Baidu, the Chinese tech giant, on Friday unveiled its latest AI models, ERNIE X1 Turbo and ERNIE 4.5 Turbo. These AI model are more innovative, faster, and cost-effective, building on the successes of their predecessors.

Baidu Unveils ERNIE X1 Turbo and 4.5 Turbo, 75% Cheaper Than DeepSeek R1

Baidu has also announced plans to integrate ERNIE 4.5 and ERNIE X1 into its broader ecosystem, including Baidu Search and the Wenxiaoyan app.

Baidu delivers new LLMs ERNIE 4.5 and ERNIE X1 undercutting DeepSeek, OpenAI on cost - but they're not open source (yet)

Chinese tech giant Baidu launched two new AI models on Sunday: ERNIE 4.5, a native multimodal model, and ERNIE X1, a deep-thinking reasoning model.

China’s Baidu Launches Two New AI Models, Rivals DeepSeek R1 at Half the Price

Baidu has introduced two new AI models, including ERNIE X1, which it claims matches DeepSeek R1’s performance at half the cost.

China’s Baidu launches two new AI models as industry competition heats up

Baidu is eyeing to utilise YY Live’s streaming capability to compete against the likes of ByteDance.

Baidu Completes Acquisition of JOYY’s YY Live Video Streaming Service for $2.1 Billion

Baidu said on Tuesday it has acquired social media firm JOYY's live-streaming business in mainland China for about $2.1 billion, as the search engine giant looks to diversify its revenue stream. U.S.-listed shares of JOYY jumped 6%, while Baidu was up about 1% in premarket trading. Baidu had proposed to acquire JOYY's live-streaming business called as YY Live in 2020 for $3.6 billion.

Baidu acquires JOYY's live-streaming business in China for $2.1 billion

AI-generated content now appears in 22% of search result pages, with efforts focused on quality and relevance,” Li said during the earnings call.

Baidu to Open Source AI Models After DeepSeek’s Success

Yahoo Finance host Seana Smith tracks several of the day's biggest stocks in this Market Minute: Nvidia (NVDA) leads gains among Magnificent Seven stocks, while Meta Platforms (META) shares could be on track to snap their 20-day winning streak. Baidu (BIDU) stock falls after reporting advertising ...

Nvidia gains, Baidu earnings, Walgreens: Market Minute

The rise of China's DeepSeek AI model is boosting Chinese tech firms including Alibaba, Baidu, and Xiaomi.

Why China's tech market is back in business

Chinese internet search giant Baidu will make its advanced AI chatbot services free, as competition heats up among global developers following the surging popularity of startup DeepSeek’s models.

AI giants Baidu, OpenAI offer their chatbots for free in response to DeepSeek’s advance

Baidu

baidu

Nvidia Promises 40x Hopper Performance in Blackwell Unveil at GTC 2025

Korea Line to open 6 crypto exchanges; Bithumb taxed $28mn; Singapore says ICO not a security To get the latest alerts on China and Asia Cryptocurrency happenings, subscribe to our newsletter below. It’ll be a quick, hassle-free update to your inbox daily. Top News is looking to open 6 crypto exchanges. Korea Line http://bit.ly/2M6l7xP with USD $28 mn. Korea taxes Bithumb http://bit.ly/2McxRD0 : ICO by nature is not a security. **Chinese Media** Singapore Monetary Authority Google translated link establishes WaltonChain Institute, following Ripple. South Korean Government https://prn.to/2MaxaKt Coin and Exchange News is now available on VeChainThor Testnet Github. confirmed issuing its first official rejection of an exchange. Japan http://bit.ly/2sFXnZw Startup Advisory Group are cooperating. ICON and Deloitte http://bit.ly/2MbKOxc Business News on India’s surging cryptocurrency crime. Quartz’s take http://bit.ly/2sG09ho launched its first blockchain native App. It’s about the universe and it’s quite pretty. Baidu http://bit.ly/2sHXIL3 has put their Reddit AMA in medium. BinanceLabs http://bit.ly/2sC9Q0f raises US$14 bn. Ant Financial https://s.nikkei.com/2sH1ioU Looking for our Asia-based company calendar? We’ve moved it to our website!

