Xi Jinping used his first appearance at China's World AI Conference to promote a vision of low-cost, broadly accessible AI and call for international cooperation rather than technological rivalry. "AI development should not be a solo performance by a single country, but a symphony of international cooperation," he said. Bloomberg reports: His presence at the gathering, attended by scores of tech and government leaders, conveys a potent signal of China's ambitions to dominate a technological sphere with the potential to revolutionize industry and economies -- an effort that's shot to the top of the nation's agenda. Chinese models are winning over companies worldwide, with their share of US firms' AI usage nearing a record 60% on the popular marketplace OpenRouter. Behind the rhetoric, Beijing is grappling with the balance between openness and national security as models grow more capable. Chinese officials recently discussed with companies including Alibaba -- developer of the popular Qwen models -- how to mitigate the security risks posed by their increasingly powerful models, people familiar with the matter said. The talks are early, with no enforcement planned, but restricting foreign access to top models was among the options raised, the people said. Reuters previously reported that Beijing was weighing curbs on overseas access. Earlier today, the Beijing-based AI company "Moonshot" released a massive new model that reset the AI race overnight, immediately vaulting into the top tier of global AI, beating Anthropic's Fable 5 and OpenAI's GPT-5.6 Sol in front-end coding tests.

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In March, Anthropic's Claude "quietly deployed software to spy on China-based customers," reports the Washington Post — apparently to unmask Chinese rivals "suspected of hijacking its technology to make their own AI tools smarter." Last week Anthropic removed the spyware "after a software developer revealed its existence and privacy advocates criticized Anthropic, saying it had surveilled its own users." Anthropic's tracking code was designed in part to catch Chinese firms "distilling" its AI models, a technique that involves pressing a large, expensive AI system to serve as a tutor to a smaller, cheaper one. Asking the larger system huge numbers of questions — hundreds of thousands or more — generates responses that can be used to upgrade the power of the smaller one on the cheap. Distillation isn't illegal, and it has been used for years in the AI industry. But distillation without permission is against AI companies' rules, and, used effectively, is giving Chinese AI companies a major leg up, American AI companies say... Anthropic and ChatGPT-maker OpenAI have both accused Chinese AI companies of using this technique to build copycat AI models of their own. In a May blog post, Anthropic said that Chinese companies' use of distillation, along with evading U.S. export controls on high-end computer chips, has allowed them to "trail closely" behind U.S. models. But if these techniques can be blocked, it might be possible for the United States to "lock in a 12-24 month lead" on Chinese capabilities, the company said... This month, Anthropic said in a letter to U.S. senators that was obtained by The Post that it uncovered a campaign in which Chinese tech giant Alibaba's Qwen AI team used roughly 25,000 fraudulent accounts to generate more than 28.8 million exchanges with Claude to improve its own technology. In February, Anthropic made similar accusations against the Chinese firms Deepseek, Moonshot and MiniMax and said the campaigns were "growing in intensity and sophistication...." Anthropic and OpenAI have appealed to the U.S. government, arguing that distillation amounts to intellectual property theft that harms the U.S. in the geopolitical AI contest.... That Chinese AI labs are using U.S. models to improve their own technology appears beyond dispute. In a February 2025 study, researchers from China's Peking University and the state-funded Chinese Academy of Sciences developed methods to detect signs of distillation in leading large language models. They concluded that, with the exception of ByteDance's Doubao, most domestic models they tested showed substantial evidence of distillation, mostly drawing from U.S. models... In one set of intensive tests, a Qwen model misidentified itself as Claude nearly a third of the time, the Chinese researchers found. U.S. firms have also used distillation to piggyback on AI systems made by others. In 2024, OpenAI released a tool to make it easier for customers to distill its own models and produce data sets for AI training. SpaceX founder Elon Musk said in court testimony in May that his AI company xAI used distillation to train its models and that the technique is common throughout the industry. The article also notes that Anthropic "said it has banned nearly 700,000 accounts that were using Claude in China." But the article includes this quote from Kyle Chan, a fellow at the Washington-based Brookings Institution's China Center. "Anthropic's framing is that this is a geopolitical contest for basically the future of the world and freedom and democracy. It's that this is not just undercutting the U.S. commercially, but undercutting American strategic advantage in the most powerful technology we know today."

