Innovation — 142 insights
China launches probe into Palo Alto Networks as US trade tensions intensify
Innovation

China launches probe into Palo Alto Networks as US trade tensions intensify

The move comes just a day after Beijing imposed sanctions on a string of US firms and tightened controls over the drone supply chain Beijing has launched a cybersecurity review into products sold in China by US technology firm Palo Alto Networks, the Cyberspace Administration of China announced on Thursday. The administration said the probe was being conducted to “ensure the secure and stable operation of critical information infrastructure, prevent cybersecurity risks and vulnerabilities, and safeguard national security”. Palo Alto Networks is a leading US cybersecurity and cloud computing provider, whose solutions are used by tens of thousands of clients in industries ranging from finance to technology and energy. Palo Alto Networks has maintained a significant presence in the Chinese market, operating multiple offices in cities including Beijing, Shanghai and Guangzhou. Its solutions include advanced firewalls, cloud-native security platforms and global threat intelligence.

DeepSeek signals ‘significant’ price hike amid surge in demand for low-cost AI models
Innovation

DeepSeek signals ‘significant’ price hike amid surge in demand for low-cost AI models

Plans for a major price hike underscore the challenges the company faces to maintain aggressively low prices amid fierce competition DeepSeek announced on Thursday a “significant” price hike, amid surging global demand for a new ultra-cheap model, which sparked debate over how the Chinese artificial intelligence start-up has delivered powerful performance at rock-bottom prices. Overall pricing for its application programming interface (API) services would be raised “in the near future”, with specific plans to be advised later, the Hangzhou-based company said in a statement on its developer platform on Thursday. A “significant increase” was expected, and users should plan their usage accordingly, DeepSeek added. The notice came a week after the release of its latest model DeepSeek-V4-Flash-0731, a 284-billion-parameter lightweight version of the V4 series previewed in April. The company’s plans for a major price hike underscore the challenges the Chinese start-up faces to maintain its aggressively low prices amid fierce competition, potentially clouding its reputation for being a champion for cost-effective AI.

Disputes over AI, robotics, trade mount ahead of planned Xi-Trump summit in US
Innovation

Disputes over AI, robotics, trade mount ahead of planned Xi-Trump summit in US

In the months leading up to President Xi Jinping’s planned September visit to Washington for a summit with US President Donald Trump, a series of smaller trade and technology rifts has emerged between the world’s two largest economies. From tensions over Chinese artificial intelligence models and new US restrictions on advanced robotics, to optical modules and an expanded forced labour blacklist, this piece breaks down the latest developments shaping US-China economic ties. 1. AI models under...

Chinese data centre component firms hammered as US drafts ban
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Chinese data centre component firms hammered as US drafts ban

Shares in Zhongji Innolight dived as much as 16 per cent on Wednesday after a report the United States intends to ban Chinese-made optical transceivers from use in data centres being used to power the race to develop artificial intelligence (AI). The plan by the Federal Communications Commission (FCC) to halt imports of new models of optical transceivers – which convert data into light pulses and back again – is reportedly aimed at preventing Chinese firms stealing data, installing malware or...

Tencent ramps up overseas AI push with wider roll-out of flagship Hy3 model
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Tencent ramps up overseas AI push with wider roll-out of flagship Hy3 model

Hy3’s release is the first major update in Tencent’s AI strategy since former OpenAI researcher Yao Shunyu joined the Chinese tech giant On Wednesday, the Shenzhen-based technology giant rolled out Hy3 to global developers, enterprises and users through its workplace agentic tool WorkBuddy, creation studio Tencent Design Miora and model platform TokenHub. According to Tencent, Hy3 would be available free of charge worldwide on WorkBuddy until August 31. The move to broaden international access followed the official launch of the model last month. Hy3 would enable organisations to “move beyond AI experimentation and put intelligence to work in practical, trusted and scalable ways,” said Poshu Yeung, senior vice-president of Tencent Cloud and head of the unit’s international business. The model’s application programming interface call volume had increased more than 68-fold compared with the previous generation, and it had topped the global large language model usage leaderboard on tracking site OpenRouter in the first week of its launch, according to the company.

Has a Chinese physical AI start-up manipulated a global ranking to beat Nvidia?
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Has a Chinese physical AI start-up manipulated a global ranking to beat Nvidia?

Spirit AI’s Spirit v1.6 briefly dethroned Nvidia on the RoboArena robotics benchmark, but the model was then removed following a methodology overhaul A Chinese physical AI start-up’s brief claim to global dominance in robotics has run into controversy, underscoring the intense US-China competition to develop next-generation artificial intelligence and the challenges of evaluating autonomous systems. However, the victory was short-lived. Just days later, the benchmark’s creators overhauled its methodology and removed the model from the official list, along with several other competitors, after finding evidence of “benchmark hacking”. Among those dropped from the rankings was a model from Chinese start-up X Square Robot, which had ranked fourth. But it was Spirit that generated the most buzz after topping the list, which it dubbed “the ‘Olympics’ of embodied intelligence in North America”, even as the benchmark itself had its own problems. In a post on X in June, Pranav Atreya, a lead author of the project and a PhD student at UC Berkeley, said the team had “retroactively removed evaluations from organisations who [it] found to be engaging in benchmark manipulation”. He did not name specific companies.