Today’s Crypto News on Asia — June 8th

The Chinese tech user base has grown at an astronomical pace over the past decade. . In addition to growing at a neck-breaking pace, the industry has been becoming increasingly transparent to western audiences. In 2016, online spending in China was greater than that of the US and UK combined Currently, the Chinese tech landscape is dominated by 3 kingpins: (Market Cap $374B), Tencent ($327B), and Baidu ($64B). Alibaba The largest of the trio is Alibaba, led by Jack Ma. Starting off initially as a B2B (business-to-business) website for connecting manufacturers and potential buyers outside of , Alibaba has transformed into the second-largest e-commerce company in the world by revenue, behind Amazon.com. For more on Alibaba, see published in . China my article HackerNoon The next largest is Tencent, which also tends to be the lesser known of the trio in the US. The company is primarily mobile-focused, with popular apps for social media and gaming, with investments in just about every other aspect of tech. Tencent’s owns WeChat, one of the largest messaging apps in the world, with over 938M monthly users. But Tencent is also the largest gaming company in the world, with its Honor of Kings being the most downloaded app in the world for Q1 of 2017. . Tencent recently announced that it will be making its most successful game (Honor of Kings) available in the US and Europe in the fall The smallest of the trio is Baidu, commonly referred to as “the Google of China” in Western media. Baidu owns the most popular search engine in China, but also has operations like “Baidu Baike” (a Chinese Wikipedia) and Baidu Music. These companies don’t operate in strict silos; they’ve all expanded into most of the technology sub-sectors. See the below graphic from The Boston Consulting Group: Source: What China Reveals About the Future of Shopping . In the last two years, . Partnering with one of the Chinese giants is almost a necessity for Western tech companies who want to penetrate the Chinese market. And their investments do not stop at China’s borders these companies (and their follower JD.com) invested $5.6 billion into US tech companies In early 2016, and in 2014, they became an investor in Lyft. Alibaba has been investing heavily into Augmented Reality startups across the globe: they have equity in , , and even the mysterious (in the form of a ~$800M investment). See: . Alibaba became the 4th largest owner of Groupon Lumus WayRay Magic Leap Top Funded AR Startups in 2017 Tencent too is growing outside of the Great Wall. The company was an early investor in Snapchat and bought Supercell, the makers of the popular mobile game Clash of Clans, for a whopping $8.6 billion. Tencent even owns Riot Games, the makers of the competitive game League of Legends, which had ~67M monthly active users as of 2014 .They’ve also invested $1.2 billion into Flipkart and $1.8 billion into Tesla. Source: The Rise of China’s Tech Firms in Five Charts Even their investments into individual companies are intertwined. All of the aforementioned companies have investments in Didi Chuxing, the Uber of China. One can see how none of these companies are comfortable simply staying inside of their specialty; much like their US counterparts, they’ve each invested heavily in other aspects of tech. The Chinese tech industry has been largely ignored in US financial/tech media, but as the companies expand and grow, the days of this trend are numbered. Further Reading: China’s Internet Giants Go Global Chinacast: Alibaba The Rise of China’s Tech Firms in Five Charts Meet the 8 Chinese Tech Giants You Need to Know The Next Disney Will Come from China and Its Name Is Tencent Full Disclosure: I am employed by Amazon.com and the viewpoints in this article are entirely my own.

The Chinese Tech Trio And Their Holdings

The State of The Market — February 15, 2019 : $3,640.40 (+0.69%) : $123.21 (+0.91%) : $0.303646 (+0.20%) BTC ETH XRP After a slow decline in the last couple of days, the crypto market posted small gains today. While Bitcoin is still struggling to move past $3,650, the total market cap added nearly $1.5 Billion in the last 24 hours. All of the top 10 cryptocurrencies are in green right now, posting single-digit gains. A clear trend could emerge over the weekend when volumes are low. Meanwhile, Ethereum managed to defend its support at $100 this week, and Ripple has bounced back above $0.30. In other news, as it continues to evolve its platform. The StellarX team says purpose behind the acquisition is to allow for the StellarX platform to fulfill its potential as Coinsquare offers regulatory experience and a full scope plan to build around the platform, as well as an established network in the United States, Europe and Canada. Also, . At the moment Bitcoin, Tether, Ethereum and Litecoin can be traded with Thai baht on the move is designed to recruit merchants. OKEx also announced that it had hosted a conference in Bangkok to “bring industry leaders together to exchange ideas on blockchain technology.” Coinsquare, one of the largest cryptocurrency exchanges in Canada, has announced the acquisition of the StellarX decentralized exchange OKEx now offers Thai baht-to-crypto trading on its client-to-client (C2C) platform It will be used to settle a small portion of its transactions between clients of its wholesale payments business in real time. The American bank moves over $6 Trillion every day as a part of that business. JP Morgan claims it could also be used to provide instant settlement for securities issuances and even replace the US Dollar held internationally by subsidiaries of major corporations using JPMorgan’s treasury services. Eventually, it could even be used for mobile payments. JP Morgan’s CEO Jamie Dimon is not a fan of cryptocurrencies. On multiple instances, he has criticized Bitcoin and called it a fraud. However, that is not stopping his bank from releasing its own cryptocurrency. ( ) 1) American bank JP Morgan is set to release a digital currency called JPM Coin. Read More , an operating system for decentralized application (Dapp) development. It is a product of Baidu’s cloud computing unit, Baidu cloud. BBE is an open source, commercialized platform, to simplify Dapp development. It provides developers with services such as multi-chain and middle-tier frameworks, as well as smart contract and DApp templates. Additionally, it comes with enhanced data security and privacy protection. BBE will be compatible with Baidu’s existing cloud services. ( ) 2) Chinese search engine giant Baidu has announced the launch of its Baidu Blockchain Engine (BBE) Read More Grayscale oversees crypto investment trusts that give investors exposure to some of the leading cryptocurrencies, including Bitcoin, Ethereum, and XRP. Of the total amount raised last year, two-thirds of the funds, or $237 million, originated from institutional investors in what turned out to be one of Grayscale’s best calendar years ever. Nonetheless, inflows slowed in the final months of 2018, as evidenced by $30.1 million coming in versus $95.4 million in the year-ago period. ( ) 3) Digital currency investment firm Grayscale published its financial report for 2018, over which time they attracted nearly $360 million to their coffers. Read More Subscribe to the Berminal Brief Newsletter Download Berminal App for Free The Berminal Website Berminal Official Telegram Berminal Twitter

JP Morgan Launches Its Own Digital Currency, And China’s Baidu Reveals Blockchain OS

