Hong Kong is actively seeking investment from the Middle East, exemplified by a $1 billion memorandum of understanding with Saudi Arabia's Public Investment Fund targeting Hong Kong enterprises. This strategic pivot, partly driven by Western scrutiny, sees Chinese companies like Meituan's overseas food delivery brand, Keeta, using Hong Kong as a launchpad into Gulf markets such as Saudi Arabia and the UAE. Keeta, now Hong Kong's largest food delivery platform, highlights the need for cultural adaptation, acknowledging local customs like prayer times for delivery riders.

Meanwhile, China's domestic AI sector faces increasing regulatory pressure. Beijing is tightening oversight, leading major tech firms to roll back AI persona features that offered virtual companionship, particularly for minors, ahead of new rules effective July 15. This crackdown aims to address privacy risks and potential psychological impacts, reflecting a tension between AI's growing popularity for emotional support and governmental control. Thousands of non-compliant AI products have already been removed.

Furthermore, Chinese AI companies are navigating access to advanced U.S. AI tools. Firms like Ant Financial have reportedly used workarounds to access Anthropic's Claude models, despite Anthropic's strict bans on usage in China. This circumvention highlights the demand for leading U.S. AI technology. Conversely, U.S. companies are increasing their use of cheaper Chinese AI models, with companies like Coinbase, Airbnb, and Uber acknowledging adoption. Chinese models now consume significantly more tokens than U.S. counterparts, indicating a shifting competitive dynamic with domestic players like Deep Seek gaining substantial market share.