DeepSeek and China's AI power move
The interesting thing about it is that the company built their model really cheap and that has called into question this narrative that you need an endless supply of chips and data centres and money to develop AI.
On today's show we're speaking to WIRED's senior tech writer Zeyi Yang about the deepening AI cold war between the US and China and the lingering questions about where AI is headed and what it's good for?
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Canada News.Net
10 minutes ago
- Canada News.Net
Smarter homes and new scenarios: China elevates consumption through policy push
BEIJING, Aug. 4 (Xinhua) -- At a bustling appliance store near Shanghai's Zhongshan Park, sales staff enthusiastically demonstrated product features and calculated discounts. The summer shopping season has been in full swing. A local resident surnamed Yao was looking for an energy-efficient air conditioner, who was informed by sales staff that the latest models not only offer AI-powered energy savings but also include convenient features such as smartphone remote control and an anti-direct-blow design. "I never realized how quickly home appliances were evolving until I visited the store," Yao said. After careful comparison, he chose a model originally priced at 5,999 yuan (about 840 U.S. dollars), but thanks to government subsidies and store discounts, he paid only 3,599 yuan. Yao is among hundreds of millions of consumers across China whose spending habits have been reshaped by a rapidly evolving market and government-backed initiatives, as the world's second-largest economy seeks to stimulate consumption and strengthen domestic demand as a key growth driver. With efforts like the ongoing consumer goods trade-in program, which spurred purchases of more than 109 million home appliances so far this year, China recorded a 5 percent growth in retail sales of consumer goods for the first half of 2025. The pace is 0.4 percentage points faster than the first quarter. During the first four years of the 14th Five-Year Plan period (2021-2025), final consumption contributed 56.2 percent of the GDP increase on average, an 8.6 percentage point increase over the previous planning period, official data showed. Amid this shift, new consumption trends have taken center stage, fueled by innovative business models, diverse service and experience offerings, and growing preference for sustainable and high-tech products. According to China's commerce minister Wang Wentao, the consumer goods trade-in program has been "more than a policy to stimulate spending." "More importantly, it has promoted a shift toward smart and green products, which in turn helps to upgrade people's quality of life," he told the press last month while briefing on the country's developments in domestic consumption over the past four years. While government incentives can boost market demand and prompt manufacturers and service providers to increase supply, encouraging consumption in sectors like high-tech and new energy helps drive industrial upgrading and structural adjustments, said Bao Xiaohua, a chair professor at Shanghai University of Finance and Economics. Also notable is the rapid growth in service consumption, as Chinese consumers increasingly embrace spending on services and experiences. From 2020 to 2024, China's service consumption grew at an average annual rate of 9.6 percent. In the first half of 2025, data from the State Information Center indicated that the index measuring life service consumption increased 15.7 percent year on year, with sectors like entertainment, dining and accommodations showing robust growth. Driving the service consumption boom are new consumption scenarios such as sporting events, performances, cultural exhibitions and themed markets. The Su Super League, a provincial amateur football tournament in east China's Jiangsu Province that gained huge popularity this year, has given a major boost to local tourism and hospitality industries. During the third round of matches, which coincided with the Dragon Boat Festival holiday in early June, Jiangsu welcomed 12.41 million visitors and earned 4.69 billion yuan in tourism revenues. Other pro-consumption efforts include further opening up to attract more quality goods and services into the Chinese market. Over the past years, China has fostered international consumption center cities, established national demonstration zones for innovation and promotion of imports, and hosted major events such as the China International Import Expo and the China International Consumer Products Expo. "China's vast market has become a shared market for the world and will continue to serve as a key source of growth and vitality for the global economy," the commerce minister said. Looking ahead, as China approaches the final phase of its 14th Five-Year Plan, market observers believe consumer demand will sustain its strong momentum from the first half and help ensure the plan's successful completion. Policies like the consumer goods trade-in program are expected to remain effective, driving sales growth for related products. Meanwhile, with holidays like summer vacation and the upcoming National Day, service consumption is also set to enter its peak season, according to experts. Ma Hong, a senior researcher at the Guangkai Chief Industry Research Institute, said service spending will remain a key driver of consumption growth in the second half of the year. "Further opening up of the sector, coupled with innovations in consumption scenarios, will boost service consumption in areas like telecommunications, healthcare and elderly care," he added. In one of the latest announcements, 69 billion yuan, in China's third batch of ultra-long special treasury bond funds, was allocated last month to support the consumer goods trade-in program, with the fourth batch scheduled for October. The country also introduced a nationwide childcare subsidy program last week, which will offer families 3,600 yuan per year for each child under the age of three, as part of broader efforts to address livelihood problems and boost consumer confidence. "More funds and resources will be invested in people and used to meet their needs" to help create more jobs, increase people's incomes and reduce their burdens, and provide more incentives to stimulate consumption, this year's government report has pledged. For the next five years, Minister Wang Wentao said China will transform successful policies and effective practices from the 14th Five-Year Plan into long-term, regular measures, while staying ready to introduce new policies to navigate a complex international environment. "Our toolkit is well-stocked, and we will be fully prepared."
