☕️ Good morning, friends,

It’s been a back-and-forth: first, banquets and alcohol were completely banned from the top for Chinese officials; now the ban is being relaxed.

Reason: the economy is suffering, the people are complaining. We should’ve seen it coming: you can ban the Chinese from anything, but mess with their food and drink, and that’s just too far! 😋

👀 90-second video tip for your loo break: mass brawl on a flight from Kuala Lumpur to Chengdu. We’re betting on the woman in the mustard-yellow outfit…

🤝 P.S. Check out our Partner of the Week, Tencent. Developers can still win multi-million-CNY prizes through the end of July.

BENCHMARKS

NUMBERS

4.2%

That’s how much the Stoxx Europe Auto Index rises as the US-Japan trade deal fuels tariff hopes. German carmakers like Volkswagen and BMW also surge.

1.5 billion kW

China’s national power load hit this level on a single day last week—a new record. Scorching heat of up to 48.7 °C sent electricity demand soaring multiple times.

250 USD

That’s how much cat owners in Hong Kong spend each month, on average, on their whiskered housemates. The bill keeps climbing every year.

TOP BIT

🤖 Amazon Closes AI Lab in Shanghai – Next US Pullback

Amazon Web Services (AWS) is shutting down its AI Shanghai lablet—opened in 2018—which was the last AWS research center outside the United States. Officially, the cloud team cites “strategic adjustments to the China–US reality.”

The closure comes amid Amazon’s latest round of AWS layoffs and just days before the World AI Conference in Shanghai. It follows similar withdrawals by Microsoft and IBM from China.

The Details

🏢 Lab Shutdown Confirmed: All researchers will be reassigned or leave the company, and the site will be decommissioned.

⚙️ Tech Legacy: The team developed the Deep Graph Library open-source framework for graph neural networks.

🇺🇸 🇨🇳 Geopolitics: US chip controls and Beijing’s self-sufficiency plans complicate trans-Pacific AI research.

📉 Trend: After the Kindle Store (2022) and Marketplace (2019), this is Amazon’s third major China retreat; Microsoft recently offered overseas positions to up to 800 AI engineers.

🗓️ Timing: The shutdown was announced days before the Shanghai AI expo—where the lab was ceremonially unveiled in 2018.

Why It Matters

• Tech Decoupling: Western firms are relocating cutting-edge research out of China, escalating the digital Cold War.
  

• Knowledge Drain: Fewer US labs in China mean reduced access to the latest AI know-how for Chinese research centers.
  

• Talent War: The exodus of highly qualified researchers worsens the skills shortage in China’s AI sector.

Background

Since 2022, an increasing number of US tech companies have exited China’s AI ecosystem due to tighter US export controls, Beijing’s push for self-reliance, and rising political risks for Western firms.

Concurrently, US corporations are recruiting hundreds of Chinese AI developers via transfer programs to locations such as Singapore and Seattle.

📊 All Data & Details: CNBC, Times of India, Caixin Global

OUR PARTNER

🎯 Ready for the toughest AI challenge of the year?

You’ve got the skills. Tencent brings the stage.

The Tencent Advertising Algorithm Competition (TAAC) is back – and looking for the brightest minds in the game. This year’s theme, “Generative AI, Future RecSys”, isn’t about tweaking old models. It’s about reimagining the future of recommendation systems.

🧠 Your mission:

• Build a generative recommendation model based on users’ multimodal behavior – text, image, and interaction.

• Go beyond traditional frameworks and show what GenAI is really capable of.

🏆 What’s in it for you:

• RMB 3.6 million prize pool

• Guaranteed Tencent job offers for all Top 10 teams

• Internships & iPads for strong performers

📅 Register now – deadline: July 31
👉 Questions? Email [email protected]

HEAD OF THE DAY

🇻🇳 Thi Phuong Thao Nguyen

✈️ From container trader to aviation queen: She became a millionaire at the age of 21 in Moscow, launched VietJet Air in 2011 and took the budget airline public in 2017. In the past few days VJC shares hit their ceiling price, putting her net worth close to US$3 billion. Today she channels capital through Sovico into banking, energy and resorts. Born in Hanoi, she operates between Ho Chi Minh City and global financial hubs.

