China steals a march on US in tech title race

Low cost, high impact ai mod­els surge in global usage

 

Making inroads: A woman descends a staircase in a book store in Beijing. Despite considerable geopolitical tensions, Chinese open-source AI models are winning over a growing number of programmers and companies in the United States. — AFP

NEW YORK: As the United States embarks on a bitter rivalry with China over the deployment of artificial intelligence (AI), Chinese technology is quietly making inroads into the US market.

Despite considerable geopolitical tensions, Chinese open-source AI models are winning over a growing number of programmers and companies in the United States.

These are different from the closed generative AI models that have become household names – ChatGPT-maker OpenAI or Google’s Gemini – whose inner workings are fiercely protected.

In contrast, “open” models offered by many Chinese rivals, from Alibaba to DeepSeek, allow programmers to customise parts of the software to suit their needs.

Globally, use of Chinese-developed open models has surged from just 1.2% in late 2024 to nearly 30% in August, according to a report published this month by the developers’ platform OpenRouter and US venture capital firm Andreessen Horowitz.

China’s open-source models “are cheap – in some cases free – and they work well,” Wang Wen, dean of the Chongyang Institute for Financial Studies at Renmin University of China said.

One American entrepreneur, speaking on condition of anonymity, said their business saves US$400,000 annually by using Alibaba’s Qwen AI models instead of the proprietary models.

“If you need cutting-edge capabilities, you go back to OpenAI, Anthropic or Google, but most applications don’t need that,” said the entrepreneur.

US chip titan Nvidia, AI firm Perplexity and California’s Stanford University are also using Qwen models in some of their work.

The January launch of DeepSeek’s high performance, low cost and open source “R1” large language model (LLM) defied the perception that the best AI tech had to be from US juggernauts like OpenAI, Anthropic or Google.

It was also a reckoning for the United States, locked in a battle for dominance in AI tech with China, on how far its archrival had come.

AI models from China’s MiniMax and Z.ai are also popular overseas, and the country has entered the race to build AI agents, programmes that use chatbots to complete online tasks like buying tickets or adding events to a calendar.

Agent friendly, and open-source, models, like the latest version of the Kimi K2 model from the startup Moonshot AI, released in November, are widely considered the next frontier in the generative AI revolution.

The US government is aware of open-source’s potential.

In July, the Trump administration released an “AI Action Plan” that said America needed “leading open models founded on American values”.

These could become global standards, it said.

But so far US companies are taking the opposite track. Meta, which had led the country’s open-source efforts with its Llama models, is now concentrating on closed-source AI instead.

However, this summer, OpenAI, under pressure to revive the spirit of its origin as a nonprofit, released two “open-weight” models – slightly less malleable than “open-source”.

Among major Western companies, only France’s Mistral is sticking with open-source, but it ranks far behind DeepSeek and Qwen in usage rankings.

Western open-source offerings are “just not as interesting”, said the US entrepreneur who uses Alibaba’s Qwen.

The Chinese government has encouraged open-source AI technology, despite questions over its profitability.

Mark Barton, chief technology officer at OMNIUX, said he was considering using Qwen but some of his clients could be uncomfortable with the idea of interacting with Chinese-made AI, even for specific tasks.

Given the current US administration’s stance on Chinese tech companies, risks remain, he said.

“We wouldn’t want to go all-in with one specific model provider, especially one that’s maybe not aligned with Western ideas,” said Barton.

“If Alibaba were to get sanctioned or usage was effectively blacklisted, we don’t want to get caught in that trap.”

But Paul Triolo, a partner at DGA-Albright Stonebridge Group, said there were no “salient issues” surrounding data security.

“Companies can choose to use the models and build on them, without any connection to China,” he explained.

A recent Stanford study published posited that “the very nature of open-model releases enables better scrutiny” of the tech. — AFP

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18 bankruptcies recorded each day

 

PETALING JAYA: On paper, earning RM7,000 a month as an assistant engineer should offer a comfortable life. But for Mohd Amir Izzuddin, it barely covers the essentials.