Globe and Mail
3 hours ago
- Globe and Mail
Letters to the editor, Aug. 4: ‘I see Mark Carney following in the steps of Brian Mulroney'
Re 'Carney, the foreign-policy risk-taker' (Aug. 1): I see Mark Carney following in the steps of Brian Mulroney, who sanctioned South Africa to help end apartheid. We know that it helped then, and I believe Mr. Carney's decision will help Palestinians today. I have worked in the Palestinian territories assisting in their past elections. I got to know the area and the people. For the past 20 years, I have been hoping and praying that democratic countries in the Western world would give support to people who have been terribly abused for much too long, by too many powerful nations. Time for justice to prevail. G.A. Teske Strathcona County, Alta. Re 'Is China a better trading partner than Trump's America?' (July 31): China has taken the lead globally in electric vehicles, even recently figuring out how to recharge them in about five minutes. Yet Chinese EVs are called 'state-subsidized, inexpensive spy machines on wheels.' Really? Compared to the monopoly Canada has allowed the United States on everything web-related, from Google to Facebook to computers to smartphones, all of which makes a fortune out of mining our personal data? We already have spy machines in every Canadian pocket, going everywhere we go, but they're not Chinese, they're not cheap and they sure don't help reduce the impact of climate change. Marsha Copp Toronto Referencing China and the Tiananmen Square massacre to discourage trade with the Middle Kingdom ignores the behaviour of the United States in my lifetime: Vietnam, Afghanistan, Iraq and other disastrous imperialist adventures resulting in millions of lives lost – and now they threaten us. As for China's 'spy machines on wheels,' Canadians using U.S. software might wonder how, when they mention a word like 'hat' in an e-mail, ads for hats can appear on screen minutes later. Open thine eyes: Our neighbour has been spying on us for years. Don McLellan Vancouver Re 'The International Court of Justice's statement on fossil fuels puts Carney in a tough spot' (July 28): This makes it sound like the International Court of Justice decision is the worst thing that could happen to Mark Carney and his nation-building agenda. I think this decision just helped him shorten the list of projects that meet criteria. There are lots of projects that can be great for Canada, such as electric interties between provinces and wind and solar power projects. These projects would not only be nation-building, they would also supply the clean energy we need for a more livable world. And now that clean energy is cheaper than fossil fuels, we would also save money. A win on many levels. Let's move forward in a direction that aligns with international law, supports climate action and saves money. Cathy Page Calgary Re 'Hard place' (Letters, July 30): A letter-writer argues that the Canadian public needs to be better educated on the role of oil in our economy. Getting off it quickly would certainly have significant economic costs, but the overall cost to the economy can be a good deal less than losses to the industry itself. For example, oil resources such as capital and labour would move to other industries and be productive there. Even getting off oil rapidly would not 'rip our economy to shreds.' More likely it would have a negative impact of 1 to 2 per cent of GDP in the short run, and less in the longer run. (In 2022, oil and gas accounted for 3.2 per cent of Canada's GDP). I also see no reason to get off oil rapidly. Economists who bear the environmental implications in mind generally propose a gradual shrinkage. Albert Berry Toronto Re 'How Norway cracked the electric-vehicle code' (Aug. 1): I calculate that electric vehicles are already more economical than others in Canada. Even though an EV's purchase price may be higher than an equivalent fossil fuel vehicle, for most drivers that difference may be reduced to zero in a few years. An EV's fuel and maintenance costs are a small fraction of those of other cars. While EV owners are erasing the initial cost difference, they're also driving a non-polluting car with the time-saving convenience of charging at home. Paul Rapoport Member, Electric Vehicle Society; Hamilton Re 'For some of Canada's most prestigious university programs, mid-90s grades are not enough' (July 30): Absent a standardized test to measure academic merit, such as the U.S. SATs, there is no means by which to effectively compare the marks of students at one high