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The city of Hangzhou is one of the most historic and beautiful in China.

But this ancient place now has the most modern of reputations, as China’s ‘Silicon Valley’.

A vibrant hub for entrepreneurs and high-tech start-ups, Hangzhou is home to headline-grabbing success stories like Alibaba and breakthrough AI firm, DeepSeek.

In the context of escalating competition with America, the world is increasingly paying attention.

Those who are part of the tech scene here brim with enthusiasm.

The city of Hangzhou, in Zhejiang province, dubbed “China’s Silicon Valley”
Stills from Helen-Ann Smith VT about city of Hangzhou, in Zhejiang province, dubbed “China’s Silicon Valley”
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Hangzhou, in Zhejiang province, has been labelled ‘China’s Silicon Valley’

Over coffee, in an ultra-modern city complex, they describe how exciting this moment feels, not just for their businesses, but for China too.

“We have the talents, we have the environment, and we have the full supply chain, even though we have a challenging environment,” says Grace Zheng, who has worked at the AI glasses creator Looktech since its inception.

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“It’s our time.”

The others laugh and nod. “I agree with it,” says Jia Dou, whose company Wuli Coffee, creates high-tech, automated commercial coffee machines. “And I think it’s our time to show and battle with other foreign countries.”

Grace Zheng works for Looktech, a company which manufactures AI glasses 
Stills from Helen-Ann Smith VT about city of Hangzhou, in Zhejiang province, dubbed “China’s Silicon Valley”
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Grace Zheng is enthusiastic about the future for China

And is that a battle China could now win, I ask? “Of course,” comes the answer.

They tell stories of how estate agents in Hangzhou dedicated hours of their time for free to find the perfect laboratory space, and how the local government showered them in grants and incentives; so hungry is this city for tech success.

A conversation with tech entrepreneurs in the Chinese city of Hangzhou 
Stills from Helen-Ann Smith VT about city of Hangzhou, in Zhejiang province, dubbed “China’s Silicon Valley”
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These entrepreneurs in Hangzhou say the city supports a vibrant hub of tech start-ups

“Hangzhou says we’ll provide the sunshine and the water, you go ahead and grow,” explains Zhang Jie.

She is the convenor of this group. An entrepreneur herself and the founder of a thriving ‘incubator’ for start-ups, she has invested in and mentored all the others around the table.

She is passionate, energetic and has a second-to-none understanding of what makes Hangzhou and China’s tech scene so successful.

“In China, we have more than 10 million university and college students graduating. Then we’re talking about at least five to six million engineers with college education background,” she says.

“So with such a large group of young and intelligent people with a good environment, a favourable environment for entrepreneurship, I’m sure there will be even greater companies coming in the future.”

 Zhang Jie runs an incubator to help start-ups in Hangzhou 
 Stills from Helen-Ann Smith VT about city of Hangzhou, in Zhejiang province, dubbed “China’s Silicon Valley”
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Zhang Jie helps start-ups in Hangzhou, where she says entrepreneurship is able to thrive

Indeed, a combination of light-touch local regulation, (unusual in China more broadly), coupled with one of the most business-oriented and free-thinking universities in the country, Zhejiang University, is viewed by many as the secret sauce in Hangzhou.

Zhang says she has had more young people approach her with business ideas in the last quarter than at any other time before, and she is full of optimism about the current wave.

“They are already companies [in China that will] probably be greater than Apple, right?” She laughs.

And she may well be right.

But there is one name in particular, born and bred in Hangzhou, that has captured the world’s attention in recent months.

When DeepSeek unveiled its latest open-source AI model earlier this year, it stunned the world, claiming to be as good as western competitors for a fraction of the price.

The headquarters of Hangzhou-based AI firm DeepSeek
Stills from Helen-Ann Smith VT about city of Hangzhou, in Zhejiang province, dubbed “China’s Silicon Valley”
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The Hangzhou HQ of DeepSeek, which has stunned the world with its recent AI advances

Many are now talking about the ‘DeepSeek moment’, a moment that turbocharged confidence within China and made the rest of the world sit up and take notice.

Indeed, successes like this are being lauded by China’s leaders. In February, tech bosses, including DeepSeek’s founder Liang Wenfeng, were invited to a symposium with Xi Jinping and his top team.

Photo ops and handshakes with the president, an abrupt change from the crackdown they faced just a few years ago. In fact, tech is now being positioned as a key pillar in China’s future economy, repeatedly highlighted in official communications.

