Weekend Buzz: 18-19 July 2026

Chinese President Pitches an AI Future Where Everyone Has Access

Chinse President Xi Jinping, in a speech opening the 2006 World Artificial Intelligence Conference in Shanghai, called for international cooperation in the development and governance of AI, casting China as a champion in rolling out AI technology to less-developed countries. Comparing AI to invention of the steam engine and elections, Xi emphasized the importance of a "people-centered" approach to the development of AI technology and said China will play a part in ensuring equality of access to AI capacity. The conference kicked off with the major announcement that China and 28 other countries have signed an agreement creating the new Shanghai-based World AI Cooperation Organization, which aims to improve governance and cooperation in AI development. The US and most European nations weren't among founding members.

The Chinese government has taken a strong role in promoting the advancement of AI technologies, adopting support policies for accelerating breakthroughs, building data centers, widening channels of financing, turning research into real-life applications and educating a talent pool. In his speech, Xi also cautioned against AI risks, calling for AI systems to remain under human control and countries to establish early-warning and emergency-response mechanisms to manage loss-of-control situations.

China Strongly Denies Trump's Claims of US Election Meddling

China's Foreign Ministry said claims by President Donald Trump that China meddled in the 2020 presidential election because Beijing wanted him to lose are entirely fabricated, malicious smears. Such allegations have repeatedly been proven groundless, the ministry said, and the whole world knows that. Trump lost the election to Joe Biden. During a nationwide speech on Friday, Trump alleged China illegally acquire 220 million voter files and used the information to influence the election outcome. Democrats in the US Congress said Trump's chronic preoccupation with the 2020 election is simply the obsession of a poor loser.

US-Iran Attacks Escalate, Oil Prices Rise Further

The US launched strikes on Iran for a seventh consecutive night, including a reported attack on bridges. Iran warned of "full-scale" retaliation and also claimed two oil tankers exploded and caught fire in the Strait of Hormuz when passing through an unauthorized and mined channel of the waterway. Iran said the strait is closed to transit, which the US denies. Kuwait said Iran struck a power and water desalination plant. Benchmark Brent crude futures closed trading in New York priced at US$88 a barrel, up about US$20 barrel from before the US-Iran ceasefire was broken.

China announced it raised the retail price of gasoline by 300 yuan (US$41.60) a ton on rising global prices. That will mean drivers of small cars will pay 12 yuan more to fill up a standard 50-liter tank of 92-octane gasoline.

Andy Burnham Set to Become UK Prime Minister

Andy Burnham, 56, was officially declared new leader of the UK ruling Labour Party as sole contender in the party process to replace Prime Minister Keir Starmer, who resigned. On Monday, the king will appoint him as the nation's seventh prime minister in 10 years. Starmer stepped down after losing the support of parliamentary colleagues after a series of policy missteps.

Top Business

Moonshot Unveils Powerful New Kimi System

Chinese AI startup Moonshot on Friday introduced its Kimi K3, a 2.8-trillion parameter model that it claims is the world's largest open source AI model, rivaling US-based Anthropic's proprietary frontier Fable model. The widely-followed Frontend Code Arena by Arena.ai ranks K3 at top, followed by Claude Fable 5 and GPT5.6 Sol. It measures web development tasks via anonymous A/B testing.

Moonshot is among a handful of Chinese companies releasing ever more powerful models at lower costs, defying conventional wisdom in the West that China lags the US in global AI competition. Moonshot, backed by Alibaba and Tencent, said Kimi K3 is the first open model to approach the 3 trillion-parameter mark and is designed for advanced reasoning, long-horizon coding and knowledge work.

It follows the release of the Z.ai (Zhipu) GLM-5.2, which industry observers scored near the top of US closed-source models on benchmark tests. China's MiniMax is developing its own 2.7-trillion parameter model to be released as soon.

