Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was CNY 194.4 billion, up 13% year-on-year [36] - Gross profit increased to CNY 108.3 billion, reflecting a 19% year-on-year growth [36] - Non-IFRS operating profit was CNY 69.5 billion, up 17% year-on-year [37] - Non-IFRS net profit attributable to equity holders was CNY 64.7 billion, also up 17% year-on-year [37] - Overall gross margin improved to 56%, up 3 percentage points year-on-year [38] Business Line Data and Key Metrics Changes - Value-added services (VAS) revenue was CNY 90 billion, up 14% year-on-year, with social network revenue growing 3% to CNY 31 billion [27] - Domestic games revenue increased by 15% year-on-year, driven by titles like Delta Force and Valorant [28] - International games revenue surged by 32% year-on-year, primarily from Supercell's titles and PUBG Mobile [28] - Marketing services revenue rose 17% year-on-year to CNY 41 billion, benefiting from improved ad targeting and AI enhancements [31] - Fintech and business services revenue was CNY 61 billion, up 8% year-on-year, with fintech services growing modestly [33] Market Data and Key Metrics Changes - International games business surpassed $10 billion in annual revenue for the first time, driven by evergreen and content-driven games [5] - Video Accounts became the second-largest short video service by daily active users (DAU) in China, with total time spent increasing over 20% [16] - The cloud services revenue accelerated due to increased demand and a better pricing environment amid tight supply of memory and CPU [34] Company Strategy and Development Direction - The company aims to leverage AI as a transformational force across its existing businesses, enhancing user engagement and operational efficiency [8] - Investments in AI are prioritized to strengthen core businesses before expanding into new AI products [13] - The company plans to double investments in AI products in 2026, funded by increasing earnings from core businesses [23] - The strategy includes enhancing communication services, gaming, fintech, and cloud services through AI integration [12][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of existing businesses amid AI advancements, highlighting strong user engagement and revenue trends [13] - The company anticipates that revenue growth may outpace profit growth in 2026 due to increased investments in AI [47] - Management emphasized the importance of building a strong AI talent team and securing GPU resources to support AI initiatives [50] Other Important Information - The company repurchased 153 million shares in 2025, with a total consideration of HKD 80 billion [41] - An annual dividend of HKD 5.3 per share is proposed, reflecting an 18% year-on-year increase [43] Q&A Session Questions and Answers Question: AI investment versus margin outlook - Management acknowledged that revenue may grow faster than profit in 2026 due to increased AI investments, which are seen as opportunities for expanding user value [47][48] Question: Resource allocation for AI development - Management confirmed that they have built a strong AI talent team and are actively securing GPU resources to prioritize AI product development [50][51] Question: ROI assessment for AI investments - Management indicated that they have already seen good ROI from AI applications in existing businesses and expect new AI products to generate revenue over time [54][57] Question: Differentiation in AI stack components - Management stated that they aim to invest in all layers of the AI stack, leveraging their strengths in product capability and ecosystem [60][70]

Core Insights - Tencent has introduced several AI products aimed at capitalizing on the growing interest in AI agents, leveraging its extensive WeChat platform with 1.4 billion users [1][4] - Alibaba faces challenges in translating its lead in open-source large language models into commercial success, compounded by the recent departure of a key developer [2][8] - Investors are increasingly optimistic about Tencent's stock performance, which has risen approximately 4.7% since the launch of its AI services, positioning it for its best monthly performance against Alibaba in two years [3][4] Tencent's AI Strategy - Tencent is integrating its AI agent into WeChat to automate tasks such as ride-hailing and restaurant bookings, with a potential launch as early as next month [1][13] - The company has gained about $30 billion in market value since the release of its AI services QClaw and WorkBuddy, making it the most valuable Chinese firm in this context, second only to Contemporary Amperex Technology Co. [4][5] - Tencent's access to vast user data and its WeChat ecosystem positions it well for developing