Regulation is not a sexy topic, unless we are discussing crypto regulations. In the last few weeks, many countries have voiced their unique ways to welcome ( or not so much) the crypto community. Korea has decided to as banks, while to be traded and exchanges to be opened. Even the SEC made remarks on BTC and ETH not being securities (horay!). China certainly has voiced their opinions too, this time through their permitting of e-commerce company JD regulate crypto exchanges Thailand has permitted certain cryptocurrencies to build a blockchain-backed token. This is particularly important, for 2 reasons. For one, we now know that China doesn’t just care about blockchain, it cares about tokens too. Past announcements only suggested the former, such as President Xi’s recent speech and the country’s unfavorable stance towards ICOs and crypto exchanges. But here we are, with an asset-backed-security token being issued by JD in collaboration with Huatai Securities, a state-owned investment bank. Secondly, and more importantly, the announcement divulges a glimpse of China’s crypto strategy. Tokens can be issued, but only if it’s issued by the right party. touting the benefits of blockchain technology, TL:DR: to really play and win the crypto game in China as an investor, you should actually be investing and buying into a basket of the top established tech companies such as Tencent, Alibaba, Baidu and JD, instead of the Chinese tokens that are currently ranked in coinmarketcap.com . Very few of the current top market cap tokens can succeed in China (but that doesn’t mean they won’t succeed.) Some more details about the news per Coindesk: “According to a from the Securities Times, an outlet of the China Securities Regulatory Commission, JD Finance established the trial in partnership with Huatai Securities, a brokerage firm that will underwrite the issuance, as well as Xingye Bank, which will act as a trust. JD Finance aims to issue the securities using a consortium blockchain that will see each party act as a node, recording the transactions in a transparent manner. The experiment sets out to ascertain if the blockchain can meet the demands of the various parties involved in the asset securitization process, such as issuers, underwriters and buyers.” report Upon first glance, this partnership is quite unique. First, a Chinese bank is collaborating with a Chinese tech company to jointly develop a blockchain product. This is equivalent to the US if Amazon worked together with Morgan Stanley to develop a blockchain product. That is unheard of, and unlikely to happen given the sheer number of legal issues that would be involved. However, in China, this is not out of the ordinary. In China, for example, tech companies can take a significant ownership of banks through equity. Mr. Moritz shared a great data point in the aforementioned Financial Times article about how Tencent and Alibaba’s investments totaled in over a thousand companies. Many of those investments also include public-listed companies such as banks and state owned enterprises (or commonly known as SOEs). Tencent, for example, (China International Capital Corporation) last year, the first investment bank in China born out of a joint venture between China Construction Bank and Morgan Stanley. Such large type of stake in a company naturally fosters closer relationship and collaboration. And what to better collaborate on than blockchain? acquired 5% of CICC Now, I don’t believe JD owns significant or any equity in Huatai Securities, but with this collaboration announcement, I promise you that it won’t be the last. Other new token creations between tech companies and banks may already be in the works. Note: You may ask, why is this important? Now in the US, we have a situation where the finance companies are trying to invest and build out their technology platform and possibly crypto trading I.e Goldman Sachs and JP Morgan, and tech companies like Coinbase are fighting daily over legal battles and clearing through gray areas with the SEC. And then you have an alternative situation in China, where the tech and finance companies are working together to build new products with the support of regulators. Who do you think is going to move faster in getting the cryptocurrency recognized by the masses, US or China? I believe each of these country’s approaches will have its benefits and flaws, opportunities and problems. But the fact that China’s regulators permit such possibility of collaboration is worth learning from. Now, the Chinese securities commission granted JD the right to issue a financial token in collaboration with Huatai. They did not grant this opportunity to any of the top market cap crypto companies such as NEO, EOS nor TRON. is primarily an . Despite the company’s recent , it’s not a pure, crypto-focused company like the others that I’ve mentioned. Note a tech company has been blessed with issuing the first blockchain token, after almost a year since the country banned cryptocurrency trading and ICOs. Even the recent Ministry of Industry & Information Technology’s (MIIT) crypto ranking did not give away this clue. Despite of Ethereum and NEO in its recent technology evaluation, it still opted to let a traditional tech company to issue tokens. JD.com e-commerce company with multiple product lines including food delivery developments on blockchain MIIT’s recent high ranks I believe JD was chosen because the Chinese regulators already had a close working relationships with them, along with Tencent, Alibaba and Baidu. When it comes to working with a “foreign” technology like blockchain, the regulators trust the existing technology leaders to test out these products more than the new kids on the block. A China expert tweeted once- “the purpose of a blockchain is to decentralize, which goes completely against what the Chinese .” Indeed, decentralization undermines the , and that’s exactly the opposite of what China under . Regulators will not support companies that attempt to decentralize the party’s power or put power into people’s hands in ways they don’t them want to. So Crypto companies that have touted decentralization, even if they were Chinese and may arguably have a leg up to non-Chinese Crypto companies when doing business in China, are at direct opposition with the regulators’ primary objectives. This is something Binance knew early on, and subsequently established their businesses elsewhere (they also didn’t have a choice, but they were also strategic and established a long-term relationship with Malta). Meanwhile, with it’s main objectives to the Chinese government continued to work towards transforming China with the help of its technology companies. There is a reason why Tencent and Alibaba’s products such as WeChat and Alipay are so ingrained into people’s lives in China (if you don’t know what those apps are, you need to. Better yet, go to Beijing for your next vacation and experience first hand). These tech companies had the blessings of the federal and local government, which permitted them to build amazing tools for their citizens, with recent example such as the and ”. Nonetheless, this is also the same reason why all the and there is no privacy on these platforms. The exact reason that tech companies have collaborated so closely with the government is why these same tech companies will get to first try new shiny toys. When it comes to new token issuance, the government is going to default to working with the technology companies they have worked with before than working with the newcomers in the industry. government wants Central Party President Xi is trying to do become the world’s dominant power, mobile “metro cards” mobile “passport WeChat messages are monitored The Chinese government also has a habit of fostering healthy competition between the large tech conglomerates, so not just one has all the leverage. To me, the signs of allowing JD to work with Huatai means that not soon after we’ll see Tencent or Alibaba announcing another token. All of this bodes well for the tech companies as well as China’s crypto space. If the initial blockchain+token experiments goes well, these technology companies will potentially take over as the backbone of China’s finance infrastructure. It’ll be a win for regulators as they then would have better control and monitor of banks and all of the country’s money supply. It’ll also be a win for the tech companies, as they will be entrusted with more innovation and potential future businesses. Note: Now, once the value of tokens is validated, I believe the Chinese government may feel more comfortable to allow companies like NEO to build private chains for businesses and permit it to flourish. Nonetheless, for crypto companies that are based in China or founded by Chinese teams, but don’t have the support of the government will either have try to find a business case elsewhere or be absorbed by the large tech companies who are looking for talent. This is why, for a long time, I’m going to be very bullish on the future of the top tech companies in China — Tencent, , JD and Baidu. I don’t believe that one can just do traditional financial analysis and derive these companys’ valuations by forecasting each of their products’ line revenues. For these companies, their products are not just what you may see on the roadmap, or what’s already in their apps. Instead, their products are influenced and created by whatever the Chinese government wants them to build and whichever technological direction the Chinese government wants to turn to. So, the possibilities are limitless. And for now, it’s blockchain. Alibaba

