The smart money is headed for China’s AI boom – Asia Times

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The AI culture has a fresh pioneer, and it’s not coming out of Silicon Valley. &nbsp,

China’s DeepSeek has ignited a nationwide change, propelling artificial knowledge into the base of government organizations, state-owned enterprises and the private market at a speed that few could have predicted. &nbsp,

This isn’t” just another” AI milestone. China’s scientific future, the worldwide AI landscape, and how investors position themselves for what lies ahead will be redefined by this change.

Beijing has long slowed down its ambitions to occupy AI, but DeepSeek has become the precursor for scale-based real-world application. &nbsp,

The Hangzhou-based company’s R1 design, launched in January, didn’t really impress the market—it triggered a swift deployment storm across industries that have usually moved with prudence. &nbsp,

Local governments, hospitals and even conservative state-owned enterprises ( SOEs ) have embraced DeepSeek’s models, marking a pivotal moment in China’s digital transformation.

The causes of this deployment boom are both strategic and economic. &nbsp,

Price remains one of the most formidable obstacles to AI implementation, especially for big language models. &nbsp,

By providing an open-source approach and cost-effective training options, DeepSeek has overcome this barrier, making AI available to organizations that had originally found it prohibitively expensive. &nbsp,

This isn’t only a technical discovery, it’s a change in Artificial economics that is forcing competitors, both in China and abroad, to reassess their own company models.

This surge in Chinese AI adoption has profound implications. The first is geopolitical. AI is now a crucial component of the ongoing technological conflict between China and the US. &nbsp,

Through chip restrictions and trade restrictions, Washington has attempted to halt Beijing’s AI growth, but DeepSeek’s rapid rollout suggests that these measures are failing to keep China at bay. &nbsp,

By embedding its AI models into state and private-sector functions at lightning speed, Beijing is making a strategic statement: AI is not just a research priority—it is an economic and governance imperative.

The second consequence is the recalibration of China’s tech ecosystem. While giants like Alibaba and Tencent have dominated AI investments, DeepSeek’s ascendancy is a reminder that China’s startup scene is not just alive but thriving. &nbsp,

This signals a shift toward a more diverse AI landscape, one where smaller, more agile firms can challenge the incumbents. Additionally, it raises the stakes for China’s AI talent pool as engineers and researchers gravitate toward the nation’s most promising frontier firms.

For global investors, this moment demands attention. China’s AI sector is a region that will influence investment decisions for many years to come. The need to comprehend where capital should flow is highlighted by DeepSeek’s emergence. &nbsp,

Some may see direct exposure to China’s AI players, while others may see a potential in the global response, such as increased funding for Western AI firms or changes in semiconductor investments to support businesses that are still open to Chinese partnerships.

The rest of the world’s reaction is now the most important question. Silicon Valley has long been the epicenter of AI breakthroughs, but DeepSeek’s model offers a new blueprint: one that prioritizes accessibility, rapid adoption and integration into state functions. &nbsp,

In an AI landscape where cost-effectiveness and deployment speed outweigh raw computational power, it runs the risk of being left behind if the West doesn’t adapt.

The global tech race has a new dynamic, and China is moving fast. Because DeepSeek’s era has only just begun, investors, policymakers, and the wider tech sector need to be aware.

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China’s AI boom bigger than just DeepSeek – Asia Times

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A family of extremely efficient and fiercely competitive AI models was released last month by a small Chinese artificial intelligence ( AI ) company called DeepSeek, which shocked the world’s tech community. The launch revealed China’s growing modern skills. Additionally, it demonstrated a distinct Foreign perspective on the development of AI.

This strategy is characterised by proper investment, useful innovation and cautious regulatory oversight. And it’s obvious throughout China’s broader AI scenery, of which DeepSeek is just one person.

In fact, the state has a great habitat of AI businesses.

They may not be as well-known as another Artificial companies like DeepSeek, OpenAI, and Anthropic, as they are not. Each has carved out a distinct niche and is assisting in the development of this quickly evolving systems, though.

Tech companies and companies

The companies of China’s tech industry include Baidu, Alibaba and Tencent. All of these businesses are making significant investments in AI creation.

Alibaba CEO Eddie Wu earlier this month said the multibillion-dollar business plans to “aggressively commit” in its pursuit of developing AI that is equal to, or more sophisticated than, human knowledge.

The business is now collaborating with Apple to include its existing AI systems into Chinese smartphones. ( Outside China, iPhones offer similar integration with OpenAI’s ChatGPT. )

But a new era of smaller, specialized Artificial companies has also emerged.

For instance, Shanghai-listed Cambricon Technologies focuses on AI device creation. Healthcare and intelligent town applications are the areas of focus for Yuitu Technology.

While iFLYTEK develops voice recognition technology, Megvii Technology and CloudWalk Technology have carved out niches in photo identification and computer perspective.

Orange company sign on the facade of a glass building.
Alibaba, a multibillion dollar Chinese technology firm, intends to make significant investments in AI tests. Image: Stock via The Chat

Modern pathways to victory

Despite United States ‘ device sanctions and China’s restricted data setting, these Chinese AI firms have found roads to success.

Big language models have been trained by US businesses using the open online, such as OpenAI. However, Chinese businesses have used sizable data from regional platforms like Weibo, Weibo, and Zhihu. They even use government-authorized information sources.