agentic AI services [5][6] Competitive Landscape - Alibaba, despite leading in open-source large language models, has struggled with commercial applications and recently underwent a corporate restructuring to focus on profitability [2][4] - The departure of Junyang Lin, a key developer for Alibaba's Qwen models, has raised concerns about the company's AI strategy and internal communication issues [8][15] - Tencent's stock is currently favored in Asia with 64 buy recommendations, compared to Alibaba's 48, and both companies trade at a discount compared to American tech giants [7][8] Market Dynamics - During the recent Lunar New Year, major Chinese tech firms, including Tencent and Alibaba, collectively spent 8 billion yuan ($1.2 billion) on AI promotions, leading to significant short-term user growth [11][12] - However, Tencent's main consumer app, Yuanbao, experienced a decline in daily active users post-campaign, while Qwen's usage remained elevated [12][15] - Tencent aims to evolve WeChat into a comprehensive agentic service, enhancing its role as a digital assistant for users [13][14]

Summary of the China Internet Sector Conference Call Industry Overview - **Sector**: China Internet Sector - **Current Performance**: HSTech Index down 4% YTD compared to HSI's +4% indicating underperformance in the sector [2][8] Core Insights - **Investor Sentiment**: Investors remain neutral towards the sector due to regulatory challenges and weakness in the US tech sector, which have constrained valuation multiples [2][8] - **Key Concerns**: 1. **Regulatory Risk**: Potential impacts from VAT increases on telecom affecting internet platforms and heightened scrutiny on food delivery platforms [2][8] 2. **AI Earnings Uncertainty**: Concerns regarding AI's impact on earnings, including traffic acquisition costs and monetization challenges [2][8] 3. **Competition**: Ongoing rivalry in quick commerce with limited returns, particularly from ByteDance disrupting various sectors [2][8] Company-Specific Insights Positive Sentiment - **Alibaba (BABA)**: Viewed positively as a leading AI play with strong cloud growth (30%+) and full-stack offerings. However, concerns exist about whether this growth can lead to further re-rating given the uncertain macro outlook [3][8] - **Tencent**: Despite strong core game performance, investor sentiment is cautious due to slower AI development compared to peers. Concerns about Weixin's competitive position in AI traffic acquisition are noted [3][8] - **Bilibili**: Positive outlook due to better advertising prospects and improving game launch success rates, although valuation concerns persist [3][8] - **MiniMax**: Strong investor interest due to growth potential in global enterprise AI monetization and unique positioning amid AI development [3][8] Negative Sentiment - **Meituan**: Weak positioning with uncertain prospects largely dependent on Alibaba's investment intensity. Competition from Douyin is a concern [7][8] - **NetEase**: Soft sentiment due to AI disruption fears and recent earnings miss [7][8] - **Kuaishou**: Initial strong sentiment deteriorated due to ByteDance competition and low expectations for upcoming results [7][8] - **Trip.com (TCOM)**: Solid business momentum but concerns over ongoing anti-trust investigations [7][8] - **Tencent Music Entertainment (TME)**: Weak sentiment due to competitive pressure from Soda Music and AI disruption risks [7][8] Valuation and Market Outlook - **Valuation Strategy**: Emphasis on selective investment focusing on bottom-up drivers, valuation, and catalysts. The report suggests that while immediate catalysts for re-rating are lacking, stocks with strong fundamentals and earnings visibility are preferred [8][16] - **Preferred Stocks**: Tencent, Baidu, Bilibili, Alibaba, China Literature, and Meituan are highlighted as preferred investments [8][16] Financial Projections - **Revenue and NP Growth Estimates**: - MiniMax: 185.5% revenue growth in 2026 - Bilibili: 9.4% revenue growth in 2026 with 34.6% NP growth - Tencent: 10.1% revenue growth in 2026 with 11.8% NP growth - Alibaba: 9.2% revenue growth in 2026 with 19.8% NP growth [9][10] Additional Considerations - **Regulatory Environment**: The report suggests that regulatory oversight is unlikely to intensify, which could stabilize the sector and boost confidence in capital markets [8][16] - **AI Impact**: The report notes that AI-related capital expenditures in China are expected to have a more manageable impact on operating cash flow compared to the US [8][16] This summary encapsulates the key points from the conference call regarding the China Internet sector, highlighting investor sentiment, company-specific insights, and market outlook.

