OpenAI says China's Zhipu AI gaining ground amid Beijing's global AI push
OpenAI
said on Wednesday its analysts have seen notable progress by Chinese start-up
Zhipu AI
in securing government contracts across several regions, signaling China's growing momentum in pursuing global
AI leadership
.
Zhipu AI, which is backed by the Chinese Communist Party, aims to "lock Chinese systems and standards into emerging markets before US or European rivals can, while showcasing a 'responsible, transparent and audit-ready' Chinese AI alternative," the ChatGPT maker said in its post.
The company provides AI solutions - including sovereign large language model infrastructure and private hardware in partnership with
Huawei
- to governments and state-owned enterprises in Malaysia, Singapore, the UAE, Saudi Arabia and Kenya.
The initiative forms part of China's broader effort to build a self-sufficient, globally competitive
AI ecosystem
that rivals the United States while reducing reliance on American technology.
Zhipu AI, which did not immediately respond to a request for comment, is supported by more than $1.4 billion in state investment and maintains strong ties with the Chinese government and state-owned entities, according to OpenAI.
In January, the company was added to the US Commerce Department's export control entity list, barring it from procuring U.S. components.
Zhipu AI has been positioning itself among China's leading AI firms alongside DeepSeek, Moonshot AI, and Minimax, as well as tech giants ByteDance and Alibaba.
OpenAI has also built partnerships and attracted investment across the Middle East and Asia. Its "OpenAI for Countries" initiative helps interested governments develop "sovereign AI capability" in coordination with the U.S. government.
The report comes as the US and China engage in intense competition in the rapidly evolving AI landscape, with both nations vying for technological dominance.
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Hindustan Times
an hour ago
- Hindustan Times
China securing loans to low-income nations with revenue streams in Chinese banks
New Delhi: China is securing loans to low-income and developing nations with commodity revenue streams and cash held in restricted escrow accounts in Chinese banks, with such practices implemented for almost half of the total loans worth $991 billion, according to a new study. China significantly ramped up loans to developing countries in Asia, Africa and Latin America after launching its Belt and Road Initiative (BRI) in 2013. (Representational image) The study, done by the Kiel Institute for the World Economy, AidData and Georgetown University and Oxford University and released on Thursday, found such practices prevalent in some of India's neighbours, such as Myanmar, where the country's gas revenues are being deposited directly into restricted Chinese bank accounts. In the case of Pakistan, the country is required to simultaneously hold cash collateral in four Chinese escrow accounts. Figures are available for holdings in only one account, and the overall cash holdings in the four accounts are likely to be significantly larger, according to the study titled 'How China Collateralizes'. The partially government-guaranteed loan from Bank of China and China Eximbank for the 1,320-MW Patuakhali thermal power plant project in Bangladesh was supported by 50% equity stakes that Bangladesh's Rural Power Company Ltd and China's NORINCO International Cooperation Limited hold in a special purpose vehicle responsible for the venture. China significantly ramped up loans to developing countries in Asia, Africa and Latin America after launching its Belt and Road Initiative (BRI) in 2013, but there have been significant concerns about the opacity surrounding agreements covering both loans and projects taken up under BRI. In December 2017, Sri Lanka handed over the strategic port of Hambantota to China on a 99-year lease after struggling to pay debts to Chinese firms. India never signed on to BRI because a significant component - the China-Pakistan Economic Corridor (CPEC) - passes through Pakistan-occupied Kashmir. The Indian side also has concerns about the lack of a level playing field under BRI. The study said China's total public and publicly guaranteed lending to low-income and developing countries between 2000 and 2021 was worth $911 billion, and nearly half - or $418 billion provided to 57 countries - is secured with cash deposits in Chinese bank accounts. The study concluded China's practices are impeding the ability of borrowing countries to effectively manage their finances. Borrowing countries are forced to route incomes from their main commodity exports to Chinese bank accounts, the study said. 'Our findings reveal a previously undocumented pattern of revenue ring-fencing, where a significant share of commodity export receipts never reaches the exporting countries,' it said. 'Revenues routed overseas secure priority repayment for the creditor; they remain out of public sight and largely beyond the borrower's reach until the secured debts are repaid,' it added. More than 60% of collateralised public and publicly guaranteed loans by Chinese creditors to low-income and developing countries rely on collateral unrelated to the stated purpose of the debt, the study said. This means bank accounts securing Chinese infrastructure project loans are not typically funded from project revenues. Instead, most cash flows come from sales of the borrowing country's leading commodity export, such as gas in Myanmar and Indonesia, oil in Angola, and copper in Congo. A state-owned enterprise of the borrowing country typically agrees to sell commodities under an offtake agreement with a Chinese state enterprise, and both enterprises 'agree to deposit the proceeds directly into bank accounts that secure unrelated infrastructure finance', the study said. 'Chinese creditors and their debtors have taken extraordinary measures to shield the use of escrow accounts - and the cash deposits that they hold - from public scrutiny,' the study said. The deposits in Chinese bank accounts, which are controlled by the lending entities, can average more than 20% of annual payments made by low-income countries to service external debt, the study found. 'Some of these revenues remain offshore beyond the control of the borrowing government for many years,' it said, adding the lack of access or transparency compromises the ability of borrowing countries to monitor and manage their fiscal affairs. Another important feature of Chinese lenders using cash collateral pools is that they simultaneously act as security for multiple debts. Cross-collateralisation accounts for 46% of China's collateralized public and publicly guaranteed lending volume to low-income and developing countries and this 'can exacerbate debt distress and complicate a debt restructuring if multiple creditors have competing rights to the same assets', the study said. The study also found that a common source of collateral supports multiple loans from the same Chinese creditor, and this practice 'poses a different challenge: it can cede government control over assets or revenue streams to a single creditor for long periods of time, until all the underlying debts for all the financed projects or programs are repaid'. Such a process can take decades, the study said.