China’s True Crypto Giants- Tencent, Baidu, Alibaba and JD

INSANE One-click MCP AI Agent Hits the Market 

China is rapidly scaling AI dominance through massive investment, government-backed innovation, and aggressive competition. But can it sustain its AI momentum? China is rapidly scaling AI dominance through massive investment, government-backed innovation, and aggressive competition. But can it sustain its AI momentum? The global artificial intelligence (AI) race isn’t just about innovation anymore—it’s a battle for dominance in efficiency, affordability, and accessibility. To take the lead, China is making serious moves. The country now aims to lead the AI revolution, and recent developments like DeepSeek R1 suggest it’s closing in on that goal. With billions pouring into AI infrastructure and regulations designed to fast-track innovation, China is set to position itself as anAI powerhouse by 2030. AI powerhouse by 2030 AI powerhouse by 2030 In 2024 alone, its private sector pumped $3.15 billion into generative AI—a staggering 500% jump from the previous year. According to a report by Bain & Company, AI is expected to contribute $600 billion annually to China’s economy by the end of the decade, the impact reaches far beyond tech. $3.15 billion into generative AI $3.15 billion into generative AI report by Bain & Company report by Bain & Company However, it's not only the country’s tech giants that drive its AI momentum—startups are shaking up the race. While industry leaders like Baidu and Alibaba spearhead large language model (LLM) innovation, emerging players like ShengShu are proving to be serious contenders against OpenAI and Meta. China’s AI Arsenal: Formidable Competitors in the Global AI Arms Race Alibaba’s latest LLM, Qwen 2.5, is making waves with its superior text, image, and audio processing capabilities. Supporting 29 languages and handling up to 128,000 tokens in a single conversation, it far exceeds the context window of previous models. The company is also teaming up with Apple to support iPhone AI services in China—a strategic move that could help Apple regain ground as it battles slipping smartphone sales in its key market. While Apple’s devices outside China rely on a blend of its own Apple Intelligence and OpenAI’s ChatGPT, it remains unclear whether the Alibaba partnership will follow a similar path. Meanwhile, Baidu is gearing up to launch Ernie 5 in late 2025, a multimodal model designed to process and generate text, video, images, and audio. Ernie 5 in late 2025 Ernie 5 in late 2025 China’s also making waves in video AI, a key battleground for U.S. tech giants. One standout player is ShengShu Technology, rivaling OpenAI’s Sora with its Vidu 2.0 model within the next six months. Backed by Baidu Ventures, Vidu 2.0 can generate AI-driven videos at just $0.0375 per second—an astonishing 52% lower than the industry average. Vidu’s one-click prompt templates allow users to easily create complex actions, props, and animations with a single command. So why is China’s AI sector suddenly booming? A big part of China’s success comes from its universities and academic institutions, where top researchers often stay in academia rather than jumping to big tech—a stark contrast to their Western counterparts, where talent is quickly snapped up by companies. “The U.S. is currently underinvesting in its academic ecosystem,” Yury Lifshits, founder and CEO of AI video tool Nim, told me. “Much of the progress in AI and technology has been driven by a strong academic foundation and an open-source culture that fosters collaboration. Innovation cannot rely solely on corporate efforts.” The country has implemented a research evaluation system that favors publications indexed by the Science Citation Index (SCI). SCI papers are mandatory for doctoral degrees, faculty hiring and promotion, funding applications and university rankings. Monetary incentives and performance bonuses are used to encourage Chinese scholars to publish SCI papers. Some universities offer cash-per-publication policies, leading to additional revenues for researchers. additional revenues additional revenues Rather than chasing AI for the sake of innovation, China is focused on building tech that’s practical and widely useful for particular use cases—one of the key reasons behind its rapid advancement. Moreover, the rise of open source culture within its tech startup ecosystem has also led to a substantial new flurry of ideas, especially for AI. There’s also a strong business and economic incentive for Chinese companies to align with government goals. The government employs various policy incentives such as grants, tax breaks and preferential treatment for companies that align with its strategic goals. “The government sets long-term targets—where they want to be in five or ten years—but companies have plenty of freedom in how they get there. That creates a landscape where multiple approaches are explored at once, even fostering competition within companies to hit the broader objective,” Itamar Friedman, CEO and co-founder of Qodo, told me. Friedman, a former Director of Machine Vision at Alibaba, believes this structured yet flexible approach helps prevent wasteful over-investment. He noted that China’s AI push isn’t a sudden, unsustainable boom—it’s the result of a long-term strategy that dates back to 2016 when the country ramped up AI investment after DeepMind’s AlphaGo victory. Can the West and Others Keep Up with China’s AI Expansion? For years, the U.S. has seemingly led the AI race, largely driven by innovations from Silicon Valley giants including OpenAI, Google DeepMind and Meta. Europe, on the other hand, though slower to build major AI companies, has played a key role in shaping AI ethics and regulation. But China’s AI ecosystem operates differently. “Chinese AI firms have unparalleled access to vast amounts of data, often collected through government-backed initiatives, which enables them to develop more accurate and effective AI models,” said Serena H. Huang, AI Advisor at Fortune 100 companies and a former big tech analytics leader. “They have been able to leverage their country's large population and mobile-first economy to develop AI solutions that are highly scalable and adaptable to real-world scenarios.” With vast data access and a culture of rapid deployment, China may soon surpass the West in certain areas of tech innovation. The U.S. government has started to recognize the heat of the global AI arms race. The Trump administration recently took steps to slow China’s progress, imposing export controls on advanced semiconductors and AI chips to curb the country’s high-performance AI computing ambitions. While such measures are aimed at protecting national interests and controlling AI’s path forward, they also hinder global innovation. “It’s possible that China will find alternative ways to boost its domestic production, accelerating innovation on its own terms,” says Friedman. “While sanctions may slow progress in the short term, they will ultimately push China to develop even more robust and independent capabilities in the chip industry.” China’s AI momentum alone won’t guarantee success. But one thing is certain: whether the West can keep pace or China stumbles under new constraints will define the next chapter of global AI innovation. “Western companies and governments should invest in AI research and development, attract and retain top talent, and prioritize ethical considerations in the development and deployment of AI technologies,” added Huang. “The global AI landscape is rapidly evolving, and China's influence is only just beginning to be realized.”