school with those of another, let alone one teacher with another at the same school. The practice of grading on a bell curve – caving to the pressure of individual parents, the pleas of students and the inherent discretion of teachers – further makes the comparison of marks a mug's game. Meanwhile, standardized tests are used for many postgraduate programs (LSATs, MCATs) to level the playing field, in recognition of the inability to compare undergraduate marks in different areas from different universities. Standardized testing should be a requirement if Ontario is to use Bill 33 to determine merit. Richard Austin Toronto I graduated in 1969 from Jarvis Collegiate in Toronto, considered then to be one of the city's top schools. My graduating class of 120-plus students had only 10 Ontario scholars – a student with a graduating average of 80 (yes, 80) or more – and only one averaged over 90. The financial reward for Ontario Scholars was terminated years later, after grade inflation rendered the distinction meaningless. Most students have a shock when they first encounter university grading, where a mark of 70 is average, 90 is a real distinction, rarely given, and students can actually fail – many of them, in fact. At the University of Ottawa, the highest possible grade is 10, or an A+ covering the 90-to-100 range. In my 42-year career, I only once saw a student graduate with a 10 average in my department. In other words, all others, including many really outstanding ones, had averages below 90. William Hallett Emeritus professor, department of mechanical engineering, University of Ottawa Recently, the Toronto District School Board touted its several graduates with 100 averages. How do you get 100 on, say, a course in English literature? I venture to say William Shakespeare and W. B. Yeats would expect to fall short of that, and be appalled some teacher saw fit to award a perfect score to a teenage student. Perhaps the spirits of James Joyce, William S. Burroughs and Henry Miller can be summoned to inject some awareness of the impossibility of perfection. Barry Stagg Toronto Letters to the Editor should be exclusive to The Globe and Mail. Include your name, address and daytime phone number. Keep letters to 150 words or fewer. Letters may be edited for length and clarity. To submit a letter by e-mail, click here: letters@
Winnipeg Free Press
11 hours ago
- Winnipeg Free Press
China pushes back at US demands to stop buying Russian and Iranian oil
WASHINGTON (AP) — U.S. and Chinese officials may be able to settle many of their differences to reach a trade deal and avert punishing tariffs, but they remain far apart on one issue: the U.S. demand that China stop purchasing oil from Iran and Russia. 'China will always ensure its energy supply in ways that serve our national interests,' China's Foreign Ministry posted on X on Wednesday following two days of trade negotiations in Stockholm, responding to the U.S. threat of a 100% tariff. 'Coercion and pressuring will not achieve anything. China will firmly defend its sovereignty, security and development interests,' the ministry said. The response is notable at a time when both Beijing and Washington are signaling optimism and goodwill about reaching a deal to keep commercial ties between the world's two largest economies stable — after climbing down from sky-high tariffs and harsh trade restrictions. It underscores China's confidence in playing hardball when dealing with the Trump administration, especially when trade is linked to its energy and foreign policies. U.S. Treasury Secretary Scott Bessent, emerging from the talks, told reporters that when it comes to Russian oil purchases, the 'Chinese take their sovereignty very seriously.' 'We don't want to impede on their sovereignty, so they would like to pay a 100% tariff,' Bessent said. On Thursday, he called the Chinese 'tough' negotiators, but said China's pushback hasn't stalled the negotiations. 'I believe that we have the makings of a deal,' Bessent told CNBC. Gabriel Wildau, managing director of the consultancy Teneo, said he doubts President Donald Trump would actually deploy the 100% tariff. 'Realizing those threats would derail all the recent progress and probably kill any chance' for Trump and Chinese President Xi Jinping to announce a trade deal if they should meet this fall, Wildau said. In seeking to restrict oil sales by Russia and Iran, a major source of revenue for both countries, the U.S. wants to reduce the funding available for their militaries, as Moscow pursues its war against Ukraine and Tehran funds militant groups across the Middle East. China plays hardball When Trump unveiled a sweeping plan for tariffs on dozens of countries in April, China was the only country that retaliated. It refused to give in to U.S. pressure. 