With loans and credit card debts exceeding RM150,000, more than 85% of his income is swallowed up by repayments, leaving little room for savings or unexpected expenses.

CLICK TO ENLARGE

Not all of Mohd Amir’s debts stem from poor decisions. Raised in a village, he grew up believing that a degree and hard work would be his ticket to a modestly better life.

“We’re always told to study and work hard to live better. That’s exactly what I did. So is it really wrong for me to choose a higher-end car and a studio apartment or to enjoy a nice premium steak or seafood platter twice a month? Is life supposed to be so bland, only rewarding us when we’re too old or sick to enjoy our savings?” he said.

Mohd Amir also supports his parents, providing them with a monthly allowance to help cover their expenses and medical bills.

ALSO READ: Think before you swipe, experts tell youths

“They don’t work and have no pension. I give what I can, but it is never enough with the rising cost of living. A proper meal nowadays costs no less than RM12 and my monthly expenses for food exceed RM1,500,” he said.

Now at 35, and more than a decade into his career, Amir regrets that he’s still struggling to stay financially afloat.

“Every month is a battle with the bills. I have no choice but to rely on credit cards, personal loans and BNPL (Buy Now, Pay Later) offers to manage my expenditure since these facilities are very easily available,” he said.

The financial stress has also affected his personal life.

“I have chosen to remain single until I feel financially stable. If I had my own family, they might have to skip meals with the kind of expenses I face monthly,” he said.

Communications executive Arthur Lim, 45, learned firsthand how debt can bring heartache after watching his colleagues sink into financial trouble during his 20s.

“Loans are a huge and profitable business. Those offering them will naturally promote and entice people, but repayment is where the problem begins,” he said.

Lim pointed out that vehicle financing can be particularly costly, adding that an RM120,000 car loan repaid over nine years could result in almost RM100,000 in losses when both depreciation and interest are taken into account.

“Yet some earning under RM4,000 still take the plunge just to look cool. I’m puzzled how these loans were approved when borrowers had other commitments such as home or personal loans.

“There are unscrupulous loan agents who facilitate these huge borrowings for those with low income,” he said.

Lim said he only has a home loan which he took out a decade ago and was relieved to know that the value of his house has appreciated by almost 80%.

For A. Kevin, who is in his 30s, paying off his loans consumes nearly 90% of his RM6,500 income each month, despite his efforts to be thrifty.

He said that as a content creator, a significant portion of his income also goes toward computers, smartphones and the latest software.

“I studied hard and earned a degree, but I feel like I am living like a low-income earner,” said Kevin, adding that he was fortunate his wife’s income helps supplement the household expenditure.

Bank Negara Malaysia’s Credit Counselling and Debt Management Agency (AKPK) told The Star yesterday that credit card debt remains the main reason why most individuals struggle to keep up with their financial obligations.

Since 2006, more than 1.4 million Malaysians have approached AKPK for assistance in managing and recovering from their debts.

According to the Finance Ministry, Malaysian households owed a combined RM54.9bil in credit card and BNPL debt as of September 2025, highlighting the growing reliance on short-term and revolving credit to manage daily expenses.

The pressure has become so intense that it is now spilling over into rising bankruptcy cases.

Earlier this month, during a debate on the Supply Bill 2026 at the Dewan Negara, Senator Datuk Sivaraj Chandran revealed that an average of 18 bankruptcy cases are reported daily in Malaysia, with nearly 60% involving individuals under the age of 30.

He said that between January and September 2025, a total of 4,875 Malaysians were declared bankrupt – a 5.7% increase compared to the same period in 2024.

Sivaraj was also reported to have revealed that about 71.6% of those declared bankrupt owed between RM500,000 and RM1mil, while another 20.6% carried debts of RM100,000 to RM500,000.

Contrary to common belief, it wasn’t housing or business loans, but personal loans and credit card expenses that were the main contributors – accounting for about 45.1% of bankruptcy cases.

Although many people assume that loan approvals are handed out too easily, a senior banker says the process is actually much more stringent than it appears.

