MiniMax Tops Google 🧠 Tesla Mega Battery Deal ⚡ Rokid AR x Alipay 🕶️

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2025-06-23 | 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:

• Tesla to build China’s largest grid-scale battery plant

• Rokid AR glasses enable voice-based Alipay payments

• AI avatars in livestreams generate $7.6M in sales

• China activates a 1,000-qubit quantum control system

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

MiniMax released open-source reasoning model that outperforms DeepSeek, its Hailuo 02 video AI model tops Google (link, link)

Shanghai-based AI firm MiniMax has released MiniMax-M1, a fully open-source reasoning model under the Apache license, positioned to compete with DeepSeek, Anthropic, OpenAI, and Google. M1 performs strongly on benchmarks such as AIME 2024 and LiveCodeBench, while requiring only half the computing resources of DeepSeek. It supports a one-million-token context window, eight times that of DeepSeek R1, and can generate outputs up to 80,000 tokens compared to DeepSeek’s 64,000. Backed by Alibaba, Tencent, and IDG Capital, MiniMax attributes its efficiency to the Lightning Attention mechanism and CISPO reinforcement learning algorithm.

The company also launched Hailuo 02, the second generation of its video AI model, with major improvements in performance and cost. Built on a Noise-aware Compute Redistribution (NCR) architecture, it improves training and inference efficiency by 2.5 times. Hailuo 02 includes three times more parameters and four times more training data than the first version, and is available in three variants, with the highest resolution producing six seconds of 1080p video. Since its August 2024 demo launch, the platform has generated over 3.7 billion videos. In user benchmarks, Hailuo 02 outperformed Google’s Veo 3, generating a six-second 1080p clip for USD 0.49, compared to USD 3 for an eight-second 1080p video with Veo 3.

China launches e-CNY international ops center in Shanghai, China’s CIPS inks deals with 6 foreign banks (link, link)

China’s central bank has opened an international e-CNY operations center in Shanghai, part of eight financial reforms to modernize payments and promote global yuan use. The center supports real-time cross-border transactions using blockchain, distributed ledger technology, and programmable payments, with Shanghai also piloting blockchain-based trade finance. Meanwhile, CIPS signed direct agreements with six foreign banks: Standard Bank, African Export-Import Bank, First Abu Dhabi Bank, Eldik Bank, United Overseas Bank, and Bangkok Bank, expanding yuan use in Africa, the Middle East, Central Asia, and Singapore. As of May 31, CIPS had processed more than 675 trillion yuan, or 94 trillion US dollars, since 2015, with 1,683 participants and connections to over 4,900 financial institutions in more than 180 countries and regions.

Tesla signs first deal to build China’s largest grid-scale battery power plant (link)

Tesla has signed its first deal to build China's largest grid-scale battery power plant. The project, valued at 4 billion yuan (USD 556 million), involves Tesla, the local government of Shanghai, and financing firm China Kangfu International Leasing. Tesla's battery factory in Shanghai has already produced over 100 Megapacks in Q1 2025, with each Megapack capable of providing up to 1 megawatt of power for four hours. This initiative aims to address the supply-demand imbalance caused by intermittent renewable energy sources like solar and wind. The project aligns with China's goal to add nearly 5 gigawatts of battery-powered electricity supply by 2025, reaching a total capacity of 40 gigawatts. Tesla's move is notable as it competes with local giants like CATL and BYD, who hold significant market shares in battery development and manufacturing.

Alipay launches in-store payment functionality in China for AR Glasses in partnership with Rokid (link)

Rokid, a leading AR company based in Hangzhou, has launched Rokid Glasses in China, integrating Alipay's in-store payment functionality. The glasses support seamless and secure payments through Alipay's digital technology and risk control solutions. Users can link their Alipay accounts via the Rokid app, enable voice verification, and complete transactions by simply saying a command and scanning the merchant's QR code. This method is faster than traditional phone-based QR payments, taking only seconds. Over 250,000 units have been pre-ordered, with the product rolling out in June 2025. This innovation marks a significant step towards more intuitive and frictionless commerce, potentially enabling future transactions through gestures or glances.