Asian Stocks Plunge on Flare-Up in Iran War, Tech Share Slump

Asian stock markets plunged on Friday as renewed fighting in the Middle East sent oil prices rising and a global slump in technology shares continued amid doubts about the sustainability of an AI boom, where development costs are sucking up vaster sums of corporate spending. Strong profits don't guarantee shareholder confidence. Shares in Taiwan Semiconductor Manufacturing (TSMC) fell 2.3 percent in New York on Thursday after the chipmaker reported a record second-quarter profit beating forecasts, and then lost another 2.8 percent on Friday. Investors focused on an upgrade in TSMC's capital spending plan this year to as much as US$64 billion from US$56 billion.

In Asian trading on Friday, the Hang Seng index in Hong Kong fell 1.78 percent, with its tech index plunging nearly 4.4 percent. The Shanghai Composite Index shed 3.1 percent, with its Nasdaq-style Star market 50 index down 7.1 percent. The Nikkei in Tokyo dived 4 percent. The South Korean Kospi index, heavily weighted in chip shares that plunged earlier this week, was closed for a holiday.

Three Chinese Airlines Announce Airbus Purchases

Air China, the nation's flagship carrier, said it will purchase 15 A350-900 passenger jets from Airbus and its subsidiary Shenzhen Airlines will acquire 40 narrow-body A320neo aircraft from the European aerospace company. The more fuel-efficient aircraft will help the two airlines lower costs. The purchases will increase Air China's capacity by about 7.1 percent, the South China Post reported, and boost Shenzhen Airlines capacity by 4.3 percent. The catalogue price for the 55 aircraft is US$12.4 billion, but Airbus said in a statement that "significant discounts" will be granted, which is standard practice for large purchases. Separately, Hainan Airlines agreed to purchase 40 A320neo-family jets for a list price of up to US$5.4 billion.

Geely-Controlled Volvo Cars Posts Lower Profit

Sweden-based Volvo Cars, which is majority owned by Chinese carmaker Geely, reported second-quarter net income fell 8 percent to 400 million kronor (US$41 million) as sales fell 6 percent to 171,500 vehicles. Operating income was 800 million kronor, and revenue fell 17 percent to 77.7 billion kronor. The carmaker cited a "very challenging" environment, including a "tough" market for premium models in China. Chief Executive Håkan Samuelsson told CNBC the downturn "caught us a bit by surprise," but he said expects sales to pick up in the second half.

Deep Dive

I Coded My Way Out of the Grip of Unwanted Algorithms. Can Everyone?

A university student in Shanghai uses AI vibe coding to build web tools, shifting control from platforms to person, but there are hurdles to cross.

AI Access Needs Infrastructure. China Is Building It.

China isn't just building AI infrastructure. It's also building the institutions it hopes will shape how AI is shared, governed, and deployed around the world.

Economy & Markets

CXMT's Mega Shanghai IPO Heavily Oversubscribed

Chinese memory chip giant ChangXin Memory Technology (CXMT) drew strong retail demand for an IPO that looks set to raise up to 66.6 billion yuan (US$9.8 billion), the Chinese mainland's second-largest IPO. The retail portion was 212 times oversubscribed by 9.4 million investors submitting bids. The Hefei-based company, the world's fourth-largest maker of dynamic random-access memory, is selling 7.69 billion shares, including 1 billion issued under an over-allotment option, at 8.66 yuan per share. That approaches Agricultural Bank of China's record US$10 billion IPO in 2010.

Discount Fashion E-Tailer Shein Gets Nod for HK IPO

Global online low-cost fashion platform Shein has received a green light for its initial public offering from the Hong Kong stock exchange, Reuters reported. The company could seek to raise as much as US$3 billion, other media reported. The Chinese company, now headquartered in Singapore, is expected to file details of the IPO later this month and could launch subscriptions in late August, depending on market conditions. It would be the company's third attempt at an IPO after earlier moves to list in New York and London failed. The company's fast-mail delivery model has been hurt by the removal of duty-free access in the US and Europe, and its business practices in Europe have drawn regulatory fines.