China’s AI Playbook: Reshaping Strategy to Outpace the West

On February 20, 2025, luxury car manufacturer Mercedes-Benz announced plans to cut production costs by 10% by 2027 in light of expected lower earnings in 2025. This news follows a general downturn in German luxury car manufacturing on a global level. The BMW Group, which includes the Mini and Rolls-Royce brands, announced a global decrease in sales for all of 2024, with Volkswagen’s Porsche announcing a near-25% downturn in sales in both North America and China earlier in 2024. Consumers point to increased Chinese electric vehicle (EV) affordability, increased technology integration, and a decrease in brand reputation as key factors driving their decision-making. This can be especially seen in the growth of Chinese EVs in the German market, which is the EU’s largest market for EVs, and in China, which is a significant source of revenue for German luxury car manufacturers. Electrification and Affordability Driven by a mixture of EU CO₂ emission standards and Germany’s own desire for increased EV usage, Germany has emerged as the EU’s largest market for EV technology, with domestic luxury vehicle manufacturers competing with Chinese EVs for market share. So far, Chinese EVs have been able to make a sizable dent in the German EV market, with nearly 44,000 Chinese EVs being sold in Germany in 2024, comprising 11.5% of the total 381,000 EVs registered last year, with Chinese EVs comprising over 40% of EV import market share in Germany in Q1 2024. Price competition has enabled Chinese-manufactured EVs to dominate not only Germany’s domestic market but also the world’s. Vehicles like Nio’s ET9, set to compete directly with BMW’s 7-series and Audi’s A8, and Xiaomi’s SU7 Ultra, competing with Porsche's Taycan Turbo S, compete directly with German luxury manufacturers at a fraction of the cost. Other Chinese EVs also compete head-to-head with German auto manufacturers, to the point where Chinese-made EVs’ affordability resulted in an EU-led anti-subsidy investigation in late 2023. Price competition has drastically affected German manufacturers, to the point where German auto supplier Bosch, the world’s largest auto supplier, made significant cuts to its workforce in 2024. Consumer preference, driven primarily by cost and affordability, has taken hold of the German domestic market, with a survey from 2024 revealing that almost two-thirds of Germans can now imagine purchasing a car from a Chinese manufacturer. In fact, this number among survey respondents shot up to 80% if the respondent was specifically interested in an EV, highlighting lower prices as a primary consumer motivator for domestic German consumers. Seamless Technology Integration as a Consumer Priority Technology integration in Chinese EVs has become a strong selling point for consumers. China, which has become a major, if not the largest, market for German luxury vehicles, has drawn the ire of Chinese consumers due to its hesitancy to integrate technology into its vehicles. In contrast, Chinese EVs, with features including advanced heads-up displays and information systems, enable a more pleasant driving experience. The utilization of connected Internet of Things (IoT) and cellular technologies to control everything within the vehicle’s purview and extenuating smart devices throughout the home and the workplace have resulted in China’s leadership in global EV manufacturing. These incorporations of software and convenience have been a primary factor that has resulted in a decrease in German automakers’ share of China’s market, controlling just 15% in the present day (compared to 25% just five years ago). In fact, the combined electric market share of all German manufacturers, including Audi, BMW, Mercedes, and Porsche, was a mere five percent in 2024. Chinese EV manufacturers’ strength in technology integration has even resulted in the exportation of these technologies. This was particularly evident in Auto China 2024, which saw the announcement of Japanese car brands integrating Chinese technologies, with agreements between Nissan and Baidu, Toyota and Tencent, and Honda and Huawei dominating the conversation at the show. Loss of Brand Power and Reputation The reputational power, brand, and “made in Germany” tagline have also evolved in recent history. However, recent reports indicate that consumers are indexing less on these factors in favor of electrification, technology integration, and price, resulting in reputational loss for German luxury auto manufacturers. To this extent, German manufacturers’ reputation of complex, industrious, and over-engineered vehicles has resulted in a corresponding backlash against these companies, with many consumers pointing to decreased quality, and subsequently, loss of brand perception. The perceived strength of German-manufactured vehicles and parts has received substantial criticism in recent history, with countless auto enthusiasts on forums such as Reddit, Bimmerpost, and MBWorld discussing the increasing decline of German luxury automobiles. Inversely, the perception and reputation of Chinese EVs have increased dramatically in recent years, with Chinese EVs performing well in many side-by-side comparisons against other electric vehicles, including German luxury cars. This can be seen in the dominance of Chinese EVs around the world, with Chinese EVs comprising over 60% of worldwide EV sales in 2024. Conclusion All in all, consumers are increasingly drawn to Chinese EVs due to their lower prices, advanced technology features, and increasing brand prestige as well as awareness. This shift is particularly noticeable in the share of Chinese EVs in the EU’s largest EV market, Germany, as well as in China, where German luxury auto manufacturers were anticipating as their primary revenue source for the foreseeable future. As a result, Chinese EVs have reshaped the global automobile ecosystem and displaced German luxury car manufacturers. While the legacy prestige of German automobiles and their desirability remains, it is clear that consumers are increasingly drawn to Chinese EVs, particularly given their affordability, technology integrations, and rising luxury features. Image Credit: Matthias Balk (source) On February 20, 2025, luxury car manufacturer Mercedes-Benz announced plans to cut production costs by 10% by 2027 in light of expected lower earnings in 2025. This news follows a general downturn in German luxury car manufacturing on a global level. The BMW Group, which includes the Mini and Rolls-Royce brands, announced a global decrease in sales for all of 2024, with Volkswagen’s Porsche announcing a near-25% downturn in sales in both North America and China earlier in 2024. On February 20, 2025 , luxury car manufacturer Mercedes-Benz announced plans to cut production costs by 10% by 2027 in light of expected lower earnings in 2025. This news follows a general downturn in German luxury car manufacturing on a global level. The