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DeepSeek unveils new AI reasoning method as anticipation for its next-gen model rises

DeepSeek unveils new AI reasoning method as anticipation for its next-gen model rises

Chinese
artificial intelligence (AI) start-up
DeepSeek has introduced a novel approach to improving the reasoning capabilities of large language models (LLMs), as the public awaits the release of the company's next-generation model.
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In collaboration with researchers from Tsinghua University, DeepSeek developed a technique that combines methods referred to as generative reward modelling (GRM) and self-principled critique tuning, according to a paper published on Friday. The dual approach aims to enable LLMs to deliver better and faster results to general queries.
The resulting DeepSeek-GRM models outperformed existing methods, having 'achieved competitive performance' with strong public reward models, the researchers wrote. Reward modelling is a process that guides an LLM towards human preferences.
DeepSeek intended to make the GRM models open source, according to the researchers, but they did not give a timeline.
The academic paper, published on the online scientific paper repository arXiv, comes amid speculation about the start-up's next move following the global attention garnered by the firm's V3 foundation model and R1 reasoning model.
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Reuters reported last month that DeepSeek-R2, the successor to R1, could be released as soon as this month, as the company rushes to capitalise on its rising profile. The release of DeepSeek-R1 rocked the global tech community with its cost-efficient performance that rivalled leading models.
DeepSeek has remained tight-lipped about the rumoured R2 release. It has not commented on the matter through official public channels, but a customer service account denied the report in a group chat with business clients, Chinese media outlets reported last month.

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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. When BYD announced its price cuts on May 23, one of its rivals warned of a possible Evergrande-like debt crisis in China's auto sector on the same day. (Evergrande is China's highly indebted property company that has come to epitomise the sector's ongoing crisis.) 'An Evergrande of the auto industry already exists, though it has yet to explode,' Wei Jianjun, chairman of Great Wall Motors, said in an interview without naming any company. 'The current automobile industry is facing a serious problem of being coerced by capital,' Wei said. 'Some automakers are addicted to burning money for market share.' He said some Chinese automakers over-rely on financing from the capital market to boost production scale and market share, but ignore their profitability and technological innovation. He said these firms' capital chains will break if the market environment changes. 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. The Ministry of Industry and Information Technology (MIIT) said on May 31 that automakers should avoid disorderly price wars and maintain fair competition. The People's Daily commented that consumers would not benefit from price wars, which would drive automakers to use low-quality parts, reduce after-sales service and cut research and development expenses. Citing industry data, the newspaper reported that the average net margin of Chinese automakers fell to 4.3% in 2024, down from 5% in 2023. For 2024, BYD's net profit rose 34% to 40.3 billion yuan, while revenue grew 29% to 777.1 billion yuan. At the end of 2024, the company's total debt rose 10.3% to 584 billion yuan, and its total assets increased 15.3% to 783 billion yuan. Its debt-to-asset ratio, or debt ratio, fell 3.2 percentage points to 74.64%. For the same period, Nio, a Shanghai-based EV maker, had a debt ratio of 87.45%, and Great Wall Motors' was 65.96%. 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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

time14 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.

The power calculus driving Trump's tariffs
The power calculus driving Trump's tariffs

Asia Times

timea day ago

  • Asia Times

The power calculus driving Trump's tariffs

Despite dire predictions that US President Donald Trump's foreign policy, dominated by real and threatened manipulations of American tariffs and trade practices, US inflation rates and other measures of American economic vigor do not yet give cause for alarm. Indeed, at this writing US-China trade talks seem productive enough so that spokespersons for the European Union say they hope their trade talks take on a similar format. Trump's approach to tariffs has been anything but static—shifting abruptly like a spotlight sweeping across a stage. Yet beneath the political theater lies a calculated strategy with far-reaching implications. While critics assume tariffs invariably raise consumer prices, the reality is more nuanced. Trump's policies appear designed not just for economic leverage but as an extension of his foreign policy vision, particularly in Asia and the Western Hemisphere. Whether this constitutes strategic brilliance or overreach is debatable, but the mechanics of tariffs—and who ultimately bears their cost—demand closer scrutiny. The impact of a tariff hinges on market dynamics, competition and geopolitical leverage. Consider a US$100 product imported from Country X. If the US imposes a $25 tariff, the seller faces a choice: absorb the cost by cutting their price to $75 (keeping the consumer's total at $100) or pass the expense to buyers and risk losing market share. In competitive markets—like coffee from Colombia, Brazil, or Mexico—sellers often absorb tariffs to retain customers. But the calculus shifts when alternatives are scarce. A monopolist, such as OPEC in the oil markets, can dictate prices precisely because competitors lack the capacity to undercut them without facing ruin. This imbalance of power invites broader consequences: nations disadvantaged by such asymmetries may resort to political or even military retaliation, as nearly occurred during the 1970s oil crises. Tariffs also reshape local economies. A Mexican manufacturer facing US tariffs might offset losses by raising prices for domestic consumers or slashing wages. A Canadian auto supplier could lobby for government subsidies to preserve jobs while lowering export prices. Meanwhile, China's state-influenced exporters might reduce prices to maintain access to the elastic US market, repurposing tariff revenue for Chinese domestic projects. Trump's tariffs align with a modern revival of the Monroe Doctrine, which asserts US hegemony in the Western Hemisphere. Recent maneuvers, such as discouraging Chinese influence over the Panama Canal, signal that the administration views tariffs as both economic tools and geopolitical signals. The message is clear: the US will enforce its sphere of influence, and trade policy is one lever to do so. It is possible to imagine Trump's 'super big picture' plan as a compressed version (spanning three years) of the 150-year evolution of the British Empire, beginning with Mercantilism and culminating in free trade. At first, Trump treats the rest of the world as composed of client states, whose economies are tied tightly together with the 'mother ship', the dependent states all at first directed by force majeure to contribute to the greatness of the Metropolitan Authority. Later on, when the dependencies have grown to maturity, a managed form of free trade emerges, and wealth becomes more widely shared. Ultimately, outcomes will be determined by raw power—economic, military and diplomatic. While Trump's aggressive posture may yield short-term gains, inconsistency risks undermining his objectives. China, the primary challenger to this strategy, may currently perceive his actions as domestically focused rather than existential. But if tariffs become an erratic flicker rather than a steady beam, the US could squander its leverage. In an era where trade is war by other means, Trump's tariffs are less about economics than they are about reasserting American primacy. The question isn't whether the world will adapt—it's who will blink first.

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