Baidu & Huawei Open AI 🧠 HK IPOs Skyrocket 💰 Aging Reversal Breakthrough 🧬

2025-07-07 | subscribe | homepage

Welcome back to this week’s edition of the China Insights Weekly Newsletter!

Here are some of the key highlights for this week’s edition:

• IPO surge in Hong Kong and mainland fuels investor optimism across Asia

• Korea’s Samyang breaks ground on massive noodle plant to feed China’s spicy cravings

• AI pediatrician rolls out in Shanghai to support under-resourced hospitals

• China unveils world-first 500 MW turbine, boosting hydropower dominance

Dive deeper into these stories and more by clicking the headlines below. We value your feedback. Let us know your thoughts or suggestions on LinkedIn, X or Facebook.

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🚀 Headlines

Baidu open-sources Ernie generative AI model, Huawei open-sources two AI models from its Pangu series (link, link)

Baidu is set to open-source its Ernie generative AI model, marking a major shift in China’s AI landscape and the most significant public AI release since DeepSeek. The rollout will be gradual, signaling a strategic pivot from Baidu’s previously proprietary approach. Baidu claims its latest ERNIE X1 model matches DeepSeek’s R1 performance at half the price. The open-source release is expected to accelerate global AI development, especially among developers seeking customizable, cost-effective models.

Huawei has open-sourced two AI models from its Pangu series and part of its model reasoning technology, reinforcing its position across the AI value chain. The move supports Huawei’s “Ascend ecosystem strategy,” which centers on its Ascend AI chips—China’s leading alternative to Nvidia. By offering open-source models, Huawei aims to drive adoption across industries and boost hardware sales, a strategy likened to Google’s integration of AI chips and open models. While Huawei’s software capabilities trail those of Baidu or DeepSeek, its focus on specialized AI for sectors like government, finance, and manufacturing gives it a competitive edge. The open-source push is expected to resonate in price-sensitive developing markets and support Huawei’s global AI expansion.

Toyota commits USD 139M to hydrogen fuel cell plant in Chengdu through new joint venture (link)

Toyota has committed $139 million (1 billion yuan) through a joint venture with Shudao Investment Group to build a hydrogen fuel cell manufacturing base in Chengdu, Sichuan Province. The facility, named the Shudao Toyota Hydrogen Fuel Cell Smart Manufacturing Base, will produce fuel cell systems and components for heavy-duty commercial vehicles and is expected to be operational by the end of 2025. The project aligns with China’s national carbon neutrality goals and leverages Chengdu’s access to affordable hydrogen, green electricity, and the emerging Chengdu-Chongqing Hydrogen Corridor. Toyota’s investment builds on its existing hydrogen partnerships in China and aims to strengthen the country’s hydrogen ecosystem for commercial transport.

South Korean instant noodles maker Samyang Foods began building its first overseas factory in the Chinese city of Jiaxing (link)

Samyang Foods has begun constructing its first overseas production plant in Jiaxing, Zhejiang Province, near Shanghai, with an investment of 201.4 billion won (USD 148 million). The 58,378-square-meter, three-floor facility will house six production lines and is expected to be completed by January 2027. Once operational, the plant will produce up to 840 million units of Buldak noodles annually, all for the Chinese market. China currently accounts for about 25% of Samyang’s total exports. With the new facility, the company’s total annual production capacity for Buldak noodles across its five factories (four in Korea and one in China) will reach 3.52 billion units. The move aims to localize production and marketing to serve Chinese consumers better.

Hong Kong’s IPO market is on fire with 8x increase in volume, Mainland accepts 2x as many filings in June as all of 2024 (link, link)

Hong Kong’s IPO market has surged in 2025, with new listing volumes jumping eightfold to $14 billion in the first half, up from $1.8 billion in 2024, according to Dealogic. The city is on track to become the world’s top listing destination, with PwC projecting over $25.5 billion in total fundraising from up to 100 IPOs. In H1 2025, 43 new listings raised $13.6 billion, already surpassing 2024’s total. Key drivers include Beijing’s push for dual A-H share listings, regulatory support, and strong liquidity from mainland investors via Stock Connect, which hit record quarterly inflows. High-profile listings include CATL’s $5 billion secondary offering. The Hang Seng Index has gained 21% YTD, and over 40 of the 200+ IPO applicants are mainland-listed firms seeking a Hong Kong presence.

Mainland China’s three major stock exchanges accepted 150 IPO filings in June 2025—nearly double the 77 accepted in all of 2024. Ninety-two applications were approved in the final four working days of June, including 41 on June 30 alone. From January to June, a total of 177 filings were accepted, a sharp rebound from 2024’s decade-low of 100 listings. The Beijing Stock Exchange led with 97 acceptances, followed by Shanghai with 25 (18 on the Star Market), and Shenzhen with 28 (19 on ChiNext). Experts attribute the surge to seasonal filing patterns, stronger regulatory support for tech firms, and a broader recovery in China’s IPO market.