But what is seen as inspiring innovation in China is viewed by the United States as a threat.

Donald Trump is moving to ramp up restrictions, including more export controls on chips being sold to China.

Read more from Sky News:
What is DeepSeek?
China raises tariffs on US

Businesses in Hangzhou are of course aware of the trade war unfolding around them, many who export to America will take a significant hit, but most think they can cope.

Dr Song Ning is one of them. He proudly shows us his factory, which is integrated with the lab work and R&D side of his business.

His company, Diagens, uses AI to massively speed up medical diagnostics, cutting the time taken to run a chromosomal screening from 30 days to 4. He is also working on a chatbot called WiseDiag which has more advanced medical understanding and can be used by patients.

Inside the factory of Diagens, a Hangzhou-based firm using AI to speed up medical diagnostics
Stills from Helen-Ann Smith VT about city of Hangzhou, in Zhejiang province, dubbed “China’s Silicon Valley”
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This lab at the firm Diagens is using AI to speed up medical diagnostics

While they are actively seeking business in over 35 foreign countries, for now, the pursuit of American customers is on pause.

“Competition is a good thing… it makes us all stronger,” he says.

Dr Song Ning, a Hangzhou-based entrepreneur, whose businesses Diagens and WiseDiag use AI to improve medical diagnostics 
Stills from Helen-Ann Smith VT about city of Hangzhou, in Zhejiang province, dubbed “China’s Silicon Valley”
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Dr Song Ning believes Donald Trump’s policies will not be able to impede innovation

“I do not think by limiting the scientific and technological progress of China or other countries, Trump will be able to achieve his goal, I think it is a false premise.

“Information is so developed now, each country has very smart people, it will only force us to have more tech innovation.”

While individuals remain defiant, the trade war will still leave a big hole in China’s economy. Tech firms, however advanced, can’t yet fill that gap.

But the innovation here is rapid, and there is no doubt, it will leave its mark on the world.

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Iran ‘ready to make nuclear concessions’ – as Trump asks for Qatar’s help getting a deal

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Iran 'ready to make nuclear concessions' - as Trump asks for Qatar's help getting a deal

A top Iranian official has said the country is prepared to make a number of concessions related to its nuclear programme, in exchange for the lifting of economic sanctions.

It comes as Donald Trump, during his tour of the Middle East, urged Qatar to wield its influence over Iran to persuade it to give up its nuclear programme.

Ali Shamkhani, a top political, military and nuclear adviser to Iranian Supreme Leader Ayatollah Ali Khamenei, spoke to Sky News’ US partner NBC News.

Ali Shamkhani pictured in 2023.
Pic: Reuters
Image:
Ali Shamkhani pictured in 2023.
Pic: Reuters

He said Tehran was willing to commit to never making nuclear weapons again, getting rid of its stockpiles of highly enriched uranium, which can be weaponised, agree to only enrich uranium to the lower levels needed for civilian use and allow international inspectors to supervise the process.

This was in exchange for the prospect of the immediate lifting of all economic sanctions on the country.

Asked if Iran would sign an agreement today if those conditions were met, Mr Shamkhani told NBC: “Yes.”

His comments are the clearest public indication of what Iran hopes to get out of a deal and their willingness to do one.

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“It’s still possible. If the Americans act as they say, for sure we can have better relations,” Mr Shamkhani added.

However, he expressed frustration at continued threats from the US president, describing them as “all barbed wire” and no olive branch.

Similarly, he warned that Israeli Prime Minister Benjamin Netanyahu might try to derail the deal.

Trump goes to the Middle East

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Trump’s second day in the Middle East

Elsewhere, on the second of three stops on his tour of the Middle East, Mr Trump appealed to Qatar for help in the process.

He urged the country to use its influence over Iran to persuade its leadership to reach a deal with the US and dial back its rapidly advancing nuclear programme.

Mr Trump made the comments during a state dinner.

He said: “I hope you can help me with the Iran situation.

“It’s a perilous situation, and we want to do the right thing.”

Donald Trump listens as Qatar's Emir Tamim bin Hamad Al Thani (not pictured) speaks at a state dinner.
Pic: Reuters
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Donald Trump listens as Qatar’s Emir Tamim bin Hamad Al Thani (not pictured) speaks at a state dinner.
Pic: Reuters

Over the years, Qatar has played the role of intermediary between the US and Iran and its proxies – including talks with Hamas as its 19-month war with Israel grinds on.