Senior economist Mohd Afzanizam Abdul Rashid said that banks generally rely on the Central Credit Reference Infor­mation System (CCRIS) when assessing loan applications, paying particular attention to a borrower’s repayment behaviour over the past 12 months.

“Any arrears will reduce the applicant’s credit score, and the lower the score, the slimmer the chances of approval. At worst, the application may be rejected,” he said.

Afzanizam added that CCRIS reports also allow banks to see how many financing facilities an applicant has applied for across different banks, even if those applications haven’t been approved yet.

Existing loans that have been restructured or rescheduled are also clearly indicated in the report.

“All these factors influence the credit score,” he said. “Borrowers who are already heavily indebted face extremely low chances of securing new financing. In such cases, applying for additional credit is likely to result in outright rejection.”

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Malaysia PM Anwar makes sweeping Cabinet changes, including new trade and economy ministers

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THE UNITY CABINET 2025

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 THE STAR, Wednesday 17 december 2025. 6 Nation. MINISTERS. DEPUTY MINISTERS. THE UNITY CABINET 2025. Datuk Seri. Anwar Ibrahim. PH-PKR (TAMBUN).Read more

The premier announced more than 25 changes to his Cabinet after previously saying that a major reshuffle was not on the cards.

Anwar Announces 28 Appointments, Portfolio Changes

Malaysia Prime Minister Anwar Ibrahim shows a list of his Cabinet appointments after announcing a reshuffle on Dec 16, 2025. (Photo: Prime Minister’s Office of Malaysia/Afiq Hambali)

KUALA LUMPUR: Malaysian Prime Minister Anwar Ibrahim announced sweeping changes to his Cabinet on Tuesday (Dec 16), ending weeks of speculation over ministerial vacancies.

Notable changes - among more than 25 announced - include the appointments of United Malays National Organisation (UMNO) stalwart Johari Ghani as the new Investment, Trade and Industry Minister and Parti Keadilan Rakyat’s (PKR) Akmal Nasir as Economy Minister. There are 65 Cabinet posts in total. 

Johari was previously Minister for Plantations and Commodities while Akmal was Deputy Minister of Energy Transition and Water Transformation. 

A composite image of newly-appointed investment, trade and industry minister Johari Ghani (left) and economy minister Akmal Nasir (right). (Photos: Facebook/Johari Abdul Ghani, Facebook/Akmal Nasir)

During the internal PKR polls in May, Akmal was seen as closely aligned to Rafizi Ramli, who resigned as Economy Minister after he was defeated by Anwar’s daughter Nurul Izzah in a contest to be the party’s deputy president. 

UMNO is an ally of Anwar’s Pakatan Harapan (PH) ruling coalition, and the investment, trade and industry portfolio was previously held by Tengku Zafrul Aziz, who was an UMNO member before leaving the party to join the prime minister’s PKR. 

Malaysia Prime Minister Anwar Ibrahim held a meeting with Malaysian king Sultan Ibrahim Sultan Iskandar at Istana Bukit Tunku in Kuala Lumpur on Dec 16, 2025. (Photo: Facebook/Sultan Ibrahim Sultan Iskandar)

Speaking at the start of the press conference before he announced the changes, Anwar said: “There is a need to make some changes so that we have a Cabinet that works as a team, to focus on achieving higher economic growth and solving people's problems.” 

He had met the king Sultan Ibrahim Sultan Iskandar on Tuesday morning, and said in a Facebook post in the afternoon that he would make an announcement on the Cabinet at 3.30pm that day.

Among the changes he announced, Arthur Josep Kurup of the United Sabah People’s Party was appointed Natural Resources and Environmental Sustainability Minister, PKR vice-president R Ramanan was appointed Human Resources Minister while head of UMNO women’s wing Noraini Ahmad was appointed Minister for Plantations and Commodities. 

Democratic Action Party’s (DAP) Hannah Yeoh was reassigned from her Minister for Youth and Sports portfolio to be Minister in the Prime Minister’s Department (Federal Territories), with PKR’s Taufiq Johari taking her place.   