👉 Lesson learned: Dare to dream big — go big or go home. Spot demand before it’s obvious and scale fast. Blend trading instincts, financial savvy, and bold marketing to turn one idea into an ecosystem. Need capital or attention? Think like she does: loud enough that the market can’t ignore you.

MARKET BIT

🏦 Hong Kong Slows Stablecoin Hype

Details

🔒 Few Licenses Granted: HKMA Governor Eddie Yue clarifies that at launch on August 1, only “a few” stablecoin licenses will be issued—even though around 40 firms are waiting in line.

🛡️ Strict Rules: Issuers must have a Hong Kong–registered company, at least HK$ 25 million in capital, and fully back every token with cash or ultra-short-term government bonds in the same currency.

🌐 Asian Alternative: While the new US GENIUS Act permits almost only dollar tokens, Hong Kong will also allow HKD or offshore renminbi stablecoins—ideal for Asia trade and Belt & Road projects.

Why It Matters

• Stability over Bubble: Clear rules, tough penalties, and genuine redemption rights aim to prevent 2022-style speculation and build institutional trust.
  

• Securing a Competitive Edge: By offering the first comprehensive stablecoin licensing in a top financial center, Hong Kong positions itself vs. Singapore, Dubai, etc., as a Web3 bridge between East and West.
  

• Geo-Financial Leverage: Multi-peg stablecoins (HKD / USD / offshore RMB) could cut cross-border payment costs in emerging markets—and digitally fuel China’s Belt & Road Initiative.

What Are Stablecoins?

Stablecoins are cryptocurrencies backed 1:1 by reserves and pegged to a fiat currency like the dollar. They serve as digital cash for fast transactions, which is why regulators demand rigorous collateral and transparency standards.

👉🏻 Full story: Forbes, SCMP

TOP READS

🤖 Alibaba Unveils New Top AI Coder: Qwen3-Coder, the company’s open-source programming model, outperforms rivals like DeepSeek and Moonshot’s Kimi-K2. The tool tackles complex coding tasks and tops U.S. flagships such as GPT-4 on SWE-Bench. Full Story.

🏥 Shanghai Hospitals Ramp Up With AI: Leading clinics create their own medical LLMs and doctor avatars. More than 300 models assist with diagnoses, treatment planning, and improved patient care. AI tools like CardioMind already outperform many experts and aim to free doctors from 80 percent of routine cases. Full story.

💹 New China ETF on SGX: For the first time, investors can buy a China ETF tracking ChiNext—Shenzhen’s tech index—giving access to China’s top innovators with less currency risk with focus on fast-growing tech, healthcare and industrial firms. Full Story.

OPTIONAL READS

Thailand: Private-equity investment in Southeast Asia has more than doubled since 2019. Thai PE firm 10 Bridge Capital will launch a US $250 million fund by year-end to back domestic mid-sized companies and fuel their expansion. More on this.

Hong Kong: An HKU student created hundreds of deepfake porn videos of classmates and professors, and the victims are now calling for tougher laws. More on this.

Japan: A new Pokémon theme park will open in early 2026 at Yomiuriland near Tokyo, featuring over 600 Pokémon and interactive attractions. More on this.

FORTUNE COOKIE

🦾 Halftime Show with Robot Cheerleaders: Robots are no longer a novelty in China. You can see them on leashes, on stages, and now also in sports arenas.

At the halftime of a basketball game in Zhejiang, two robots squared off in a boxing match.

We think: a cage fight between Elon Musk and Mark Zuckerberg couldn’t be more thrilling than this bout.

FEEDBACK

See you tomorrow in your inbox, 

Thomas, Michael & the Team of asiabits