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The swift adoption of AI in China, its largest testing environment, may influence worldwide AI utilisation.
On a recent weekday, some 50 individuals congregated outside the headquarters of a Chinese mobile internet firm, seeking assistance with the installation of an artificial intelligence assistant.
The scenario in Beijing, the capital of China, recurred for several days at other events and was also observed in the southern technological hub of Shenzhen in March, when engineers assisted audiences in configuring the popular AI “agent” OpenClaw on their laptops.
“I am concerned about lagging in technological advancements,” stated Sun Lei, a 41-year-old human resources manager at the Cheetah event. She expressed her ambition that the tool may assist her in sourcing and screening resumes from many recruitment sources.
Over a year following the revelation of DeepSeek’s sophisticated AI model, China’s landscape has evolved into a proving ground for the widespread use of AI technologies. AI models developed in the United States continue to excel in computational capacity; nevertheless, Chinese individuals and enterprises have rapidly adopted the technology, enabling its rapid and extensive integration across nearly all sectors.
With the rapid global use of AI in businesses and daily life, ordinary Chinese individuals are utilising AI for various tasks, including travel booking and planning, meal ordering, and ride-hailing. As of December, over 600 million individuals from a population of 1.4 billion were utilising generative AI, reflecting a 142% rise from the previous year, according to a research by the government-controlled China Internet Network Information Center.
Jason Tong, a 64-year-old retiree in Shanghai and former IT engineer, has utilised AI chatbots like Doubao and Kimi for routine enquiries since their inception a few years ago.
He commenced a more vigilant focus on his health and, in early March, enrolled in a blood glucose monitoring program operated by a Shanghai-based company that employs an AI model to provide personalised health recommendations. He has found its customised, prompt responses beneficial.
Tong asserts that the extensive integration of AI applications into daily life is unavoidable, stating, “Just as carriages were ultimately supplanted by trains, this will inevitably occur.”
Chinese products utilising AI, including automobiles and robotics, are experiencing significant progress, ranging from humanoid robots with sophisticated cognitive capacities to AI systems that assist drivers with complex tasks such as restaurant reservations.
Lizzi Lee, a fellow at the Asia Society Policy Institute’s Center for China Analysis specialising in economics and technology, stated, “The competition in artificial intelligence is evidently transitioning from models to ecosystems.” “Chinese users are effectively functioning as large-scale real-time testers.”
Chinese technology firms such as Tencent, Alibaba, and Baidu are competing to commercialise artificial intelligence. Tencent included OpenClaw into WeChat, China’s proprietary “super-app,” which primarily functions as a messaging platform but also facilitates activities such as food ordering and payment processing. Alibaba is integrating “agentic” AI into its operational processes.
OpenClaw facilitates the broader adoption of artificial intelligence applications in China.
OpenClaw, developed by Austrian software engineer Peter Steinberger last year, gained rapid and fervent adoption due to its capacity to utilise diverse tools for executing complex tasks.
Zhao Yikang, a Chinese university student in Macao, utilises OpenClaw for both his academic pursuits and everyday activities.
He was impressed by its affordability and efficiency, utilising it to automatically produce promotional videos and oversee social media accounts during his internship at a real estate business in Zhuhai, a city in southern China.
Zhao stated, “AI can comprehend information instantaneously.” “You simply need to assume the role of a commander and instruct it accordingly.”
Zhao requested AI to create a corporate website in preparation for launching a picture services firm post-graduation. In about 10 minutes, it produced a fully operational website for less than 5 yuan (70 cents).
Chinese authorities issued multiple warnings regarding potential security hazards associated with OpenClaw AI “agents,” such as data breaches, despite the continued high interest and increased installations.
Janet Tang, a partner and managing director specialising in technology at consultancy AlixPartners, stated that Chinese organisations are progressively establishing internal objectives to enhance AI utilisation for efficiency improvement.
Wang Xiaogang, co-founder of the Chinese AI software firm SenseTime and chairman of ACE Robotics, stated that there are numerous application scenarios. The sector is advancing rapidly, and individuals are receptive and enthusiastic about experimenting with AI in various contexts.
U.S. export regulations simultaneously facilitate and obstruct the utilisation of AI in China.