Some Chinese AI firms also embrace open-source creation. This entails publishing detailed technical documents and releasing their models for others to use as inspiration. Instead of utilizing natural computing power, this approach places an emphasis on effectiveness and practical application.

The end result is a decidedly Chinese technique to AI.

Interestingly, China’s state assistance for AI development has also been significant. Besides the central state, local and provincial governments have provided huge money through opportunity funds, incentives and tax incentives.

In recent years, China has established at least 48 information markets across various cities. These are certified marketplaces where AI companies may purchase sizable datasets in a controlled environment.

By 2028, China even plans to establish more than 100″ trusted data spots”.

These are safe, compliant environments that aim to regulate files exchanges across sectors and regions. A complete national data marketplace with access to and use of various data within a controlled platform will be built on top of them.

Solid learning push

The expansion of the AI sector in China is also attributed to a significant force for AI education. In 2018, China’s Ministry of Education launched an action strategy for accelerating AI technology in institutions.

According to publicly available information, 535 institutes have established AI academic majors, and 43 specialized AI schools and studies institutes have been established since 2017. ( In contrast, there are at least 14 colleges and universities in the US offering formal AI undergraduate degrees. )

Collectively, these institutions are building an AI skills network in China. Beijing’s goal of leading the world Artificial innovation market by 2030 is crucial to accomplishing this.

China’s AI technique combines considerable state support with focused regulation. Authorities have developed a focused approach to managing AI risks rather than imposing cover settings.

The 2023 rules on conceptual AI are particularly concealing of Beijing’s strategy.

They impose content-related standards on conceptual AI services that are accessible to the public, such as ensuring that all created and delivered material adheres to fundamental socialist principles and respects intellectual property rights.

These responsibilities, but, exclude conceptual AI used for business, research and development. This allows for some unlimited technology.

A hedge-lined entrance to a university campus.
There are 43 specialised AI research institutes and universities in China, including Renmin University in Beijing. Image: humphery/Shutterstock via The Talk

China and the US dominate the global AI environment. However, there are several important people emerging somewhere.

For instance, France’s Mistral AI has raised over 1 billion dollars to time to build huge language versions. In contrast, OpenAI raised US$ 6.6 billion in a new funding round and is in talks to raise a deeper US$ 40 billion.

Other Western companies are focused on specific applications, particular industries or regional markets. For instance, Germany’s Aleph Alpha offers an Artificial tool that allows businesses to personalize third-party designs for their own purposes

Wayve is creating automatic driving AI systems in the United Kingdom, while Graphcore is producing AI cards.

Challenging regular intelligence

DeepSeek’s discovery last month demonstrated that a billion dollar budget and massive computing infrastructure aren’t usually necessary for the successful development of AI.

For those invested in the humankind’s potential, companies that achieve DeepSeek-level efficiency could considerably influence the path of AI advancement.

While remaining within communities dominated by American and Chinese benefits in expertise, data, and investment, we may see a global environment where modern AI companies from other countries can make strides.

Who will rule the race may not be the only factor in shaping AI’s coming. Alternatively, it may be determined by how various strategies shape the technology’s growth.

China’s type provides valuable training for other nations looking to expand their AI abilities while managing certain dangers.

Mimi Zou is doctor, School of Personal &amp, Commercial Law, UNSW Sydney

This content was republished from The Conversation under a Creative Commons license. Read the original post.

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Singaporean suspect in international data breaches arrested in Bangkok

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Hacker sold information on the black website after stealing it from numerous businesses.

PUBLISHED: 27 Feb 2025 at 14: 56

Police question a Singaporean hacker suspected of dozens of major international data breaches at a house in Bangkok on Wednesday. (Photo: supplied/Wassayos Ngamkham)
On Wednesday, police question a Taiwanese hacker who is suspected of tens of significant global data breaches at a home in Bangkok. ( Photo: supplied/Wassayos Ngamkham )

A 39-year-old Malaysian man who is involved in numerous high-profile hacking cases in Thailand and other nations has been detained in Bangkok, according to police in a statement on Thursday.

According to Pol Maj Gen Atip Phongsiwaphai, head of the Technology Crime Suppression Division, the incarceration was the result of cooperation between the Singapore and Thai authorities causes.

The investigation began after a business informed Thai authorities that it had received a danger from an X accounts, 0mid16B Group, to give a sum of money, otherwise, their customers ‘ private data may be revealed which may cause great damage to the business, Pol Maj Gen Atip said on Thursday.

After being contacted by the Singapore Police Force, it was discovered that the bill was a well-known thief, Desorden GhostR, who had been responsible for significant data breaches of businesses in many nations since 2020.

Police in the Ramkhamhaeng city of Bangkok discovered that the suspect lived in a home. Officers detained him it, seized a luxury vehicle, branded bags, and other electronic devices used for hacking, worth more than 10 million ringgit.

The suspect, identified only as Chingwei, admitted to phishing collection techniques of 20 businesses in Thailand and over 50 in other countries, according to police. In Thailand, the Black Canyon restaurant chain was a part of one of the scenarios in 2024.

The suspect claimed to have made money selling the stolen data using a black web-based program where transactions are made in cryptocurrency. The minimum amount was$ 10, 000, he said. Because the sellers and buyers were not able to identify one another, it was difficult to determine who they were.