PKR’s Mustapha Mohd Yunus Sakmud was appointed Minister for Sabah and Sarawak while DAP’s Steven Sim was reassigned from his Human Resources portfolio to be Minister for Entrepreneur Development and Cooperatives. 

Senator and Islamic scholar Zulkifli Hasan was appointed Minister for Religious Affairs. 

The changes to Anwar’s Cabinet - including full minister and deputy minister positions - saw some members being reassigned while others were new appointments. 

Full ministers who were dropped completely from the line-up included PKR’s Zaliha Mustafa who was Minister in the Prime Minister’s Department (Federal Territories) and Minister for Religious Affairs Mohd Na’im Mokhtar. 

Na'im's exclusion was a surprise as he was sworn in as a senator for a second term on Dec 3. 

Notably, Malaysia's Education Minister Fadhlina Sidek retained her post despite facing criticism for her perceived lack of action and slow response on serious school issues like bullying, with student deaths triggering public outcry for her to resign. 

Earlier this month, three ministers were also sworn in as senators for a second term. Besides Na'im, they included Home Minister Saifuddin Nasution Ismail and Higher Education Minister Zambry Abdul Kadir. 

A minister in Malaysia must be an elected member of parliament (MP) in the lower house or an appointed senator in the upper house. 

On Dec 1, Anwar had said that a major reshuffle of his Cabinet is not on the cards, noting that his administration will “only function for a year plus” as Malaysia’s next general election is due by February 2028. 

However, there was speculation that changes to his Cabinet were imminent, with Tengku Zafrul stepping down from his Investment, Trade and Industry Minister portfolio earlier this month, creating a fourth ministerial vacancy. 

Tengku Zafrul had served for two terms as a senator since 2020. He held the trade minister post throughout his term in the Senate, which is the maximum period allowed.

Nik Nazmi Nik Ahmad had resigned as the Natural Resources and Environmental Sustainability Minister in May, while Ewon Benedick resigned as the Entrepreneur Development and Cooperatives Minister in November, ahead of the Sabah state elections.

Ewon had resigned over disagreements with the federal government on issues related to Sabah’s 40 per cent entitlement of federal net revenue derived from the state. 

Former trade minister Tengku Zafrul Abdul Aziz on his last day in the Dewan Rakyat. (Photo: Instagram/@tzafrul_aziz)

Meanwhile, like Rafizi, Nik Nazmi had resigned following defeat in party elections within PKR.

Second Finance Minister Amir Hamzah took over the economy portfolio in the interim while Johari Ghani helped to handle natural resources and environment sustainability.

Ewon’s former portfolio was being managed by works minister Alexander Nanta Linggi starting Dec 3, local media reported.

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 For new ministerial appointments, Datuk Mustafa Sakmud was appointed Minister in the Prime 

For new ministerial appointments, Datuk Mustafa Sakmud was appointed Minister in the Prime Minister's ... Overall, the Cabinet reshuffle ...Read more

Malaysia PM Anwar says no major Cabinet reshuffle on the cards, but still ‘need to fill vacancies’

As Cabinet vacancies in Malaysia pile up, reshuffle seen as unavoi

Asia rising

 

For most of the last century, the centres of higher education and science were in the West. The United States, Britain, and Europe produced the world’s leading universities and research culture. Students from across Asia travelled there for advanced study, and knowledge flowed mainly in one direction.

But today, Asia is no longer just a consumer of knowledge - it is becoming a global leader in creating, shaping, and sharing it. China, India, South Korea, Japan, Singapore, and Malaysia are investing heavily in research, innovation, and higher education.

This shift is one of the most significant global transformations of our time. Yet with success comes a warning. As Asia rises, it must avoid the trap of imitation - trying to copy Western universities rather than building its own path.

World leaders

Asian universities were once seen as second choice compared to Harvard, Cambridge, orStanford. Today, that view is outdated.