China has endeavoured to gain an advantage by significantly spending in talent cultivation and securing access to ample, cost-effective electricity for its energy-intensive AI advancements and innovations.
Chinese leaders have committed to an annual average growth of at least 7% in national research and development expenditure within the country’s five-year plan until 2030 to attain technological advancements, particularly in AI. A national framework for “AI plus” delineates measures to incorporate AI across several sectors, including healthcare and education. Judges in Shenzhen adjudicated 50% more cases last year, according to a court, partially aided by an AI technology facilitating judicial procedures.
Nonetheless, restricted access to certain advanced computer chips due to U.S. regulations continues to impede China’s AI progress.
Samm Sacks, a senior scholar at New America specialising in Chinese technology policies, stated, “Export controls on tools have impeded China’s chipmaking capabilities and represent the Achilles’ heel of numerous AI laboratories reliant on advanced AI chips.”
However, the regulations have resulted in enhanced coordination of design, manufacturing, and implementation throughout China’s technology supply chain. Sacks stated, “Over time, this dynamic could enhance, rather than hinder, China’s ambitions.”
Last month, when China’s DeepSeek unveiled its highly anticipated V4 AI model preview, a significant alteration was the incorporation of computer processors produced by the Chinese technology conglomerate Huawei. This signifies less reliance on leading U.S. semiconductor manufacturers like Nvidia.
A recent analysis from Stanford University’s Institute for Human-Centered AI indicates that the performance disparity in leading AI models between the U.S. and China has “effectively closed.”
U.S. officials and leading AI companies, such as Anthropic and OpenAI, have alleged that Chinese AI startups are appropriating U.S. AI innovations. China asserts that these charges are unfounded.
Lian Jye Su, a lead analyst at the research and consultancy firm Omdia, posits that the AI disparity between the U.S. and China will persist in diminishing, notwithstanding U.S. export restrictions and China’s Great Firewall, the extensive internet filtration and censorship apparatus employed by the Chinese Communist Party.
Analysts, including Su, contend that obstacles like the Great Firewall will likely affect China’s AI utilisation in constrained manners, considering that the technology is already being tested, integrated, and scaled within China’s regulated internet framework.
“China will soon transition from being a fast follower to a parallel innovator,” he stated.
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IHC forms larger bench to hear plea against PTI’s Sept 27 protest
The Islamabad High Court (IHC) has issued a written decision on a petition challenging Pakistan Tehreek-e-Insaf’s (PTI) scheduled September 27 protest and long march, while creating a three-member bigger bench to consider the matter.
The larger bench will comprise IHC Chief Justice Sarfraz Dogar, Justice Azam Khan and Justice Muhammad Asif. The bench is slated to hear the case on September 10.
Chief Justice Sarfraz Dogar issued a three-page written order from the last session and directed the chief secretaries and inspectors general of police of all four provinces to come before the court in person on Thursday.
PTI finalises backup protest plan if Minar-e-Pakistan demonstration is denied permission
The court also summoned the Islamabad chief commissioner, Islamabad IG and deputy commissioner in their personal capacity. The advocate generals of all four provinces and Islamabad have also been asked to assist the court in the proceedings.
The petition was submitted by a businessman who contended that PTI’s intended demonstration could disrupt citizens and economic activity in Islamabad. His counsel informed the court that legislation governing protests in the capital already exists and highlighted concerns about the likely use of government resources during the planned mobilisation.
During the previous session, the petitioner’s lawyer also referred to PTI’s 2024 protest and brought relevant remarks and newspaper reports before the court. He suggested that protests should not be utilized to exert pressure on governmental institutions and judges.
The court remarked that the subject was of substantial importance and, in view of its sensitivity, issued a notice to the Attorney General for Pakistan for help in the case. The court then determined that the dispute should be heard by a larger bench.
The plea came after PTI organized a September 27 rally and long march towards Islamabad. The party has said the mobilisation is focused at getting access to party founder Imran Khan for his family and personal doctors, as well as raising concerns regarding his legal and prison-related affairs.
The IHC has fixed the subject for further hearing on September 10, when the summoned officials are likely to appear before the three-member bigger bench.
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Iran says it caught US underwater drone in Strait of Hormuz
Iran’s Revolutionary Guards said on Tuesday it has captured a U.S. uncrewed submarine at the entrance to the Strait of Hormuz, offering a rare insight at how underwater drones are being used in military operations.