'If the U.S. is bent on imposing tariffs, China will fight to the end, and this is China's consistent official stance,' said Tu Xinquan, director of the China Institute for WTO Studies at the University of International Business and Economics in Beijing. WTO is the acronym for the World Trade Organization. Negotiating tactics aside, China may also suspect that the U.S. won't follow through on its threat, questioning the importance Trump places on countering Russia, Tu said. Scott Kennedy, senior adviser and trustee chair in Chinese Business and Economics at the Center for Strategic and International Studies in Washington, said Beijing is unlikely to change its posture when it sees inconsistencies in U.S. foreign policy goals toward Russia and Iran, whereas Beijing's policy support for Moscow is consistent and clear. It's also possible that Beijing may want to use it as another negotiating tool to extract more concessions from Trump, Kennedy said. Danny Russel, a distinguished fellow at the Asia Society Policy Institute, said Beijing now sees itself as 'the one holding the cards in its struggle with Washington.' He said Trump has made it clear he wants a 'headline-grabbing deal' with Xi, 'so rejecting a U.S. demand to stop buying oil from Iran or Russia is probably not seen as a deal‑breaker, even if it generates friction and a delay.' Continuing to buy oil from Russia preserves Xi's 'strategic solidarity' with Russian President Vladimir Putin and significantly reduces the economic costs for China, Russel said. 'Beijing simply can't afford to walk away from the oil from Russia and Iran,' he said. 'It's too important a strategic energy supply, and Beijing is buying it at fire‑sale prices.' China depends on oil from Russia and Iran A 2024 report by the U.S. Energy Information Administration estimates that roughly 80% to 90% of the oil exported by Iran went to China. The Chinese economy benefits from the more than 1 million barrels of Iranian oil it imports per day. After the Iranian parliament floated a plan to shut down the Strait of Hormuz in June following U.S. strikes on Iran's nuclear facilities, China spoke out against closing the critical oil transit route. China also is an important customer for Russia, but is second to India in buying Russian seaborne crude oil exports. In April, Chinese imports of Russian oil rose 20% over the previous month to more than 1.3 million barrels per day, according to the KSE Institute, an analytical center at the Kyiv School of Economics. This past week, Trump said the U.S. will impose a 25% tariff on goods from India, plus an additional import tax because of India's purchasing of Russian oil. India's Foreign Ministry said Friday its relationship with Russia was 'steady and time-tested.' Stephen Miller, White House deputy chief of staff and a top policy adviser, said Trump has been clear that it is 'not acceptable' for India to continue financing the Ukraine war by purchasing oil from Russia. 'People will be shocked to learn that India is basically tied with China in purchasing Russian oil,' Miller said on Fox News Channel's 'Sunday Morning Futures.' He said the U.S. needs 'to get real about dealing with the financing of this war.' Congress demands action Sen. Lindsey Graham, a Republican from South Carolina, is pushing for sanctions and tariffs on Russia and its financial backers. In April, he introduced a bill that would authorize the president to impose tariffs as high as 500% not only on Russia but on any country that 'knowingly' buys oil, uranium, natural gas, petroleum products or petrochemical products from Russia. Monday Mornings The latest local business news and a lookahead to the coming week. 'The purpose of this legislation is to break the cycle of China — a communist dictatorship — buying oil below market price from Putin's Russia, which empowers his war machine to kill innocent Ukrainian civilians,' Graham said in a June statement. The bill has 84 co-sponsors in the 100-seat Senate. A corresponding House version has been introduced, also with bipartisan support. Republicans say they stand ready to move on the sanctions legislation if Trump asks them to do so, but the bill is on hold for now. ___ Associated Press writers David McHugh in Frankfurt and Rajesh Roy in New Delhi and researcher Yu Bing in Beijing contributed to the report.