China is now the world’s largest producer of scientific papers and leads in artificial intelligence (AI), clean energy, and biotechnology. South Korea and Japan remain powerhouses in technology and engineering. India’s institutes of technology and science fuel its growth in IT, pharmaceuticals, and space research.

Singapore has become a global research hub, while Malaysia and Thailand are positioning themselves as regional education centres. These countries are no longer just following global trends – they are helping define them.

So, how did the countries that were once followers end up becoming leaders today? The answer lies in investment and policy.

China spends over 2.5% of its GDP on research and development. South Korea spends nearly double that, the highest in the world. Singapore has invested billions in AI, biotechnology, and sustainability research.

Governments across Asia also have clear strategies – China’s “Double First Class” project, India’s “Institutes of Eminence,” and Malaysia’s higher education blueprint all aim to create global-class universities. These policies are not just about prestige; they are about national growth, technological independence, and global competitiveness.

Rankings trap and the Harvard illusion

Over-focusing on global rankings, however, can prove detrimental. Rankings measure things like citations, faculty-student ratios, and reputation surveys. These indicators can be useful, but they do not capture everything that matters.

A university that trains community doctors or develops affordable green technologies may have far greater impact than one that climbs 10 spots up a ranking list. Adopting Western standards too rigidly can undervalue research in local languages or work addressing community issues. Academic excellence must serve society, not just Western determined metrics.

Another danger lies in the desire to become “the Harvard of Asia”. Harvard is a product of American history, wealth, and culture. Simply copying its name, structure, or traditions will not recreate its success.

Asia’s greatest universities will be those that are confidently Asian – rooted in local realities but connected to the world. Rather than imitate Western models, Asian institutions should build on their own strengths: cultural diversity, rapidly growing economies, and the need to solve pressing regional challenges such as climate change, food security, and equitable healthcare.

Culture, freedom, and identity

Asia also possesses a rich intellectual heritage that can guide the future of its universities. Concepts such as ren (humaneness) in Confucian thought, gotong-royong (community cooperation) in Southeast Asia, ahimsa (non-harm) in Indian philosophy, and wa (harmony) in Japan provide deep foundations for education.

These traditions emphasise moral character, social responsibility, and balance – values often missing in purely market-driven Western academic models. If Asian universities draw from their own philosophical roots, they can build institutions that value not only knowledge and innovation but also wisdom, ethics, and community.

Rather than importing Western culture, they can offer the world an alternative vision of human-centred, responsible higher education. Education in Asia has long emphasised respect for teachers, community belonging, and collective success. These are powerful strengths. Replacing them with purely individualistic or hyper-competitive models could dilute what makes Asian education distinctive.

A different vision of success

Asia’s rise in higher education is not about copying the West – it is about creating something new to redefine what “world-class” truly means. That includes:

> Research that addresses Asia’s real challenges.

> Education that forms character as well as skills.

> Partnerships that are global but rooted in local values, philosophies and priorities.

The shift in global knowledge is not a battle between East and West. Western universities will remain influential, but Asia now plays an equal, and sometimes leading, role.

Collaboration, not competition, will shape the next era of global education. The question is not whether Asia can match Harvard or Cambridge, but whether it can succeed without losing its identity. The future of education will belong to those who innovate with confidence in their own foundations.

Governments, however, must guard against over-control. Innovation requires intellectual freedom - the ability to question, debate, and explore without unnecessary restriction. Balancing national goals with academic independence will be a key test for Asia’s universities in the coming decade. Asia’s universities have already shown they can rise. Their next challenge is to rise wisely.

Prof Dr David Whitford is vice-chancellor and chief executive of University of Cyberjaya. He earned a doctorate from Cambridge University and has held leadership roles in medical education. With over 70 research publications on disadvantaged communities and quality healthcare delivery, his academic journey includes positions at the Royal College of Surgeons in Ireland, in Dublin and in Bahrain, where he established community-based teaching and led postgraduate studies. The views expressed here are the writer’s own.

