https://x.com/i/article/2109638920212238337
Weekly Dose of China Tech [10.12.2026]
Hi friends,
This week was a reminder that getting a product built is only the first test. The harder test is whether it holds up under real-world conditions.
A Huawei-backed luxury minivan became the center of a national argument after its brake pedal brackets snapped during a public test. The debate quickly moved beyond the car itself, touching on brand loyalty, censorship, and a more uncomfortable question facing China’s auto industry: are manufacturers moving so fast, and cutting costs so aggressively, that product quality is becoming harder to guarantee?
Huawei faces a different test overseas. After building a substantial HarmonyOS ecosystem at home, it now wants to take that system into markets where consumers already have Android, Google, and Apple. Building an alternative out of necessity is one thing. Convincing people to choose it when they have other options is another.
The same test is playing out across China’s tech industry, though in different forms. Chinese automakers are pushing deeper into overseas markets, and DeepSeek is bringing its tools closer to everyday users. Each faces a different question: not just whether the technology works, but whether it can scale, compete, and win users’ trust.
Anyway, let’s take a look.
Weekly News...
(I) Huawei Says Ascend Has Overtaken Nvidia in China. Capacity Is Another Matter
Huawei says its Ascend AI chips have overtaken Nvidia in China, although the company has not disclosed its exact market share. Bernstein estimates that Huawei could capture around 50% of the Chinese AI-chip market this year, compared with just 8% for Nvidia — a dramatic reversal from Nvidia CEO Jensen Huang’s estimate that his company once held roughly 95% of the market.
The constraint now, according to Huawei rotating chairman Eric Xu, is not chip design but manufacturing technology and supply. Huawei is compensating by connecting large numbers of accelerators into systems it calls SuperPoDs, but it still cannot meet domestic demand and has no plans for a major overseas push. DeepSeek reportedly plans to deploy at least 160,000 Ascend 950DT chips at a data center in Inner Mongolia.
Huawei may be gaining market share faster than expected, but market share and available compute are two different things. The next challenge is producing enough chips to turn that position into a durable advantage.
(II) China’s App Economy Is Growing Overseas, Even If Apple Doesn’t Collect on Every Sale
Apple says China’s App Store ecosystem generated RMB 4 trillion ($560 billion) in billings and sales in 2025, more than double its 2020 level.
Overseas markets are becoming more important to Chinese developers. They accounted for 52% of developers’ App Store earnings in 2025, up from 32% in 2020, with revenue from overseas users reaching RMB 99.4 billion ($14.8 billion), or 2.6 times the 2020 figure.
Most of the ecosystem’s total came from physical goods and services, including retail, food delivery, travel and ride-hailing, which generally do not generate App Store commissions.
Chinese apps are also reaching more users abroad: 76% of Chinese developers were active in overseas markets last year, while overseas downloads rose from 2.1 billion in 2020 to 3.8 billion.
For Chinese developers, overseas markets are becoming an increasingly important source of revenue.
(III) BYD Is Exploring a Bigger Role in Argentina
BYD registered 1,389 vehicles in Argentina in August, up 38% from July and enough to rank ninth among automakers. The company is also exploring local investment in batteries and energy storage, according to Argentina’s foreign minister, though no project details have been announced.
For Chinese automakers, overseas expansion could increasingly mean building parts of the supply chain abroad, not just shipping finished cars.
(IV) Huawei and Qualcomm Signed a Patent Deal. The Bigger Claims Aren’t Confirmed
Huawei and Qualcomm announced an agreement covering 5G, computing, AI and networking on October 5—their first patent licensing deal encompassing 5G.
Reports linking it to Huawei’s LogicFolding and near-packaged optics technologies were subsequently revised or removed.
Qualcomm denied being the net payer and rejected claims that the deal relates to LogicFolding. The available statements do not establish licensing of LogicFolding or related peripheral technologies.
(V) DeepSeek Is Turning Harness Into a More Accessible Desktop Product
DeepSeek has released Harness v0.2 Preview with ready-to-install macOS and Windows desktop apps, guided setup and built-in tools for everyday office work and development.
The update adds a plugin installation and management page, plus more configuration options for customizing capabilities.
DeepSeek says the product is still early and needs further refinement. Download it at
Try Harness →
(VI) Chinese Automakers Are Gaining Ground in Europe. Europe Is Responding
Twenty Chinese automotive brands, including BYD, Chery, and Avatr, are expected at the Paris Motor Show, double the number...
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