This comes after Mr Trump told a Gulf Cooperation Council meeting in Riyadh, Saudi Arabia, this week that he wants “to make a deal”.

However, he said that as part of any agreement, Iran must end its support of proxy groups throughout the Middle East.

A nuclear Iran

Mr Trump has always said Iran could not be allowed to develop a nuclear weapon.

While Iran has always denied doing so, the UN nuclear watchdog, the International Atomic Energy Agency, has warned that Tehran has enough enriched uranium close to weapons-grade quality for nearly six bombs.

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Trump 100 breaks down the president and Iran

The US and Iran reached a nuclear deal in 2015, under Barack Obama, in which Iran agreed to drastically reduce its stockpile of uranium and limit enriching up to 3.67%.

But Mr Trump scrapped that deal in his first term.

Today, Iran enriches up to 60%, a short, technical step from weapons-grade levels.

Washington and Tehran have engaged in four rounds of talks since early April.

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Guests used furniture as ‘improvised ladder’ to escape capsized Bayesian superyacht

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Guests used furniture as 'improvised ladder' to escape capsized Bayesian superyacht

Guests used furniture as an “improvised ladder” to try to escape after the Bayesian superyacht capsized last year, a new safety report has said.

The interim report by the Marine Accident Investigation Branch (MAIB) contains the fullest account yet of how the superyacht capsized and the last-ditch efforts of those on board to get out.

It also found that the boat may have been vulnerable to high winds, with gusts exceeding 70 knots (80.05mph) on the day of the incident.

These “vulnerabilities” were said to be “unknown to either the owner or the crew of Bayesian” as they were not included in the stability information book carried on board.

The boat was owned by British tech tycoon Mike Lynch.

He was among seven people – including his 18-year-old daughter Hannah – who died when it sank on 19 August last year, off the coast of Sicily during a storm.

Work is now underway to recover the ship, although progress has been hampered after a diver recently died during salvage efforts.

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MAIB principal investigator Simon Graves previously said it’s expected to be lifted and brought to shore by the end of May.

Chaos on board

The report, published Thursday, detailed the events of 18 and 19 August last year, how the Bayesian and its crew acted as a storm swept in and began tilting the boat overnight.

After the crew was woken up by the strong winds and waves, the captain prepared to manoeuvre the ship, the report said.

But winds were said to have suddenly spiked around 4.06am, causing the boat to “violently” tip 90 degrees in less than 15 seconds.

Mike and Hannah Lynch
Image:
Mike and Hannah Lynch

“People, furniture and loose items fell across the deck,” the report said, adding that in the carnage that followed, at least five people, including Mr Lynch and the captain, were injured.

One of the crew members, who had been keeping a lookout when the storm struck, was tossed overboard into the sea.

After much of the furniture was thrown across the deck and uprooted from the rooms, two of the guests were forced to use “drawers as an improvised ladder” to escape one room.

Others similarly climbed up the walls to get out as water began flooding in over the rails, and entering the inside of the ship.

Across the capsized vessel, the report explained how various groups scrambled to escape.

Pic: Perini Navi
Image:
The Bayesian superyacht.
Pic: Perini Navi

At the port forward wheelhouse door, one of the deckhands who had been on the lookout that night helped lift two stewards onto the upper deck.

Not seeing anyone else inside, they jumped into the sea, and the door was seemingly shut behind them.

According to the report, with Bayesian now sinking, a number of guests and crew found themselves trapped in an air pocket by the same door.

It was only with the help of an injured guest on the outside that they were able to open the door and escape.

Elsewhere, the chief officer had found Mr Lynch and “pushed [him] through cascading water” to get him to the captain.

The pair managed to evacuate two other guests this way.

Read more:
Who was onboard superyacht when it sank?
How investigators will look into superyacht disaster

Pic: AP
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Salvage operations for the Bayesian are expected to continue this month. Pic: AP

However, amid the rough weather, the chief officer was swept to the back of the saloon.

The report details his precarious escape, jumping into the water, diving down and opening the sliding doors in the room to be able to swim free of the ship.

The report said the captain organised the “abandonment” of the ship, and as they floated there, some guests had to use cushions as improvised life rafts.

Inquest proceedings in the UK are looking at the deaths of Mr Lynch and his daughter, as well as Morgan Stanley International bank chairman Jonathan Bloomer and his wife Judy, who were all British nationals.

