and likely slowdown in US demand, both companies have also scaled back digital advertising.

According to Sensor Tower, Temu’s average US ad spend across major platforms dropped by 31% over two weeks, while Shein’s spending fell 19%.

The tariffs are expected to reshape fast fashion in the US, though some experts believe prices may still remain competitive compared to domestic alternatives.

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AMD warns of financial hit from US AI chip export ban

AMD has warned that new US government restrictions on exporting AI chips to China and several other countries could materially affect its earnings.

The company said it may face charges of up to $800 million related to unsold inventory, purchase commitments, and reserves if it fails to secure export licences for its MI308 GPUs, now subject to strict control measures.

In a filing to the US Securities and Exchange Commission, AMD confirmed it would seek the necessary licences but admitted there is no guarantee they will be granted.

The move follows broader export restrictions aimed at protecting national security interests, with US officials arguing that unrestricted access to advanced chips would weaken the country’s strategic lead in AI, instead of preserving it.

AMD’s stock dropped around 6% following the announcement. Competitors are also feeling the impact. Nvidia expects charges of $5.5 billion from similar restrictions, and Intel’s Gaudi hardware line has reportedly been affected as well.

The US Commerce Department has defended the move as necessary to safeguard economic and national interests.

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