Chinese tech giant navigating sanctions, AI push, and global partnerships
Beijing-based Moonshot AI has released Kimi K3, a 2.8‑trillion‑parameter open‑weight model that has outperformed several leading U.S. systems on blind coding benchmarks and ranked competitively on broader tests. The firm is preparing a Hong Kong IPO notification and wrapping a fresh funding round that could value it above $30 billion.
Pew Research Center finds more countries hold favorable views of China than the US in 25 of 36 countries surveyed, marking the first time China has surpassed the US in long-running global opinion tracking. The period surveyed includes February to May, during tensions around Iran, Trump policies and related global events.
Chinese automakers have accelerated global expansion in 2026, showcasing rapid advances in batteries, charging and autonomous tech at the Beijing Auto Show while exports have surged. BYD, Geely and CATL have rolled out ultra-fast charging batteries and chargers; Geely is exploring US production through Volvo; legacy automakers are reorganising to respond to the pressure.
A humanoid robot developed by Chinese smartphone maker Honor has completed a 13-mile half-marathon in 50 minutes and 26 seconds, surpassing the human world record of 57 minutes and 20 seconds. The event in Beijing has seen rapid progress from last year, with over 100 robots competing and many running faster than professional athletes.
Nvidia CEO Jensen Huang has joined President Trumps delegation to China and has been pictured in Beijing; the trip has been focusing on trade, AI export controls and Iran. China has not approved any purchases of Nvidias H200 chips and is continuing to push domestic chip development while U.S. export controls remain in place.
The world watches China’s response as it redefines its role in global trade. Premier Li Qiang has framed the shift from China Shock 2.0 to China Opportunity 2.0, arguing that state subsidies are not the main driver of tech rise. Policymakers in Europe and the United States are weighing tougher tariffs and export controls as China’s trade surplus remains at record levels.
China's official manufacturing PMI has edged into expansion at 50.3 in June from May's 50.0, with improvements in new orders and production. Export demand remains a key engine, while domestic consumption shows caution amid a prolonged property downturn. Analysts expect policy support to sustain momentum.
APEC discussions have highlighted a widening gap between the US and China on trade, even as Beijing’s commitments to Boeing orders and US agricultural purchases signal ongoing economic ties. APEC ministers are urging faster implementation of agreed outcomes, with potential shifts as Xi and Trump are expected to meet later this year.
South Korea has accelerated its semiconductor push, pledging hundreds of trillions of won in memory fabs and AI data centers. President Lee Jae-myung frames the plan as national survival, aiming to double memory capacity within five years. Samsung and SK Hynix pledge multi‑trillion investments, with broader plans to build new fabs and hubs in the southwest.
Major device makers have raised prices and warned consumers after memory and storage costs have surged because AI data‑centre buildouts are buying up DRAM and flash. Apple has increased Mac and iPad prices; Microsoft, Sony and Nintendo have signalled or implemented console and hardware hikes. Analysts say shortages will persist into 2027.
The US Department of Commerce has lifted export controls on Anthropic's Claude Fable 5 and Mythos 5, and Anthropic has begun restoring access. Mythos 5 has been cleared for a vetted group of US organisations; Fable 5 — redesigned with stronger safeguards — is being redeployed more broadly after testing and coordination with government officials.
SK Hynix has raised $26.5bn by selling 177.9m American depositary receipts at $149 each, in the largest-ever US share sale by a foreign company. Its ADRs have begun trading on Nasdaq under temporary ticker SKHYV and will convert to SKHY; the company is using proceeds to expand fabs, packaging and EUV capacity as AI-driven memory demand surges.
OnePlus has announced it will stop launching new phones in Europe and North America and will focus new device rollouts on India and China. The company has said existing phones will keep receiving software support, but OxygenOS will be replaced globally by Oppos ColorOS with the Android 17 update.
Security researchers warn that JadePuffer marks a new phase in cybercrime: an AI agent autonomously conducts a ransomware campaign, breaching servers, encrypting data, and generating its own ransom note. The development is accelerating, with multiple outlets detailing the role of LLMs in orchestrating these attacks, and officials urging stronger defenses.
The impeachment trial of Philippine Vice President Sara Duterte has begun in Manila. Police have deployed around the Senate as pro- and anti-Duterte demonstrators gather. Duterte denies wrongdoing and has appeared via counsel, with the outcome potentially barring her from future office and shaping the 2028 race.
China’s Cyberspace Administration has approved Apple’s AI services for use in the country, following a deal to integrate Alibaba’s Qwen AI into Apple’s operating systems. Apple’s China sales have risen, and Baidu is reportedly collaborating on Apple Intelligence features for Chinese users. The approval sets the stage for broader AI integration in China.