The suspect claimed to have acted alone, avoiding federal authorities and targeting large corporations.

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Pokémon Day: CEO believes series can last another 50 years

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Mariko Oi and Mel Ramsay

BBC News

The Pokemon Business Two characters from Pokémon, one in yellow and one in blue, with both of them open mouthed smiling.The Pokemon Business

The Pokémon Company’s manager claims that if the series keeps on evolving, it is live for at least another 50 years.

Initially launched on Nintendo’s Game Boy in 1996, the film sport has expanded into movies, TV and products to become one of the country’s highest-grossing media company.

The popularity of the trading card game based on the adorable animals at the center of its world has increased recently, but it also has brought in scalping and thefts.

CEO Tsunekazu Ishihara, who has been in charge of the company since 1998, spoke to BBC News ahead of its annual release about the mystery of its accomplishment, tackling challenges, and the line ‘ potential.

Pokémon Day disclosures

Pokémon Day is an annual display of future releases, upgrades and activities.

Fans are anticipating information on the future Pokémon Legends: Z-A sport for the Nintendo Switch and updates on the acclaimed trading card game.

Mr. Ishihara said the event’s long-term objective was to “enrich both the real world and the virtual earth,” but he wouldn’t divulge too little.

An example of this is Pokémon GO, the effective mobile phone app developed by the company that uses a phone’s GPS to locate villains in the real world.

” This is what I think is the biggest power of Pokémon, and it’s important for us to come up with this kind of idea”, he says.

” So that’s how I think of what we want to reach next”.

Pokémon resellers, scams and Palworld

Pocketpair Screenshot shows a human character sitting on top of a large, yellow creature, riding in a large tank with five comedically large cannon emerging from the front of it. Pocketpair

One of the hottest issues among long-term Pokémon fans now is resellers.

Distributors who purchase up fresh boxes in the hope of getting unique, useful tickets have been attracted to the revival of the collectible card activity.

YouTuber Logan Paul switched a lot of people on to the potential profits of the hobby when he paid $5.3m (£3.9m) for the most expensive Pokémon card ever.

The second-hand industry, according to Mr. Ishihara, “prevents fresh items from being sold” because gaming companies have long had this problem.

” Our firm is impacted when the second-hand industry becomes more valuable because of scarcity,” says one author.

Enthusiasts have suggested that The Pokémon Company could generate more hard-to-find or limited-run things, but Mr. Ishihara claims that it is unable to effectively manage the resale market.

” Those products are seen to be beneficial because they’re unique or seen as vintage – and it’s not our place to say that they’re not”, he says.

On the topic of false goods Mr Ishihara is more clear, and says the company’s legal groups have fought “rigorously” against replicas and scams since the outset.

It recently won a long legal battle against the Chinese company behind a copycat mobile app.

Additionally, it filed a lawsuit against the creators of Palworld, an online multiplayer life sport dubbed” Pokémon with cannons,” earlier this year.

It alleges designer Pocketpair infringed patents, which it has denied.

The technique of Pokémon’s victory

Getty Images A young Pokémon fan sits across a table from an opponent during a match of the trading card game. Wearing a yellow baseball cap with Pikachu ears and a bright pink hoody with a colourful Pikachu print on it, she looks thoughtful as she considers her next move. Getty Images

Along with its video game names, Pokémon has continued to win new fans for its brand by expanding into animation, card games, films, and toys.

Mr Ishihara says fans today” period some generations” and believes” the biggest reason behind their success is the fact that Pokémon became a tool of conversation”.

Last weekend, about 13, 000 Pokémon fans headed to the European leg of the International Championships at London’s Excel Centre.

It demonstrates Mr. Ishihara’s claim that viewers have a way into the series through various means.

Fans Justin, 25, and Marina, 28, who turned up to the event in Team Rocket costumes, tell BBC News they got into Pokémon by watching the animated TV show as children.

” I just loved all the designs, all the different characters”, says Justin.

” They were just really really cute”.

Marina claims that she has gotten to know other fans at in-person gatherings.

” I wanted to go to conventions and these kinds of events always.”

So being able to network and make friends here has been a blessing, she says.

We have one focus… Pokémon

Getty Images A man wearing a navy suit sits in an office, smiling. He's peeking over the top of a large, yellow plush version of Pokémon Pikachu.Getty Images

The Pokémon Company is unusual because it is a private company.

Other well-known Japanese brands, such as Nintendo and Hello Kitty maker Sanrio, are publicly traded and answerable to shareholders.

According to Mr. Ishihara, this enables his company to maintain a single-minded focus on one thing.

” Pokémon is the only thing we do at the Pokémon Company, “he says.

” So whatever profit we make from Pokémon gets reinvested in Pokémon.”

He goes on to say that this prevents the company from having to ask shareholders about expanding or developing new characters.

” Our answer will be:’ We’ll go bust when Pokémon is no longer popular’.

” I don’t think they will like that”.

Where are Pikachu and Ash now?

Getty Images Cartoon still shows Ash - a young boy in a white, red-peaked baseball cap, varsity jacket and wearing fingerless gloves - climbing a ladder as a swirling vortex of water rages below. Yellow, rodent-like Pikachu is clinging on to his cap, looking forward with determination.Getty Images

At the conclusion of the animated Pokémon series, Ash Ketchum and his best friend Pikachu, a devoted fan, departed from the series.

