Alibaba commits US$53 billion for AI infrastructure in largest private computing project；Xi tells Putin that China is pleased with Russia’s efforts to end Ukraine war
China’s blockbuster hit Ne Zha 2 gets push from domestic businesses and Beijing
Welcome to this issue of The China Brief. Today is Feb 24, 2025. Here at The China Brief, we bring you the latest news on China's politics, economy, and society from global media sources, along with exclusive expert analysis. If you find our content helpful, please subscribe to our newsletter.
Alibaba commits US$53 billion for AI infrastructure in largest private computing project
South China Morning Post
Alibaba Group Holding has announced a significant investment of at least 380 billion yuan (US$52.4 billion) into its cloud computing and artificial intelligence (AI) infrastructure over the next three years. This investment marks the largest computing project financed by a single private company in China and exceeds Alibaba's total AI infrastructure spending over the past decade. The company's CEO, Eddie Wu Yongming, emphasized a commitment to aggressive investment in AI and cloud computing, aligning with national trends following the recent popularity of AI models like DeepSeek.
Alibaba Cloud, a key growth area for the company, reported a 13% year-on-year revenue increase, driven by strong demand for AI-related products. Analysts predict that Alibaba Cloud revenue could double to reach 240 billion yuan by 2028, highlighting the company's potential to capitalize on the AI cloud market. Although Alibaba's stock saw a slight decline, it has gained 15% recently, reflecting positive investor sentiment.
The company's AI capabilities are gaining international attention, particularly after Apple selected Alibaba as a partner for its AI features in iPhones. Additionally, Alibaba's Qwen models are being increasingly recognized by developers for their use in open-source projects, with plans to launch a new reasoning AI model that provides an alternative to existing popular models.
https://www.scmp.com/tech/big-tech/article/3299858/alibaba-commits-us53-billion-ai-infrastructure-largest-private-computing-project?utm_source=rss_feed
Xi tells Putin that China is pleased with Russia’s efforts to end Ukraine war
Associated Press
China's President Xi Jinping spoke with Russia's President Vladimir Putin, expressing support for Russia's initiatives to engage in dialogue with the U.S. to resolve the ongoing war in Ukraine. Xi commended Russia's efforts and stated that China is ready to assist in achieving a peaceful resolution. The conversation coincided with a visit from leaders of Europe and Canada to Ukraine, marking the third anniversary of Russia's invasion. Xi also reiterated China's commitment to promoting peace through a "Friends of Peace" group and a joint peace plan with Brazil, urging a conference involving both Ukraine and Russia. The close relationship between China and Russia has strengthened, with China becoming a significant buyer of Russian oil and gas amid Western sanctions on Moscow.
https://apnews.com/article/xi-putin-china-russia-ukraine-9f4ce5483298822edf8878c9b3d9ca00
China’s blockbuster hit Ne Zha 2 gets push from domestic businesses and Beijing
South China Morning Post
Chinese companies and authorities have shown strong support for the animated film Ne Zha 2, which has achieved record box office sales of 13.5 billion yuan (approximately US$1.86 billion) since its release on January 29. This places it eighth on the all-time global box office list, surpassing notable films like The Lion King and closely trailing Avengers: Infinity War. Various Chinese companies, such as Xiaomi and Weilong Food, have actively promoted the film by organizing group viewings for employees and expressing a desire to see it succeed globally. The film has also been embraced by Chinese authorities as a representation of the country's cultural strength, with plans for screenings in Taiwan and promotion in international markets. State media has highlighted its success in regions like North America and Australia, encouraging the Chinese film industry to capitalize on this momentum to nurture talent and explore diverse themes for global competitiveness.
https://www.scmp.com/news/china/politics/article/3299921/chinas-blockbuster-hit-ne-zha-2-gets-push-domestic-businesses-and-beijing?utm_source=rss_feed
Trump’s abrupt change of US policy on Ukraine raises questions about Taiwan support
Associated Press
President Trump's recent shift in U.S. policy towards Ukraine, which included questioning Ukraine's legitimacy and engaging with Russia, has raised concerns that China may feel emboldened regarding Taiwan. Experts suggest China is likely in a wait-and-see mode, analyzing the situation in Europe. Despite Trump's earlier popularity in Taiwan, his criticisms and shift in focus could lead to doubts about U.S. support for the island. While some view the U.S. as unreliable, experts believe this change in stance is unlikely to directly impact Taiwan's situation as both nations continue to pursue their strategic interests.
https://apnews.com/article/trump-china-taiwan-ukraine-russia-6c0cc111c1442e732c5a718c13e2df79
Apple, facing tariffs on Chinese imports, says it will invest $500 billion in US facilities
CNN
Apple announced plans to invest $500 billion in expanding its US facilities over the next four years, a move expected to help the company avoid new tariffs on imports from China, where it sources many products. This investment is projected to create 20,000 jobs. The announcement follows President Trump's recent tariffs of 10% on Chinese imports, which includes most of Apple's iPhones. Trump indicated that Apple’s investment was discussed during a meeting with CEO Tim Cook, attributing it to the tariffs. Despite this, Apple has been diversifying its supply chain outside of China in recent years, including establishing a production facility in Texas and supporting the opening of a chipmaking plant in Arizona by TSMC. Additionally, Apple has been increasing its production capabilities in countries like India and Vietnam. The situation is ongoing and will be updated as more information becomes available.