Summary of China Consumer AI – 2026 CNY Campaign Review Industry Overview - The report focuses on the **China Internet** industry, specifically the **Consumer AI** sector during the **2026 Chinese New Year (CNY)** campaign [1][7]. Key Companies Involved - Major players in the AI app market during the CNY campaign include: - **Alibaba** (Qwen) - **ByteDance** (Doubao) - **Tencent** (Yuanbao) - **Baidu** (Ernie Assistant) [2][3]. Core Insights and Arguments 1. **User Acquisition Competition**: - The 2026 CNY campaign was characterized as the first large-scale, subsidy-driven user acquisition competition among major AI apps, with total promotional spending likely exceeding **RMB 8 billion** [2][3]. 2. **Traffic Expansion**: - Significant increases in Daily Active Users (DAU) were observed: - **Doubao**: DAU increased from **84 million** to **144.5 million** (+60.5 million). - **Qwen**: DAU rose from approximately **17 million** to **73.5 million** (+56.5 million). - **Yuanbao**: DAU climbed from **7 million** to **40.5 million** (+33.5 million) [3][4]. 3. **User Engagement**: - User engagement metrics showed a decline in average daily time spent per user: - **Qwen**: Dropped from **6.3 minutes** to **3-5 minutes** (-51%). - **Yuanbao**: Fell approximately **32%** compared to January 2026 levels. - **Doubao**: Experienced a moderate decline of **-15%**, indicating stronger engagement resilience [4][5]. 4. **Post-Campaign Retention**: - Post-campaign retention varied significantly: - **Qwen** maintained DAU well above pre-campaign levels, partly due to extended voucher validity. - **Doubao** saw a meaningful decline but retained a user base above its pre-CNY baseline. - **Yuanbao** experienced the sharpest decline, reverting close to pre-campaign levels [5][6]. Additional Important Insights - The campaign's success was heavily influenced by marketing strategies, including deep integration with media events like the **CCTV CNY Gala** and cash red packet promotions [10]. - The report highlights the importance of user retention strategies beyond initial acquisition, emphasizing the need for product utility and ecosystem integration to sustain growth post-campaign [1][2]. Conclusion - The 2026 CNY campaign showcased intense competition among major AI platforms in China, with varying degrees of success in user acquisition, engagement, and retention. The long-term viability of these platforms will depend on their ability to provide genuine value beyond financial incentives [1][2][5].

Summary of China Internet: AI or Bust? A Post-CNY Debrief Industry Overview - The report focuses on the **China Internet** sector, particularly the impact of AI developments and promotional strategies on user engagement and company valuations [1][9]. Key Points and Arguments AI Engagement and User Metrics - Major Chinese internet companies invested **RMB4.5 billion** in red packet subsidies to boost engagement with AI chatbots during the Lunar New Year [1]. - Daily Active Users (DAUs) for **Yuanbao** and **Qwen** peaked at **41 million** and **74 million** respectively during the promotional period, compared to around **8 million** prior [2][10]. - By February 22, DAUs for Yuanbao and Qwen dropped to **7.9 million** and **32.7 million**, indicating a significant retention challenge [2][10]. Market Dynamics and Valuations - Large-cap valuations in the sector have fallen to the **10-20th percentile** levels since 2022, reflecting a market that has priced out much of the AI optimism [2]. - **Minimax** and **Z.ai** have seen their shares rise significantly, with trading volumes post-IPO being minimal compared to giants like Tencent and Alibaba [4]. - Current valuations for Minimax and Z.ai are reportedly higher than OpenAI based on projected price-to-sales multiples for 2030, assuming high revenue growth rates [4][65]. Promotional Strategies and Their Implications - The surge in token consumption on platforms like **OpenRouter** was driven largely by free usage promotions, raising concerns about future inference margins and cash burn [3][36]. - The effectiveness of these promotional strategies in retaining users and fostering habitual engagement with AI applications remains uncertain [11][26]. Competitive Landscape - The report highlights the competitive dynamics between Chinese AI labs and global leaders, noting that Chinese models are within a **6-12 month** capability gap compared to their global counterparts [32][70]. - Concerns about the sustainability of high valuations for Minimax and Z.ai are raised, especially if their growth is primarily driven by promotional tactics rather than organic user engagement [36][66]. Investment Implications - The report suggests that **Tencent** remains a top pick in the China Internet sector, with a healthier macro backdrop compared to previous years [7]. - The overall sentiment in the market is cautious, with expectations that 2026 will be more challenging than 2025 for the sector [6][27]. Other Important Insights - The report discusses the potential for AI to disrupt various sectors, particularly video gaming, where it is believed that generative AI will have limited impact [28]. - The ongoing regulatory environment in China is noted as a factor that could influence market performance and investor sentiment [6][90]. This summary encapsulates the critical insights and data points from the report, providing a comprehensive overview of the current state and future outlook of the China Internet sector, particularly in relation to AI developments.