The series has continued without the well-loved duo, but one of the “hardest questions” Mr Ishihara gets asked is what they’re up to now.

” As Ash continues his journey and his partner Pikachu is right next to him,” he said, “even though the TV camera may not be following them.”

The franchise is scheduled to celebrate its 30th anniversary next year, so rumors are already beginning to circulate about special plans for the occasion.

Remakes or re-releases of the original Game Boy games are high on many people’s wishlists.

Mr. Ishihara wants to keep his attention on” connecting the real and virtual worlds,” but doesn’t have much to say yet.

” If we continue focusing on our mission, Pokémon can probably continue to its 50th or 100th anniversary”, he says.

” But if we become complacent and go with the flow, that’s when Pokémon will go downhill”.

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Japan doubles funds for cultural exchange with ASEAN in push to deepen ties

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DIRECTLY NAVIGATING GEOPOLITICAL WATER

As big energy competitions play out in the&nbsp, Indo Pacific, fostering better local relationships is particularly important, Kiya noted. &nbsp,

” ASEAN has managed numerous significant energy conflicts for years. And Japan has often supported ASEAN in maintaining harmony and promoting prosperity”, he added. &nbsp,

The ambassador cited Japan’s support for the ASEAN Outlook on the Indo-Pacific ( AOIP), which emphasizes importance as the guiding principle for promoting participation in the region. &nbsp,

Japan claims that the idea is in line with its own important rules for favoring peace and cooperation in the Indo-Pacific. &nbsp,

” The AOIP ( takes ) the Indo-Pacific region from a place of rivalry to a place of dialogue and cooperation. Japan is fully supporting that effort, and I believe Japan can become instrumental in making that happen”, Kiya said. &nbsp,

He added that Japan maintains friendly diplomatic relations with important regional people, including US and ASEAN people. &nbsp,

Regarding China, Kiya claimed that Tokyo and Beijing have a “mutually beneficial relationship based on a shared strategic desire to work to promote constructive and stable (ties )”. &nbsp,

A rules-based global order is advantageous for all players in the Indo-Pacific area, including ASEAN and Japan, according to the minister. &nbsp,

The key is for all nations to uphold international law, and ( to ) persuade any countries to stop any activities that violate international law. Therefore, in that way, economic hobbies can benefit the entire place”, he said. &nbsp,

ECONOMIC Participation

As a trade-dependent country, some of Japan’s companies are greatly invested in and depend on China and the US. &nbsp,

US President Donald Trump, who took office a fortnight ago, has imposed a number of higher import taxes on the world’s largest economy, which had hurt Japan’s exports and hurt its now sluggish market. &nbsp,

Kiya claimed that Japan is monitoring developments and may take appropriate action, which would increase trade conflicts. &nbsp,

He added Japan is working on stronger cooperation with local markets, particularly in the areas of modernization, decarbonisation, and power protection. &nbsp,

The minister cited ASEAN’s Blue Economy Innovation initiative, launched last year in collaboration with Japan and the United Nations Development Programme, as one for key engagement. &nbsp,

The program aims to generate solutions in weather change issues, coastal plastics pollution, green fisheries, and eco-friendly tourism. &nbsp,

Last year, 60 victors of the site’s concern on innovative solutions to improve the violet business pitched their ideas to investors, including Japanese companies. They were selected from 1, 300 uses from across ASEAN and Timor-Leste.

” I’m very much hoping that those innovations will be fully supported by a large number of Japanese ( firms ) and the private sector so that their ideas addressing those issues will be expanded for the benefit of ASEAN, Japan, the region, and the world,” said Kiya. &nbsp,

He also cited the forthcoming World Expo 2025 as another chance for cooperation and contact between Japan and users of the bloc. &nbsp,

The occasion brings together partners to explore solutions to pressing global issues, taking place in Osaka, Japan’s second-largest urban area, from April to October. &nbsp,

ASEAN will have its own pavilion set up around the concept of” building bridges,” which will showcase the local grouping’s success stories and shared initiatives. &nbsp,

Some member states including Malaysia, Indonesia, Thailand, Philippines and Singapore have even set up their individual towers at the exhibition.

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Trump wants Ukraine minerals because China put its own off limits – Asia Times

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Donald Trump is requesting compensation from Ukraine for the help the US provided to Kyiv during the Russian invasion. Trump has demanded Ukraine mark a US$ 500 billion package that would offer the US exposure to, and profit from, Ukraine’s rare and essential minerals, an important tool in the 21st-century economy.

Trump has stated that this will be a part of the US’s settlement of Ukraine aid. Ukraine’s leader, Volodymyr Zelensky, has so far refused to sign such an arrangement – stating that the help, as agreed by Trump’s father Joe Biden and the Republican-controlled Congress, was a give and certainly a product.

The US rely on unique minerals like chromium, which is essential for advanced security technologies but is not readily obtainable internally, is a key reason behind Trump’s push for this mineral deal.

China, a major distributor of chromium, has used its dominance of the tool to defy the US. In response to rising US taxes on Chinese goods, it has imposed a moratorium on rare materials being exported to the US.