https://edition.cnn.com/2025/02/24/tech/apple-investment-united-states/index.html
China hits brakes on rural land reform in major policy release
South China Morning Post
China has prohibited urban residents from purchasing rural homes and restricted retired officials from building on rural land, as part of a cautious approach to land reform. The “No 1 document” emphasizes the need for a safety net for migrant workers amid economic uncertainty, while continuing to explore rural home revitalization methods. Additionally, it prioritizes food security, aiming to boost domestic grain production and support soybean and oil crop cultivation. The government also plans to enhance agricultural innovation through new technologies, aligning with President Xi Jinping's vision for modernizing agriculture.
https://www.scmp.com/economy/china-economy/article/3299911/china-hits-brakes-rural-land-reform-major-policy-release?utm_source=rss_feed
Robotic acrobatics: Chinese start-up impresses with world’s first frontflip by a robot
South China Morning Post
Chinese robotics start-up EngineAI has achieved a world first by demonstrating a humanoid robot performing a frontflip. The robot, named PM01, executes the movement by flinging its arms and flipping forward, showcasing advanced dynamic balance and control. This milestone follows previous achievements in robotic flips by Boston Dynamics and Unitree. EngineAI, co-founded by Zhao Tongyang, has garnered attention for its natural walking gait and aims to produce advanced models at competitive prices. The company is part of a new wave of Chinese robotics start-ups gaining global recognition, alongside other innovative firms.
https://www.scmp.com/tech/tech-trends/article/3299920/robotic-acrobatics-chinese-start-impresses-worlds-first-frontflip-robot?utm_source=rss_feed
Shenzhen sows seeds for China’s next tech breakthroughs with AI, robotics funding
South China Morning Post
Shenzhen, China's tech hub, plans to enhance talent development in humanoid robotics and AI, competing in the global technology race. The city aims to mobilize 4.5 billion yuan in policy funding for start-ups, offering subsidies for AI training and support for international collaborations. Shenzhen will implement new initiatives to attract young talent, including financial incentives and extended free accommodation for recent graduates. The city promotes a culture of innovation, encouraging calculated risks in investment through “bold” and “patient” capital strategies. Officials emphasize maintaining over 10% growth in R&D investment and fostering collaboration between industry and academia.
https://www.scmp.com/economy/china-economy/article/3299916/shenzhen-sows-seeds-chinas-next-tech-breakthroughs-ai-robotics-funding?utm_source=rss_feed
Tan Ruisong, ex-boss of Chinese aircraft giant AVIC, expelled from Communist Party
South China Morning Post
Tan Ruisong, the former chairman and Communist Party secretary of Aviation Industry Corp of China (AVIC), has been expelled from the party for allegedly accepting a significant amount of bribes and abusing his power for personal gain in the defense industry. The Central Commission for Discipline Inspection (CCDI) reported that his misconduct included offering favors during restructuring, embezzling public properties, and engaging in corrupt practices, including power-for-sex transactions. Tan has been under investigation since August, and his case will be forwarded to prosecutors. His actions reportedly began before 2012 and continued even after the 18th party congress. The investigation comes amid heightened scrutiny of corruption within China's military sector, which has implicated several senior officials. Tan led AVIC from 2018 until his retirement in March 2023 and had been with the company since 2008.
https://www.scmp.com/news/china/politics/article/3299910/tan-ruisong-ex-boss-chinese-aircraft-giant-avic-expelled-communist-party?utm_source=rss_feed
DeepSeek spurs embrace of open-source AI ecosystem at Shanghai industry event
South China Morning Post
Shanghai is striving to establish its own open-source AI ecosystem, inspired by the success of DeepSeek's models. At the recent Global Developer Conference, developers showcased various AI applications, and Shanghai's Vice-Mayor emphasized enhancing the open-source community. The city's AI industry is valued at over 450 billion yuan, with 60 major models registered with China's internet regulator. Open-source initiatives were highlighted as essential for collaboration and innovation. Companies like Stepfun are contributing by releasing multimodal models. Experts believe China is shifting from being an open-source beneficiary to a contributor, fostering inclusive intelligence and collaboration in AI development.
https://www.scmp.com/tech/big-tech/article/3299889/deepseek-spurs-embrace-open-source-ai-ecosystem-shanghai-industry-event?utm_source=rss_feed
New World's $872m loss warning fans Hong Kong property worries
Nikkei Asia
New World Development, a major Hong Kong real estate firm, has reported a projected net loss of up to HK$6.8 billion ($872 million) for the six months ending December, raising concerns about the city's property market. This follows its first fiscal year loss in two decades and management changes, including the resignation of CEO Adrian Cheng. Impairment charges and fair value losses on investment properties are significant contributors to the loss. The company's struggles reflect broader issues in Hong Kong's real estate sector, with analysts warning that defaults by major developers could destabilize the market.
https://asia.nikkei.com/Business/Markets/Property/New-World-s-872m-loss-warning-fans-Hong-Kong-property-worries
China welcomes its new ‘AI civil servants’, but not everyone is happy
South China Morning Post
Local governments in China are rapidly adopting artificial intelligence (AI) for operational efficiency, following the launch of the DeepSeek AI model. Shenzhen's Futian district has deployed 70 AI units to streamline tasks like document processing, significantly reducing time and error rates. While some praise AI's potential to improve government efficiency, others express concerns about job security for civil servants amidst fierce competition for positions. The government reassures that AI is a tool to assist, not replace workers, but worries remain regarding future employment opportunities in the public sector.
https://www.scmp.com/news/china/politics/article/3299432/china-welcomes-its-new-ai-civil-servants-not-everyone-happy?utm_source=rss_feed
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