China and US need to find a way to ‘get along’, Wang Yi tells American business groups
DeepSeek founder provides clue on start-up’s AI priorities in new technical study
Welcome to this issue of The China Brief. Today is Feb 19, 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.
China and US need to find a way to ‘get along’, Wang Yi tells American business groups
South China Morning Post
Chinese Foreign Minister Wang Yi emphasized the need for Washington and Beijing to stabilize their relations and collaborate on significant issues during a meeting with American business leaders in New York. He called for mutual respect, enhanced communication, and overcoming obstacles to improve ties amid escalating trade tensions and tariffs imposed by the US. Wang highlighted the potential for cooperation between the two largest economies and urged American companies to capitalize on opportunities presented by China's modernization. The discussion coincided with ongoing disputes at the World Trade Organization regarding the recent tariffs and trade commitments.
https://www.scmp.com/news/china/diplomacy/article/3299347/wang-yi-urges-china-and-us-get-along-american-businesses-share-concerns?utm_source=rss_feed
DeepSeek founder provides clue on start-up’s AI priorities in new technical study
South China Morning Post
DeepSeek, led by founder Liang Wenfeng, is focusing on "native sparse attention" (NSA) to enhance AI model efficiency in processing large data sets. Their study, published on arXiv, highlights NSA's ability to speed up inference and lower pre-training costs while maintaining performance. Following their advancements in open-source AI models V3 and R1, DeepSeek has gained significant public interest and is ramping up recruitment in AI talent. The company's models are now integrated with major cloud computing platforms, making it a sought-after destination for job seekers in China's tech industry.
https://www.scmp.com/tech/big-tech/article/3299312/deepseek-founder-provides-clue-start-ups-ai-priorities-new-technical-study?utm_source=rss_feed
Tech war: ex-Apple engineer returns to China to teach about semiconductors at alma mater
South China Morning Post
Wang Huanyu, a former semiconductor engineer at Apple, has returned to China to teach at Huazhong University of Science and Technology (HUST) after a decade in the US. His move is part of a broader trend of tech talent returning to China, driven by US sanctions that limit China's access to advanced semiconductor technology. Wang's expertise in integrated circuits (ICs) is expected to enhance the academic programs at HUST, which established its IC school in 2023. This trend follows other universities in China, such as Tsinghua and Peking University, which have also focused on developing IC curricula. Wang previously worked on notable Apple chip designs and earned his PhD in electrical and computer engineering. The growing number of skilled scientists in China has surpassed that in the US, highlighting a shift in the global tech landscape amid rising geopolitical tensions.
https://www.scmp.com/tech/tech-trends/article/3299348/tech-war-ex-apple-engineer-returns-china-teach-about-semiconductors-alma-mater?utm_source=rss_feed
Chinese scientists build world’s most powerful spy camera
South China Morning Post
Chinese scientists have developed a groundbreaking optical imaging technology using a powerful laser that can capture images with millimeter-level resolution from over 100 km away. This innovation, reported by the Chinese Academy of Sciences, allows for unprecedented surveillance capabilities, potentially enabling the identification of details like human faces from low-Earth orbit. The technique employs a synthetic aperture lidar system, enhancing resolution by utilizing a micro-lens array and advanced signal processing. While it represents a significant leap in imaging technology, challenges remain, including reliance on weather conditions and tracking moving targets.
https://www.scmp.com/news/china/science/article/3299346/chinese-scientists-build-worlds-most-powerful-spy-camera?utm_source=rss_feed
The Secret Behind Temu’s Rock-bottom Prices
Diplomat
In just two years, the Chinese e-commerce platform Temu has rapidly gained a foothold in the global market, ranking as the fifth most-visited platform in France and third in the U.S. Its success is attributed to ultra-low prices, which some critics claim result from questionable practices like poor product quality and aggressive marketing. Temu is an offshoot of Pinduoduo, employing a Consumer-To-Manufacturer (C2M) model that leverages reverse auctions to secure the lowest prices from manufacturers. This model allows Temu to avoid holding inventory, shifting storage costs to manufacturers.
