Open-Source AI: Moonshot AI fully open-sourced its Kimi K3 flagship model (2.8T parameters), adding complete weights and training tech, while Hugging Face data says Chinese open models drove 41% of global downloads. Defense AI: Reports say Chinese military researchers are using model distillation on US AI systems like GPT-3.5 and Claude to build cheaper, deployable defense tools, and Xi Jinping urged the PLA to strengthen AI’s military applications. High-Altitude Drones: China set up a drone R&D center in Tibet near Mount Everest to support border patrols, logistics and security in harsh plateau conditions. Life Sciences & Manufacturing: Hong Kong’s first PIC/S GMP-certified stem cell production facility opened at HKSTP, and a Chinese drug candidate (YN003) won FDA Fast Track for adult glioma via a nano-delivery platform. Healthcare Data: China will expand its drug traceability code system beyond insurance oversight into financing and innovation uses. EU Tech Funding: The EU unveiled €10B for seven AI gigafactories to boost chip-scale computing capacity. Industrial Shift in EVs: A Gasgoo analysis says China’s NEV supply chain is moving from component competition toward system integration and vertical integration. Semiconductors: CXMT’s Shanghai debut sent shares soaring and briefly pushed its market value above 4T yuan, lifting China’s memory-chip sentiment. Policy & Economy: A Politburo meeting set second-half 2026 priorities: stronger macro policy, innovation-led growth, and getting the 15th Five-Year Plan off to a good start.