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Nobel-winning chemist Omar Yaghi is leaving UC Berkeley for China's Tsinghua University, where he will lead a new AI institute focused on accelerating the discovery of advanced materials. "Last week, Tsinghua University in Beijing welcomed Dr. Yaghi in an appointment ceremony, calling him one of the world's foremost chemists," reports The New York Times. "The university said he saw his new post as an opportunity 'not to slow down, not to repeat what has already been done, but to do science with more energy, more intensity, and more ambition than ever before.'" From the report: Dr. Yaghi was born in Amman, Jordan, to Palestinian refugees whose one-room home lacked electricity and running water. Early on, he became fascinated with a schoolbook's depiction of atomic building blocks. When he was 15, his father, a butcher, sent him to the United States. Last year, before flying to Stockholm to receive his Nobel Prize, Dr. Yaghi in an interview with The New York Times voiced concern about Mr. Trump's immigration policies, saying that they endanger the nation's system of universities, companies and governments that promote scientific excellence. "I think it's regrettable," he said of Mr. Trump's nationalism. "We have to know that people coming from different backgrounds improve the level for everybody involved," he added. "That's an amazing story. Great thinkers can improve not only the U.S. but the world." Dr. Yaghi joined the University of California, Berkeley, in 2012, and while there earned many awards for his scientific advances. He received his Nobel Prize for helping discover a world of chemistry in which molecular building blocks are assembled into structures that possess vast internal surface areas -- the largest of any known substance. His porous structures can act like sponges that readily absorb, store and release gases and vapors. He named them metal-organic frameworks. The metal atoms form an adjustable framework that can hold chemicals associated with life -- carbon atoms in particular. While deeply theoretical, the frameworks are so radical, innovative and flexible in nature that materials experts and companies foresee many commercial uses for them. The frameworks can, for instance, harvest water from desert air. In 2018, Dr. Yaghi's students at Berkeley tested the idea in the Mojave Desert in California, finding that a small passive harvester could each day produce nearly three cups of pure, drinkable water. The device is now nearing commercialization. In the interview with The Times, Dr. Yaghi credited the invention to his boyhood efforts to secure water for his family. The municipal pipes worked for only a few hours every week or two. That hardship, he added, shows how the diverse experiences of emigres can lead to unexpected breakthroughs. Dr. Yaghi has longstanding ties with Tsinghua University. In 2022, the Beijing school appointed him as an honorary professor and in that role he closely followed its work in chemistry, materials science and related disciplines. Now, on joining Tsinghua full time, Dr. Yaghi is being named as the head of a new A.I. institute for science research that will focus on the design and synthesis of new materials. Its underlying aim, the university said, is to "overcome the efficiency bottlenecks of traditional trial-and-error approaches" and shorten the usual cycles of discovery.

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An anonymous reader quotes a report from Reuters: Chinese startup DeepSeek is developing its own AI chip, according to three people familiar with the matter, a push that could reduce its reliance on Nvidia and Huawei chips, which it has depended on to train and run its globally popular models. The chip is designed for inference -- the stage of AI computing in which a trained model generates responses for users -- rather than for training new models, the sources said. If successful, DeepSeek's expansion into semiconductor development would mark a major strategic shift for a company widely hailed in China as the country's AI champion, potentially adding to challenges faced by Chinese tech giant Huawei.

