China tech’s partnership power play

In a big week for China’s tech and innovation landscape, three high-profile collaborations are advancing key industries. BYD, the world’s largest electric vehicle (EV) maker, is doubling down on AI via a partnership with DeepSeek, integrating next-gen driver assistance technology into its fleet. And in a move set to strengthen its China AI strategy, Apple has teamed up with Alibaba to power iPhone-based AI features, signaling a diversification of its local tech partners beyond Baidu. Meanwhile, the E-sports World Cup Foundation (EWCF) is teaming up with Tencent E-Sports to elevate competitive gaming’s global reach, reinforcing China’s position as the world’s second largest in the industry. Social media platforms like Xiaohongshu are buzzing over these developments, and stock markets are reacting swiftly. The latest tech partnerships reflect a broader shift in China’s AI, mobility, and digital entertainment segments, propelled by government policies, market competition, and evolving consumer expectations. Subscribe here to receive all of this news directly every Tuesday. BYD x DeepSeek Details: “God’s Eye” advanced driver-assistance system (ADAS) in at least 21 BYD models, announced February 10. Social context: On Xiaohongshu, #byd has 40.7 million reads, and #deepseek has 776.6 million views. Verdict: BYD’s collaboration with DeepSeek signals a major shift from its earlier cautious approach to AI in vehicles. By integrating AI-powered driver assistance, the domestic player continues positioning itself as a leader in China’s EV market. The EV maker’s new DiPilot system, dubbed “God’s Eye,” undercuts rivals like Tesla, which faces regulatory challenges in China. This move could accelerate BYD’s market share growth. Partnering with DeepSeek highlights the rise of cost-effective, domestically developed AI models in China. This could reduce reliance on foreign technology while promoting smart driving innovation. Apple x Alibaba Details: Apple’s iPhones to use Alibaba AI, rumored to launch at the end of March. Data context: Apple’s stock price rose 6.4% from Tuesday to $241.50 on Thursday after The Information broke news of this partnership. Alibaba’s Hong Kong-listed shares jumped 18% to HK$124.1 ($15.9) over the same period. Verdict: Partnering with Alibaba for iPhone AI features marks a significant step in Apple’s localization strategy. Given China’s strict regulatory environment, collaborating with a domestic tech giant will help Apple navigate compliance while enhancing AI capabilities for Chinese users. Apple’s diversification of its partnerships weakens Baidu’s position in China’s AI race. While Apple continues to work with Baidu, Alibaba’s involvement signals intensifying competition. Alibaba’s stock surged to a two-year high following the news, reinforcing its new identity as an “AI darling.” Meanwhile, Baidu responded by unveiling its next-gen AI model, Ernie 5.0, and expanding its AI services. E-sports World Cup x Tencent E-Sports Details: Partnership, announced February 16. Data context: China’s e-sports market is made up of 490 million users. Verdict: Expanding the E-sports World Cup’s (EWC) influence in the world’s second largest gaming markets ensures greater engagement and visibility. The creation of the EWC China Development Team is a strategic effort to integrate Chinese e-sports into the global ecosystem. This move aligns with Tencent’s broader goal of fostering international cooperation in competitive gaming. With China’s e-sports industry generating nearly 30 billion RMB ($4.1 billion) in revenue in 2024, largely from livestreaming, the partnership positions both EWC and Tencent to benefit from the country’s thriving digital sports economy while further legitimizing e-sports as mainstream entertainment.

China tech’s partnership power play

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Published February 18, 2025

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China tech’s partnership power play