BMW Group, which includes the Mini and Rolls-Royce brands, announced a global decrease in sales for all of 2024 , with Volkswagen’s Porsche announcing a near-25% downturn in sales in both North America and China earlier in 2024 . February 20, 2025 February 20, 2025 2024 2024 2024 2024 Consumers point to increased Chinese electric vehicle (EV) affordability, increased technology integration, and a decrease in brand reputation as key factors driving their decision-making. This can be especially seen in the growth of Chinese EVs in the German market, which is the EU’s largest market for EVs, and in China, which is a significant source of revenue for German luxury car manufacturers. Consumers point to increased Chinese electric vehicle (EV) affordability, increased technology integration, and a decrease in brand reputation as key factors driving their decision-making. This can be especially seen in the growth of Chinese EVs in the German market, which is the EU’s largest market for EVs, and in China, which is a significant source of revenue for German luxury car manufacturers. Electrification and Affordability Electrification and Affordability Driven by a mixture of EU CO₂ emission standards and Germany’s own desire for increased EV usage, Germany has emerged as the EU’s largest market for EV technology, with domestic luxury vehicle manufacturers competing with Chinese EVs for market share. So far, Chinese EVs have been able to make a sizable dent in the German EV market, with nearly 44,000 Chinese EVs being sold in Germany in 2024, comprising 11.5% of the total 381,000 EVs registered last year, with Chinese EVs comprising over 40% of EV import market share in Germany in Q1 2024 . EU CO₂ emission standards EU CO₂ emission standards desire desire emerged emerged 44,000 44,000 381,000 381,000 Q1 2024 Q1 2024 Price competition has enabled Chinese-manufactured EVs to dominate not only Germany’s domestic market but also the world’s. Vehicles like Nio’s ET9, set to compete directly with BMW’s 7-series and Audi’s A8, and Xiaomi’s SU7 Ultra, competing with Porsche's Taycan Turbo S, compete directly with German luxury manufacturers at a fraction of the cost. compete compete competing competing Other Chinese EVs also compete head-to-head with German auto manufacturers, to the point where Chinese-made EVs’ affordability resulted in an EU-led anti-subsidy investigation in late 2023 . Price competition has drastically affected German manufacturers, to the point where late 2023 late 2023 German auto supplier Bosch, the world’s largest auto supplier, made significant cuts to its workforce in 2024 . 2024 2024 Consumer preference, driven primarily by cost and affordability, has taken hold of the German domestic market, with a survey from 2024 revealing that almost two-thirds of Germans can now imagine purchasing a car from a Chinese manufacturer. In fact, this number among survey respondents shot up to 80% if the respondent was specifically interested in an EV, highlighting lower prices as a primary consumer motivator for domestic German consumers. 2024 2024 Seamless Technology Integration as a Consumer Priority Seamless Technology Integration as a Consumer Priority Technology integration in Chinese EVs has become a strong selling point for consumers. China, which has become a major, if not the largest, market for German luxury vehicles, has drawn the ire of Chinese consumers due to its hesitancy to integrate technology into its vehicles. In contrast, Chinese EVs, with features including advanced heads-up displays and information systems, enable a more pleasant driving experience. hesitancy hesitancy features features The utilization of connected Internet of Things (IoT) and cellular technologies to control everything within the vehicle’s purview and extenuating smart devices throughout the home and the workplace have resulted in China’s leadership in global EV manufacturing. These incorporations of software and convenience have been a primary factor that has resulted in a decrease in German automakers’ share of China’s market, controlling just 15% in the present day (compared to 25% just five years ago). In fact, the combined electric market share of all German manufacturers, including Audi, BMW, Mercedes, and Porsche, was a mere five percent in 2024 . decrease decrease 2024 2024 Chinese EV manufacturers’ strength in technology integration has even resulted in the exportation of these technologies. This was particularly evident in Auto China 2024, which saw the announcement of Japanese car brands integrating Chinese technologies, with agreements between Nissan and Baidu, Toyota and Tencent, and Honda and Huawei dominating the conversation at the show. announcement announcement Loss of Brand Power and Reputation The reputational power, brand, and “made in Germany” tagline have also evolved in recent history. However, recent reports indicate that consumers are indexing less on these factors in favor of electrification, technology integration, and price, resulting in reputational loss for German luxury auto manufacturers. recent reports recent reports To this extent, German manufacturers’ reputation of complex, industrious, and over-engineered vehicles has resulted in a corresponding backlash against these companies, with many consumers pointing to decreased quality, and subsequently, loss of brand perception. The perceived strength of German-manufactured vehicles and parts has received substantial criticism in recent history, with countless auto enthusiasts on forums such as Reddit , Bimmerpost , and MBWorld discussing the increasing decline of German luxury automobiles. pointing pointing Reddit Reddit Bimmerpost Bimmerpost MBWorld MBWorld Inversely, the perception and reputation of Chinese EVs have increased dramatically in recent years, with Chinese EVs performing well in many side-by-side comparisons against other electric vehicles, including German luxury cars. This can be seen in the dominance of Chinese EVs around the world, with Chinese EVs comprising over 60% of worldwide EV sales in 2024 . side-by-side comparisons side-by-side comparisons includ ing includ 2024 2024 Conclusion Conclusion All in all, consumers are increasingly drawn to Chinese EVs due to their lower prices, advanced technology features, and increasing brand prestige as well as awareness. This shift is particularly noticeable in the share of Chinese EVs in the EU’s largest EV market, Germany, as well as in China, where German luxury auto manufacturers were anticipating as their primary revenue source for the foreseeable future. As a result, Chinese EVs have reshaped the global automobile ecosystem and displaced German luxury car manufacturers. While the legacy prestige of German automobiles and their desirability remains, it is clear that consumers are increasingly drawn to Chinese EVs, particularly given their affordability, technology integrations, and rising luxury features. Image Credit: Matthias Balk ( source ) source

