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Chinese AI leaders target closing US tech gap by 2030 despite chip equipment limits
On January 10 2026, leading Chinese AI researchers in Beijing said China could produce a world-leading AI company within three to five years, even though the US still dominates computing power. They warned that the main obstacle is the lack of advanced chipmaking tools, with a prototype extreme-ultraviolet lithography machine not expected to yield working chips until 2030. Investors have shown strong interest as MiniMax and Zhipu AI made notable debuts on the Hong Kong Stock Exchange, while local firms experiment with running large AI models on smaller, cheaper hardware under tight budgets.
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Morgan Stanley sees Chinese yuan strengthening to 6.85 per US dollar by early 2026
Morgan Stanley investment analysts project that the Chinese yuan could firm to 6.85 against the US dollar by the first quarter of 2026, supported by China's evolving global investment approach. The forecast comes as outbound investment from Chinese firms now exceeds inbound foreign capital and the country pivots from fast, investment-heavy expansion toward higher-quality growth. The bank also anticipates that a narrowing interest-rate gap between the US and China, alongside domestic policy measures, could further underpin the currency.
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TSMC December quarter revenue NT$1.05 trillion, beating NT$1.02 trillion forecast
TSMC reported NT$1.05 trillion ($33.1 billion) in revenue for the quarter ended December, surpassing the NT$1.02 trillion forecast and marking about a 20% increase. Demand for Nvidia's AI chips and Apple processors contributed to the strength. The company will hold its earnings call on January 15, when it is expected to outline a 2026 spending budget of at least $48 billion.
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