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DeepSeek's AI breakthrough could alter China's ‘national fate' in US tech war

DeepSeek's AI breakthrough could alter China's ‘national fate' in US tech war

Ben Jiang in Beijing and Bien Perez in Hong Kong Published: 12:00pm, 28 Jan 2025 Updated: 1:25pm, 28 Jan 2025 The Hangzhou-based company sent shock waves across Wall Street and Silicon Valley for developing AI models at a fraction of the cost compared with OpenAI and Meta Platforms, which prompted US President Donald Trump to call the breakthrough a 'wake-up call' and 'positive' for America's tech sector.
At home, Chinese tech executives and various commentators rushed to hail DeepSeek's disruptive power. Zhou Hongyi , co-founder, chairman and chief executive of Chinese cybersecurity firm Qihoo 360, declared that DeepSeek has 'upended the world' in a recent video posted on his Weibo account, after the start-up's release of two powerful new AI models – built at a lower cost and with less computing resources than what larger tech firms typically need for LLM development.
In a widely shared Weibo social media post, Feng Ji, founder and chief executive at Black Myth: Wukong developer Game Science, wrote that DeepSeek's achievements in AI could change China's 'national fate' amid its prolonged tech war with the US.
On January 20, DeepSeek publicly released its open-source R1 reasoning model, which it claims is on par with the performance of OpenAI's o1 – a model that the US start-up said can 'reason through complex tasks and solve harder problems than previous models in science, coding and maths'.

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Price war sparks EV financial crisis concerns in China
Price war sparks EV financial crisis concerns in China

Asia Times

time14 hours ago

  • Asia Times

Price war sparks EV financial crisis concerns in China

BYD, the world's largest electric vehicle (EV) manufacturer, is facing growing challenges from an intensifying price war and a change in supplier payment regulations in China, raising market concerns about the company's financial stability. On May 23, the Shenzhen-based EV maker initiated a price war in China by offering discounts of 10 to 30%. It priced some affordable models under 150,000 yuan (US$20,890), and the Xia MPV (multi-purpose vehicle) at around 200,000 yuan. It also offers its Ocean range's Seagull at a starting price of 55,800 yuan, down from the official guide price of 69,800 yuan. BYD's Hong Kong-listed shares have fallen by 15.5% from their peak of HK$155 (US$19.7) on May 23. The company's market cap has decreased by some US$22 billion over the period. BYD executive vice president Stella Li told Bloomberg in an interview on June 12 that the 'very extreme, tough competition' in the Chinese EV market is unsustainable. Li did not say whether BYD would scale back its discount program, but she stated that the company will invest up to $20 billion to expand its operations in Europe over the next few years. She highlighted Germany, the United Kingdom and Italy as BYD's key European markets. 'If we decide to do something, we put all our resources behind it,' she said, referring to the company's commitment to after-sales service in Europe. 'We want to ensure it's successful in the long run.' Last October, the European Union imposed tariffs ranging from 17% to 35.3% on Chinese EVs (BYD: 17%, Geely: 18.8%, SAIC and others: 35.3%). China suggested setting minimum prices for the EVs it ships to the EU. Both sides are still negotiating the matter. In March, BYD said it is considering setting up its third European assembly plant in Germany. It has a factory in Hungary and is building another in Turkey. 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He stated that the bankruptcy of any large auto firm would result in many people losing their jobs, harm upstream and downstream companies, and negatively impact the Chinese economy. Li Yunfei, general manager of BYD's brand and public relations division, responded to Wei's comments in a Weibo post on May 30. 'Following the stunning comments made by Great Wall Motors' Wei, many articles and videos said BYD is an Evergrande in the auto sector,' Li said. 'I feel confused and angry, and find these comments laughable.' 'If BYD's debt-to-asset ratio (70%) is a sign of high risk, are Ford (84%), General Motors (76%), and Geely (68%) all at risk?' he said. He said many malicious commentators ignored that BYD's interest-bearing debts and accounts payable are lower than many other players. He added that Chinese EVs have become mainstream products overseas and will continue to see good prospects. 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Observers said automakers may thus report higher debt ratios in the second half. Read: Sugon, its suppliers hit by US sanctions, to merge with Hygon