Chinese carmakers aim for 100% domestic chips in vehicles by 2027 (link)

Chinese automakers, including SAIC Motor, Changan, Great Wall Motor, BYD, Li Auto, and Geely, are reportedly targeting the use of 100% domestically produced chips in their vehicles by 2027. This goal accelerates the previous target of having 25% of domestic automakers adopt locally made chips. While not mandatory, this policy framework encourages companies to align with Beijing's strategic goals. Automakers like GAC Group are already collaborating with Chinese foundries, such as SMIC and CanSemi Technology, to validate locally developed alternatives. Most automotive chips can be produced using older-generation equipment, facilitating domestic production. However, Chinese automakers still rely on foreign chips, particularly for autonomous driving systems. Global chipmakers like STMicroelectronics, NXP, and Infineon are expanding production in China to meet local demand.

Walt Disney China teamed up with Shanghai Animation Film Studio to launch original short series, Zootopia: Day and Night (link)

Walt Disney China has partnered with Shanghai Animation Film Studio to create an original short series titled "Zootopia: Day and Night." The four-episode series, set to debut in November on Chinese social media and video platforms, will feature traditional Chinese art animation techniques such as stop-motion, ink-wash, 2D, and paper-cutting. This collaboration aims to blend Western storytelling with Chinese artistic heritage, promoting cultural exchange and innovation in animation. The series will precede the premiere of "Zootopia 2," enhancing audience engagement and showcasing the fusion of Disney's brand with local Chinese art forms.

AI avatars in China just proved they are better influencers, rake in millions (link)

On June 15, 2025, Chinese livestreamer Luo Yonghao and co-host Xiao Mu used AI-generated digital avatars on Baidu's e-commerce platform "Youxuan," achieving remarkable sales. Their 7-hour session earned 55 million yuan ($7.65 million), outperforming Luo's previous 4-hour livestream that generated fewer orders. The avatars, built on Baidu's AI model, mimicked their style after learning from five years of video data. This technology reduces costs by eliminating the need for large production teams or studios and allows nonstop streaming. Livestream shopping has surged in China, with Douyin becoming the second-largest e-commerce platform in 2024. However, challenges remain, including compliance with advertising regulations and platform-specific rules. Future applications could include multilingual streaming to reach global audiences.

China activates 1,000-qubit quantum system, placing it among global elite (link)

China's QuantumCTek Co has developed the ez-Q Engine 2.0, a superconducting quantum measurement and control system capable of supporting quantum computers with over 1,000 qubits. This places China among the global quantum elite, potentially making it the third-largest operational quantum system after IBM and Atom Computing. The system was delivered to leading Chinese research institutions and is set to provide over 5,000 qubits of control services in its initial rollout. Tested on China's 504-qubit superconducting quantum computer, the ez-Q Engine 2.0 achieved new benchmarks for stability, signal fidelity, and system integration. It features indigenous Chinese components, reducing physical footprints and operational costs by more than half compared to foreign counterparts. The development aligns with China's ambitions to lead in quantum technologies and challenges US quantum leadership.

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China Eastern Airlines to launch longest one-stop flight in the world with 777 (link)

China Eastern Airlines will launch the world’s longest one-stop flight in December 2025, connecting Shanghai Pudong to Buenos Aires Ezeiza via Auckland. The route will operate twice weekly using Boeing 777-300ER aircraft and cover approximately 10,580 nautical miles, or 19,594 kilometers, a distance too great for a non-stop service. The Auckland stopover allows the airline to manage range limits and use fifth freedom rights, enabling passengers to book either leg independently. This move targets the underserved New Zealand–Argentina market and strengthens China Eastern’s global reach, offering a more direct option between China and South America compared to connections through the Middle East or Europe.

Chongqing sets Guinness World Record with dazzling drone light show (link)

On June 17, 2025, Chongqing set a new Guinness World Record with a drone light show featuring 11,787 drones, creating the largest aerial image formed by multirotors. The event showcased the city's iconic mountain scenery, historical landmarks, and vibrant atmosphere with themes like "Mountain City" and "Camellia Blooming." The complex terrain of Chongqing posed significant challenges, including adjusting for high and low terrains and managing signal transmission over long distances. The record-breaking show was supported by Shenzhen DAMODA Intelligent Control Technology Co., Ltd. and attended by diplomats from various countries, highlighting Chongqing's growing international recognition. The city has been hosting regular drone light shows since April 19, 2025, along the Yangtze and Jialing rivers, with new themes introduced each month to attract both local and international audiences.

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