Chinese chip-tool maker AMEC says first-half profit to nearly quadruple amid soaring demand
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Chinese chip-tool maker AMEC says first-half profit to nearly quadruple amid soaring demand

First-half outlook an early bellwether for domestic equipment sector as Chinese memory and advanced-logic fabs expand capacity Advanced Micro-Fabrication Equipment China (AMEC), the country’s top chip-tool maker, says its preliminary profit will nearly quadruple in the first half of the year as robust demand for home-grown semiconductors continues amid US sanctions. Based on unaudited figures, the company said its income between January and June was at least 2.7 billion yuan (US$400 million), representing a year-on-year growth of 282 per cent, according to a filing to the Shanghai Stock Exchange on Monday. The upper limit of profit growth could reach 311 per cent, which would translate into a net profit of 2.9 billion yuan. Revenue for the period rose 35 per cent from a year earlier to 6.7 billion yuan. The staggering profit growth was partly driven by nearly 2 billion yuan in investment and fair-value gains, including the sale of shares in fellow equipment maker Piotech earlier this year. Nevertheless, the adjusted profit excluding the gains doubled during the first half.

China embraces basic science as US downplays it amid AI race
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China embraces basic science as US downplays it amid AI race

Senior Chinese official Cai Qi welcomed China’s scientific and technological elite at the seaside resort of Beidaihe, a sign that China’s leaders have begun their secretive annual summer retreat. The leaders’ gathering at the resort in Hebei province, east of Beijing, presages the party’s fifth plenum in October, the last before a leadership reshuffle next year. Cai, who ranks fifth in the Communist Party hierarchy and is often referred to as President Xi Jinping’s “chief of staff”, “extended...

China tightens chip-design protection and clarifies rights to spur innovation
Innovation

China tightens chip-design protection and clarifies rights to spur innovation

Revised rules sharpen penalties and expand rights, underscoring Beijing’s strategy to build resilience across semiconductor and AI ecosystem Premier Li Qiang signed a State Council decree to promulgate the revised rules on the protection of layout designs of integrated circuits, Xinhua reported on Monday. The new rules will take effect on October 15. Chip design serves as the blueprint for the entire semiconductor value chain. While domestic chip manufacturing remains constrained by US restrictions on the import of advanced equipment, mastering chip design enables Chinese firms to innovate around bottlenecks through custom architectures, such as specialised hardware-software co-design strategy that Huawei Technologies is betting on. It calls for efforts to “refine and strengthen mature-node processes, enhance capabilities in advanced process technologies, accelerate development of key equipment, materials and components, and advance high-performance processors and high-density memory”.

China’s DeepSeek beefs up agentic AI with ‘harness’ tests as V4 model jolts Silicon Valley
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China’s DeepSeek beefs up agentic AI with ‘harness’ tests as V4 model jolts Silicon Valley

Hangzhou-based firm is recruiting developers to test software that turns language models into autonomous agents, escalating price war with US rivals The Hangzhou-based firm was looking for open-source project developers to join beta testing for DeepSeek Harness, according to a social media post on Saturday by Cui Tianyi, who leads the harness team. Cui did not disclose a release date for DeepSeek Harness. However, he noted on social media in June that while the team held ambitious goals, it remained severely short-staffed and was recruiting across multiple channels. The agent push comes as CEO and co-founder Liang Wenfeng doubles down on cheap, highly capable models as a core strategy towards artificial general intelligence (AGI), a coveted milestone where AI systems match or surpass human cognitive abilities.

Will AI healthcare be China’s new global growth engine?
Innovation

Will AI healthcare be China’s new global growth engine?

Artificial intelligence (AI) has transformed healthcare for hundreds of millions of people in China. AI-powered apps help them manage their health and seek care, while others help doctors better diagnose and treat their patients. AI analysis of routine scans detects cancers and other conditions physicians might have missed. Personalised cancer vaccines built on AI analysis will soon begin rolling off production lines in China. The country’s leading tech companies have poured resources into...

Alibaba’s AI model Qwen3.8-Max made widely accessible ahead of open-weights release
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Alibaba’s AI model Qwen3.8-Max made widely accessible ahead of open-weights release

Flagship 2.4 trillion parameter model highlights native multimodal capabilities and the ability to carry out long-horizon agentic tasks The massive 2.4-trillion-parameter model supports a context window of up to 1 million tokens, meaning the model can process up to 750,000 words or their equivalent for each query. QwenWork, which entered public beta on the same day through web and desktop apps, is an all-in-one productivity platform for individuals and businesses, targeting Tencent’s WorkBuddy, Moonshot AI’s Kimi Work and overseas rivals including Claude Cowork and ChatGPT Work. A multimodal foundation model, Qwen3.8-Max can process various types of data from lengthy documents to television series and live streams to build searchable knowledge bases, according to Alibaba, which owns the South China Morning Post. The company also said the model could recreate software applications from screenshots, generate interactive games and educational animations, and convert two-dimensional floor plans into 3D visualisations.