For military technologies, including electric vehicles, electronics, and missile systems, other materials are important. In Ukraine, there are payments for 22 of the 34 materials identified by the European Union as important.

The US’s issue is that China now accounts for a large portion of some crucial metal imports.

Trump therefore views a solution to the Ukraine war as an opportunity to safe other sources of essential vitamins, lessening US dependence on China, and allowing him to get a more intense stance on it. He might not have anticipated that China would retaliate against US tariffs by imposing limits on these crucial commodities so fast.

The reliability and durability of chromium are what the defence industry values. In particular, the ingredient is seen as a vital tool enhancing sensor, satellite communication methods, and electronic warfare techniques. It is also used in multi-chip components used by tracking and air traffic control methods.

In addition to chromium, Ukraine has vast sources of carbon, an aspect that is used in the development of electric vehicles and nuclear reactors, and a third of Europe’s source of potassium, which is used in batteries.

Trump’s interest in Greenland, which has significant reserves of critical minerals, could be an alternative to Chinese-controlled resources because of its emphasis on critical minerals.

Why is China so important?

Trump’s concern for China is also a major force in his negotiations with Russia. One of Trump’s core concerns is China’s partnership with Russia. China is undoubtedly the mainstay of the Sino-Russian alliance right now.

Given the increasing cooperation between the two nations in military, economic, and technological areas, Trump believes that China’s influence in global affairs needs to be countered aggressively. The Trump administration has attempted to undermine the alliance by softening its relationship with Russia, a move that has shocked European leaders.

Given that China is America’s biggest economic rival and a significant obstacle to making the nation “great again,” Trump has long viewed it as the major threat to the US.

His economic policies have focused on geopolitical maneuvers, supply chain dependencies, and Chinese trade practices. One of his principal trade advisors claimed that American businesses are at a disadvantage due to China’s state-controlled economy, intellectual property theft, and trade imbalance.

The US recently imposed tariffs on hundreds of billions of dollars worth of Chinese imports in an effort to boost US products ‘ competitiveness by causing more Chinese imports to cost more, thereby entice businesses and consumers to instead purchase domestic goods.

Trump also attempted to slam China’s export economy by making it harder for Chinese companies to sell goods in the US. His tariff policies extended to countries other than China, with other measures being considered for Europe.

Trump aimed to shift global supply chains and solidify the US as a manufacturing powerhouse by targeting multiple regions. Trump thinks that by halting the conflict in Ukraine, the US can use US funds and resources to redirect investments and resources used in Europe to combat China’s growing influence.

Trump has attempted to refute Trump’s claim that Chinese manufacturers are to blame for the massive fentanyl production, which is then routed into the US via various channels. Trump has suggested more stringent regulations, including tariffs and sanctions against Chinese companies allegedly engaged in its production, to halt the flow of fentanyl.

Following China’s retaliation, Trump needs peace in Ukraine and the consequential mineral agreement with Kyiv before China’s ban on exports to the US affects critical US manufacturing. With less repercussions, such a deal would then enable him to adopt an even more aggressive posture toward China.

However, Zelensky recently claimed that Russia has taken control of 20 % of Ukraine’s minerals since the invasion. Because there hasn’t been much investment in Ukraine’s minerals sector for almost a decade, it’s possible it won’t be years before any American investors will receive any returns.

Trump will have to wait a while before the minerals from Ukraine will be able to meet all of the US’s needs, even if he does get the deal he wants.

At the University of Portsmouth, Dafydd Townley teaches abroad.

This article was republished from The Conversation under a Creative Commons license. Read the original article.

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India: A billion people have no real money to spend, says report

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Nikhil Inamdar, BBC News, Mumbai
Getty Images The image shows a woman wearing a sleeveless black top buying ornaments at a jewellery store in Amritsar in northern India.Getty Images

India is home to 1.4 billion people, but around a billion among them don’t have enough money to spend on any discretionary goods or services, a new report estimates.

The government’s consuming group, which is essentially the potential marketplace for start-ups or company owners, is only about as big as Mexico- 130-140 million people- according to the report from Blume Ventures, a venture capital firm.

There are another 300 million “emerging” or “aspirant” users, but they are afraid purchases who’ve only just begun to open their wallet cords, as click-of-a-button electronic payments make it easy to trade.

What’s more, the consuming group in Asia’s third largest market isn’t “widening” as much as it is “deepening”, according to the document. Which basically means that India’s inhabitants of rich people isn’t actually growing, yet though those who are already wealthy are becoming even wealthier.

All of this is shaping the country’s buyer market in different ways, especially accelerating the trend of “premiumisation” where brands drive growth by doubling down on cheap, upgraded products catering to the rich, rather than focusing on mass-market offerings.

This is obvious in zooming income of ultra-luxury gated housing and advanced devices, also as their lower-end variations challenge. Comparing affordability to 40 % five years ago, only 18 % of India’s overall market is now made up of affordable homes. Additionally, marketed products are capturing a larger share of the market. And there are rising “experience economies,” with cheap tickets for shows by famous musicians like Coldplay and Ed Sheeran selling like hot sweets.

Companies that have adapted to these transitions have thrived, Sajith Pai, one of the article’s artists, told the BBC. ” People who are overly focused on the mass market or have a product mix without a prime business share lose marketplace share.”