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Chinese AI systems "have matched the performance of Anthropic's powerful model Mythos in some cybersecurity scenarios," reports the Wall Street Journal. They call it "a development poised to reset the global tech race and pressure the White House in its overhaul of U.S. AI policy." Security researchers said that a new AI model, released this month by China's Zhipu AI, also known as Z.ai, can match the latest U.S. models when it comes to finding security bugs, although it still lags behind Anthropic's and OpenAI's products in other tasks. Overall, the capability gap between top U.S. models and those built by Chinese companies has narrowed significantly, and use of Chinese AI systems has surged as businesses seek to rein in runaway costs. A host of companies, including Microsoft, are weighing how they can offer Chinese models on their platforms, a development that is set to alter the balance of power among tech companies... Unlike models from Anthropic or OpenAI, Zhipu's GLM-5.2 is open-weight. That means it can be downloaded and run on hardware operated by anybody and can be modified and used without supervision. Open-weight models are ideal for users who want unfettered access to systems they control, but they are also ideal for hackers, who can run them in the shadows. GLM-5.2 has ranked as one of the 10 most-used AI models, according to data from OpenRouter, a company that provides access to more than 400 AI models. In some benchmarking tests, according to the cybersecurity company Semgrep, GLM-5.2 bested Anthropic's Claude Opus 4.8 model, which was released in May. When given further instructions, Opus 4.8 and GLM-5.2 can match Mythos in bug-finding ability, according to researchers... "Banning Fable while selling chips China needs to develop its own version is a gift to China," said Saif Khan, a distinguished technology fellow at the Institute for Progress think tank who worked on export restrictions in the Biden administration. The U.S. needs to maximize the use of Mythos and comparable models to harden its cyber defenses while it can, he added. Among the Mythos 5 and Fable 5 users that had lost access before Friday's decision to restore Mythos 5 access for some trusted entities: the National Security Agency, which had been testing the tools and found them impressive in trials, according to people familiar with the matter... "It is incentivizing companies across the globe to use cheaper but very capable Chinese open-weight models, while at the same time undermining the U.S. AI industry," said Niels Provos, a researcher who led security teams at Google and Stripe. "I don't understand it." Thanks to long-time Slashdot reader schwit1 for sharing the article.

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Longtime Slashdot reader schwit1 shares a report from Autoblog: For years, the Chinese auto industry has employed a hostile price war to kneecap global competitors. Armed with massive state subsidies, cheap raw materials, and an aggressive "scale-first" business model, Chinese automakers flooded the market with electric vehicles priced so low that legacy manufacturers stood no chance to compete. How did they do it? Simple, they couldn't. They did it anyway. Reports from CarNewsChina show that Chinese automakers have been selling vehicles at a loss until a recent law passed by the Chinese government banned below-cost sales of new vehicles. During the ongoing sales slump in China caused by rolled-back subsidies and direct government intervention banning below-cost sales, the truth behind the rapid expansion of the Chinese auto industry has been exposed. "By the first quarter of 2026, China captured 32 percent of the global auto market, with its New Energy Vehicles (NEVs) controlling an incredible 61 percent of global share," the report notes. Yet that dominance has come at a steep cost: throughout 2025, "the profit margin for China's auto industry plunged to 4.4 percent and dropped further to a historic low of 3.2 percent in early 2026." "Gross profit, not net profit, per vehicle, plummeted to a mere $2,000. We can expect the net figure to be loss-making." Autoblog adds: "Data shows over 70 percent of Chinese car sales were loss-making. This left more than half of the country's auto industry in the red. Great Wall Motor (GWM) even saw net profits drop 17 percent despite steady revenue growth." China's EV price war has now hit a wall. New regulations are discouraging below-cost sales, rising material costs are forcing automakers to cut discounts and raise prices, and reduced tax incentives are weakening domestic demand. To sustain growth, manufacturers are increasingly turning to exports.

