Economic Watch: Light-asset, intelligence-driven -- new trends of youth entrepreneurship in China-Xinhua

• On May 22, China's National Development and Reform Commission (NDRC) issued a policy signal urging the country to achieve AI self-sufficiency. • The directive explicitly calls for the integration of domestically developed computing chips with homegrown large language models (LLMs).

• Foreign investors have withdrawn nearly $24 billion from Indian equities this year as capital shifts toward East Asian technology hubs. • This trend is driven by a global AI supercycle and a significant rally in Taiwan Semiconductor Manufacturing Company (TSMC).

• On May 25, 2026, Felipe Sinisterra and Dave Wang launched specialized AI training courses designed specifically for Wall Street bankers. • The program aims to integrate artificial intelligence into financial operations to enhance efficiency and decision-making within the banking sector.

• On May 25, 2026, India's startup ecosystem saw significant growth across diverse sectors, highlighted by Yes Madam securing Rs 50 crore in new funding. • Key expansions include the entry of Voy into the Indian market, Graamya's rural spice initiatives in Kerala, and the launch of a Quantum AI lab in Mysuru.

• Leena Ylä-Mononen, head of the European Environment Agency, is urging the EU to mandate that Big Tech companies disclose the energy and water consumption of their data centers. • The call for transparency comes as the rapid expansion of AI infrastructure threatens to increase the ecological footprint of the digital sector.

• A new report predicts that up to 120 Indian startups could launch public listings by 2030, signaling strong growth despite global funding challenges. • Investment is shifting toward high-growth sectors, specifically generative AI, fintech, health technology, and green energy/cleantech.

• European banks are rapidly integrating AI into their operations, but are facing significant financial strain due to the soaring costs of computing power and AI assistants like Claude. • To mitigate long-term pricing risks and reduce dependence on US tech giants, financial firms are shifting their strategy toward developing proprietary in-house AI models.

• Technology giants and governments across the U.S., Europe, and Asia are competing for control over strategic energy infrastructure and land suitable for data center development. • Access to electricity and transmission capacity has emerged as the primary competitive advantage, as data centers now serve as the backbone of the global AI economy.

• Between May 18 and 25, 2026, the AI industry saw major updates including Google I/O, the release of Composer 2.5, and the launch of Qwen 3.7 Max. • Microsoft expanded its AI capabilities by making computer-use agents generally available to all Power Platform tenants via Copilot Studio.

• Prime Minister Narendra Modi highlighted the growth of India's startup ecosystem, which now includes 2.3 lakh recognized startups. • The government is accelerating growth through new policy initiatives, funding mechanisms, incubation programs, and strategic global collaborations.

• EU enterprise AI adoption reached 20% in 2025, though the region continues to lag behind global competitors despite some bright spots like Denmark. • The EU AI Act is contributing to delays, with nearly 60% of EU and UK developers reporting launch setbacks and two-thirds of companies unable to define their legal obligations.