Summary of Key Points from the Conference Call Industry Overview - **Industry Focus**: The discussion centers on the AI industry, particularly in China and the US, highlighting diverging trends in AI agent adoption and monetization strategies [1][2]. Core Insights - **AI Agent Adoption**: The year 2026 is projected as a pivotal year for the scaled adoption of AI agents, with a shift from chat-based interactions to actionable functionalities. In the US, there is a focus on enterprise adoption, while China is investing heavily in consumer-facing AI products [1]. - **Consumer Engagement**: Major Chinese internet companies launched significant promotional campaigns during the Spring Festival, with Tencent, Alibaba, Baidu, and ByteDance distributing substantial red packets to drive traffic to their AI offerings. For instance, Tencent's Yuanbao distributed Rmb1 billion, Alibaba's Qwen Rmb3 billion, and Baidu's Ernie Rmb500 million [1][6]. - **User Growth**: The campaigns resulted in over 130 million users trying AI services, with notable increases in daily active users (DAU) and monthly active users (MAU) for these platforms [6]. Company-Specific Developments - **Model Launches**: A wave of new AI models was released around the Chinese New Year, with advancements in coding and multimodal capabilities. Notable models include Zhipu's GLM-5.0, Moonshot's Kimi 2.5, and ByteDance's Doubao 2.0, showcasing improved performance and efficiency [3][23]. - **Market Positioning**: Companies like MiniMax are well-positioned to benefit from AI trends, with a focus on full-stack AI capabilities. Baidu and Alibaba are favored for their comprehensive AI ecosystems [4]. Monetization Trends - **Global Enterprise AI Monetization**: There is a surge in AI monetization globally, with companies like Anthropic raising revenue forecasts significantly due to advancements in their AI models. China's AI models are gaining market share in the global enterprise API market, leveraging cost-performance advantages [2]. Competitive Landscape - **AI Disruption Sentiment**: The ongoing narrative of AI disruption is fostering positive sentiment for model providers while making investors cautious about vertical platforms. The competitive landscape is evolving, with intensifying competition and regulatory risks being key concerns for companies like Baidu, Alibaba, Tencent, and Kuaishou [4][24][26][27][29]. Risks and Challenges - **Key Risks**: The report identifies several risks for the internet sector in China, including competition, technology trends, monetization uncertainties, and regulatory changes. Specific risks for individual companies include execution challenges, rising costs, and management issues [24][25][26][27][28][29]. Conclusion - The AI industry in China is experiencing rapid growth and transformation, driven by consumer engagement and technological advancements. Companies are strategically positioning themselves to capitalize on these trends, although they must navigate a complex landscape of competition and regulatory challenges.

Summary of Key Points from the Conference Call Industry Overview - The focus is on the **Chinese AI models** and their adoption, particularly in the context of competition with US models. The momentum in the growth of Chinese AI models and tokens is accelerating due to several factors, including improved performance and cost advantages compared to US counterparts [1][2]. Core Observations 1. **Adoption and Growth of Chinese AI Models**: - Chinese AI models have seen a significant increase in adoption, with API tokens surpassing US models for the first time in February 2026. This is attributed to the launch of new models like MiniMax M2.5 and Kimi K2.5, which have a narrower performance gap with US models and are priced at 5-10% of US flagship model prices [2][7]. - Daily token consumption in China surged to **37 trillion** in the second half of 2025, a **263% increase** from the first half, with Alibaba's Qwen and ByteDance's Doubao leading the market [8][22]. 2. **Investment and Capex Outlook**: - Alibaba's capex forecast has been raised to **Rmb513 billion** for FY26-28E, reflecting strong growth expectations for Alibaba Cloud, which is projected to grow by **35%** year-over-year in FY27E [8][22]. - The overall capex plans for major players like ByteDance and Alibaba indicate a strong commitment to AI development, with potential increases in spending [22]. 3. **Competitive Landscape**: - The competition among major Chinese internet companies (BAT: Baidu, Alibaba, Tencent) for AI super entry-points has intensified, particularly during the Chinese New Year period. User engagement metrics show significant daily active users (DAUs) for apps like Doubao and Qwen [11][12]. - The ability to execute tasks and provide seamless transaction capabilities is crucial for user retention and adoption [11]. 4. **Geopolitical Factors**: - Geopolitical dynamics are influencing the development of Chinese AI models, with concerns about resource limitations compared to US counterparts. The gap in AI capabilities may depend on advancements in chip technology from companies like Nvidia [9][22]. 5. **Future Trends and Themes**: - Six key AI themes for 2026 have been identified, including the shift towards ROI-based advertising, breakthroughs in AI model capabilities, and the proliferation of consumer AI assistants [21][22]. - The expected growth of the global foundation model industry is projected to reach **US$472 billion** by 2030, with significant contributions from the text/agent AI model market [25][28]. Additional Insights - The performance of Chinese AI models has improved significantly, with companies like Zhipu and MiniMax showing substantial year-to-date share price increases of **322%** and **109%**, respectively [7]. - The domestic enterprise adoption of AI is driving substantial increases in token consumption, indicating a robust market for AI applications in various sectors [8][22]. - The launch of advanced models like Seedance 2.0 by ByteDance showcases the competitive edge of Chinese AI in video generation, emphasizing the importance of narrative coherence and production efficiency [77][78]. This summary encapsulates the key points discussed in the conference call, highlighting the rapid growth and competitive dynamics of the Chinese AI industry, along with the implications for investment and market trends.