Temu's marketing strategy focuses on social media trends and targeting lower-income consumers in smaller markets, leading to significant growth and revenue. The platform benefits from favorable customs regulations, allowing duty-free shipping for many products, and has attracted 467 million users globally. However, high logistics costs present a challenge as Temu transitions to a semi-managed shipping model. While the company has disrupted online retail, questions remain about the sustainability of its low-cost strategy against competitors like Amazon.
https://thediplomat.com/2025/02/the-secret-behind-temus-rock-bottom-prices/
Trump’s proposed 25% tariffs would ‘spare China’ but hurt its neighbours: analysts
South China Morning Post
US President Donald Trump's proposed tariffs on imports of cars, drugs, and semiconductors are expected to impact China's regional competitors, particularly South Korea, Japan, and Europe, more than China itself. While China's auto sector may not be significantly affected due to minimal direct exports to the US, unpredictable secondary effects could arise for Chinese companies integrated into global supply chains. The tariffs on pharmaceuticals and semiconductors would predominantly impact India and Taiwan, respectively. Trump's announcement is set for April 2, with escalating duties anticipated over the following year.
https://www.scmp.com/economy/china-economy/article/3299295/trumps-proposed-25-tariffs-would-spare-china-hurt-its-neighbours-analysts?utm_source=rss_feed
China’s DeepSeek-led AI revolution could boost financial sector profit by up to 13%: UBS
South China Morning Post
Recent advances in China's AI technology, particularly with DeepSeek, are set to enhance profits in the AI-heavy financial sector by significantly reducing labor costs. UBS predicts that a 10% drop in labor costs could lead to an 8% profit increase for brokerages and 13% for the insurance sector. The financial sector leads in AI implementation, with 37% of use cases projected for 2023-2024. While AI will boost efficiency and profits, it may also result in job losses. The enthusiasm for AI has spurred a market rally, with expectations of substantial investments in Chinese stocks.
https://www.scmp.com/business/markets/article/3299316/chinas-deepseek-led-ai-revolution-could-boost-financial-sector-profit-13-ubs?utm_source=rss_feed
Chinese scientists create new superconducting material based on nickel
South China Morning Post
Chinese physicists have achieved a significant breakthrough by creating a new type of high-temperature superconductor based on nickel, which operates at ambient pressure. This discovery makes nickel the third material class, alongside cuprates and iron-based materials, to achieve superconductivity above minus 233 degrees Celsius (minus 387 Fahrenheit) under normal pressure conditions. The research, conducted by a team from the Southern University of Science and Technology in Shenzhen, was published in the journal Nature and highlights the potential for further investigations into superconductivity mechanisms and applications. Superconductors exhibit zero electrical resistance and can repel magnetic fields when cooled to critical temperatures, making them useful in various fields like power transmission and magnet creation for fusion reactors. Previously, nickel-based superconductivity required extremely high pressure, limiting research opportunities. The new nickelate superconductor, composed of nickel, oxygen, and rare earth metals, transitions into a superconducting state at around minus 228 degrees Celsius. The researchers aim to explore additional material systems for higher temperature superconductivity under normal pressure using their domestically developed experimental technology.
https://www.scmp.com/news/china/science/article/3299254/chinese-scientists-create-new-superconducting-material-based-nickel?utm_source=rss_feed
Chinese media echoes Xi’s speech on private sector with flurry of editorials
South China Morning Post
China's state media has rallied behind the private sector, echoing President Xi Jinping's recent call for support at a symposium for entrepreneurs. Editorials highlight the private economy's crucial role in China's modernization and high-quality development, emphasizing unwavering government support and legal protections. Despite challenges faced by private companies during the post-pandemic recovery, state publications stress resilience and new opportunities in areas like technology and sustainability. Entrepreneurs attending the meeting expressed optimism, reinforcing the message that confidence in the private sector is vital for future growth.
https://www.scmp.com/economy/china-economy/article/3299315/chinese-media-echoes-xis-speech-private-sector-flurry-editorials?utm_source=rss_feed
Visa-free access to Hong Kong, Singapore set to go on sale with these passports
South China Morning Post
The Pacific island nation of Nauru plans to sell citizenships to raise funds for relocating approximately 10,000 residents from vulnerable coastal areas threatened by rising sea levels and flooding. President David Adeang aims to generate an initial US$65 million to develop new infrastructure, including a township and agriculture, on the island's barren interior, damaged by phosphate mining. The citizenship program allows foreigners to purchase passports for at least US$140,500, granting them visa-free access to various countries, although they may never visit Nauru. Approximately 90% of the population is expected to be relocated due to climate threats. Nauru's move follows Dominica's similar approach to climate adaptation funding. Despite increased aid, the United Nations reports a significant gap in required adaptation financing for small island states, overshadowing the annual US$300 billion pledged by wealthy nations. The program is designed to avoid past citizenship exploitation issues and is currently processing applications from various countries, excluding Russia. Nauru's government anticipates generating A$9 million in the first year, aiming to increase that to A$68 million annually, reflecting a broader trend of nations seeking innovative revenue sources for climate resilience.
https://www.scmp.com/news/asia/australasia/article/3299282/visa-free-access-hong-kong-singapore-set-go-sale-these-passports?utm_source=rss_feed
China’s AI-driven robots are ‘evolving at an incredibly fast pace’: Unitree CEO
South China Morning Post
China's humanoid robot industry is on the verge of significant advancements, driven by rapid developments in artificial intelligence, according to Wang Xingxing, CEO of Unitree Robotics. He predicts that humanoid robots will be widely used in service and industrial sectors within the next year or two. Wang highlighted the swift evolution of AI-driven robots, stating that they are surpassing expectations and are set to reach a new level by the end of the year.