How China’s EVs and Their Integrated Technologies Are Displacing German Luxury Car Manufacturers

The race between China and the United States to dominate artificial intelligence (AI) is not just about technological supremacy or global power projection – it threatens national security and constitutes an existential risk. Both nations are aggressively developing an AI-driven military, with heightened capabilities. Today, the competition is fast approaching what experts fear may become an AI-driven global crisis. It is becoming abundantly clear that AI is the battleground of the future. Both China and the U.S. recognize that whoever leads in AI will not only dominate commercially but will also set the geopolitical terms for the future world order. AI will be the primary driver of economic productivity and military activity in the coming decades. The country that can automate industries, optimize supply chains, and create new technological paradigms will control the global economy. AI-powered autonomous weapons, cyberwarfare, and intelligence gathering, is redefining military strategy. The nation that harnesses AI first will have the advantage in future conflicts. AI’s ability to monitor, predict, and influence human behavior is already being used to tighten control over populations. China has pioneered AI-driven surveillance, while the U.S. is integrating AI into cyber and intelligence operations at an unprecedented scale. China has placed AI at the core of its national development strategy. In 2017, Beijing announced a plan to become the world’s AI leader by 2030, pouring billions into research, fostering AI entrepreneurship, and leveraging massive datasets generated by its vast surveillance apparatus. China has an advantage. Unlike the U.S., where AI is largely driven by private companies, China’s AI push is state-backed, with direct funding and strategic support to companies like Baidu, Alibaba, Tencent, and Huawei. Relying on the the darker side of AI, China has also built the world’s most advanced AI-powered surveillance state, using facial recognition, predictive policing, and social credit scoring to manage its population. In an effort to ensure regional dominance, China’s AI research is heavily integrated into military development through its strategy of “civil-military fusion,” ensuring that AI breakthroughs in the civilian sector rapidly benefit the People’s Liberation Army (PLA). In contrast, America is falling short. Its AI strategy is competitive, but chaotic.The U.S. has historically been the global leader in AI innovation, thanks to its world-class universities, leading tech companies (Google, Microsoft, OpenAI), and a culture of entrepreneurship. However, unlike China, the U.S. faces challenges in coordinating its AI efforts due to its decentralized economic system and regulatory constraints. While China’s AI race is managed by the government, in the U.S., AI is primarily driven by tech giants like OpenAI, Google DeepMind, and Meta. These companies prioritize commercial applications but have increasingly worked with the Pentagon through projects like the Joint Artificial Intelligence Center (JAIC). The U.S. is still grappling with bureaucracy and government oversight. It is hampered, forced to balance innovation with ethical and security concerns. China, by contrast, imposes AI policies with top-down enforcement. Of course, the Pentagon recognizes the urgency of AI warfare, but bureaucratic inefficiencies and ethical debates about autonomous weapons have slowed progress compared to China’s rapid integration. For this reason, we can expect an AI arms race with no rules. With China and the U.S. accelerating AI development, the world is heading into a dangerous era where AI-powered conflict could emerge with little oversight or global regulation. AI-driven weapons systems that can make lethal decisions without human intervention raise the risk of accidental escalation and warfare beyond human control. The ever-advancing technology is increasingly being used in cyberattacks, deepfakes, and information warfare. Both nations are engaged in covert AI-driven operations to manipulate public opinion and disrupt adversaries. The push to develop ever more sophisticated AI, including artificial general intelligence (AGI), will most certainly lead to unintended consequences, from economic instability to AI systems operating beyond human comprehension. What experts are asking is, can AI be controlled? The current trajectory is unsustainable. The absence of global AI regulations, combined with increasing geopolitical tensions, will result in a catastrophic AI conflict. But there are solutions. Just as nuclear arms treaties helped prevent a Cold War catastrophe, China and the U.S. must establish AI agreements to limit the use of autonomous weapons and prevent an uncontrolled AI arms race. The international community must work together to establish ethical AI guidelines and pressure China to prevent misuse in warfare, surveillance, and disinformation campaigns. Globally, nations must be willing to invest in AI safety systems to ensure that it does not spiral out of control. The clock is ticking. The AI race between China and the U.S. is heading down a dangerous path. The world risks descending into an era of AI-driven geopolitical instability if leaders do not take the initiative. The time to act is now – before it’s too late. The race