China’s core AI industry poised to surpass 1 tln yuan this year, fueled by applications, tech advances and policies: expert

 

People visit the artificial intelligence exhibition zone at the 4th Global Digital Trade Expo in Hangzhou, east China's Zhejiang Province, Sept. 25, 2025. (Xinhua/Xu Yu)

China's core artificial intelligence (AI) industry scale is expected to exceed the 1-trillion-yuan ($140 billion) benchmark in 2025, according to industry data, a trend that experts said highlights the vast potential of the country's AI development, driven by broader application scenarios, technological progress and policy support.

According to the China Academy of Information and Communications Technology (CAICT), China's core AI industry exceeded 900 billion yuan in 2024, up 24 percent year-on-year, China Media Group reported on Sunday. In 2025, the figure is expected to surpass 1.2 trillion yuan, with growth accelerating further, the report said.

Since the beginning of this year, the application of large-language AI models in the manufacturing segment has expanded significantly, with the share of application cases rising from 19.9 percent last year to 25.9 percent, helping drive rapid growth in the overall AI industry, according to the report.

Multiple factors have underpinned the fast development of China's AI industry, among which are broader application scenarios that outpace those of many countries in terms of market scale and demand, Ma Jihua, a veteran technology industry analyst, told the Global Times on Sunday, citing cases spanning the internet, financial services and manufacturing sectors.

In addition to the traditional sectors, new scenarios have emerged and are driving an upgrade of the consumption structure. According to business big data monitoring, in the first 10 months of this year, China's online sales of smart wearable devices such as AI glasses and smart watches grew by 23.1 percent, with smart products playing an important role in boosting consumption and stimulating economic growth, according to the CAICT.

Moreover, technology advancements are taking shape. Pre-trained large-language models, represented by DeepSeek and others, continue to achieve breakthroughs, driving AI to evolve from perception to cognition, from analytical and judgment-based capabilities to generative functions, and from specialized to general-purpose applications, Ma said, highlighting the continuous technology advancement of Chinese enterprises in the field.

According to a report released by the Chinese Academy of Cyberspace Studies at the 2025 World Internet Conference Wuzhen Summit in November, China has become the world's largest holder of AI patents, accounting for 60 percent of the global total.

The domestic chip industry, a key driver of AI, is also thriving. According to data from industry analysis firm TrendForce, China's domestic AI chips surpassed a 50 percent share in Chinese data centers in the fourth quarter of 2024, the Paper reported, as a new alternative to some imported chips from the US.

China has outlined a roadmap for advancing the "AI Plus" initiative. According to a set of guidelines unveiled by the State Council in August, China aims to achieve extensive, in-depth integration of AI across six key sectors by 2027. The core industries of the intelligent economy will see rapid growth, while AI's role in public governance will be significantly enhanced, the Xinhua News Agency reported.

By 2030, AI will comprehensively empower China's high-quality development. The intelligent economy will become a key driver of the country's economic development. Access to AI technology will be expanded, enabling more people to benefit from it, the report said.

"AI is reshaping every industry, from e-commerce and gaming to communications and manufacturing... Its applications have expanded dramatically in recent years, especially as AI technologies enter the automotive, robotics, and agricultural sectors, covering broader domains and directly promoting advances in cutting-edge industrial technologies, making AI a strategic focus for national competitiveness," Liu Dingding, a Beijing-based internet analyst, told the Global Times on Sunday.

In the course of its development, China's greatest advantage in AI lies in its vast application scenarios and large market, and combined with supportive policies, this will allow the field's potential to continue to be unleashed, Liu said.

At the same time, China maintains an open and cooperative approach in AI development, Liu said, citing the country's proposal to establish a World Artificial Intelligence Cooperation Organization, a living example of sharing growth opportunities with global partners.

China's core AI industry poised to surpass 1 tln yuan this year, fueled by applications, tech advances and policies: expert

China's core artificial intelligence (AI) industry scale is expected to exceed the 1-trillion-yuan ($140 billion) benchmark in 2025, according to industry data, a trend that experts said highlights the vast potential of the country's AI development, driven by broader application scenarios, technological progress and policy support.