Weekend Buzz

Top News

Access to AI chips

China on Friday condemned new US restrictions on the use of Huawei's Ascend AI chips, calling them an unjustified attempt to stifle the tech industry. Foreign Ministry spokesperson Lin Jian criticized the US for "abusing export controls and long-arm jurisdiction."

Meanwhile, Chinese industry giant Tencent said tight US export controls on Nvidia advanced graphics processing units are hampering widespread adoption of AI models by Chinese companies, the South China Morning Post reported, citing remarks by Wang Qi, vice president of Tencent's cloud computing unit.

It was a different picture in the Gulf states, where the US is relaxing export controls to allow the United Arab Emirates to purchase as AI chips from US companies like Nvidia. The chips will be used in a massive AI research center to be built in Abu Dhabi on a 2,589-hectare campus. It will have a capacity of up to 5 gigawatts, enough to power a major city. The UAE wants to become a major AI center, joining the US and China in development of the technology.

Prisoner exchange, not much more

Delegations from Russia and Ukraine, holding the first direct talks in more than three years, agreed in a brief Istanbul meeting to exchange 1,000 prisoners but made no progress on a 30-day ceasefire proposed by US President Trump. Ukraine later said Russia presented "non-starter" proposals, including the withdrawal from parts of its own territory. Moscow expressed satisfaction with the meeting and said it is willing to continue contact.

US loses top credit rating

Moody's Ratings cut the sovereign credit rating of the US a notch to Aa1 from AAA, citing concerns about the nation's budget deficit. The US budget deficit stands at US$1 trillion, 13 percent up from a year earlier, requiring ever larger government bond issues to finance spending. Lower credit ratings increase the cost of borrowing.

Top Business

HK growth expands, Japan's contracts

Hong Kong's gross domestic product in the first quarter expanded a better-than-forecast 3.1 percent, while Japan's unexpectedly shrank 0.2 percent.

Hong Kong's growth exceeded the government's full-year growth forecast of 2-3 percent. Economists attributed the results to the steady growth of the mainland economy, exports within Asia and accommodative monetary policies.

In Japan, which has been stung by US tariffs on steel and cars, exports were down and consumer spending was flat amid high food prices. Business investment showed some gains, but public investment declined.

World's largest car carrier

The Anji Ansheng, the China-made, world's largest car carrier, embarked on its maiden voyage from Shanghai loaded with 7,000 China-made automobiles bound for Europe. The new ocean cargo ship has the capacity to transport 9,500 vehicles.

SAIC Anji Logistics, which constructed the ship, plans to expand its ocean-going fleet to 22 vessels by next year, extending its routes to include Western Europe, Mexico, Southeast Asia and the Middle East.

It is the second of two new car-carrying mega ships made in China. Earlier, BYD's Shenzhen carrier set a record with a 9,200-vehicle capacity.

China support for tech pioneers

Top finance and technology authorities in China announced increased support for innovators in technology and tech-focused smaller businesses. The governor of the People's Bank of China said the nation is encouraging long-term investment in key technologies. The additional support aims to encourage more lending to tech companies and offer risk-sharing for equity investors. Technology loans to small-and medium-sized companies in China in March rose 24 percent from a year earlier, reaching 3.3 trillion yuan (US$455 billion).

Economy

China wages increase

Technology and finance sectors led gains as wages for China's urban workforce grew in 2024, new government data shows. The average annual salary for employees in non-private companies rose 2.8 percent to 124,110 yuan (US$17,216), while private sector workers had a 1.7 percent boost in pay packets to 69,476 yuan. Wage increases in agricultural, hospitality and public services sectors lagged the average.

Sour US consumer sentiment

A widely watched index of consumer sentiment in the US fell this month to its second-lowest reading on record as public worries about US tariffs creating higher inflation increased. The University of Michigan index dropped to 50.8 from 52.2 in April. Year-ahead inflation expectations among those surveyed rose to 7.3 percent from 6.5 percent.

China targets illegal online content

China launched a nationwide campaign targeting illegal online content. The joint operation by the National Copyright Administration, Ministry of Industry and Information Technology will focus on pirate short videos, games, anime and software. Authorities will clamp down on illicit distribution through smart devices and provide safeguards to protect young people from online sales subterfuge.

Deep Dive

Just how 'smart' are electric cars? Regulators say a lot less than all the hype

China's electric carmakers get a reality check with new government mandatory requirements to better protect the motoring public.

(Click the headline to read full article.)

Biotech firms assess the impact of Trump's new order on drug pricing

Amid concern for China drug-licensing agreements in the US, some Chinese mainland pharma companies see opportunities for producers of cost-efficient innovation.

(Click the headline to read full article.)

Corporate

BYD expands in Hungary

Chinese electric-vehicle giant BYD plans to establish a European hub in Hungary, President and Chief Executive Wang Chuanfu said at a news conference with Hungarian Prime Minister Viktor Orban in Budapest. Wang said that the new European center will be a sales and after-sales services, and a development site for localized versions of its vehicles. BYD built its first European plant, a bus-assembly factory in northwestern Hungary in 2016. A second Hungarian factory that will produce electric vehicles is under construction, Reuters reported.

Nissan opens door wider to Dongfeng

Japanese car maker Nissan says it is open to sharing factory facilities around the world with its Chinese state-owned partner Dongfeng, the BBC reported. The move could bring Dongfeng into the Nissan production eco-system globally. The announcement came after Nissan this week said it will lay off 11,000 workers and shut seven factories amid weak sales.

Smart glasses face off

Tech giants Huawei and Google signaled increased interest in the burgeoning "smart glasses" sector. China's Huawei recently announced that its upcoming product-launch event will include smart glasses, while Google has hinted at showcasing a prototype of AI-powered glasses featuring its Gemini model.

Interest from major players follows strong market results reported by existing producers of "wearable computer" gear. Rokid said it has received over 250,000 pre-orders globally for its display-equipped AI glasses in the past three months alone.

TikTok embraces meditation

TikTok, the popular short-video platform, is venturing into the realm of digital wellness, reportedly testing new meditation features. The move comes as the company navigates legal battles over data privacy and content moderation, alongside persistent concerns about its potential impact on users' mental health and attention spans.

The fate of the platform in the United States is still up in the air after a second presidential order delayed implementation of a 2024 Congressional ban on TikTok if its parent ByteDance doesn't divest its US arm.

Novo Nordisk ousts leader

Danish pharmaceutical giant Novo Nordisk ousted Chief Executive Lars Fruergaard Jorgensen in a surprise move on Friday, amid concerns that company is losing its leading status in the highly competitive obesity-drug market. Novo Nordisk sales soared after it launched the weight-loss drug market with its Wegovy and Ozempic treatments.