Time of India
an hour ago
- Time of India
Global car market gazing through the lens of a top Chinese brand
While Chinese automobile brands are increasingly going global to seek new growth opportunities, the risks in the overseas market are also increasing by the day. This is due to pressure from trade protection policies in the United States and Europe, notes SAIC Motor Corporation in its latest annual report. At the same time, as international competition is transferred to the domestic market, Chinese automakers will participate 'more deeply' in competition in the global market. It is expected that in the next 3-5 years, the proportion of the country's domestic vehicles in global sales will increase from the current 30 per cent to around 45 per cent. SAIC Motor is no stranger to India where MG Motor is its business and retail brand with operations in Halol, Gujarat. The company had recently divested part of its stake to the JSW group and the road ahead will see greater focus on electrification. The competitive landscape of China's automotive industry is undergoing a disruptive Motor Corporation Annual Report SAIC set up shop here by buying out General Motors' (a longterm ally back home in China) facility in 2017 and then rapidly beginning production. Its debut SUV offering, Hector, caught the imagination of Indian customers and it has now thrown up another potentially huge success story with the more recently launched Windsor EV. Going global In 2024, China's domestic market share of self-owned (homegrown) brands stabilised above 60 per cent and their average selling price increased by more than 30 per cent compared to five years ago. Self-owned brand automakers like Geely, SAIC, BYD etc have also been accelerating their 'going global' efforts and the growing trend of 'domestication of international competition' is now becoming increasingly evident. SAIC says the new round of a technological revolution is driving profound changes in the global automotive industry. With the deep integration of electrification and intelligence, the product definition and user experience of automobiles are undergoing 'revolutionary changes'. Self-owned brands have also risen profoundly in the domestic market. Not only have their market shares surpassed those of joint venture brands, but with the cross-border entry of ICT (Information and Communications Technology) enterprises, the Internet strategy and traffic marketing have brought new challenges to the traditional marketing model of the automotive industry. 'The competitive landscape of China's automotive industry is undergoing a disruptive reconstruction,' SAIC has noted in its annual report. The industry characteristics of "internal competition and external pressure" persist and as the automotive industry enters the "elimination competition" stage, the domestic market has experienced intense "internal competition" with price wars becoming increasingly fierce. Demand for improvement According to SAIC's annual report, one of the main factors driving China's automotive consumption is the demand for improvement. Based on the experience of leading countries, as the number of cars per capita increases and "non-first-time buyers" become the dominant factor in new car purchases, consumers have a stronger desire for larger car sizes and better comfort. Considering the competitive characteristics of the Chinese market, continues SAIC, while products are trending towards larger sizes and higher-end features, the average price continues to decline. More cost effective large-sized vehicles could become the preferred choice for consumers when they make replacement purchases. Two, plug-in hybrid products (including extended-range models) will gain greater popularity. Thanks to zero range anxiety and their strong adaptability to the environment, the growth rate of plug-in hybrid products (including extended-range models) has been significantly higher than that of pure electric products in recent years. In SAIC's view, the average annual growth rate of plug-in hybrid products (including extended-range models) will exceed 30 per cent in the next three years, thereby becoming the main growth driver in the new energy vehicle market. Taking the launch of the new large-sized extended-range SUV as an opportunity, [IM Motors] will expand its scale… aiming to achieve a 50% increase in annual Motor Corporation Annual Report Proliferation of technologies Three, the demand for intelligence has increased and with the rapid iteration of technologies such as AI, consumers' attention and demand for intelligent cabin and driving technologies have also grown significantly. Meanwhile, tech equity (where everyone is able to access and benefit from technology) has promoted coverage of intelligent automotive technologies to mid and low-priced products. Finally, says SAIC, the diversification of consumer groups and scenarios has led to more segments of the market especially among female and silver-haired users, as well as the emergence of new scenarios such as self-drive travel. 