Iranian state media reported the craft was a Dive-LD, a large autonomous underwater vehicle made by California defense firm Anduril. The 19-foot (5.8-metre) submersible can carry out duties like mine countermeasures, seabed mapping, intelligence collection and the inspection of undersea infrastructure such as cables and pipelines, the business has said. “We detained one of the most advanced, clever and unmanned submarines of the terrorist American army near the entrance to the Strait of Hormuz. This submersible is equipped with the latest technologies,” the Revolutionary Guards Navy said in a statement broadcast by Iranian state media.
In response, a Pentagon spokesperson revealed a underwater drone had “malfunctioned more than a day ago.” “It was surveying regional seas in support of ongoing operations. The defective drone was an earlier model that neither collected sensitive data nor carried any classified sonar or radar technology,” the spokesperson stated.
Anduril confirmed the loss of one of its vessels, but minimized the seriousness of the incident. “Dive-LD is an attritable autonomous system, meaning it is built from the outset to operate in perilous conditions where loss of the vehicle is a predicted possibility,” a company representative stated.
The U.S. Navy is spending extensively in unmanned naval systems, including undersea and surface vehicles, as it seeks cheaper ways to monitor broad expanses of ocean, gather intelligence and track hostile ships and submarines without putting troops at danger.
According to Anduril’s website, Dive-LD can operate for up to 10 days without returning to base and is meant to dive to depths of as much as 6,000 metres (19,700 ft). Dive-LD units cost roughly $2.5 million each, U.S. military news site DefenseScoop reported in 2024.
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Dollar wobbles, oil’s dash to $100 chills sentiment, Yen stands big
The Japanese yen was pinned near its best level since February on Wednesday, leaving the dollar on the defensive as traders grappled with oil prices heading toward $100 a barrel amid an expanding war in the Middle East.
Iranian-backed Houthis in Yemen attacked several Saudi cities, drawing a U.S. partner further into a battle that has dragged on for more than six months, as U.S. forces struck multiple Iranian oil tankers and Iran threatened a U.S. station in Jordan.
Brent crude futures rose by more than 1.48% to $99.37 a barrel, weighing on global markets ahead of a U.S. inflation data on Friday that will set the stage for central bank meetings next week in the U.S. and Japan.
The currency market nudged the dollar down a touch in response, though some analysts said that was due to the yen’s swift rally over the past week.
The euro held constant at $1.1631 while the pound was last bought at $1.3546. The dollar index, measuring the U.S. currency against a basket of six major rivals, was at 98.15, near its lowest level in nearly two weeks.
OCBC strategists said the current increase keeps Fed policy implications from higher energy prices in focus, especially after last week’s robust U.S. payrolls report reignited expectations of another rate hike. “Higher oil and rates should help limit USD fall for now but we anticipate a more dramatic move will await confirmation from the impending inflation data,” they said in a note.
The yen has been under focus after its 4% surge in September that has altered the math for the popular carry trade in which investors borrow in yen at a low cost and invest in other currencies and assets yielding better interest.
The yen was stronger at 153.65 per dollar, close to the seven-month peak of 152.89 struck on Tuesday. The surge has been broad-based with the Japanese currency strengthening against the euro and sterling as well as favorite carry-trade targets such as the Mexican peso and Turkish lira.
The increase has been fueled by expectations of quicker tightening by the Bank of Japan and the return of offshore cash by Japanese investors and pressure from Washington for a higher yen.
Traders broadly expect the BOJ to hike rates by 25 basis points at its September 17-18 meeting but the rise will rest on if Governor Kazuo Ueda delivers hawkish comments and the wild card will be the Federal Reserve.Aninda Mitra, head of Asia macro and investment strategy at BNY Investments, stated “Much will depend on how the market prices in the Fed’s path of interest rates too.We estimate the Yen’s “fair value” to be in the 140’s and a further move to that area should not be a total surprise following what has clearly been an overshoot to the side of excessive Yen weakness.”
The Australian dollar gained 0.12% to $0.7225, just below a four-month high set in the previous session, in Pacific trade. The New Zealand dollar was up 0.16% at $0.5862.
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