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An anonymous reader quotes a report from Bloomberg: While traditional hotspots in the region such as Thailand, South Korea and Malaysia focus on services such as cosmetic surgery, IVF or physicals, China is trying to differentiate itself by providing some of the world's most advanced procedures. "There are two reasons why a patient travels for medical treatments: availability of advanced treatments and price," said Victor Cao, operations director of Joyful Medical, an agency in Shanghai that connects international patients to advanced cancer therapies in China. "Chinese people used to travel overseas for treatments that were not available at home, but now tables have turned." As expanding visa-free policies eased travel in the past year or so, videos are proliferating on social media of foreigners recounting their positive experiences of treatment in China, usually for consumer procedures like acupuncture and tooth scaling. But one treatment that's more quietly gaining traction is CAR-T, among the most promising breakthroughs in oncology but unavailable in most countries, or extremely costly. The process sees doctors collect T cells from the patient's blood then modify them in a lab to produce a special receptor, CAR, that can bind to a specific protein on cancer cells. These engineered cells are then multiplied into large numbers and infused back into the patient. The CAR-T cells seek out cancer cells carrying the target antigen and kill them. In the US, one single infusion can cost between $300,000 to $475,000, according to the American Cancer Society. In China, the equivalent costs about $150,000 to $180,000, and it could get even cheaper -- its drug regulator recently accepted a marketing application for a therapy aimed to be priced below 300,000 yuan ($44,000). China's medical tourism market remains in its infancy. Lecheng International Medical Tourism Pilot Zone in Hainan, which was designated as the country's only special medical zone in 2013, treated just a few thousand foreign medical tourists last year, compared to hundreds of thousands of domestic patients who visited. There, patients can access advanced drugs, devices, and therapies approved in other countries but not elsewhere in mainland China. But China is pushing to upgrade its economy and reshape its global image from just a manufacturing hub into a provider of high-value services, and demand for medical tourism is surging. Globally, the market is estimated at around $34 billion and expected to reach $126 billion by 2035, according to San Francisco-based Grand View Research. Meanwhile, China's sector is projected to grow from $1.3 billion in 2025 to $3.4 billion by 2035, according to New York-based firm Market Research Future. "The patients chose China for something they can't get at home," said Shi Haoying, the group's founder and chief executive officer. "I think the growing attention to medical tourism to China is the inevitable result of long-term accumulation and development in many areas, such as growing medical technologies, quality of service and cost-effectiveness." Jeroen Groenewegen-Lau, an analyst at the Mercator Institute for China Studies, added: "Many new treatments, including in very advanced areas, are made in China but too advanced for the state of its healthcare system and the ability of its patients to pay for these things. It's in China's interest to integrate into the international system."

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An anonymous reader quotes a report from Politico: China was likely behind an online influence operation to sway U.S. perceptions of artificial intelligence technology and reshape the debate in Washington around the infrastructure needed to support it, according to research from OpenAI published Wednesday. OpenAI said it caught the influence campaign because China-backed operatives were using ChatGPT to create content for the social media campaign. [...] OpenAI's researchers identified two clusters of ChatGPT users "likely originating from China" who used the AI chatbot to generate social media content "in support of apparent covert influence operations" promoting certain narratives about AI. This includes claims that data center build-outs are raising electricity costs for the average American family and that President Donald Trump has weaponized tariffs to keep the U.S. ahead in the global tech race. These accounts have since been banned, the report said. One cluster of users asked ChatGPT to generate images and comments pushing these narratives. These comments were then posted on social media by "batches of accounts" posing as Americans, [said Ben Nimmo, principal investigator of intelligence and investigations at OpenAI]. Another cluster identified by researchers used AI to generate social media content criticizing the Trump administration's tariffs as an attempt to "dominate technological competition." Prompts used for this campaign were submitted in Simplified Chinese and asked that AI-generated content not include Chinese President Xi Jinping and focus solely on Trump -- a possible tell that China was behind the operation, according to the report. Nimmo said that the influence campaign amplified existing public backlash in the U.S. against the creation of new AI data centers, which has resulted in dozens of proposed moratoriums at the local, state and national level. "Neither campaign appears to have gained much authentic engagement," Nimmo said. "They're important for what they reveal about the intentions of influence operators from China, and the narratives they're testing and seeking to amplify, but not for the impact."