The study’s findings boost the long-held watch that India’s post-pandemic recovery has been K-shaped- where the wealthy have gotten richer, while the bad have lost purchasing power.

In fact, this has been a long-term structural trend that began even before the pandemic. The top 10 % of Indians now account for 57.7 % of the country’s income, up from 34 % in 1990, as inequality grows. The bottom half, meanwhile, have seen their share of national income reduce from 22.2 % to 15 %.

Getty Images The image shows two women wearing sun glasses pass stores at a bustling market in New Delhi, IndiaGetty Images

The latest consumption slump, however, has deepened amid not just a destruction in purchasing power, but also a precipitous drop in financial savings and surging indebtedness among the masses.

The central bank of the nation has also stepped down on simple unsecured lending, which increased demand following the Covid pandemic.

Much of the consumption spending of the “emerging” or “aspirant” class of Indians was led by such borrowings and “turning off that tap will definitely have some impact on consumption”, said Pai.

In the near future, two things are anticipated to spur spending: a record-breaking increase in rural demand and a$ 12 billion tax give-away in the recently finished budget. It won’t be “dramatic”, but could boost India’s GDP- largely driven by consumption- by over half a percent, says Pai.

But major longer-term headwinds remain.

According to data compiled by Marcellus Investment Managers, India’s middle class, which has been a major driver of consumer demand, is being squeezed out, with wages essentially staying flat.

“The middle 50% of India’s tax-paying population has seen its income stagnate in absolute terms over the past decade. This implies a halving of income in real (adjusted for inflation) terms,” according to the report, published in January.

The RBI [ Reserve Bank of India ] has repeatedly stated that the net financial savings of Indian households are approaching a 50-year low.” This financial hammering has decimated the middle class’s savings. This pounding “implys that products and services associated with middle-class household spending will likely face a difficult time in the years to come,” it continues.

Getty Images Children buying ice cream from a cart on a hot afternoon in Tehatta, West Bengal, IndiaGetty Images

The Marcellus report also makes the case that as artificial intelligence automates clerical, secretarial, and other routine tasks, white-collar urban jobs are becoming more difficult to come by. ” The number of supervisors employed in manufacturing units ( as a percentage of all employed ) in India has gone down significantly”, it adds.

The government’s recent economic survey has flagged these concerns as well.

It claims that a significant portion of the IT workforce is employed in low value-added services sectors, which are most prone to disruption, that are of particular concern as a result of these technological advancements.

” India is also a consumption-based economy, thus the fall in consumption that can result from the displacement of its workforce is bound to have macroeconomic implications. If the worst-case projections materialise, this could have the potential to set the country’s economic growth trajectory off course”, the survey said.

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Singapore introduces guidelines to minimise disruptions to cloud services and data centres

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The Infocomm Media Development Authority ( IMDA ) released a list of advisory guidelines on Tuesday ( Feb 25 ) to reduce instances of disruptions to cloud services and data centers. &nbsp,

These recommendations may help cloud service providers and data centers employ threat assessment measures, business impact analysis, business continuity preparing, and security protocols by drawing on existing global and industry standards. &nbsp,

They also aim to address challenges to sky services and data centres, such as issues in professional settings, natural hazards like fires, water leaks and cooling systems, as well as cyberattacks. &nbsp,

In October 2023, &nbsp, DBS and Citibank were hit by an interruption lasting more than 12 days. Customers were unable to use PayLah!, PayLah!, or the banks ‘ softwares for online banking. and Give Today. ATM companies were even down at various locations.

A blaze broke out at the Digital Realty data center in Loyang in September last year, causing problems for tech firms like Lazada, Bytedance, and Alibaba Cloud.

Problems to such services can lead to major inconveniences and affected effect Singapore’s market, IMDA said. &nbsp,

The country’s digital economy&nbsp, contributed 17.7 per cent to the country’s gross domestic product ( GDP ) in 2023, overtaking the finance and insurance sector. &nbsp,

” With the right practices, quite destructive occurrences can be minimised, and services may be restored immediately when a disturbance occurs”, said the expert. &nbsp,

Recommendations FOR Sky Solutions AND DATA CENTRES&nbsp,

The actions that are suggested for cloud service providers, among others, may encourage them to utilize, among other things, appropriate data governance and disaster recovery plans. &nbsp,

The guidelines will focus on seven categories of measures: Cloud management, sky network security, cloud operations control, cloud services management, cloud service customer access, tenancy and customer isolation, and cloud resilience. &nbsp,

The new recommendations will provide a framework for data centers to implement techniques that can help assure business stability and reduce service problems. &nbsp,

According to IMDA,” this includes instructions on implementing company continuity policies, controls, and processes, as well as continually reviewing and improving them,” adding that measures may also tackle cybersecurity risks in data centers. &nbsp,

IMPROVING SINGAPORE’S DIGITAL SECURITY&nbsp,

These guidelines provide an “additional step” to improve the resilience and security of cloud services, according to IMDA, adding that they would also complement the upcoming new Digital Infrastructure Act ( DIA ). &nbsp,

As scientific developments progress, the rules introduced will also be updated. &nbsp,

The organization stated that” a whole-of-ecosystem approach is required to ensure that our society and economy continue to benefit from digitalization while being prepared for online outages.”