Hong Kong Originals: The 85-year-old flask brand that bears witness to rise and fall of city's manufacturing era
Hong Kong Originals: The 85-year-old flask brand that bears witness to rise and fall of city's manufacturing era

HKFP

time15 hours ago

  • HKFP

Hong Kong Originals: The 85-year-old flask brand that bears witness to rise and fall of city's manufacturing era

As Hong Kong's economic boom faded and manufacturing moved to China, some long-established, family-run companies preserved their traditions as others innovated to survive. In our new series, HKFP documents the craftsmanship and spirit behind the goods that are still proudly 'Made in Hong Kong,' as local firms navigate the US-China trade war. Few guests staying at the Camlux Hotel in Hong Kong would know that a giant glass furnace once lay beneath where they are spending the night. The Kowloon Bay hotel was formerly the factory building of Camel, an 85-year-old local metal kitchenware brand. The company moved into the premises in 1986 and vacated the property in 2013. Four years later, Camel opened a hotel in its place as part of a government revitalisation plan for the industrial district. Speaking to HKFP at the hotel on Monday, Raymond Leung – Camel's third-generation director – said his grandfather, Leung Tsoo-hing, founded the company Wei Yit Vacuum Flask Manufactory in 1940 after seeing a demand for vacuum flasks. Back then, electricity was a luxury, and few households had fridges and kettles. An insulating container thus emerged as a common household item for keeping drinks hot or cold. 'Being Chinese, being Asian, we drink a lot of hot drinks,' the younger Leung said, adding that his grandfather – who had been exporting vacuum flasks from Hong Kong to Penang, Malaysia – 'wanted to create his own brand of thermal flasks.' The brand name 'Camel' was chosen to reflect the flask's function and the company's resilience. Camel became one of the few manufacturers to make flasks with an inner glass wall allowing the container better insulation than those with just a metal body, said Leung, 47. Over the years, Camel has sold vacuum flasks, coffee tumblers, water bottles, food jars and more, discontinuing some products and launching others as consumers' preferences shifted alongside the changing times. Its products are not only available at shops and department stores in Hong Kong but are also sold in Southeast Asia. Camel is the only vacuum flask brand still being manufactured in Hong Kong, Leung told HKFP. Throughout its 80-plus-year history, Camel has gone through landmark moments in Hong Kong's history, including the Japanese invasion during World War II, which halted its production, and the post-war manufacturing boom. When Leung's grandfather created the first vacuum flask prototype in the 1940s, its parts – from the glass walls to the rubber connecting pieces – were sourced in Hong Kong. Today, like many of the city's homegrown brands, part of Camel's production takes place across the border in mainland China – a move that is neither new nor avoidable, the director said. Former manufacturing hub Hong Kong saw its manufacturing heyday from the 1950s to the 1970s, with factories – concentrated in areas such as Sham Shui Po, Mong Kok, Kowloon City and Western – producing everything from clothes and toys to watches and electronics. Its rise as an export-oriented economy came amid World War II's destruction of industrial bases in Europe and America. Hong Kong seized the opportunity, resuming production and supplying goods to the world. The director's father, Philip Leung, studied engineering in the UK and later completed a postgraduate degree in glass technology. He returned to the city in the 1960s, when he was in his late 20s, to help with the family business. 'He wanted to bring back the knowledge from the Western world,' Raymond Leung said. Under Philip Leung's leadership, Camel ramped up its manufacturing, expanding its production of metal flasks, ice buckets, and plate covers to supply hotels around the world. In the 1980s and 1990s, Hong Kong's manufacturing industry began losing its edge to mainland China, as the latter modernised under the government's reform policies. Many companies in the city relocated their production across the border, attracted by cheaper labour and other costs, but the Leungs stayed put. While minor parts were sourced from mainland China, Camel products' main components were always made in-house. But over the decades, it became clear that it would not last. In 2006, Camel turned off its glass furnace, which was operating on the third floor of what is now the Camlux Hotel, for good. The company was unable to find enough people to operate the furnace after some of its workers passed away. 'Because it's a furnace, you can't turn it off. It has to run 24 hours, otherwise the glass will solidify,' Raymond Leung said. 'We didn't have enough people to fill a day's shifts.' 'It would've been a natural end to Camel, but we discussed it as a family, and my father wanted to persevere,' he added. 'So we had to source the glass from the mainland. [It was] better than just quitting,' he said. The company now checks the glass and all its other raw materials before assembling the products in its factory in Hung Hom. Meanwhile, at Camel's other factory in San Po Kong, workers are in charge of cutting large pieces of metal and moulding plastic. Moving on Leung said Camel's reality was no different from many brands, whether in Hong Kong or abroad. 'Even something like BMW and Mercedes, which are synonymous with Germany, it's very rare you can make a complete product without some kind of [overseas] supplier,' he said. The director, however, says the company still tries to promote Hong Kong 'as much as possible.' Over the past two years, Camel has hosted design competitions inviting the public to submit Hong Kong-themed illustrations. The winning designs were printed onto Camel's signature flasks and added to the company's product collection. Last year's first-place prize went to a red, white and blue design – a nod to the traditional Hong Kong nylon canvas bags – that featured the city's icons, including a pawn shop sign, a cha chaan teng cup, and the city's tram. 'Doing the competitions is a way for us to engage more local talent,' Leung said. People have asked Leung if Camel, with such a long history, would reissue some of its 'nostalgic' products – like the big flasks for households that were common in the past. The director said he 'wasn't completely against' the idea, but he preferred the company to innovate new products instead. In recent years, Camel has launched coffee tumblers and sports water bottles inspired by new trends in the market. 'You can't always go back to your archive,' Leung said. 'You have to move on.' Original reporting on HKFP is backed by our monthly contributors. Almost 1,000 monthly donors make HKFP possible. Each contributes an average of HK$200/month to support our award-winning original reporting, keeping the city's only independent English-language outlet free-to-access for all. Three reasons to join us: 🔎 Transparent & efficient: As a non-profit, we are externally audited each year, publishing our income/outgoings annually, as the city's most transparent news outlet. 🔒 Accurate & accountable: Our reporting is governed by a comprehensive Ethics Code. We are 100% independent, and not answerable to any tycoon, mainland owners or shareholders. Check out our latest Annual Report, and help support press freedom.