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The Pentagon has added Alibaba, BYD, Baidu, Unitree, and other Chinese companies to its list of firms it says support China's military, barring them from U.S. defense contracts. The companies and China's embassy deny the allegations. The Associated Press reports: Created in 2021 by a congressional mandate, the list (PDF) seeks to identify Chinese companies that the Pentagon considers to have links to the Chinese military -- not only those directly controlled by the Chinese military and security forces but also those contributing to the country's defense industrial base. When updating the list last year, the Pentagon said the Chinese military sought to acquire advanced technologies and expertise developed by Chinese companies, universities and research programs that "appear to be civilian entities." The Chinese Embassy on Monday accused the U.S. of "overstretching the concept of national security and making discriminatory lists to go after Chinese companies." It said Chinese companies observe the laws and regulations of the countries where they do business. "The U.S. should stop its wrong practice and create a fair, just and non-discriminatory environment for Chinese companies," the embassy said in a statement. [...] The Chinese Embassy on Monday accused the U.S. of "overstretching the concept of national security and making discriminatory lists to go after Chinese companies." It said Chinese companies observe the laws and regulations of the countries where they do business. "The U.S. should stop its wrong practice and create a fair, just and non-discriminatory environment for Chinese companies," the embassy said in a statement.

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The U.S. and its Five Eyes intelligence partners issued a joint warning (PDF) that Chinese military intelligence services are using LinkedIn and other professional networking sites to recruit people with access to government, military, foreign policy, or sensitive economic information. "These actors use an aggressive online recruitment strategy whereby intelligence officers or their affiliates pose as employees of private consultancies, think tanks or human resources firms, and place online job advertisements for foreign policy and defense analysts," the agencies said Wednesday. "China's military intelligence services ultimately seek to acquire privileged military, political and economic intelligence that can provide China with a strategic and tactical advantage over the Five Eyes." Bloomberg reports: China was targeting Five Eyes nationals with security clearance, particularly those working in foreign affairs, security and intelligence, and military personnel including people stationed in the Asia-Pacific region, it said. People with more peripheral access to government information, such as academics, journalists and think tank employees, were also being approached. The Chinese embassy in the UK strongly condemned the accusations, calling the allegation of Chinese espionage threats "entirely fabricated" and "malicious slander." The "Five Eyes" members have "engaged in unscrupulous espionage and intelligence-gathering activities around the globe. Their activities are the real threat to peace-loving countries," the embassy said in a statement Thursday. [...] According to the agencies, Chinese spies have commissioned reports to be written by those they've approached, paying them anywhere from a few hundred to several thousand dollars, with payments sometimes made in cryptocurrency. "Military members may be asked about their roles and unit activities, home base or naval vessel," the notice said. "Five Eyes agencies have identified individuals who have undertaken these activities, leading to criminal prosecutions, job losses, and security-clearance revocation," it warned.

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NASA Administrator Jared Isaacman says he expects China to fly taikonauts around the moon in 2027, "ratcheting up perceptions of a space race between China and the United States," reports SpaceNews. He is using that prospect to argue for a revamped Artemis strategy and an accelerated path toward a U.S. lunar return. From the report: "The next time the world tunes in to watch astronauts fly around the moon, which will likely be sometime in 2027, they will be taikonauts, and America will no longer be the exclusive power to send humans into the lunar environment," he said. While Isaacman has frequently discussed a race with China to be the next to land humans on the moon, this was one of the first times he predicted a 2027 Chinese crewed circumlunar mission. He repeated the comments later in the day at an industry reception. China has not publicly announced plans for such a mission, which, as Isaacman described it, would likely be similar to NASA's Artemis 2 mission in April. There have been rumors of a mission along those lines, though, and an expectation of a roadmap of missions leading to a Chinese crewed landing by the end of the decade. So far, all the crewed missions to fly around, orbit or land on the moon have been flown by NASA: nine Apollo missions from 1968 to 1972 and Artemis 2. All the astronauts on those missions have been Americans except for Canadian Space Agency astronaut Jeremy Hansen on Artemis 2. Isaacman has used the threat that China could land astronauts on the moon before NASA returns there as a rationale for revamping the Artemis lunar exploration program. In February, he announced that Artemis 3, which was to be a lunar landing attempt in 2028, will instead be a test flight in low Earth orbit in 2027, followed by a landing on Artemis 4 in 2028. In March, he changed other elements of Artemis at the agency's Ignition event, including effectively canceling the lunar Gateway to focus resources instead on a lunar base, while calling for a much higher cadence of robotic lander missions.

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