China

Alibaba is developing a new AI inferencing chip amidst US-China trade tensions and restrictions on Nvidia exports. This move is part of a broader effort by Chinese tech companies to create domestic chip solutions. Alibaba will use the chip to enhance its cloud infrastructure, offering computing power to customers. This complements, rather than replaces, its reliance on vendors like Nvidia. Fueled by AI-related products, Alibaba’s cloud division saw significant revenue growth. Other Chinese firms, including Baidu and Huawei, are also developing proprietary semiconductors.

Nvidia CEO Jensen Huang suggests a possible introduction of the Blackwell processor to China, advocating for eased U.S. restrictions. He anticipates a robust 50% growth in China’s AI market. Huang previously sought export licenses for the H20 chip, reaching an agreement involving revenue sharing with the U.S. government. Nvidia may need to modify Blackwell chips to comply with export rules, balancing cutting-edge technology deployment with national security. Despite uncertainties, Nvidia projects strong revenue, highlighting China’s $50 billion potential market value.

Nvidia is set to release its fiscal Q2 earnings, with analysts anticipating $1.01 EPS and $46.02 billion in revenue. Investors are focused on Nvidia’s data center performance, especially demand for Blackwell chips and developments in the Chinese market. Supply constraints for Blackwell racks and the impact of US export controls on H20 sales in China are key concerns. Analysts expect guidance to exclude China, projecting approximately $53 billion in sales for fiscal Q3, a 51% year-over-year increase.

Cambricon, a Chinese semiconductor firm, reported significant revenue and profit growth in the first half of the year, driven by the increasing demand for AI chips. This surge reflects China’s strategic push for domestic AI chip alternatives to Nvidia amidst potential US export restrictions. While Nvidia still dwarfs Cambricon in overall revenue, the Chinese government’s support and diversified sourcing strategies are boosting Cambricon’s prospects. The company is focused on improving its software to compete more effectively. However, export controls pose a challenge to long-term technological advancement.

China’s electricity consumption surpassed 1 trillion kilowatt-hours in July, a new record, driven by extreme weather and economic recovery. This figure equals Japan’s annual consumption and rivals the US’s Q1 consumption. Overall electricity consumption from January to July rose 4.5% year-on-year to 5.8633 trillion kilowatt-hours. Primary, secondary, and tertiary industries saw increases of 10.8%, 2.8%, and 7.8% respectively. Residential consumption also increased by 7.6%. China’s power supply system remains stable despite peak demand.

A “Lu Xun-inspired knitted vest” from People’s Literature Publishing House is trending on Weibo. Dubbed “literary armor,” it’s seen as a symbol of intellectuality. Lu Xun’s grandson, Zhou Lingfei, views such popularization as positive for cultural preservation, but expressed concern about disrespectful caricatures of Lu Xun. Lu Xun’s enduring influence is evident in his works being included in Chinese school textbooks.

Nvidia is actively pursuing strategies to maintain its presence in the Chinese market despite potential losses from the halted H20 chip. CEO Jensen Huang confirmed ongoing discussions with the U.S. government regarding exporting a more advanced chip. Reports suggest Nvidia is developing a new AI chip, B30A, tailored for China, potentially exceeding H20’s performance. This follows Huang’s expressed desire to sell more advanced chips there. These efforts come amidst security concerns raised in China regarding potential vulnerabilities in Nvidia chips, which the company denies.

A man from Yanji, China, inadvertently injected insulin with the needle cover on for a month. He only realized his mistake after watching an online video, discovering he had skipped the crucial step of removing the protective cap. Despite the improper administration, his blood sugar surprisingly decreased due to diet and exercise. This incident highlights the critical need for better patient education on proper injection techniques, as studies show over 50% of Chinese diabetic patients make similar errors. The story emphasizes the importance of reading instructions and seeking proper guidance to avoid ineffective treatment.

Nvidia is reportedly developing a new AI chip, the B30A, for China, aiming to outperform its current H20 offering while complying with US export controls. Utilizing its Blackwell architecture with a single-die design, the B30A is expected to have roughly half the performance of the B300. Nvidia is also purportedly creating an RTX6000D chip for AI inference in China. These moves reflect Nvidia’s strategy to maintain a presence in the critical Chinese market amid US-China trade tensions and regulatory scrutiny. Samples of the B30A may be sent next month.

Ahead of Xiaomi’s EV entry, Lei Jun consulted Li Auto CEO Li Xiang for advice, revealed on a Chinese business show. Their two-hour phone call covered Tesla, BYD, and Huawei, with Li Xiang urging Lei Jun to be fully involved. Li Xiang also mentioned frequent gatherings with other EV leaders like Nio’s William Li and Xpeng’s He Xiaopeng, emphasizing “mutual candor” and open communication within China’s competitive EV market, including sharing beneficial, albeit sometimes uncomfortable, advice.