The others who died in the sinking were US lawyer Chris Morvillo and his wife Neda Morvillo, and Canadian-Antiguan national Recaldo Thomas, who was working as a chef on the vessel.

Fifteen people, including Mr Lynch’s wife Angela Bacares, were rescued.

The fatal boat trip was a celebration of Mr Lynch’s acquittal in a US trial after he was accused of a massive fraud over the sale of Autonomy to Hewlett-Packard in 2011.

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‘Our school is destroyed’: At the scene of the mosque hit by an Indian missile strike

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'Our school is destroyed': At the scene of the mosque hit by an Indian missile strike

Through long, winding roads, we weave through a wonderland. A place of intense beauty, with wide valleys, rushing rivers and terraced hills. The roads are brimming with hand-painted trucks, slowed only by the occasional herd of goats stopping traffic.

We’re entering Pakistan-administered Kashmir, a disputed borderland at the centre of decades of conflict and at the heart of recent escalating tensions with India.

We’re with the Pakistan army on our way to Muzaffarabad, the provincial capital. Few thought this city would be hit in the recent round of strikes, but it was.

Missiles destroyed Bilal Mosque, the roof’s been ripped off, there’s a vast crater in the floor and a huge hole in the ceiling of the prayer room.

The damaged mosque
Image:
The damaged mosque’s roof has been ripped off

Jameel Akhtar is staring into the distance. His 82-year-old father Muhammad was killed in the strike. But he is able to find comfort amid the rubble.

He says: “We are Muslim. My father was martyred in this attack. That’s honour for us. Revenge against India, that is the duty of our armed forces and government and we have full faith in them.”

Jameel Akhtar
Image:
Jameel Akhtar

The Indian government insist this was a terror site with links to Lashkar-e-Taiba, an Islamist group designated as a “terrorist” organisation by the UN Security Council. But the imam of the mosque, Khursheed Ul Hasan, flatly denies that accusation.

“This is an allegation from their side,” he says. “I’ve been here for 17 years and everybody knows me. I am the leader of this mosque. You can see I’m a normal person. I’m not a terrorist.”

The damaged mosque
The damaged mosque

What is striking is how close this mosque is to homes and schools. Across a narrow path, I meet Nimra Safeer who was sleeping next to the mosque when the strike came.

She was hit in the chest with shrapnel and says she now can’t sleep. She is desperate to see her government and New Delhi sit down to talk about the enduring issue that plagues this region.

“Children like me who were attacked, our education system was disturbed,” she tells me. “I want to say to India, whatever your issues, we need to sit down and resolve it. Pakistan wants peace and I want Pakistan to talk on the Kashmir issue.”

Read more:
Fragile truce between Pakistan and India could easily unravel
Trump faces criticism over Kashmir post

Nimra Safeer was hit with shrapnel
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Nimra Safeer was hit with shrapnel

Strongmen, religious nationalism and modern warfare in the mix

But she may be waiting a long time. Islamabad sounds emboldened and hopeful after the recent clashes. But India’s leader Narendra Modi is conceding nothing. He’s made clear he doesn’t want a third party like America trying to mediate and he’s made no commitment to formal talks with Pakistan either.

While the world waits to see what the diplomatic shakedown of this moment is, ordinary people on both sides fear their safety net has slipped, the threat a little deeper, a little closer, a little more dangerous now.

There’s strongmen, religious nationalism and modern warfare in the mix and a fragile truce.

Fatima, right, with her friend Syeda
Image:
Fatima, right, with her friend Syeda

School also damaged in strike

In Muzaffarabad, right opposite the mosque, is a school that was also damaged. Thankfully, the children were at home sleeping. But in the cold light of day, you can see their unease and upset.

“Our school is destroyed,” Fatima tells me, her eyes narrowing as she speaks. “I have so much anger. Because we study here. Our principal built this school. They built it for us. But India destroyed it.”

A view of Muzaffarabad
Image:
A view of Muzaffarabad

The recent skirmishes may have abated for now. But with them has come more animosity calcifying in these beautiful mountain ranges.

India has made clear its muscular response is part of a “new normal” when responding to terror. Pakistan sounds like it feels it’s scored a win against the odds. That’s a defiant dynamic that could easily unravel.

Could pressure from a third party like America signal a sudden shift in this enduring conflict? Right now, that seems unlikely. But this week has been full of surprises.

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