• From new artificial intelligence models to the world's largest auto show, Chinese tech companies are coming up with with new developments thick and fast.
• Generative AI and supportive Chinese policy support have both played a role in boosting the tech sector.
• "We're seeing a significant acceleration in AI investment in China," said Tim Wang, co-founder of Hong Kong-based Monolith Management, where he manages a $400 million public equity fund.

This report is from this week's C온라인카지노사이트's The China Connection newsletter, which brings you insights and analysis on what's driving the world's second-largest economy. Each week, we'll explore the biggest business stories in China, give a lowdown on market moves and help you set up for the week ahead. Like what you see? You can subscribe 

The big story

China's tech world isn't getting distracted by whether the U.S. and China will talk on trade.

From new artificial intelligence models to the world's largest auto show, Chinese tech companies are flaunting new developments thick and fast. Online delivery companies and are even for users, evoking the heyday of China's internet boom that spawned .

At the opening of the Shanghai auto show on April 23, Chinese electric vehicle giant announced five new models and debuted its new hybrid . Robotaxi operator showed off three new vehicles that it claimed would slash costs for autonomous driving by 70%, helping the U.S.-listed company move closer to profitability.

A day earlier, Huawei announced that this year, its latest driver-assist system will be able to , similar to valet service at a restaurant. Huawei sells the software to electric car manufacturers.

"The intense competition has pushed innovation in [China's new energy vehicles] ... things we thought were still a decade away, are more or less now at our fingertips," said Tu Le, founder and managing director at consulting firm Sino Auto Insights. He pointed to examples such as high-speed charging and driver-assist systems in mass market cars.

AI for video

Generative AI and supportive Chinese policy have both played a role in local tech development.

, dubbed China's "Netflix," last week in Beijing touted its AI tools for cutting production costs and refining scripts. The company showed off its virtual studio set, and how generative AI can quickly transform the style of a TV show with human actors to one using 3D animation.

"This conversion effect was not achievable last year, or even in March," Liu Wenfeng, president of iQiyi's infrastructure and intelligent content distribution business group, told reporters in Mandarin, translated by C온라인카지노사이트. "It's only recent technology that can achieve better consistency and stability in [generating] images."

But he cautioned that AI still has a long way to go for it to generate videos that show actors, products and scenes with the same consistency as a live-action shot. In the meantime, he said virtual production and AI-supported efficiencies allow the company to respond more quickly to audience interests.

Other Chinese companies are also trying to use AI for video. On April 15, Chinese short-video company released an update to its AI video generation model, Kling, spurring worries from media blog The Ankler about the .

A few days after the Kling upgrade, Alibaba released its , while Beijing-based startup Shengshu Technology upgraded AI video product Vidu Q1, which claims to "." Alibaba on Tuesday also released its .

"We're seeing a significant acceleration in AI investment in China," said Tim Wang, co-founder of Hong Kong-based Monolith Management, where he manages a $400 million public equity fund.

"Key breakthroughs in foundational models are closing the gap with global leaders," he said, "and we're optimistic about the future of consumer AI applications, regardless of current trade headlines."

Chinese companies are also turning to e-commerce and tech tools to .

Several hundred exporters are now using tech company Baidu's AI-powered virtual human tool to sell products online via livestreams, said Xiaoli Ping, Baidu vice president and general manager of its e-commerce business. She claimed the tech cuts livestreaming costs by more than 80%, and can generate a higher purchase rate than employing human livestreamers.

Baidu last week released what it claims is a ", as well as new AI models that are even cheaper to use than prior versions.

Policy support

Excitement around Chinese AI picked up in late January after homegrown DeepSeek released a free AI model and chatbot that rivaled OpenAI's ChatGPT. That breakthrough shattered perceptions that U.S. restrictions on China's access to advanced semiconductors would limit local AI development.

Particularly for startups in critical tech industries, the Chinese government has many policies to help them connect with local suppliers and receive financing, said Beiping Tan, general manager at Beijing-based Tourongbang Management Consulting.

China has also increased its efforts to develop and train talent, he said. His consulting firm has highlighted state policies for attracting individuals from outside China, especially those with doctorate degrees in engineering and natural science.

to 5 million yuan ($410,000 to $690,000) one-time payout and an 800,000 yuan rental subsidy, while the employer can also receive subsidies for the majority of the individual's salary and 3 million yuan in research funding.

DeepSeek and other Chinese tech breakthroughs this year are the cumulation of years of research spending and education development, pointed out Ding Wenjie, investment strategist for global capital investment at China Asset Management Co. "We believe China will have more homegrown champions to surprise the world in the future."

Even if that prediction comes true, that doesn't mean it will be a straight path up given the overall economic headwinds. Goldman Sachs pointed out that first-quarter industrial profit data indicated there was no growth outside of high-tech industries.

set a decade ago, the European Union Chamber of Commerce in China said, noting the policy also fueled unhealthy overproduction in certain sectors.

Intense competition in China's EV industry has also meant its development has plateaued for now, said Yichao Zhang, partner at consulting firm AlixPartners. He pointed out that automakers will need to work harder to create distinctive brands, traditionally the edge of foreign companies.

But as China's rapid transformation into a global EV leader has shown, Zhang expects the Chinese dominance of the local market — and their international ambitions — to continue regardless.

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Nio CEO William Li tells C온라인카지노사이트's Lin Lin that he's upbeat about improving the company's gross margin and breaking even in fourth quarter this year despite tariffs and cut-throat competition.

Treasury Secretary Scott Bessent joined C온라인카지노사이트's "Squawk Box" to discuss the latest developments on President Trump's trade negotiations with other countries, the state of tariff negotiations with China, how soon countries will reach trade deals with the U.S., and more.

Need to know

China released a plan to encourage companies to hire more recent graduates. The greater came after a high-level Politburo meeting on April 25 that called for targeted measures to help businesses in face of trade tensions.

U.S. President Donald Trump claims he talked to Chinese President Xi Jinping. But there's no date and Beijing is saying there isn't any contact. Meanwhile, Xi emphasized AI and tech development A few days earlier, China's finance minister and central bank governor were both in Washington, D.C., for the International Monetary Fund and World Bank spring meetings.

China is ramping up its alternative energy development to reduce reliance on U.S. crude. The country on Monday said it approved , while releasing plans to research and services this year.

In the markets

Chinese and Hong Kong stocks swung between gains and losses in a choppy session on Wednesday.

Mainland China's  was flat while Hong Kong's  — which includes several major Chinese companies — was up 0.22% as of 11:20 a.m. local time. The CSI 300 has lost over 4% while the Hang Seng Index has gained nearly 10% so far this year.

The benchmark 10-year Chinese government bond yield was slightly down at 1.625%.

The offshore Chinese yuan was marginally stronger at 7.266 against the greenback.

Coming up

May 1 - 5: Labor Day holiday in China. Mainland stock exchanges closed. Hong Kong stock exchange closed May 1 and May 5.

May 2: U.S. ends de minimis duty-free treatment for imports of Chinese goods at or under $800