China seeks to build artificial intelligence (AI) chip factories for creating particle accelerators to help bypass sanctions affecting the local industry, according to a report from the South China Morning Post (SCMP).
The usage of particle accelerators will help create new ways to produce a novel laser source. It is reported that the electron beam of the accelerator will be transformed into a “high-quality” light source needed to manufacture AI semiconductor chips on-site.
According to the report, a team of scientists from Tsinghua University are in discussions with authorities in the Xiongan New Area to select the proper area to develop the factory.
The report said local scientists view this as a way to potentially circumvent the current sanctions in place from the United States.
The particle accelerators would be replacing the role of the lithography machine in the steps to produce semiconductor chips for creating high-level AI systems.
At the moment, Advanced Semiconductor Materials Lithography (ASML), a company based out of the Netherlands, is the only company that owns the technology for such machines. The U.S. has barred the company from selling its top-end machines in the Chinese market, similar to its barring Nvidia, the world’s leading manufacturer of AI chips, from selling its most powerful products to China.
The report from SCMP said the Chinese mega-factory could house multiple lithography machines.
This is not the first time China has tried to combat sanctions through efforts on the home front.
In May reports surfaced about Chinese companies studying methods to develop AI systems using weaker semiconductors and different combinations of chips in light of U.S. sanctions.
Despite the sanctions, however, Chinese companies have released new AI systems after the country set its landmark AI legislation into motion. On Sept. 7 Tencent unveiled its own ChatGPT rival in the Chinese market.
Meanwhile, the U.S. has been tightening its grip on the AI manufacturing market. In a recent visit to Vietnam, the U.S. made deals worth billions of dollars focusing on AI chips and technology.
Its weariness of having China take the lead in AI development has spread overseas with European regulators also considering their stance on export controls and restrictions on China.
Sir Keir Starmer has said the government will not relax visa rules for India, as he embarks upon a two-day trade trip to Mumbai.
The prime minister touched down this morning with dozens of Britain’s most prominent business people, including bosses from BA, Barclays, Standard Chartered, BT and Rolls-Royce.
The first full-blown trade mission to India since Theresa May was prime minister, it’s designed to boost ties between the two countries.
Sir Keir – whose face has been plastered over posters and billboards across Mumbai – will meet Indian Prime Minister Narendra Modi on Thursday, five months after the UK signed the first trade deal with India since Brexit.
The agreement has yet to be implemented, with controversial plans to waive national insurance for workers employed by big Indian businesses sent to the UK still the subject of a forthcoming consultation.
Image: Sir Keir Starmer with his business delegation. Pic: PA
However, the business delegation is likely to use the trip to lobby the prime minister not to put more taxes on them in the November budget.
Sir Keir has already turned down the wish of some CEOs on the trip to increase the number of visas.
Speaking to journalists on the plane on the way out, he said: “The visa situation hasn’t changed with the free trade agreement, and therefore we didn’t open up more visas.”
He told business that it wasn’t right to focus on visas, telling them: “The issue is not about visas.
“It’s about business-to-business engagement and investment and jobs and prosperity coming into the UK.”
Image: Narendra Modi and Keir Starmer during a press conference in July. Pic: PA
No birthday wishes for Putin
The prime minister sidestepped questions about Mr Modi’s support of Russian leader Vladimir Putin, whom he wished a happy birthday on social media. US President Donald Trump has increased tariffs against India, alleging that Indian purchases of Russian oil are supporting the war in Ukraine.
Asked about Mr Modi wishing Mr Putin happy birthday, and whether he had leverage to talk to Mr Modi about his relationship with Russia, Sir Keir sidestepped the question.
“Just for the record, I haven’t… sent birthday congratulations to Putin, nor am I going to do so,” he said.
“I don’t suppose that comes as a surprise. In relation to energy, and clamping down on Russian energy, our focus as the UK, and we’ve been leading on this, is on the shadow fleet, because we think that’s the most effective way.
