US firms

China's LineShine supercomputer at the National Supercomputing Center in Shenzhen has reclaimed the title of the world's fastest supercomputer, displacing El Capitan from the TOP500 ranking despite US trade restrictions on high-powered computing components. LineShine does not use GPUs, a key component in most modern supercomputers, and the achievement is seen as a message from China to the US.

Hong Kong reported a 36% rise in foreign direct investment (FDI) inflows in the first half of 2026, with 413 companies establishing or expanding operations in the city, a 9% year-on-year increase. The growth reflects continued interest from US and European firms, which are expected to bring over HK$53 billion in investments.

Europe is striving to develop its own AI heavyweights to challenge US dominance, focusing on partnerships, investments, and startups to enhance digital sovereignty. Challenges related to funding and regulation persist despite these efforts.

Chinese tech giant Huawei announced plans to develop chipmaking processes rivaling Western standards, potentially shifting the AI race between Beijing and Washington. The company claims a workaround for US sanctions and introduced a new chipmaking principle challenging Moore's Law, though details remain undisclosed.

Over 100 crypto companies are urging the US Senate to expedite passage of the CLARITY Act, which aims to establish clearer regulatory rules for the industry. The bill faces delays due to disputes over stablecoins, DeFi, and regulatory scope, raising concerns that US firms may fall behind regions with more defined frameworks.