'It is an important new opportunity for the Blue Ocean (new or untapped) market, as well as a new challenge for product definition and marketing transformation,' adds the company. SAIC believes that the automotive industry in China will still maintain a stable and positive development trend in 2025 with sales of domestic automobiles expected to be approximately 32.9 million vehicles (including exports). Of this tally, new energy vehicles will be approximately 16 million, a year-on-year growth of 24.4 per cent, and exports of automobiles estimated to be 6.2 million units. Lessons from consumer electronics From SAIC's viewpoint, by learning from the experience of leading consumer electronics companies in areas of research and development, operation, and marketing, it aims to enhance product competitiveness, user experience, and channel coverage. The goal is to achieve annual vehicle sales of over one million units with a year-on-year growth of more than 40 per cent. IM Motors (the joint venture of SAIC, Zhangjiang Hi-Tech and Alibaba group) will also 'continue to lead' with innovative technologies. 'Taking the launch of the new large-sized extended-range SUV as an opportunity, it will expand its scale and enhance its publicity efforts, aiming to achieve a 50 per cent increase in annual sales,' says SAIC. To improve innovation efficiency, the company will focus on moving the definition of products from "engineer's thinking" to "user's thinking", opening up product and marketing links and achieving interlocking. Based on the 5S user experience elements of styling, smart, safety, sustainability and satisfaction, a cost-competitive core value system for products will be prepared. SAIC has said that it will achieve mass production and implementation of independent core technologies. More innovative achievements will be launched aiming to create unique selling points for vehicle products and further enhance differentiated competitive advantages in intelligent connected new energy vehicles. Against the backdrop of intensified intra-industry competition in the domestic auto market and increased external pressure from international trade protection, the competitive landscape of China's auto industry was undergoing profound Motor Corporation Annual Report Leveraging the scale effect Beyond this, the organisational operation process will be continuously optimised through measures such as cutting management levels, streamlining the organisational structure, deepening the empowerment of AI digital tools etc. The scale effect will also be leveraged to optimise the procurement strategy and improve cost-competitiveness. Quoting data from the China Association of Automobile Manufacturers, where total sales were a little over 31 million units in 2024, SAIC's annual report states that the recovery pace of the domestic market was relatively lagging behind with sales 2.41 million vehicles lower than the peak in 2017. 'Against the backdrop of intensified intra-industry competition in the domestic auto market and increased external pressure from international trade protection, the competitive landscape of China's auto industry was undergoing profound changes,' it adds. In 2024, the number of vehicles traded in for new ones across the country exceeded 6.8 million, an increase of 2.4 million. The penetration of new energy vehicles accelerated to reach over 40 per cent, an increase of nearly 10 per cent over the previous year, with the growth rate of plug-in hybrid vehicles exceeding 80 per cent, becoming a new driving force behind the growth of new energy vehicles. The sales growth of new energy vehicles in smaller cities was significantly faster too.
New Indian Express
an hour ago
- New Indian Express
Former head of major Chinese airline under graft investigation
BEIJING: The former head of China Eastern Airlines is under investigation over corruption allegations, two Chinese anti-graft bodies said Saturday. Liu Shaoyong, who headed the airline from 2009 until his resignation in 2022, is being investigated for "serious violations of discipline and law", the Central Commission for Discipline Inspection and the National Supervisory Commission said in a statement. The Shanghai-based airline, primarily owned by the Chinese government through its parent company, is one of the three largest Chinese airlines. Liu was credited with turning the carrier around after it posted record losses before he was appointed. China Eastern Airlines under his leadership merged with Shanghai Airlines and joined the SkyTeam airline alliance, strengthening its position in domestic and international markets. Liu also led another one of China's major airlines, China Southern, before taking the reins of China Eastern. Chinese President Xi Jinping has waged an unrelenting crackdown on corruption since coming to power over a decade ago. Proponents say the policy promotes clean governance but others say it also serves as a means for Xi to purge political rivals.