“We’ve been one of the lead countries in relation to the shadow fleet, working with other countries.”
PM: We aren’t forcing wealthy people out
Sir Keir refused to give business leaders any comfort about the budget and tax hikes, despite saying in his conference speech that he recognised the last budget had an impact.
“What I acknowledged in my conference, and I’ve acknowledged a number of times now, is we asked a lot of business in the last budget. It’s important that I acknowledge that, and I also said that that had helped us with growth and stabilising the economy,” he added. “I’m not going to make any comment about the forthcoming budget, as you would expect; no prime minister or chancellor ever does.”
Asked if too many wealthy people were leaving London, he said: “No. We keep a careful eye on the figures, as you would expect.
“The measures that we took at the last budget are bringing a considerable amount of revenue into the government which is being used to fix things like the NHS. We keep a careful eye on the figures.”
A Chinese spying trial collapsed last month after the UK government would not label Beijing a national security threat, a top prosecutor has said.
Christopher Berry, 33, and former parliamentary researcher Christopher Cash, 30, were accused of espionage for China.
But the Crown Prosecution Service (CPS) announced on 15 September that the charges would be dropped, sparking criticism from Downing Street and MPs.
Berry, of Witney, Oxfordshire, and Cash, from Whitechapel, east London, had denied accusations of providing information prejudicial to the interests of the state in breach of the Official Secrets Act between December 2021 and February 2023.
Image: Director of public prosecutions Stephen Parkinson. Pic: PA
Stephen Parkinson, the director of public prosecutions (DPP), told MPs in a letter on Tuesday that the CPS had tried “over many months” to get the evidence it needed to carry out the prosecution, but it had not been forthcoming from the Labour government.
However, Sir Keir Starmer insisted the decision to brand China a threat would have to have been taken under the last Conservative administration.
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The prime minister said: “You can’t prosecute someone two years later in relation to a designation that wasn’t in place at the time.”
It is understood that the decision to end the case came after a meeting of senior officials which, according to The Sunday Times, included Jonathan Powell, the national security adviser, and Sir Oliver Robins, the Foreign Office’s top diplomat.
To prove the case under the Official Secrets Act of 1911, prosecutors would have to show the defendants were acting for an “enemy”.
Both the current Labour government and the previous Conservative governments have not labelled China a risk to national security.
In his letter to the chairs of the Commons home and justice select committees, Mr Parkinson said: “It was considered that further evidence should be obtained.
“Efforts to obtain that evidence were made over many months, but notwithstanding the fact that further witness statements were provided, none of these stated that at the time of the offence China represented a threat to national security, and by late August 2025 it was realised that this evidence would not be forthcoming.
“When this became apparent, the case could not proceed.”
He also pointed out that in a separate case about Russian spying last year, a judge ruled that an “enemy” under the 1911 Act must be a country that represents a threat to national security of the UK “at the time of the offence”.
Image: The prime minister answered reporters’ questions about the collapse of the case while on a flight to Mumbai. Pic: PA
How has the government responded?
Sir Keir has addressed the contents of the letter, which he said he had “read at speed”, while on board a flight to Mumbai, as part of the UK’s largest ever trade mission to India.
The PM said: “What matters is what the designation [of China] was in 2023, because that’s when the offence was committed and that’s when the relevant period was.
“Statements were drawn up at the time according to the then government policy, and they haven’t been changed in relation to it, that was the position then.
“I might just add, nor could the position change, because it was the designation at the time that matters.”
Sir Keir, a former director of public prosecutions, added that he wasn’t “saying that defensively”, but because “as a prosecutor, I know that… it is what the situation at the time that matters”.
He also declined to criticise the CPS or the DPP, as he said “it’s wise not to”.
Since the alleged spying offences took place, the new National Security Act has superseded elements of the 1911 Act.
But Conservatives, including shadow home secretary Chris Philp, insist that Sir Keir has “very serious questions to personally answer”.