Tech News
LAST UPDATE: July 2, 2025
China Is Quickly Eroding America’s Lead in the Global AI Race
China’s AI firms—such as DeepSeek, Alibaba, Tencent, and Baidu—are rapidly challenging U.S. dominance. Their open-source, cost-effective models are being adopted globally, even by HSBC, Saudi Aramco, and others. Despite U.S. export controls and investment restrictions, Chinese firms benefit from government support and a focus on pragmatic AI deployments.
Insight
The global AI landscape is fragmenting into U.S.- and China-centered ecosystems. China’s affordability and openness are boosting adoption, forcing U.S. firms to defend premium pricing and closed models. This trend may weaken U.S. influence over global AI standards and norms (wsj.com, wsj.com).
Stablecoin Push Gains Ground in China in New Challenge to US
Chinese policymakers are increasingly exploring stablecoins—particularly yuan-linked tokens—for cross-border payments. This follows remarks from PBOC Governor Pan Gongsheng on their potential to “revolutionize international finance.” Hong Kong is being considered as a sandbox for yuan-pegged stablecoins, helping China bypass conventional systems like SWIFT.
Insight
China’s pivot toward stablecoins reflects a strategic move to internationalize the yuan and reduce dependency on the dollar. Leveraging Hong Kong’s regulatory framework could fast-track offshore yuan adoption. However, regulatory clarity and unifying onshore/offshore yuan markets are key hurdles .
