China

NVIDIA’s H20 AI chip, designed for the Chinese market, faced export restrictions but received conditional clearance in mid-July, requiring a 15% revenue remit to the U.S. government. Despite this, H20’s future in China is uncertain. NVIDIA defends its H20 exports, emphasizing the U.S.’s need to compete with China in AI and avoid repeating the 5G situation where it lost its leadership position. They believe U.S. AI can become the global standard if the U.S. actively participates in the competition.

A man in Liaoning Province reported withdrawing two 100-yuan banknotes from an ATM that he suspected were counterfeit after failing to deposit them. The ATM flagged the bills as problematic. Bank employees also couldn’t deposit the bills. However, the bank clarified that the banknotes were not counterfeit but demagnetized. ATMs are sensitive to demagnetized currency, which the bank replaced for the customer. Demagnetized currency remains legal tender.

The U.S. maintains a strict stance on AI chip exports to China, particularly regarding advanced technology like Nvidia’s “Blackwell” chip. Former President Trump opposes its sale to China, citing national security concerns and the potential for accelerating Chinese AI development. He believes the U.S. holds a significant technological advantage in chip design. Nvidia’s CEO is expected to discuss export licenses, highlighting ongoing negotiations. While some argue restricting access could spur indigenous Chinese chip development, the U.S. aims to limit China’s access to cutting-edge AI capabilities.

A Chinese court rejected a lawsuit filed by a man seeking compensation after his mother tripped over another passenger’s luggage at a train station and later died. The court ruled that the woman, Ms. Wang, who was walking against the flow of traffic, was responsible for her own fall. Mr. Zhang, the passenger with the luggage, had no way to anticipate her actions and was not found negligent. The court cited the Civil Code of the People’s Republic of China in its decision.

On August 11th, the Chinese AI model DeepSeek experienced a widespread service outage, impacting its API, website, and mobile app. The incident sparked widespread complaints on Weibo under the hashtag #DeepSeekDown. DeepSeek reported the issue was identified and resolved between 21:55 and 23:39. DeepSeek gained popularity in early 2025, surpassing ChatGPT in US app downloads and reaching 30 million daily active users faster than any other app.

Ant Group has publicly denied rumors of a joint venture with the People’s Bank of China and China Rare Earth Group to launch a rare earth-backed RMB stablecoin. This follows a previous denial from AntChain regarding collaboration on Real World Assets with Hainan HuaTie. Ant Group cautions the public against investment scams and misinformation related to digital assets, particularly those falsely implying association with Ant Group or AntChain. The company reserves the right to pursue legal action against unauthorized brand use.

Following U.S. approval of NVIDIA’s H20 AI chip export to China, Beijing reportedly summoned the company to discuss potential security risks, including alleged “backdoors.” NVIDIA denies these claims, but Chinese state media demands irrefutable proof of security. An exposé details potential hardware and software backdoor methods for remote shutdown and tracking, highlighting concerns over U.S. control of AI chip technology and its implications for Chinese data security and energy efficiency goals. The report suggests the H20 chip is neither secure nor environmentally friendly for China.

China’s food delivery platforms are engaged in intense subsidy wars, offering deep discounts to consumers and boosting order volumes. However, restaurants are struggling to profit, with some even losing money due to platform fees, delivery costs, and merchant-funded discounts. While consumers benefit from lower prices initially, experts warn this “burning money for market share” strategy is unsustainable and could compromise food quality and safety. Platforms and industry associations are now urging for fair competition and a return to value creation.

Apple closed its Dalian Parkson Centennial Shopping Center store on August 9th, marking its first directly-operated retail closure in China. The store opened in 2015. Online footage showed staff and customers bidding farewell after a decade. Apple cited the shopping center’s declining retail presence as the reason, stating that employees would be offered positions elsewhere. The shopping center has faced financial difficulties and a change in management.

A Hunan man in China won 12.56 million yuan (about $1.75 million USD) in the Super Lotto with a 6-yuan ticket. The experienced lottery player, who has been consistently buying tickets for over a decade, views it as a fun activity and a contribution to public welfare. The win sparked online discussion, with some sharing their less fortunate experiences and others questioning lottery industry market dynamics. The winner advises a balanced approach, cautioning against treating the lottery as gambling.