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Alibaba making China tech investible again – Asia Times

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Alibaba Group’s headline-grabbing protest tops off what’s been an extraordinary month for Chinese tech companies.

In late January, the sudden appearance of made-in-China synthetic knowledge game DeepSeek pulled the rug out from under Wall Street’s” Trump business” group. Bettors predicted that US stocks would explode as a result of the US President Donald Trump’s plans.

Trump’s eagerness for AI, which he and his patron Elon Musk, contributed to the excitement. Trump punctuated the place on January 21, when he stood shoulder-to-shoulder with OpenAI’s Sam&nbsp, Altman, Oracle’s Larry Ellison and SoftBank’s Masayoshi Son at the White House to light a&nbsp, US$ 500 billion &nbsp, Al network project.

Weeks later, it seemed like old hat as DeepSeek’s claim caught world markets off guard. Its cost-effective AI model using less advanced chips precipitated a nearly$ 600 billion selloff in&nbsp, Nvidia’s shares&nbsp, alone — history’s biggest corporate loss in market capitalization.

Then Alibaba is again on the international scene with an passion that’s even caught global investors off-guard. It includes a large force into Al, in which Alibaba is investing confidently.

The business Jack Ma co-founded claims to have invested more than$ 53 billion in data centers and other AI system projects. Apple, nevertheless, is incorporating Alibaba’s Artificial services in handsets sold in China.

But Alibaba’s march might have arms for an even bigger purpose: Xi Jinping’s selection to, in the words of scholar Stephen Jen, “make Chinese equities investible again”, starting with software platforms.

Jen, CEO of Eurizon SLJ Asset Management, says that “in some ways, this is a call for a extended bounce-back in a long-depressed and unhappy business. However, there are now many more reasons to get good than bad about Chinese stocks and China in general.

After Trump called for greater scrutiny of international companies listed in the US, Alibaba’s wave hit a speedbump on Tuesday, along with Taiwanese technology companies in general.

But from Jen’s perspective, Chinese stocks will remain on roll for reasons including: regulation easing, signs the property sector is ultimately bottoming to support better consumer sentiment, the resilience of Chinese bonds and the yuan, a serious misjudging of China’s manufacturing and industrial prowess, low valuations, and signs the world remains thin Chinese assets.

Xi’s meeting with Ma and other mainland tech founders last week helped, too. Following Xi’s crackdowns, which started with Ma’s fintech tycoon Ant Group, China’s tech scene has been in a state of corporate limbo since late 2020.

Ostensibly, Ant’s planned$ 37 billion listing was scrapped after Ma criticized Beijing, suggesting policymakers don’t understand technology. Ma alleged that regulators were stifling innovation and that banks were having a “pawnshop mentality” in a speech delivered in Shanghai.

First, Ant’s initial public offering was pulled. At the time, it would’ve been history’s biggest. Next, Xi’s financial regulator put under a microscope a who ‘s-who of tech giants: search engine Baidu, &nbsp, ride-hailing giant&nbsp, Didi Global, e-commerce platform JD.com, &nbsp, food-delivery Meituan and gaming colossus Tencent, among others.

Ma effectively entered a political exile. Last week, when Xi invited Ma and other tech billionaires to a gathering that would put Chinese technology back in the ascendancy, that appeared to change. Ma sitting in the front row and Xi shaking his hand caused investors to sift into mainland shares with an unprecedented enthusiasm.

The scene suggested that “one of the world’s greatest living entrepreneurs” is “back into the good&nbsp, graces”, says analyst Bill&nbsp, Bishop, who writes the Sinocism newsletter. Bottom line, he says, “it’s an encouraging signal for private businesses”.

Daiwa analyst Patrick Pan notes that “from a long-term perspective, we turn more positive on the outlook for the China stock market”. China’s recent tech breakthroughs and pro-business pivot, he says, are “game changers for China stock prices”.

In March 2023, Alibaba unveiled the&nbsp, biggest restructuring &nbsp, in its 26-year history, splitting into six units and exploring fundraising or listings for most of them. At the time, Alibaba said the strategy is “designed to unlock shareholder value and foster market competitiveness”.

The six units included: domestic e-tailing, international e-commerce, cloud computing, local services, logistics and media and entertainment.

The market is the best litmus test, according to former Alabaster CEO Daniel Zhang, who remarked two years ago, and each business group and company can launch independent fundraising and IPOs when they are ready.

The enterprise was bigger than Alibaba, though. It served as a case study of sorts for China Inc. as Xi’s regulators attempted to mitigate risks and halt monopolistic tendencies among tech giants.

Given that Xi and Premier Li Qiang both claim that they want private companies to create more jobs and boost a troubled economy, the situation is quite a balance.

Ma’s Alibaba was an obvious place to start. It has long been a global representation of China’s tech goals and a symptom of Beijing’s tolerance for tech billionaires spreading their wings.

Now, after years of uncertainty, says Daniel Ives, analyst at Wedbush Securities, Alibaba just “delivered an inflection point quarter”, led by a stronger-than-expected cloud business and an expanding AI push that could represent the “next gear of growth”.

AI is” the kind of opportunity for industry transformation that only comes around only once every few decades,” as current Alibaba CEO Eddie Wu put it last week.

