Tencent shows its various AI applications based on its Hynyuan model at the IA World Conference in Shanghai on July 26, 2025.
CNBC | Evelyn Cheng
This report comes from the edition of this week of The China Connection of CNBC, which brings you ideas and an analysis on what stimulates the second world economy. Each week, we will explore the biggest trade stories in China, give a boost on market movements and help you set up for the coming week. Like what you see? You can subscribe here.
The great story
From startups to technology giants, Chinese companies find commercial demand for their artificial intelligence services, even if IA models elsewhere continue to burn money.
AI can now resolve more than 80% of online customers’ questions to Toyota joint venture with Chinese car manufacturer Faw, more than twice as much as it could go to half a half, Wu Yongjian, vice-president of the Tence Cloud, told me on Friday. Tencent provides some AI tools to car manufacturers.
And now, it only takes two weeks for the AI customer service platform to be operational, three months, Wu told me, while we sit inside the new brilliant office of the company in a district of Shanghai Waterfront in Shanghai.
During the weekend, Tencent announced an upgrading of its Hynyuan model AI alongside the outings of other companies while the “IA World Conference” began in the city.
Although not all companies see similar demand for their products and services, the emphasis on commercial opportunities reflects a change in progress in China to capture the opportunity of the AI. And this is also reflected in job applications.
Zhou Yuxiang, CEO of the startup supported by Temasek, Black Lake Technologies, told me on Saturday that in recent months, he obtains curriculum vitae from AI model engineers who wish to move to a development of AI for specific apps for industry. “Before it is difficult to obtain AI engineers,” he said in Mandarin, translated by CNBC.
Black Lake mainly sells AI tools to small factories in China to help them accelerate production and better use capacity.
Many business owners are currently experiencing “Fomo” because they have missed the electronic commerce boom directly to consumer in recent years, said Zhou, adding that the cost of use of AI has also dropped significantly.
Z.AI, formerly Zhipu, became the last Chinese startup on Monday to reduce operating costs with an Open Source model version. Its underestimated prices The Kimi K2 model of Startup supported by Alibaba Monshot, published earlier this month, and R1 of Deepseek in January, which offered lower prices compared to what the leader of the Openai industry was invoicing to people to use Chatgpt.
Open Source models can be used for free, and even modified and distributedWithout special authorization from the creator. Users who choose not to download the model can access it via the Cloud and pay by use.
Quality data is new gold
Many companies realize that they must have better data in order to effectively apply the AI. It is a fundamental layer that knows a huge demand, just like the chips, even if the monetization of the AI application takes time.
The Chinese startup Deepexi, supported by venture capital companies Hillhouse and Bai, says that its AI system combines an analysis of the company specific to the IA models to “provide hallucination results”. This means that the system does not constitute results, because generative AI models are quite inclined to do so. CNBC could not independently verify the complaint.
Deepexi lists customers such as Han’s Laser Technology and an unnamed public health care operator which oversees 40 public hospitals and 100 clinics “.
Startup’s revenues jumped 88.3% to 242.9 million yuan last year, said Deepexi in April Deposit with the Hong Kong Stock Exchange For a planned list.
Data labeling, or annotating information bit for better use of AI, also sees growing demand.
Last week, last week, Haitian Ruiisheng, estimated that his revenues in the first half of 2025 increased at least 61% compared to a year ago to 148.9 million yuan. His revenues in 2024 were nearly 240 million yuan.
After excluding the articles, the profits should have more than doubled at 4.5 million yuan and 4.9 million yuan in the first half, According to the company’s file With the Shanghai Stock Exchange.
Haitian Ruiisheng counts Bytedance, Alibaba, Tencent, Baidu and several American companies “Magnificent 7” such as Microsoft and Amazon as customers, Zhang Zhe, secretary of the company to the board of directors, in Mandarin, translated by CNBC.
In China, the company sees the greatest monetization opportunities in education, health care and tourism, said Zhang, adding that there was also potential in smartphones and “embodied intelligence” – a category that includes robots.
Haitian Ruiisheng combines the automated annotation of data with the evaluation by human experts, said Zhang, adding that AI requires global cooperation and that his business looked at markets abroad, with a subsidiary in Singapore.
Go to the world
Only a few days after the United States unveiled its AI action plan, the “IA World Conference” based in Shanghai opened on Chinese Prime Minister Li Qiang on Saturday announcing a plans for a World AI Cooperation Organization. China has called to support the integration of AI into industries, including manufacturing, health care, education and agriculture.
Tencent has already taken measures in this direction.
It has a local partnership in Japan for a “virtual human service” that national companies can buy, said WU. It is a digital avatar of a human, often used for live broadcast and other digital content.
Other Popular Actual Activation sectors in regions such as Southeast Asia include the “Know Your Customer” identification verification for finance, translation services and a platform for developers to develop AI agents, Wu said.
With these commercial projects – and broader ambitions supported by the State – China has clearly exceeded the laboratories of the World Race of AI.
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Need to know
No extension of American-Chinese commercial truce. A possible extension of a The price break between Washington and Beijing will not be agreed until President Donald Trump does not give his head, the American negotiators said on Tuesday.
At least 30 people die under torrential rains. State media reported Deaths on the outskirts of Beijing after the capital published a red alert for heavy rain on Monday. President XI Jinping called to more work on the prevention of floods and rescue in the event of a disaster in the northern region wider.
China increases birth support. The country announced on Monday the equivalent of approximately $ 500 per year per child Less than three years, depending on the intention to deploy free preschool education.
On the markets
Actions in mainland China and Hong Kong were mixed on Wednesday while US trade with China are suspended.
The continent’s reference has earned more than 5% so far this year, have shown LSEG data.
The performance of the Shanghai composite in the past year.
Coming
July 31: The expected Politburo meeting
Official PMI for manufacturing, services
Nio to officially launch the ONVO L90 electric car
August 1 to 4: conference China Joy Gaming in Shanghai
August 1: S&P Global China General Manufacturing PMI
August 5: S&P Global China General Services PMI
