Stories from beijing · China

New developments in domestic large language models, including Mini Max, suggest potential breakthroughs this week. Recent updates, such as DeepSeek announcing a new version capable of integrating with certain domestic GPUs, have bolstered confidence in the local AI industry chain. These advancements are driving interest in hardware stocks related to the artificial intelligence sector. New software versions can now interface with certain domestic GPU components, boosting hardware stocks in the AI supply chain. However, competition among LLM operators remains intense globally. Companies are facing high capital expenditures and increased volatility in the sector. The competition involved over 100 teams and hundreds of robots. Humanoid machines are transitioning from laboratories to real-world applications, demonstrating the ability to compete with or exceed human physical capabilities.

China's electric vehicle charging infrastructure reached a total of 21.481 million units by the end of the month. Discussions regarding security in the Hormuz Strait have been noted, with mentions of potential meetings between US officials and leadership. The context involves the strategic importance of the strait and its impact on regional stability. Potential maritime tensions in the Strait of Hormuz are expected to significantly impact global supply chain logic, risk management, and cost structures. Shipping costs and risk pricing are projected to see jumps and increased volatility. Brent crude futures rose by $2.22 to $107.55 per barrel following reports of continued transport restrictions in the Strait of Hormuz. Global crude supplies are tightening due to stalled peace negotiations between the United States and Iran.

China's 168 comprehensive bonded zones achieved an import and export value of 7.2 trillion yuan in 2025. The zones also contributed approximately one-seventh of the country's total import and export value. New policies aim to transition these zones from traditional processing and logistics toward high-end production and services, including bonded repair and testing. This shift aims to enhance supply chain resilience and national strategic security. China's General Administration of Customs is transitioning bonded zone supervision from traditional network management to a digital collaborative system. Pan Cheng, Deputy Director of the Free Trade Zone and Special Area Development Department, stated that the customs administration will accelerate the research and issuance of supporting institutional documents.

China's Ministry of Ecology and Environment reported an overall improvement in air quality during the first quarter of 2026. PM2.5 average concentrations in the Yangtze River Delta decreased by 2.3% year-on-year, and heavy pollution days fell to 1.6% of the total. Surface water quality remained stable, with 89.5% of water categorized as types 1 to 3 (excellent/good). The proportion of days with heavy or severe pollution fell to 1.6%, a 0.2 percentage point decrease from the previous year. President Xi Jinping has issued instructions to summarize and apply development experiences from Yiwu to promote high-quality growth. PM2.5 concentrations in 339 cities averaged 40.6 micrograms per cubic meter, a 1.2% year-on-year decrease, while PM10 averaged 63 micrograms per cubic meter.

Goldman Sachs reports indicate China has achieved breakthroughs in low-cost computing power for high-end AI large model manufacturing. Analysts no longer view Chinese technology stocks solely as contract manufacturers but as globally competitive sources of innovation. Investors are reportedly willing to pay premiums for these technical barriers. In the first quarter of 2026, 15 hard-tech companies achieved dual A-share and H-share listings.

Cui Hongjian, Director of the EU and Regional Development Research Center at Beijing Foreign Studies University, stated that European trust in the United States is decreasing. This shift is driven by changing perceptions of NATO's strategic importance. According to Cui, the strategic value of Europe is declining in the eyes of the United States. Furthermore, the benefits that NATO provides to the U.S. are reportedly diminishing. The report notes that even under Donald Trump, NATO is viewed as having reduced utility. Some perspectives, including those associated with Donald Trump, suggest NATO has become a burden.

CITIC Securities (6000030) reported that its securities investment business revenue accounted for 36.88 percent of the company's total revenue in 2025. This segment saw a year-on-year growth of 25.55%. Securities derivatives currently represent 38.89% of the firm's net capital. The company aims to increase the proportion of emerging income from structured products to over 40% in the coming years to establish a stable cash flow. The company holds comprehensive licenses, including access to US stocks via Hong Kong. Short-term profit contributions from overseas expansion are currently expected to be difficult. While profit contributions are not expected in the short term, the strategic focus remains on global layout.

Heavy rainfall is forecasted to move from west to east across southern China, including parts of Jiangnan, South China, and the eastern regions. Meteorological updates indicate heavy rainfall is moving from west to east across several regions. Temperatures in Xi'an and Lanzhou are expected to decrease by approximately 9 degrees Celsius on May 1st. The Central Meteorological Observatory predicts a period of precipitation and cooling across most of China during the early May Day holiday. Southern China is expected to experience heavy rainfall, with some areas facing thunderstorms, strong winds, and hail. Southern China is experiencing continuous rainfall, with heavier precipitation expected on May 2nd. The May Day holiday box office exceeded 300 million yuan, with the first day's average ticket price at 36.8 yuan, the lowest in four years.

Reports indicate China is developing mini nuclear weapons and dangerous missiles. The United States has issued warnings regarding these developments. China has developed a robotic submersible capable of reaching depths of nearly 12,000 feet. The technology is capable of cutting undersea internet cables at these depths. Chinese officials state the device is intended for research purposes. This development follows reports regarding China's maritime capabilities. The specific purpose of the submersible remains a subject of international scrutiny. The technology allows for operations at depths to potentially interfere with subsea infrastructure. The capability is noted alongside ongoing discussions regarding China's strategic maritime activities. China is advancing a new 'Smart Economy' strategic framework as outlined in the recent government work report.

China's new employment group, characterized by flexible work, has reached an estimated 84 million people nationwide. New management protocols for the onboarding process of these new employment groups are also being said. Chinese authorities are said the role of corporate headquarters in regulating the 'new employment group' to improve worker well-being. Chinese authorities are proposing measures to ensure reasonable labor compensation for new employment groups, including internet platform workers. The proposal focuses on balancing work tasks with labor intensity and ensuring protections for rest periods. It also addresses contract certainty and implementation in special circumstances. Implementation will focus on contract certainty and specific labor intensity metrics.