China

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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Deepseek searches soar after ChatGPT outage

ChatGPT users faced widespread disruption on 10 June 2025 after a global outage hit OpenAI’s services, affecting both the chatbot and associated APIs. OpenAI has yet to confirm the cause, stating only that users are experiencing high error rates and delays.

The blackout halted work for many creative teams who rely on the tool to generate content and meet deadlines. While some were stalled, others turned to alternatives, sparking a surge in interest in rival AI chatbots.

Searches for DeepSeek, a Chinese-developed AI model, jumped 109% to over 2.1 million on the outage day. Claude AI saw a 95% increase in queries, while interest in Google Gemini and Microsoft Copilot also spiked significantly.

Industry experts say the incident underscores the risk of overdependence on a single platform and highlights the growing maturity of competing AI tools. While frustrating for many, the disruption appears to be fuelling broader competition and diversification in the generative AI market.

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AI companions are becoming emotional lifelines

Researchers at Waseda University found that three in four users turn to AI for emotional advice, reflecting growing psychological attachment to chatbot companions. Their new tool, the Experiences in Human-AI Relationships Scale, reveals that many users see AI as a steady presence in their lives.

Two patterns of attachment emerged: anxiety, where users fear being emotionally let down by AI, and avoidance, marked by discomfort with emotional closeness. These patterns closely resemble human relationship styles, despite AI’s inability to reciprocate or abandon its users.

Lead researcher Fan Yang warned that emotionally vulnerable individuals could be exploited by platforms encouraging overuse or financial spending. Sudden disruptions in service, he noted, might even trigger feelings akin to grief or separation anxiety.

The study, based on Chinese participants, suggests AI systems might shape user behaviour depending on design and cultural context. Further research is planned to explore links between AI use and long-term well-being, social function, and emotional regulation.

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Massive leak exposes data of millions in China

Cybersecurity researchers have uncovered a brief but significant leak of over 600 gigabytes of data, exposing information on millions of Chinese citizens.

The haul, containing WeChat, Alipay, banking, and residential records, is part of a centralised system, possibly aimed at large-scale surveillance instead of a random data breach.

According to research from Cybernews and cybersecurity consultant Bob Diachenko, the data was likely used to build individuals’ detailed behavioural, social and economic profiles.

They warned the information could be exploited for phishing, fraud, blackmail or even disinformation campaigns instead of remaining dormant. Although only 16 datasets were reviewed before the database vanished, they indicated a highly organised and purposeful collection effort.

The source of the leak remains unknown, but the scale and nature of the data suggest it may involve government-linked or state-backed entities rather than lone hackers.

The exposed information could allow malicious actors to track residence locations, financial activity and personal identifiers, placing millions at risk instead of keeping their lives private and secure.

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China’s AI tools disabled for gaokao exam

As millions of high school students across China began the rigorous ‘gaokao’ college entrance exam, the country’s leading tech companies took unprecedented action by disabling AI features on their popular platforms.

Apps from Tencent, ByteDance, and Moonshot AI temporarily blocked functionalities like photo recognition and real-time question answering. This move aimed to prevent students from using AI chatbots to cheat during the critical national examination, which largely dictates university admissions in China.

This year, approximately 13.4 million students are participating in the ‘gaokao,’ a multi-day test that serves as a pivotal determinant for social mobility, particularly for those from rural or lower-income backgrounds.

The immense pressure associated with the exam has historically fueled intense test preparation. However, screenshots circulating on Chinese social media app Rednote confirmed that AI chatbots like Tencent’s YuanBao, ByteDance’s Doubao, and Moonshot AI’s Kimi displayed messages indicating the temporary closure of exam-relevant features to ensure fairness.

China’s ‘gaokao’ exam highlights a balanced approach to AI: promoting its education from a young age, with compulsory instruction in Beijing schools this autumn, while firmly asserting it’s for learning, not cheating. Regulators draw a clear line, reinforcing that AI aids development, but never compromises academic integrity.

This coordinated action by major tech firms reinforces the message that AI has no place in the examination hall, despite China’s broader push to cultivate an AI-literate generation.

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China proposes rare earth export relief for EU

China has proposed creating a ‘green channel’ for rare earth exports to the EU, aiming to ease the impact of its recent restrictions. These materials, vital to electric vehicles and household appliances, have been under stricter export controls since April.

During recent talks, Trade Commissioner Maroš Šefčovič warned Chinese officials that the curbs had caused major disruptions across Europe, describing the situation as alarming. While some progress in licence approvals has been noted, businesses argue it remains inadequate.

The talks come as both sides prepare for a high-stakes EU-China summit and continue negotiations over tariffs on Chinese electric vehicles.

Brussels has imposed duties of up to 35.3%, citing unfair subsidies, while Beijing is pushing for a deal involving minimum pricing to avoid the tariffs.

China’s commerce ministry confirmed the discussions are in their final stage but acknowledged that more work is needed to reach a resolution.

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UAE AI megaproject faces US chip export concerns

Plans for a vast AI data hub in the UAE have raised security concerns in Washington due to the country’s close ties with China.

The $100 billion Stargate UAE campus, aims to deploy advanced US chips, but US officials are scrutinising potential technology leakage risks.

Although the Trump administration supports the project, bipartisan fears remain about whether the UAE can safeguard US-developed AI and chips from foreign adversaries.

A final agreement has not been reached as both sides negotiate export conditions, with possible restrictions on Nvidia’s hardware.

The initial phase of the Stargate project will activate 200 megawatts of capacity by 2026, but the deal’s future may depend on the UAE’s willingness to accept strict US oversight.

Talks over potential amendments continue, delaying approval of what could become a $500 billion venture.

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Hong Kong builds AI tool for breast cancer diagnosis

Researchers at the Hong Kong University of Science and Technology have unveiled a pioneering AI model called MOME for non-invasive breast cancer diagnosis.

Using China’s largest multiparametric MRI breast cancer dataset, MOME performs at a level comparable to seasoned radiologists and is currently undergoing clinical trials in more than ten hospitals.

Among the institutions participating in the validation phase are Shenzhen People’s Hospital, Guangzhou First Municipal People’s Hospital, and Yunnan Cancer Center. Early results show that MOME excels in predicting response to pre-surgical chemotherapy.

The development highlights the region’s growing capabilities in medtech innovation and could reshape diagnostic strategies for breast cancer across Asia. MOME’s clinical success may also pave the way for similar AI-led models in oncology.

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