Summary of China Internet Sector Conference Call Industry Overview - The China Internet sector has had a lackluster start to 2026, with KWEB remaining flat year-to-date. AI advancements continue to influence investor preferences within the sector, particularly with Alibaba outperforming due to its Qwen agentic services, while Tencent has lagged behind [1][2]. Key Companies Discussed Tencent - Tencent's share price reflects investor concerns regarding its AI model and chatbot development. The company has shown solid returns on investment (ROI) from AI in its advertising and gaming sectors, trading at a projected 14-15x PE for 2027, indicating a favorable risk-reward scenario as earnings compound [3][8]. - Recent issues with the Yuanbao Party highlight challenges in AI development within WeChat, which faces higher quality standards compared to other platforms. Despite this, Tencent's advertising business remains robust, with strong growth in Video Accounts and digital ads [3][85]. - The company is perceived to be behind in AI model development, which has negatively impacted its valuation multiples. However, the potential for recovery exists as the company continues to innovate and improve its AI capabilities [57][59]. Alibaba - Alibaba's sentiment peaked during the launch of Qwen agentic services, which positions the company favorably in the domestic market. The use of red packet promotions to stimulate online shopping behavior is seen as a more logical strategy compared to incentivizing information retrieval [4][9]. - Concerns remain regarding Alibaba's ability to demonstrate that its AI initiatives can drive significant growth in gross merchandise volume (GMV) and customer retention. The combination of a top-tier AI model, strong growth in Alicloud revenues (30-40%), and a solid GPU development program makes Alibaba an attractive investment [4][9]. - The regulatory environment remains a concern, with ongoing investigations into other companies in the sector contributing to cautious sentiment among investors [4][55]. AI and Chatbot Wars - The competition among major Chinese internet platforms, including Tencent, Alibaba, Bytedance, and Baidu, has intensified with the introduction of red packet promotions aimed at boosting AI chatbot adoption. This strategy indicates that AI capabilities alone are insufficient for consumer-facing applications [2][19]. - Recent data suggests that while user acquisition for AI chatbots has increased due to promotional efforts, daily engagement metrics have not shown significant improvement, raising questions about long-term user retention and behavior change [17][24]. - The effectiveness of cash incentives in driving user engagement with AI chatbots is debated, with comparisons drawn to past successes in online payment adoption [20][21]. Regulatory Environment - The regulatory landscape for the China Internet sector has shifted, with increased scrutiny and investigations affecting investor sentiment. The potential for stricter enforcement of e-commerce taxes and other regulations has raised concerns about future growth prospects [4][55]. - Despite these challenges, recent stock pullbacks may improve the risk-reward profile for investors in the sector, particularly for Tencent and Alibaba [56]. Investment Implications - Both Tencent and Alibaba present distinct investment opportunities, with Tencent focusing on steady earnings and AI ROI, while Alibaba emphasizes faster model development and long-term AI optionality. The current market environment favors companies that can demonstrate tangible AI success and consumer engagement [7][28]. - The ongoing debate among investors regarding the costs and benefits of AI investments will likely influence stock performance in the near term, with a shift towards favoring companies that can deliver visible earnings impacts [28][100].