World leaders urge restraint in Iran-Israel escalation
World leaders urge restraint in Iran-Israel escalation

RTHK

timea day ago

  • RTHK

World leaders urge restraint in Iran-Israel escalation

World leaders urge restraint in Iran-Israel escalation Rescue teams work outside a heavily damaged building, targeted by an Israeli strike in the Iranian capital Tehran. Photo: AFP China said on Friday it was "deeply concerned" over Israeli strikes on Iran – including nuclear and military sites – condemning "violations" of the country's sovereignty and offering to help ease tensions. "The Chinese side... is deeply worried about the severe consequences that such actions might bring," Foreign Ministry spokesman Lin Jian said. "The Chinese side calls on relevant parties to take actions that promote regional peace and stability and to avoid further escalation of tensions," Lin said. The attacks have killed the country's armed forces' chief of staff, the head of Iran's Revolutionary Guards and top nuclear scientists. The Israeli military said later that Iran launched 100 drones towards Israel in response and that its air defences were intercepting them outside Israeli territory. Elsewhere, Nato Secretary General Mark Rutte said it was "crucial" for allies of Israel to work to de-escalate tensions. "I know that they are doing that and I think that is now the first order of the day," Rutte told reporters at a press conference in Stockholm. The EU foreign policy chief Kaja Kallas has also called for all sides to "exercise restraint". "The situation in the Middle East is dangerous... Diplomacy remains the best path forward, and I stand ready to support any diplomatic efforts toward de-escalation," Kallas wrote on X. Germany's leader Friedrich Merz, meanwhile, said both sides should refrain from steps that could destabilise the entire region. Merz said he had been briefed by Israeli Prime Minister Benjamin Netanyahu about the raids and had convened a meeting of Germany's security cabinet. "Germany stands ready to use all diplomatic means at our disposal to influence the parties to the conflict. The goal must remain that Iran does not develop nuclear weapons," he said. Iran has repeatedly denied accusations from Western countries that is seeking to develop a nuclear weapon. (AFP)

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