between China and the United States to dominate artificial intelligence (AI) is not just about technological supremacy or global power projection – it threatens national security and constitutes an existential risk. Both nations are aggressively developing an AI-driven military, with heightened capabilities. Today, the competition is fast approaching what experts fear may become an AI-driven global crisis . AI-driven global crisis It is becoming abundantly clear that AI is the battleground of the future. Both China and the U.S. recognize that whoever leads in AI will not only dominate commercially but will also set the geopolitical terms for the future world order. AI will be the primary driver of economic productivity and military activity in the coming decades. The country that can automate industries, optimize supply chains, and create new technological paradigms will control the global economy. AI-powered autonomous weapons, cyberwarfare, and intelligence gathering, is redefining military strategy. The nation that harnesses AI first will have the advantage in future conflicts. AI’s ability to monitor, predict, and influence human behavior is already being used to tighten control over populations. China has pioneered AI-driven surveillance, while the U.S. is integrating AI into cyber and intelligence operations at an unprecedented scale. China has placed AI at the core of its national development strategy. In 2017, Beijing announced a plan to become the world’s AI leader by 2030, pouring billions into research, fostering AI entrepreneurship, and leveraging massive datasets generated by its vast surveillance apparatus. announced a plan China has an advantage. Unlike the U.S., where AI is largely driven by private companies, China’s AI push is state-backed, with direct funding and strategic support to companies like Baidu, Alibaba, Tencent, and Huawei. Relying on the the darker side of AI, China has also built the world’s most advanced AI-powered surveillance state, using facial recognition, predictive policing, and social credit scoring to manage its population. In an effort to ensure regional dominance, China’s AI research is heavily integrated into military development through its strategy of “civil-military fusion,” ensuring that AI breakthroughs in the civilian sector rapidly benefit the People’s Liberation Army (PLA). In contrast, America is falling short. Its AI strategy is competitive, but chaotic.The U.S. has historically been the global leader in AI innovation, thanks to its world-class universities, leading tech companies (Google, Microsoft, OpenAI), and a culture of entrepreneurship. However, unlike China, the U.S. faces challenges in coordinating its AI efforts due to its decentralized economic system and regulatory constraints. While China’s AI race is managed by the government, in the U.S., AI is primarily driven by tech giants like OpenAI, Google DeepMind, and Meta. These companies prioritize commercial applications but have increasingly worked with the Pentagon through projects like the Joint Artificial Intelligence Center (JAIC). The U.S. is still grappling with bureaucracy and government oversight. It is hampered, forced to balance innovation with ethical and security concerns. China, by contrast, imposes AI policies with top-down enforcement. Of course, the Pentagon recognizes the urgency of AI warfare, but bureaucratic inefficiencies and ethical debates about autonomous weapons have slowed progress compared to China’s rapid integration. For this reason, we can expect an AI arms race with no rules. With China and the U.S. accelerating AI development, the world is heading into a dangerous era where AI-powered conflict could emerge with little oversight or global regulation. AI-driven weapons systems that can make lethal decisions without human intervention raise the risk of accidental escalation and warfare beyond human control. The ever-advancing technology is increasingly being used in cyberattacks, deepfakes, and information warfare. Both nations are engaged in covert AI-driven operations to manipulate public opinion and disrupt adversaries. The push to develop ever more sophisticated AI, including artificial general intelligence (AGI), will most certainly lead to unintended consequences, from economic instability to AI systems operating beyond human comprehension. What experts are asking is, can AI be controlled ? can AI be controlled The current trajectory is unsustainable. The absence of global AI regulations, combined with increasing geopolitical tensions, will result in a catastrophic AI conflict. But there are solutions. Just as nuclear arms treaties helped prevent a Cold War catastrophe, China and the U.S. must establish AI agreements to limit the use of autonomous weapons and prevent an uncontrolled AI arms race. The international community must work together to establish ethical AI guidelines and pressure China to prevent misuse in warfare, surveillance, and disinformation campaigns. Globally, nations must be willing to invest in AI safety systems to ensure that it does not spiral out of control. The clock is ticking. The AI race between China and the U.S. is heading down a dangerous path. The world risks descending into an era of AI-driven geopolitical instability if leaders do not take the initiative. The time to act is now – before it’s too late.

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