China’s Auto Imports Extend Multi-Year Decline Despite Easing Slowdown
Beijing, June 28 — On June 28, Cui Dongshu, Secretary General of the China Passenger Car Association (CPCA), reported that China imported 38,000 vehicles in May 2026, down 19% year-on-year. The imports were dominated by premium brands including Lexus, Mercedes-Benz, BMW, and Audi. Despite disruptions to global shipping caused by the U.S.-Iran conflict, the overall decline remained relatively moderate due to a low comparison base in early 2025.
During the first five months of 2026, China imported 160,000 vehicles, representing an 11% year-on-year decline.
China’s imported vehicle market has remained under pressure in recent years as domestic automakers continue to gain market share and global automotive brands accelerate local production. Auto imports have now recorded three consecutive years of annual declines. Adjusted for market volatility, the sector has experienced a continuous downward trend for eight years, underscoring the structural shift toward locally manufactured vehicles in the world’s largest auto market.
Apple Raises Mac and iPad Prices as AI-Driven Memory Costs Reshape Electronics Market
Shanghai, June 25 — On Thursday, Apple announced price increases across its MacBook and iPad lineup, with Mac prices rising 15%–20% and iPads increasing 15%–25%. While iPhone prices remain unchanged for now, the company indicated that further price adjustments could follow. Apple’s shares fell 6% after the announcement.
The price hikes come amid soaring memory costs driven by booming demand for AI infrastructure. As AI data centers consume an increasing share of advanced memory production, DRAM and NAND prices have surged, pushing storage costs to account for as much as 30%–40% of a smartphone’s bill of materials.
Chinese smartphone makers—including Xiaomi, OPPO, vivo, Honor, and Huawei—have already responded by raising prices, reducing discounts, or making other pricing adjustments earlier this year. Until now, Apple had largely avoided increases through long-term supply agreements, giving it a pricing advantage over Android competitors.
Industry analysts believe Apple’s decision could ease consumer resistance to higher prices across the broader smartphone market. However, Apple remains better positioned to absorb rising component costs thanks to its stronger supply-chain bargaining power and high-margin services business. In contrast, many Android manufacturers operate with significantly thinner hardware margins, making sustained cost inflation far more challenging.
The development highlights a broader shift in the consumer electronics industry. Rather than competing primarily on lower prices and larger hardware specifications, manufacturers are increasingly expected to differentiate through AI capabilities, software ecosystems, imaging technology, and user experience as the era of inexpensive consumer electronics comes to an end.
Tesla Adopts Doubao and DeepSeek for AI Voice Assistant in China
Shanghai, June 24 — Tesla has updated the Terms of Use for its in-car voice assistant in China, confirming that the new Model Y will adopt a dual-model AI architecture powered by Doubao and DeepSeek.
The move reflects China’s data compliance requirements. While Tesla has integrated xAI’s Grok into vehicles in the U.S., Chinese regulations require in-car voice and driving data to be processed domestically, prompting the company to partner with local AI providers.
Under the new setup, the two models will serve different functions. Doubao will handle vehicle controls such as navigation, air conditioning, and multimedia, while DeepSeek will focus on conversational AI, including general questions and interactive dialogue. Running both models simultaneously requires significant computing resources and a redesigned in-car AI architecture.
Doubao has emerged as one of China’s leading large language models, with more than 300 million monthly active users in the first quarter of the year. Beyond Tesla, it has already been adopted by automakers including Mercedes-Benz, BYD, SAIC, and Changan Mazda, highlighting the growing commercialization of China’s AI models within the automotive industry.
The partnership also illustrates a broader trend: as competition among large language models intensifies, the automotive sector is becoming an increasingly important commercial application for AI, transforming intelligent vehicles into one of the key deployment scenarios for next-generation foundation models.
Alibaba Executives’ Rice Planting Event Signals Long-Term AI Commitment
Hangzhou, June 22 — On June 22, Liu Zhenfei, Alibaba Partner and Chairman of Amap, published an internal article titled “Only by Having Seedlings in Hand Can We Ensure a Harvest in the Future,” documenting a management team-building event where Alibaba executives planted rice in Hangzhou.
Photos from the event showed Jack Ma, CEO Eddie Wu, Jiang Fan, Shao Xiaofeng, Wu Zeming, Jiang Fang, Ant Group Chairman Eric Jing, CEO Han Xinyi, and Alibaba Chief Scientist Zhou Jingren participating together.
Zhou’s appearance also helped dispel recent market rumors that he was leaving Alibaba. As the company’s Chief Scientist, Zhou plays a central role in Alibaba’s AI strategy, and his presence alongside senior leadership was widely interpreted as a signal of stability and continued commitment to AI and cloud computing.
The event also reflected Alibaba’s broader strategic message. As China’s internet industry shifts from traffic-driven growth toward long-term investment in AI and cloud infrastructure, the company is emphasizing patience, sustained R&D, and technological innovation rather than rapid expansion.
While the rice-planting activity appeared symbolic, many observers viewed it as reinforcing Alibaba’s belief that building competitive advantages in AI requires long-term investment—much like cultivating a harvest that takes time to grow.
LABUBU’s New Series Sells Out Online, but Resale Prices Cool
Beijing, June 22 — On June 25, Pop Mart’s flagship IP LABUBU officially launched its new “Retro Barbershop” series online. While the collection still appeared to sell out instantly, several regular designs showed signs of cooling demand in the resale market.
According to price charts on trend-shopping platform Dewu, designs such as “After the Rain” and “Light Blue Prelude” traded at around CNY 100 within half an hour of launch, well below the official retail price of CNY 159. The drop represents a decline of more than 30%.
The price divergence suggests that while LABUBU remains highly visible and capable of generating strong launch-day traffic, secondary-market enthusiasm may be becoming more selective, especially for regular releases without scarcity premiums.