Want AI Regulation? Sign a US-China AI Deal First - The National Interest

• India's startup ecosystem is seeing diverse growth across sectors, including deeptech breakthroughs in semiconductors and water-testing innovations from CLUIX. • The fintech landscape is being shaped by PhonePe's increasing dominance in the Unified Payments Interface (UPI) market.

• Vivo has officially launched the TWS 5e earbuds in the Chinese market. • The device features 11mm dynamic drivers, hybrid adaptive active noise cancellation (ANC), and a total battery life of up to 55 hours.

• Chinese AI models, specifically DeepSeek, are currently leading in traffic on OpenRouter, a popular platform used by global developers to access various LLMs. • The trend highlights a shift where open-weight models from China are performing competitively, though they introduce significant data privacy and security risks.

• Nvidia CEO Jensen Huang visited Taipei starting May 23, using a series of high-profile dinners and social events to engage with the AI ecosystem. • The trip culminated in a gathering of over 30 top executives, illustrating the complex and interconnected supply chain required to sustain Nvidia's trillion-dollar valuation.

• Tokyo's core Consumer Price Index (CPI) slowed for the sixth consecutive month, signaling a cooling trend in Japanese price pressures. • Federal Reserve official Musalem cautioned against the assumption that AI integration will rapidly lower US inflation, which currently stands at 3.8%.

• A survey of chief economists reveals that nearly 90% expect global economic growth to weaken over the next year, though only 13% anticipate a full-scale global recession. • An overwhelming 94% of respondents predict rising global inflation, primarily driven by the potential closure of the Strait of Hormuz.

• Global investors returned to equity funds during the week ending May 27, driven by a rally in AI-linked stocks that revived market sentiment. • Regional performance was mixed, with U.S. equity funds attracting a net $1.97 billion and European funds gaining $678 million, while Asian funds saw net outflows of $3.92 billion.

• The European Central Bank (ECB) has urged eurozone banks to accelerate their technological upgrades to combat rising cyber risks driven by artificial intelligence. • In its supervisory priorities for 2026–2028, the ECB reported that significant cyber incidents have doubled in recent years, identifying operational resilience as a primary concern.

• Sweden is actively pursuing a strategy to achieve global leadership in artificial intelligence, moving beyond the mere application of existing US-developed AI systems. • The Nordic nation aims to "change the rules of the game" by developing its own sovereign AI capabilities and infrastructure to reduce dependency on foreign technology.

• SK Hynix has joined the trillion-dollar market cap club driven by surging demand for AI chips, while AI startup Anthropic is approaching a $100 billion valuation. • Major tech firms are restructuring their workforces, with Meta cutting jobs to prioritize AI initiatives and Nvidia reporting a gap in specialized hiring.

• Participants at EuroDIG 2026 explored whether the European Digital Identity (EUDI) Wallet and a proposed business wallet could serve as foundational infrastructure for an integrated digital single market. • Jaromir Talir of the Czech registry CZ.NIC highlighted how EUDI wallet pilots are addressing long-standing challenges in registrant identification, cybersecurity, and regulatory compliance for domain registries.