Alibaba’s Taobao and Tmall to Accept WeChat Pay in E-commerce Expansion
Alibaba will allow payments through Tencent’s WeChat Pay on its Taobao and Tmall platforms, breaking a long-standing rivalry between WeChat Pay and Alibaba’s Alipay. This move, starting in September, aims to boost Alibaba’s market share and growth, particularly in China’s less-developed regions. The change follows regulatory pressures from Beijing urging tech companies to dismantle their “walled gardens.” Alibaba has faced tough competition from JD.com and PDD and seeks to reignite its e-commerce growth by fiscal 2025.
Zhipu AI Valued at $2.8 Billion After New Funding Round
Beijing-based AI unicorn Zhipu AI, one of China’s top AI “tigers,” has raised billions of yuan in a funding round led by state-backed Zhongguancun Science City Innovation Development, which values the company at around $2.8 billion. The funds will support the development of Zhipu AI’s large language models (LLMs), similar to ChatGPT, which are widely used by enterprises in China. Zhipu AI is a leading player in mainland China’s generative AI technologies.
Honor Introduces AI-Powered Yoyo to Compete in Smartphone Market
Honor announced the AI upgrade of its digital assistant Yoyo, rebranded as the “Honor AI Agent,” as it aims to outpace competitors like Apple and Samsung. The new AI features allow Yoyo to perform tasks like managing WeChat and Alipay subscriptions. The AI infusion marks a step toward more personalized and efficient smartphone experiences, learning user behavior to offer tailored suggestions.
Dutch Government Tightens Control Over ASML Exports to China
The Dutch government has expanded export licensing for ASML’s chipmaking equipment, regaining oversight from the U.S. in a move aimed at aligning export policies. The decision, led by Dutch Trade Minister Reinette Klever, is driven by safety concerns over advanced technology. ASML, Europe’s largest tech firm, does not expect this to affect its earnings. The U.S. had previously restricted ASML’s 1970i and 1980i DUV lithography tools, citing their use by Chinese chipmakers. Dutch lawmakers questioned sovereignty over such controls, and ASML warned Chinese clients of halted deliveries in 2024.
SSI Raises $1 Billion to Build Safe Superintelligence
Safe Superintelligence (SSI), co-founded by OpenAI’s former chief scientist Ilya Sutskever, has secured $1 billion to develop AI systems surpassing human intelligence. Backed by firms like Andreessen Horowitz and Sequoia Capital, SSI aims to ensure AI safety through extensive R&D. Sutskever, who left OpenAI in 2023, takes a different approach to AI scaling, emphasizing unique strategies for advancing AI research while prioritizing safety. The company is valued at approximately $5 billion.
World’s First Human Rights AI Treaty Signed, Faces Criticism for Weak Provisions
On September 5, the EU, UK, US, and Israel signed the world’s first treaty on AI and human rights in Vilnius, Lithuania. The Framework Convention on AI, democracy, and the rule of law, adopted by the Council of Europe in May, is criticized by civil society groups for its diluted terms. Excluding the private sector and focusing mainly on public entities, the treaty’s broad principles and loopholes have led to concerns about its effectiveness. Critics urged for stronger, binding measures and impact assessments on AI systems.
Japanese Semiconductor Equipment Sales to China Surge Despite U.S. Tensions
Japanese semiconductor equipment providers, including Tokyo Electron and Screen Holdings, have seen a dramatic increase in revenue from China, with Tokyo Electron’s share rising to 50% and Screen Holdings to 51% in early 2025. This growth highlights Japan’s challenge in balancing its economic interests with U.S. export controls. While Japan’s equipment is used for legacy chips, recent U.S. measures target advanced technologies. Despite threats from China and export restrictions from Dutch firm ASML, China is boosting its chip-making capabilities, having spent $25 billion on equipment in early 2024, surpassing other major markets.