Summary of Key Points from the Conference Call Industry Overview - The focus is on the **China Internet** sector, particularly regarding **AI investments** and the competitive landscape among major players like **Tencent**, **Alibaba**, and **ByteDance** [1][3]. Core Insights and Arguments - **AI Investment Strategies**: 2026 is expected to be a pivotal year for AI investments, with increased capital expenditures (capex) and operational expenditures (opex) from major internet companies [1][3]. - **Competition**: There is an intensified competition for consumer AI super apps, with seamless transaction capabilities being crucial for user retention [1][3]. - **Regulatory Concerns**: Investors are worried about potential regulatory tightening similar to the 2020-21 cycle, which has contributed to a recent decline in sector share prices (HSTECH down by 10% in the past week) [1][9]. - **Tax Policies**: Recent changes in VAT and income tax rates are expected to impact profit growth and sector valuations. A sensitivity analysis indicates that a 1% increase in VAT could reduce pre-tax profits for major companies like Alibaba and Tencent by approximately 0.4% to 0.8% [31][34][41]. Upcoming Catalysts - Key events to watch include further AI model launches around the **Chinese New Year (CNY)**, developments in **anti-trust investigations** by SAMR, and the upcoming earnings season [2][3]. Stock Recommendations - **Valuation Metrics**: The median P/E ratio for China Internet companies is noted at 17X for 2026E, which is lower compared to US peers like META and GOOG [3][56]. - **Top Picks**: Alibaba and Tencent are highlighted as the best-positioned mega-cap stocks for long-term growth. Other recommended stocks include GDS, VNET, and Kuaishou, focusing on themes like EPS growth and shareholder returns [8][3]. Regulatory Landscape - Ongoing investigations by SAMR into the food delivery sector are aimed at promoting fair competition and may impact profit margins for companies like Meituan, Alibaba, and JD [45][46]. - The government is expected to support the healthy development of industries, particularly small to medium-sized enterprises (SMEs) [9]. Financial Performance and Projections - **Capex Forecasts**: Significant increases in capex are anticipated for Alibaba (Rmb454 billion) and ByteDance (Rmb300 billion) due to AI advancements [50][51]. - **Profitability Trends**: Tencent's cloud business has achieved profitability, and the company is optimistic about its Interactive and Entertainment Group's performance [27]. Conclusion - The China Internet sector is at a critical juncture with substantial investments in AI, regulatory challenges, and evolving competitive dynamics. Companies are advised to navigate these complexities while focusing on innovation and user engagement strategies to maintain market leadership [1][3][9].

Core Insights - The article discusses the shift in the US-China AI competition from "parameter height" to "livelihood depth," emphasizing the concept of "AI Tax" and how China's AI applications are becoming a global influence due to their infrastructure-like characteristics [1][3]. Group 1: AI Tax and Subscription Models - The term "AI Tax" is introduced, highlighting the financial burden of AI subscriptions in the US, where major companies charge around $20 per month for AI services [4][6]. - In contrast, Chinese AI services, such as Alibaba's Qwen and Ant Group's Ant AQ, are offered for free, showcasing a significant disparity in accessibility [6][7]. - The average annual AI expenditure for a typical American middle-class family can exceed 720-1000 USD, while the equivalent in China is projected to be nearly zero by 2026 [8]. Group 2: Healthcare Sector Disparities - The article notes that the US healthcare expenditure reached 5.3 trillion USD in 2024, with a per capita spending of 15,474 USD, which constitutes 18% of GDP [9]. - Despite the introduction of AI, the US healthcare system remains expensive and inaccessible, with many Americans concerned about unexpected medical costs [10][12]. - In China, AI applications like Ant A-fu are transforming healthcare access, allowing users to consult AI for health inquiries without the need for expensive consultations [13][14]. Group 3: AI Accessibility and Social Impact - The article emphasizes that China's approach to AI mirrors its historical focus on improving societal efficiency, akin to the development of high-speed rail and mobile payments [19][20]. - The accessibility of AI in China is seen as a means to empower lower-income groups, contrasting with the US model that prioritizes high-end, subscription-based services [19][21]. - The competition between the US and China in AI is framed as a battle between protecting technological "premium rights" and ensuring widespread "accessibility" of technology [20][21].