DeepSeek Soars to #2 🧠 World’s 1st Mini Reactor ⚡ Qatar Buys Into China 💰

2025-06-02 | 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:

• 100 robot trucks now operate in China’s mines, cutting 48,000 tons CO₂

• World’s 1st salmon farming ship to yield 8,000 tons yearly

• Esports hotel chain plans 100+ new locations in China

• Hybrid battery station powers 270,000 homes, cuts lithium reliance

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

Newly upgraded DeepSeek reasoning RI AI model leaps over xAI, Meta, and Anthropic to #2 AI Lab in the world (link)

DeepSeek quietly released an upgrade to its R1 reasoning model. The new R1 0528 model has achieved a significant leap in the Artificial Analysis Intelligence Index, rising from 60 to 68, positioning it as the world's second-highest AI lab tied with Google's Gemini 2.5 Pro. This advancement includes notable improvements in coding skills, matching Gemini 2.5 Pro in the Artificial Analysis Coding Index. The R1 0528 update utilized 99 million tokens, 40% more than its predecessor, indicating deeper processing capabilities. This progress highlights the growing competitiveness of open-weight models, with DeepSeek's R1 being the first to achieve the #2 position. It also underscores China's rapid advancements in AI, with Chinese labs nearly matching US counterparts. The update suggests that post-training, particularly reinforcement learning, is crucial for continued intelligence gains, offering an efficient path for AI labs with fewer resources.

China approves Qatar Sovereign Fund's purchase of 10% stake in mutual fund ChinaAMC (link)

China's market regulator has approved Qatar Investment Authority's (QIA) purchase of a 10 percent stake in China Asset Management (ChinaAMC), the country's second-largest mutual fund manager. Once the transfer is completed, Qatar Holdings will become ChinaAMC's third-largest shareholder, after Chinese brokerage Citic Securities (62%) and Canadian investment firm Mackenzie Investments (28%). Qatar Holdings will buy the shares from Tianjin Haipeng Technology Consulting, owned by Hong Kong-based investment firm Primavera Capital. As of March 31, ChinaAMC managed 471 fund products with a total net asset value of CNY1.9 trillion (USD264.6 billion). Founded in 2005, QIA is the ninth-largest sovereign wealth fund in the world, with assets of USD526 billion.

Mario Ho's NIP picks Chengdu for first China esports hotel, plans over 100 locations in three years (link)

NIP Group, founded by Mario Ho, youngest son of the late Macau casino tycoon Stanley Ho, is set to open its first esports-themed hotel in Chengdu, Sichuan province, with plans to expand to over 100 locations within three years. The company, which became the first Chinese esports firm to list on the Nasdaq Stock Exchange in July of last year, raising over USD 20 million, aims to operate 95 percent of its hotels through a franchise model. The hotel initiative is part of a joint venture with Homeinns Hotel Group, signed in August last year, combining NIP's esports insights with Homeinns' property resources to bring immersive esports hotel experiences to China.

China launches global mediation body IOMed in Hong Kong with 30+ nations backing new legal hub (link)

China has launched the International Organization for Mediation (IOMed) in Hong Kong, backed by over 30 countries, including Indonesia, Pakistan, Serbia, and Belarus. This initiative aims to provide a formalized alternative to arbitration and litigation, marking a significant step in China's efforts to enhance its global legal influence. The mediation body, scheduled to open by late 2025 or early 2026, will operate from a former police station in Hong Kong's Wan Chai district. The organization is promoted as the world's first intergovernmental legal body focused solely on mediation. Hong Kong has a unique legal system that combines both common law and mainland Chinese law. The signing ceremony was attended by over 50 countries and about 20 international organizations, signaling strong support from developing nations.

China is upgrading mining industry with driverless electric trucks to replace 1000s drivers (link)

China is rapidly advancing the automation of its mining industry with the deployment of autonomous electric vehicles. The Yimin open-pit coal mine in Inner Mongolia, one of China’s five largest such mines, has introduced a fleet of 100 self-driving trucks, marking the world's largest deployment of such vehicles to date. Now, instead of a thousand-man crew, just 24 people, divided into four teams, are needed to operate the 100 new trucks. This initiative is part of China's broader push to digitally transform its coal industry, aiming for "intelligent production" to account for at least 60% of total output by 2026. The trucks, powered by Huawei technology, are capable of operating in extreme temperatures and are expected to save 15,000 tons of diesel fuel and reduce CO2 emissions by 48,000 tons annually. The China National Coal Association estimates that the number of automated mining trucks will triple to 5,000 by the end of this year and exceed 10,000 by 2026. This move not only addresses labor shortages but also enhances efficiency and sustainability in the industry.

