☕️ Good morning, friends,

We always pride ourselves on asiabits being the perfect combo of human and artificial intelligence. But that also means we make mistakes.

Yesterday Thomas clicked a bit too fast, and the German edition hit your inbox two hours earlier than usual…

When it comes to stress management, we could still learn a lot from a Chinese diver: he survived five (!) days in an underwater cave. Thanks to an air pocket and plenty of raw fish on the menu, he looked remarkably fresh when they rescued him!

Check out the photos here.

His first words on dry land: “Does anyone have a cigarette for me?” We could all use that kind of coolness….

P.S. Our asiabits community has grown by 99% over the past seven days.
Help us keep the momentum going—every referral helps immensely! 👇🏻

BENCHMARKS

NUMBER OF THE DAY

6.5 billion USD

That's how much Australia is investing in eleven Mogami warships from Japan, sealing the largest defense deal between both countries. 

🚢 Quadruple firepower: The new ships can fire four times more missiles than the old fleet but need only half the crew.

🌏 Counter to China: The deal bonds Japan, Australia and the US more closely as China expands its military presence in the Pacific.

⚓ Fleet expansion: Australia plans to more than double its warship fleet from 11 to 26 by 2034 to protect critical trade routes.

TOP BIT

🧠 Alibaba Transforms into an AI Superpower

Alibaba is ditching its premium supermarkets to pour billions into artificial intelligence. The group is abandoning its US-inspired food-subscription model and instead investing heavily in AI research, healthcare services, and new intelligent customer programs.

The goal: to challenge global tech giants like Google and Meta and establish itself as a leading AI company.

The Details

🛒 Shutting Premium Stores: By the end of August, Alibaba will close all remaining Hema X outlets—China’s answer to Costco—to cut costs and reallocate resources.

🧑‍💻 Super-Membership Program: Alibaba will bundle platforms like Taobao, food delivery service Ele.me, and travel portal Fliggy into one central membership program to deepen customer loyalty and offer cross-service benefits.

💻 $53 Billion AI Push: By 2028, Alibaba will invest $53 billion in AI innovations such as its “Qwen” language model and massively expand its cloud network in Malaysia, South Korea, and Mexico.

🗺️ World’s First AI-Native Map: With “Amap 2025,” the first fully AI-driven mapping app, Alibaba is turning navigation into a proactive, intelligent travel experience. The AI “Xiao Gao” plans personalized routes, factors real-time weather and traffic, and offers spontaneous recommendations.

🏥 AI in Healthcare: Alibaba’s DAMO Academy is partnering with clinics like Beijing United Family Hospital to deploy the “One Sweep Multi-Check” AI-screening system for rapid, reliable cancer and chronic disease diagnoses.

Why It Matters

• AI Focus: Alibaba is making a radical shift from traditional retail to technology and AI leadership.
  

• Global Competitiveness: Massive investments position Alibaba to compete head-to-head with giants like Google, Meta, and Amazon.
  

• Future-Proof Diversification: New AI and health ventures reduce Alibaba’s reliance on volatile consumer and retail markets.

Background

Closing the premium supermarkets follows Alibaba’s ongoing restructuring since 2023 toward more profitable, less capital-intensive businesses. Alibaba currently holds over 30 percent of China’s cloud market and aims to grow further through AI-powered services and global partnerships.

📊 All Data & Details: SCMP, Caixin, Bloomberg

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HEAD OF THE DAY

🇯🇵 Takaya Awata

🍜 From College Dropout to Udon Emperor: Takaya Awata left university in 1985 to open his first yakitori restaurant. Today he leads Toridoll with over 2,000 udon outlets across Japan, China, Singapore, Europe, and the U.S., pulling in $1.9 billion in annual revenue. After acquiring Tam Jai in 2021 and planning its delisting, he’s poised for another growth leap.

👉 Lesson Learned: First become the undisputed leader in your core business through relentless quality. Only then can you turbocharge growth with targeted acquisitions and seamless integration.