This optimism follows a meeting between President Xi Jinping and leading entrepreneurs, where Xi expressed support for private companies and encouraged innovation. The achievements of Chinese tech start-ups, particularly Unitree and DeepSeek, have captured global attention, enhancing investor confidence and improving growth projections for China.
Unitree gained notable visibility when its humanoid robots performed a synchronized dance during China's Spring Festival Gala, marking a significant milestone in AI-driven performances. The industry is expected to see mass production and commercialization of humanoid robots this year, with initial applications focused on service and industrial sectors, while household integration will be more gradual due to safety concerns.
Wang also showcased the improved capabilities of their G1 humanoid, which can now walk with straight legs and has enhanced flexibility, indicating that future humanoids may surpass human physical abilities. Unitree anticipates major breakthroughs by 2026, leading to clearer commercial applications for humanoid robots within three to five years.
https://www.scmp.com/economy/china-economy/article/3299299/chinas-ai-driven-robots-are-evolving-incredibly-fast-pace-unitree-ceo?utm_source=rss_feed
DeepSeek faster, cheaper: innovation speeds processing of long text 10 times, paper says
South China Morning Post
Chinese AI start-up DeepSeek has introduced a new technology called "native sparse attention" (NSA) that significantly enhances the processing speed and cost-efficiency of long text analysis in AI language models. According to a paper by CEO Liang Wenfeng and his team, NSA can speed up long-text processing by up to 11 times compared to traditional methods by focusing on key information rather than analyzing every word. This method combines algorithmic innovations with improved hardware to enhance efficiency without sacrificing performance.
DeepSeek's approach involves a three-step training strategy where words are grouped into chunks, summarized, and the most important words are selected, while still considering nearby words for context. This allows for faster processing and improved comprehension. The company gained attention with the launch of its open-source model R1, which competes with established models like ChatGPT, and has since attracted interest from various major Chinese companies and state-owned enterprises. The development has been viewed as a wake-up call for American tech firms to enhance their competitiveness.
https://www.scmp.com/news/china/science/article/3299314/deepseek-faster-cheaper-innovation-speeds-processing-long-text-10-times-paper-says?utm_source=rss_feed
Taiwanese quiet as Ukraine’s fate hangs in balance amid US-Russia talks
South China Morning Post
As high-level negotiations between the U.S. and Russia in Riyadh aim to reset relations and address the conflict in Ukraine, Taiwan's public response has been notably indifferent. Despite concerns about U.S. commitments to Taiwan amidst the shifting geopolitical landscape, Taiwanese citizens are preoccupied with immediate issues like U.S. tariffs on semiconductor products and defense spending. Observers note that discussions surrounding parallels between Ukraine and Taiwan have diminished, reflecting a lack of government engagement.
The Taiwanese government, under President Tsai Ing-wen, has avoided drawing direct comparisons between the two situations, emphasizing their differences. However, NATO Secretary General Jens Stoltenberg warned of potential threats to Taiwan, echoing the sentiment that "today it's Ukraine; tomorrow it could be Taiwan." Meanwhile, Taiwan's administration is focusing on bolstering defense spending and addressing trade relations with the U.S., particularly in light of Trump's aggressive policies. Despite the apparent indifference among the public, analysts suggest that Taiwan's position remains precarious as U.S. policies evolve, and lessons from Ukraine's situation may become increasingly relevant amid rising tensions with China.
https://www.scmp.com/news/china/politics/article/3299290/taiwanese-quiet-ukraines-fate-hangs-balance-amid-us-russia-talks?utm_source=rss_feed
Beijing’s schmoozing of China’s private sector a strategic move, analysts say
South China Morning Post
Beijing is repositioning the private sector as vital for China’s global competitiveness and technological advancement amid economic challenges, following President Xi Jinping's recent meeting with entrepreneurs. This was the first such symposium since 2018, where Xi pledged support for private businesses and urged innovation. Analysts believe this signals a shift from regulatory crackdowns to revitalization, indicating a need for more predictable policies and stimulus to restore investor confidence. Key attendees included Jack Ma and leaders from major companies, reflecting a commitment to enhancing the private sector's role in China's economy.
https://www.scmp.com/economy/china-economy/article/3299168/beijings-schmoozing-chinas-private-sector-strategic-move-analysts-say?utm_source=rss_feed
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