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Beijing has warned that firms or individuals complying with US curbs on Huawei’s AI chips could face legal action under China’s anti-foreign sanctions…

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Beijing has warned that firms or individuals complying with US curbs on <a href="/company/huawei">Huawei’s</a> AI chips could face legal action under China’s anti-foreign sanctions law. The warning follows US guidance suggesting global use of Huawei semiconductors may violate export controls, threatening a fragile tariff truce between the two countries.

Xia Zhongpu, who led <a href="/company/li-auto">Li Auto’s</a> end-to-end assisted driving program, has left the company amid its pivot to vision-language-action (VLA) models. His departure marks a broader strategic shift, as Li Auto ramps up investment in VLA, which CEO Li Xiang has described as “a large model that drives like a human.”

<a href="/company/alibaba">Alibaba’s</a> culture and entertainment group has rebranded as Hujing, which means orca in Chinese, while subsidiary Alibaba Pictures will become Damai Entertainment. The shift reflects a renewed focus on AI-driven experiences and integrated services spanning film, live shows, and ticketing, among others.

At its AI industry summit on May 21, <a href="/company/tencent">Tencent</a> senior exec Dowson Tong said the company will ramp up AI investment, aiming for broader deployment across its operations with a focus on models, agents, knowledge bases, and infrastructure. He added that generative AI has passed the usability threshold and must now become widely accessible and truly practical.

China and ASEAN have concluded talks on the 3.0 version of their free trade agreement, launched in 2022. The revised pact will add nine new chapters covering digital trade, green economy, supply chains, and SME cooperation, and is expected to be formally signed by the end of 2025.

Meitu has partnered with <a href="/company/alibaba">Alibaba</a> in a USD 250 million deal involving convertible bonds, marking a deepening collaboration in AI, e-commerce, and cloud services. Meitu will integrate its AI tools into Alibaba's platforms and commit RMB 560 million to Alibaba Cloud over three years.

China’s cybersecurity watchdog has flagged 35 mobile apps on Tencent’s app store for illegally collecting and using personal data, including high-profile AI assistants Zhipu Qingyan and Kimi. Violations include excessive data collection, vague privacy policies, and permissions unrelated to app functions. The action is part of a 2025 national campaign to strengthen personal information protections.

Meizu launched five smartphones and two smart wearables on May 20, marking its return to the global market. The lineup features the Mblu 22 and Note 22 series, StarV View AR glasses, and the health-focused StarV Ring2. The launch supports Meizu’s AI ecosystem strategy and expansion into more than 30 countries.

Home to <a href="/company/alibaba">Alibaba</a> and <a href="/company/deepseek">DeepSeek</a>, Zhejiang has unveiled a multi-year plan to become a global AI hub, aiming to double industry output to over RMB 1 trillion by 2027. Taking effect May 31, the policy package includes funding for foundational models, talent incentives, consumer subsidies, and support for startups and hardware adoption. Hangzhou and Ningbo have been designated as core cities in the initiative.

Elon Musk pledged to remain <a href="/company/tesla">Tesla</a> CEO for another five years, citing the need for “reasonable control” amid investor concerns. Speaking at the Qatar Economic Forum, he addressed recent blowback over his political activity. The remarks come amid earnings pressure and growing criticism of his ties to US President Donald Trump and his role in government advisory work.

On May 20, JD Cloud unveiled new tools to accelerate <a href="/industry/ai">AI</a> adoption across industries, including JoyAgent 2.0, a multi-agent system tailored for enterprise use; JoyBuild, a platform for large model development and customization; and JoyScale, a GPU-centric infrastructure for model training and inference. The rollout is designed to help businesses deploy digital workers, scale AI applications, and standardize underlying infrastructure.

China’s tech ecosystem serves as a driving force behind the world’s second largest economy, influencing global digital markets.

Explore East Asia’s thriving tech hubs, global electronics producers, and fast-evolving digital platforms shaping cross-border innovation.

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Li Auto develops electric vehicles that combine smart cockpit systems, advanced safety features, and long-distance battery support.

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Xia Zhongpu exits Li Auto amid reported disagreements over its assisted driving strategy, as the company pivots to a model that “drives like a human.”

Li Auto’s E2E architect departs as company shifts focus to VLA

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What guides machine-led insights? Uncover AI applications, language models, and decision-making systems transforming sectors worldwide.

Artificial Intelligence

With traditional data sources exhausted, the Digital China-backed firm sees enterprise ops as the next rich substrate for AI training and deployment.

With IT data drying up, Shenqi Digital backs “AI for process” to sharpen enterprise decisions

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China threatens legal action over Huawei chip curbs

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Li Auto’s E2E architect departs as company shifts focus to VLA

With IT data drying up, Shenqi Digital backs “AI for process” to sharpen enterprise decisions

Deals in brief: CrediLinq secures Series A funding, Vertex Ventures backs Quantified Energy, Ringkas raises 5.1 million, and more