China to grant up to 10% tax break for foreign investors who reinvest profits (link)

China will offer foreign investors a tax break of up to 10% on reinvested profits from 2025 through 2028. The incentive allows overseas investors to reduce their annual tax liability by 10% of the amount reinvested in China, with unused credits carried forward. Eligible reinvestments must fall within the Catalogue of Industries Encouraged for Foreign Investment and be held for at least five years. The policy aims to attract long-term capital, particularly in high-tech and green energy sectors. In the first five months of 2025, 24,018 new foreign-backed firms were established in China, up 10.4% year-on-year, though actual foreign capital used fell 13.2% to CNY358.1 billion (USD50 billion).

Shanghai Xinhua Hospital has partnered with SenseTime to launch AI Pediatrician to assist in diagnosing children (link)

Shanghai Xinhua Hospital has partnered with SenseTime Group to launch an AI-powered virtual pediatrician, which went live on June 28. The system is built on SenseTime’s medical large language model and designed to assist in diagnosing children, particularly in grassroots hospitals where pediatric resources are limited. According to Xinhua Hospital President Sun Kun, the AI pediatrician has undergone rigorous testing and demonstrated strong performance in both internal evaluations and third-party assessments. It aims to support—not replace—doctors by offering diagnostic suggestions based on user queries and uploaded images. The tool is tailored to address gaps in pediatric care across China’s under-resourced medical institutions. Unlike general AI models, this system is a specialized medical LLM trained on clinical data and tasks to reduce errors and improve reasoning accuracy.

Scientists use engineered cells to reverse aging in primates (link)

Researchers from the Chinese Academy of Sciences and Capital Medical University have developed a new type of human stem cell called senescence-resistant mesenchymal progenitor cells (SRCs) to combat aging in primates. In a 44-week experiment on elderly crab-eating macaques, the team administered biweekly intravenous injections of SRCs at a dosage of 2×10^6 cells per kilogram. The study found no adverse effects and confirmed that the cells did not cause tissue damage or tumors. The SRCs triggered multi-system rejuvenation across 10 major physiological systems and 61 tissue types, improving cognitive function and reducing age-related degenerative conditions. At the cellular level, SRCs decreased senescent cells, reduced inflammation, and increased progenitor cell populations. Molecularly, they enhanced genomic stability and restored protein balance. Exosomes released by SRCs were identified as key agents of rejuvenation, significantly reducing organ degeneration in aged mice. This study highlights SRC therapy as a promising intervention for multi-system aging.

China unveils world’s first 500-MW turbine after 4-year testing (link)

China has unveiled the world’s first 500-MW single-unit impulse turbine, developed by Harbin Electric Machinery Company after four years of testing. The turbine, weighing 88 tons and measuring 6.23 meters in diameter, will be installed at the Datang Zala Hydropower Station in Tibet. The plant, with a total capacity of 1 GW, is expected to generate 4 billion kWh annually and reduce carbon emissions by 3.7 million tons. The turbine’s efficiency has improved from 91% to 92.6%, potentially adding 190,000 kWh per day. Construction began in 2023, with operations slated for 2028. This project supports China’s carbon neutrality goals and reinforces its leadership in hydropower and pumped storage development.

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🎁 Bonus Stories

China’s fully autonomous humanoid robot teams compete in football tournament, score goals (link)

China hosted its first fully autonomous humanoid robot football tournament in Beijing’s Yizhuang Development Zone, with four teams competing in the final leg of the Robo League. THU Robotics from Tsinghua University won the championship, defeating Mountain Sea from China Agricultural University 5–3. Each team fielded three robots, playing two 10-minute halves with a 5-minute break. The robots operated without human control, using AI and sensors to detect the ball up to 20 meters away with over 90% accuracy. The event is a precursor to the 2025 World Humanoid Robot Sports Games, set for August 15–17 in Beijing, featuring 11 sports including track, gymnastics, and soccer. Organizers aim to integrate robots into public life and real-world scenarios, with future plans to expand robot sports and improve performance levels.

China leads in Robotaxi adoption with 1000s of vehicles and is expanding internationally (link)

Baidu’s Apollo Go operates 1,000 robotaxis across Beijing, Shanghai, Guangzhou, Shenzhen, Wuhan, and other Chinese cities. Multiple companies operate public trials in Guangzhou, Shenzhen, Shanghai, and Beijing, with some services expanding to smaller cities. While early trials were free, new low-cost fares have sparked tensions with traditional taxi drivers. Guangzhou-based WeRide operates in Abu Dhabi and is testing in San Jose, while Apollo Go plans expansion to Hong Kong, Abu Dhabi, and Dubai. Chinese regulations allow one remote operator to monitor up to three robotaxis. Some vehicles still include onboard safety drivers, though they are not required for maneuvers.

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