Wu added that” when it comes to Alibaba’s AI strategy, we aim to continue developing models that extend the boundaries of intelligence” and that AI may eventually “have a significant influence on or even replace 50 % of global GDP”

When it comes to cheap Chinese valuations, Alibaba could be Exhibit A. While some profit-taking might happen, the company is still trading between 35 % to 40 % below past highs.

However, Alibaba is under increasing pressure to act in order to validate investors ‘ bullishness.

According to HSBC Holdings analyst Charlene Liu, “fundamentals will have to be back in focus” in order to increase stock prices. Alibaba shows” a clear strategy to monetize AI and accelerate cloud revenue growth and margin improvement,” as evidenced by increasing its e-commerce market share.

The real onus, though, is on Team Xi to convince global investors broadly that China’s “uninvestable” days are over for good. &nbsp,

Over the last dozen years of Xi’s leadership, Beijing has too often slow-walked moves to strengthen capital markets, reduce opacity, scale back the role of state-owned enterprises, build a globally trusted credit rating system and increase regulatory certainty.

Clearly, the return of Hangzhou-based Alibaba to favor in Communist Party circles may be its own inflection point.

Recently,” Hangzhou’s innovation model has been lauded for fostering numerous superstar technology startups, dubbed the’ Six Little Dragons’ in markets”, says Carlos Casanova, economist at Union Bancaire Privée.

This, Casanova says,” suggests China may be preparing to adopt a Hangzhou-style model that promotes both hard technology and high value-added software and services in its upcoming 15th Five-Year Plan, expected to be unveiled this October. Although we won’t know for certain until the draft is made public, it appears that China is gearing up for a strategic turn in 2026.

However, it will be simpler to persuade global funds that the multi-year tech inquisition is over. Although handshakes and rhetoric are acceptable, it is more crucial to end the regulatory chaos that has persisted recently.

According to Jeremy Mark, senior fellow at the Atlantic Council,” this will take much more than optimistic pronouncements to restore confidence after months of undelivered promises.” Beijing has long sought out foreign institutional investors, but this uncertainty is unsettling.

The volatility of recent months, though”, has given Chinese officialdom greater incentive to pursue a tightly regulated, less volatile stock market — one in which the likes of insurance companies, pension funds, and other government-run behemoths hold sway over individual investors,” Mark says.

The order of the day, Mark adds”, will be to encourage long-term investments in large companies by offering bigger dividends, share buybacks, and — ideally—steady profit growth. ” &nbsp,

Of course, some people believe that concerns about market structure are overshadowed by the attractiveness of mainland valuations. &nbsp,

” Since January, the rally in the Chinese tech sector has been stunning, though the overall A-Shares market has not risen much,” says Jen of Eurizon SLJ.

Companies outside the tech industries are trying to do the same, just as Chinese tech companies are actively looking for ways to harness the power of rapidly advancing AI. Chinese companies are generally very eager to adopt the best technologies, especially if they are cheap.”

When the” Magic Seven” is so expensive, Jen adds,” Chinese equities ought to be in good standing if the collective’I Q’ of Chinese manufacturing can keep up with the best in the world.” ” The seven companies mentioned here are Apple, Microsoft, Google parent Alphabet, Amazon.com, Nvidia, Meta Platforms and Tesla.

The argument isn’t always clear-cut. As mainland stocks surged last week, so did Nvidia’s.

By the start of this week, the California-based company had recovered roughly 90 % of its market valuation losses. It’s a reminder that the AI boom is no particular nation’s to lose. And that Beijing’s desire to keep control might conflict with the success of disruptors like DeepSeek.

According to Bank of America analyst Vivek Arya,” The stock may be volatile following results, but we anticipate positive momentum to resume as investors look forward to Nvidia’s leading new product pipeline and total addressable market expansion into robotics and quantum technologies at the upcoming]Nvidia ] conference.”

The macroeconomic backdrop matters, of course. The upcoming Trump trade war and the high chances that they will cause inflation are still a source of uncertainty for the world.

” The upbeat mood seen among US businesses at the start of the year has evaporated, replaced with a darkening picture of heightened uncertainty, stalling business activity and rising prices,” says Chris Williamson, chief economist at S&amp, P Global Market Intelligence.

Companies, Williamson says”, report widespread concerns about the impact of federal government policies, ranging from spending cuts to tariffs and geopolitical developments. He states that the outlook for the rest of 2025 has shifted to “one of the gloomiest outlooks since the pandemic.”

Despite this, there is growing hope that Team Xi’s efforts to batten down the hatches and its exportation to global South nations will lessen its vulnerability to Trump’s bullying than many people had predicted.

China Inc. is also demonstrating that it has some serious game on playing fields Trump World takes for granted, and not just AI. Chinese biotech companies are exhibiting signs of developing drugs more quickly and affordably than their American competitors.

At the same time as Trump is empowering Tesla billionaire Musk to launch a disaster against America’s scientific research institutions, this includes cancer drugs.

In the case of Alibaba, though, investors are hoping Beijing’s multi-year battle with Chinese tech is officially over. To validate this optimism, Team Xi will need to make sure changes are being made so that the big meeting internet platform from last week is more than just a photo op.

Follow William Pesek on X at @WilliamPesek

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