MARKET BIT

🔄 US Investor Blackstone: Billion-Dollar Deal for Japan’s Engineering Powerhouse

Details

💰 Price Proposal: The US private-equity firm is in talks to acquire TechnoPro for about ¥500 billion (≈ $3.4 billion), with an offer roughly ¥4,900 ($33) per share.

🛠️ What TechnoPro Offers: Over 20,000 engineers and IT professionals serve around 2,000 clients—from automakers to chip developers. 2023 revenue: $1.34 billion.

🌏 Japan in Buyer Focus: A weak yen, shareholder-friendly reforms, and moderate valuations are attracting PE firms. Blackstone is targeting service providers in the talent sector.

⏳ Current Status: TechnoPro confirms discussions but emphasizes that nothing has been signed yet.

Why It Matters

• Signal for the Labor Market: If Japan’s largest engineering-staffing firm is taken private, it could trigger further industry consolidation.
  

• Value-Creation Potential: Blackstone expects to boost margins through enhanced training and placement platforms, turning the talent shortage into an advantage.
  

• Japan’s New M&A Profile: A successful deal would cement Tokyo’s reputation as a hotspot for international buyers and could lift valuations across mid-cap firms.

👉🏻 Full Story: Reuters, Nikkei

TOP READS

🛵 Vietnam Drives E-motorcycle Revolution: Hanoi bans gas mopeds in city center from July 2026, Ho Chi Minh City wants to replace 400,000 gas delivery bikes - a mammoth task with 77 million registered motorcycles nationwide. VinFast dominates the e-market with 501 percent growth, while Honda and Yamaha rush to develop electric models as the government pushes change with emission targets and improved charging infrastructure. Full story.

🦟 Chikungunya Outbreak in South China Reaches 7,700 Cases: Guangdong's industrial center Foshan reports 96 percent of infections, while authorities deploy mosquitoes that eat Aedes larvae. After Hong Kong's extreme black rain warning, experts fear ideal breeding conditions for carrier mosquitoes as 70 percent of surveyed urban areas already show heavy infestation and flooding creates new breeding sites. Full story.

🤖 Samsung Launches InnoX Lab for Humanoid Robots and AI: The new unit immediately develops physical AI for factory automation, digital twins and humanoid robot technologies with flexible project teams of top talents from all departments. The lab aims to accelerate Samsung's response to AI megatrends and is already working on "technology the world has never seen," while the company simultaneously boosts employee productivity through AI. Full story.

OPTIONAL READS

Thailand: Cabinet approves $774 million deal for four Swedish fighter jets after border clashes with Cambodia. More on that.

China: Record US listings for Chinese firms through SPAC boom and strict listing rules in China. More on that.

Singapore: Survey shows drastic drop in US travel interest due to safety concerns and gun violence. More on that.

FORTUNE COOKIE

🔥 BBQ Academy Instead of the Curb: China’s First Barbecue Academy to Launch in Yueyang

Two years of theory, six months of hands-on grill practice—and in three years, 1,000 “skewer sommeliers” will enter the market.

On the curriculum:
– Marinade Mechanics: Why garlic must never steal the show
– Ember Physics: Charcoal, gas, or even lava stones?
– Spice-Cost Accounting: Balancing chili and cumin in managerial finance

The internet is already fired up:

“Qualification test: ten lamb skewers in five minutes—or you fail!”
“Does the scholarship come paid out in chicken wings?”

Strangely, after a decade in China, we just shrugged when we saw this headline—nothing surprises us anymore…

📬 Got Something Funny, Interesting, or Noteworthy from Asia? Send it to [email protected] and we’ll feature it here!

As a thank-you, you’ll receive the exclusive asiabits China snack box filled with half a kilo of treats!

FEEDBACK

See you tomorrow in your inbox, 

Thomas, Michael & the Team of asiabits