China is set to launch world’s first dedicated salmon farming ship to raise 8,000 tons of fish yearly (link)

China is set to launch the world’s first dedicated salmon farming vessel, “Su Hai No 1,” which is projected to yield up to 8,000 tonnes of salmon annually. Constructed at the Huangpu Wenchong Shipyard in Guangzhou for 600 million yuan (US$83.6 million), the 250-metre vessel will be delivered in June. It offers significant advantages over stationary net-pen systems, such as the ability to relocate to avoid typhoons and harmful algal blooms. The ship will also process salmon on board, delivering fresh fish to domestic markets within 24 hours. Operations are expected to begin in the Yellow Sea in autumn, with the first harvest anticipated next year. Currently, over 80% of China’s salmon consumption relies on imports, primarily from Norway and Chile. Last year, China imported over 100,000 tonnes of salmon, a number projected to double by 2030. The vessel aims to reduce import dependency and enhance national food security.

China’s first lithium-sodium hybrid station powers 270,000 homes with green energy (link)

China has launched its first lithium-sodium hybrid energy storage station in Yunnan Province, marking a significant advancement in hybrid battery storage. The Baochi Energy Storage Station (BESS) combines lithium and sodium-ion batteries, offering longer cycle life, faster response, and stable performance across temperatures from -20°C to 45°C. The facility, covering 3.3 hectares, has an installed capacity of 400 megawatt-hours and can complete two full charge-discharge cycles daily, generating up to 580 million kilowatt-hours annually—enough to power 270,000 households. Nearly 98% of its energy comes from renewable sources. The station supports over 30 renewable energy plants, enhancing grid stability and integration of wind and solar power. This innovation is crucial for regions with high renewable energy shares, such as Tibet, Xinjiang, Gansu, and Ningxia, and leverages China's abundant domestic sodium resources to reduce dependency on imported lithium.

World’s first commercial mini nuclear in final stage of construction to power 526,000 homes in China (link)

China's first commercial small modular nuclear reactor, Linglong-1, is now in the final installation phase at the Hainan Nuclear Power site in Hainan Province. Developed by the China National Nuclear Corporation (CNNC), this third-generation small pressurized water reactor is the world's first land-based SMR to begin construction. It passed a safety review by the IAEA in 2016. Each Linglong-1 reactor can produce 125,000 kilowatts of electricity, generating 1 billion kilowatt-hours annually, enough to power 526,000 homes. By replacing coal-based power, it will reduce carbon dioxide emissions by 880,000 tons per year, equivalent to planting 7.5 million trees. The reactor is part of China's 14th Five-Year Plan and aligns with its climate goals, including peaking carbon emissions before 2030 and achieving carbon neutrality before 2060.

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China's visa-free policy reaches 73 countries with additions of Saudi Arabia, Oman, Kuwait, and Bahrain (link)

China has announced a visa-free policy for nationals from Saudi Arabia, Oman, Kuwait, and Bahrain, effective from June 9, 2025, to June 8, 2026. This policy allows passport holders from these Gulf countries to stay in China for up to 30 days for business, tourism, family visits, exchanges, and transit purposes. The move follows similar agreements with the UAE and Qatar in 2018, extending visa-free status to all Gulf Cooperation Council (GCC) countries. China remains the GCC’s top trading partner, with bilateral trade totaling USD 297.9 billion in 2023, nearly double that of the GCC’s trade with India. Gulf exports to China reached USD 158.3 billion in 2023, and GCC countries exported 4.06 million barrels per day of crude oil to China, accounting for 36% of China’s total crude oil imports. With these 4 additions, citizens of 73 countries can enter China visa-free for 30 days, including 47 countries with unilateral visa-free travel to China and 26 countries with mutual visa exemption agreements.

New water park opens in Shanghai on top of the world’s biggest indoor ski resort (link)

Shanghai opened a new water park, Water World, adjacent to the world’s largest indoor ski resort, L*Snow, in the Lingang Special Area of the city’s free trade zone on May 31. The water park features a 17,000-square-meter indoor section (Viking Harbor) and a 12,000-square-meter outdoor rooftop area (Ice and Fire Canyon), making it unique in China. It includes 20 water slides, two AquaPlay structures, 54 AquaSplash toys, and a 13-meter-wide wave pool. The park’s opening marks a significant addition to Shanghai’s entertainment offerings, highlighting the city’s efforts to develop integrated tourism and leisure facilities.

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