China Adjusts Tax on Batteries

China's Ministry of Finance announced a major structural adjustment to the consumption tax on batteries. Starting in September, mature technologies, including lithium-ion batteries, will face a 2 percent consumption tax, increasing to 4 percent a year later. Solar cells will be taxed at 2 percent tax starting next April, rising to 4 percent a year later. However, next-generation technologies like solid-state, sodium-ion and perovskite solar cells will be fully exempt from tax through the end of 2028, provided they meet strict national certification standards. The new policy aims to regulate mature battery markets while accelerating the research and marking of advanced green technologies across China.

US Import Prices Rise, Goods Costs from China Hit 18-Year High

The price of US imports in June rose 0.3 percent as costs of goods from China rose by their largest monthly level in more than 18 years, the Bureau of Labor Statistics reported. The report indicated that the AI build-out demand could be lifting prices for computers, peripherals and semiconductors. Higher Chinese prices may reflect the impact of US tariffs.

China Moves to Curb Unfair Auto Competition, Boost Safety

China's Ministry of Industry and Information Technology has urged major automakers to stop "irrational" competition and enforce strict product safety. At a meeting with key auto firms, the ministry ordered strengthened security for automated driving features, targeting data and network safety. The ministry said it plans to intensify product reviews and punish violators.

Chinese Mainland Stock Exchange, HK Bourse Knit Closer Ties

The Shanghai and Shenzhen stock exchanges signed memoranda of understanding with the Hong Kong stock exchange to upgrade information exchanges and cross-border cooperation. HK and the two exchanges operate "connect" programs that allow cross-border stock trading.

Foreign Investment in China Rises, Led by Technology

Foreign investment in China in the first five months of the year rose by US$160 billion, including direct investment in businesses and investment in securities such as stocks. Investment in equities increased US$50 billion, led by a 35 percent increase in reinvested earnings. Inflows in the first half rose 61 percent, led by investment in technology and advanced manufacturing.

Corporate

Ikea to Sell Eight Stores in China

Swedish flat-pack furniture retailer Ikea is selling eight Chinese stores that it earlier closed in an efficiency drive. Location of outlets for sale include Shanghai, Guangzhou, Ningbo, Tianjin and Harbin, according to realty Jones Lang LaSalle. The streamlining reflects the highly competitive Chinese mainland retail market and slower consumer spending. Ikea has shifted its focus from rapid expansion to targeted local operations.

Xinyi Solar Warns of First-Half Loss

China's Xinyi Solar warned that it may turn to a first-half loss of not more than 50 million yuan (US$7.4 million) from a year-earlier profit of 746 million yuan on lower sales, prices and installations of solar panels. The Chinese mainland industry has been best for years by overcapacity.

CATL to Roll Out Advanced Energy Storage System in Europe

Chinese battery giant Contemporary Amperex Technology (CATL) is partnering with Dutch energy solutions provider Alfen to roll out an advanced 5 gigawatt-hour sodium-ion energy storage system across Europe, beginning next year, Yicai reported. It's CATL's first bulk supply of its Tener Sodium Energy Storage System in Europe.

Zijin Begins Lithium Exports From Congo

Chinese mining giant Zijin said it has started exporting lithium concentrate to China from its Manono project in the Democratic Republic of Congo. The shipments are the first from the Congo, extending China's dominance of the nation's critical minerals sector. The Manono deposit is 55 percent owned by Zijin, with the Congolese government and local miner Cominiere holding the remaining stake.

Jushi Plans US$355 Million Expansion of Electronic Cloth Output

Chinese fiberglass supplier Jushi said it plans to invest 2.4 billion yuan (US$355 million) to expand production capacity of electronic cloth used in printed circuit boards. The company said it will increase capacity to 250 million meters at its factory in Tongxiang. The company, the largest supplier of the cloth in China, cited increasing demand resulting from AI technologies. It has forecast first-half profit will rise as much as 85 percent from a year earlier to 3.1 billion yuan.

BYD Becomes Official Sponsor of French Football Team

BYD, China's largest electric-car maker, has become the official automotive partner of French football club Paris Saint-Germain in a deal running through June 2029. The partnership will include supply of vehicles and fan-focused activities. Chinese companies are increasing tapping high-profile sports to increase their global profiles.