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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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Wife of murdered Saudi journalist says ‘zero justice’ has been served after Trump dismisses US intelligence findings

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Wife of murdered Saudi journalist says 'zero justice' has been served after Trump dismisses US intelligence findings

The wife of murdered Saudi Arabian journalist Jamal Khashoggi says “zero justice” has been served over her husband’s death.

Mr Khashoggi, a strident critic of the kingdom, was slain by Saudi agents in an operation in Istanbul in 2018, and American intelligence agencies concluded Mohammed bin Salman had ordered his capture or killing.

The crown prince has denied ordering the operation, but acknowledged responsibility as Riyadh’s de-facto ruler.

He was hosted at the White House on Tuesday for the first time in seven years, and Donald Trump defended him and cast doubt upon his own country’s assessments.

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Saudi leader asked about murdered journalist

Mr Trump derided Mr Khashoggi as “extremely controversial” and said “a lot of people didn’t like that gentleman”.

Hanan Khashoggi told Sky News’ The World With Yalda Hakim she was “disappointed” by the remarks, as she demanded compensation from the crown prince.

He has described the killing of her husband as a “huge mistake”.

Addressing Mr Trump directly, Ms Khashoggi said she would be willing to meet the US president to tell him about the Washington Post writer, who she said was “a great man, and a professional, and he was a brave man as well”.

A vigil for Khashoggi outside the Saudi consulate in Istanbul, where he was killed. Pic: Reuters
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A vigil for Khashoggi outside the Saudi consulate in Istanbul, where he was killed. Pic: Reuters

‘They destroyed my life’

Ms Khashoggi said her husband was not controversial or unlikeable – but even if he was, “it doesn’t justify the action of kidnapping him, torturing him, killing him and dismantling his body”.

She also said she would meet the crown prince and “ask him to retrieve Jamal’s body, so I can bury him in a decent, good way”, as well as ask for financial compensation.

“They killed my husband, they destroyed my life,” she added. “They have to compensate me.”

Hanan Khashoggi
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Hanan Khashoggi

Trump defends MBS

Asked about the murder in the Oval Office, Mr Trump said: “Whether you like him or didn’t like him, things happen.

“But he (Bin Salman) knew nothing about it, and we can leave it at that.

“You don’t have to embarrass our guest by asking a question like that.”

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The prince and president: What happened?

Mr Trump even celebrated the Saudi leader for the kingdom’s human rights record, without providing specific details.

“I’m very proud of the job he’s done,” he said.

Human rights groups say Saudi authorities continue to harshly repress dissent by arresting human rights defenders, journalists and political dissidents.

They also highlight a surge in executions in Saudi Arabia they connect to an effort to suppress internal dissent.

The crown prince announced Saudi Arabia was increasing its planned investments in the US to $1trn, up from the $600bn the Saudis announced they would pour into the US when Mr Trump visited the kingdom in May.

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MI5 is also trying to send a signal to China with spying warning to parliamentarians

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MI5 is also trying to send a signal to China with spying warning to parliamentarians

The warning was meant for British parliamentarians, of course, but MI5 and the government are also trying to send a signal to China.

We know what you are doing, and in ministers’ words today we “won’t stand for it”.

But in the wake of the collapsed China spying case last month, the security services also want to reestablish a badly dented sense of deterrence.

Politics latest: China responds to MI5’s spy warning to MPs

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Security minister accuses China of interference

That case against two British men accused of spying for Beijing fell apart because officials would not use the words “enemy” or “national security threat” to describe China.

The failure projected a sense of weakness in the face of Chinese espionage efforts, something the government is keen to dispel.

(L-R) Christopher Cash and Christopher Berry had the charges against them withdrawn in September. Pics: Reuters
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(L-R) Christopher Cash and Christopher Berry had the charges against them withdrawn in September. Pics: Reuters

Those efforts remain persistent and dangerous, security officials insist.

China has always aggressively sought the official and commercial secrets of Western nations.

It regards that mission as a patriotic duty, an essential part of a national project to catch up with and then overtake the West.

In the words of Britain’s security minister, Dan Jarvis, on Tuesday, China seeks “to interfere in our sovereign affairs in favour of its own interests”.

Read more:
Parliamentarians warned of spying attempts from China agents

Indeed, much of China’s technological and economic progress was, until recently, built on intellectual property stolen from rival nations.

Its private sector has been notorious for ripping off and reverse engineering Western know-how, pilfered from joint venture partners or through commercial espionage.

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Intelligence agencies say the Chinese have also hoovered up vast amounts of personal data from all of us through social media platforms like TikTok and other methods, collecting in bulk for now, for sifting and harvesting later.

Officially, the Chinese government denies all these allegations. It has to be said that Western spies are also hard at work snooping on China.

But critics say Western nations have been naive and too trusting of the Chinese threat.

While the British government remains unsure whether to identify China as an enemy or simply a commercial rival, an ambivalence remains, which Beijing will continue doing its best to exploit.

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Sudan ‘epicentre of suffering in the world’, says UN humanitarian chief

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Sudan 'epicentre of suffering in the world', says UN humanitarian chief

Mass killings and millions forced to flee for their lives have made Sudan the “epicentre of suffering in the world”, according to the UN’s humanitarian affairs chief.

About 12 million people are believed to have been displaced and at least 40,000 killed in the civil war – but aid groups say the true death toll could be far greater.

Tom Fletcher, the UN’s under-secretary-general for humanitarian affairs, told Sky’s The World With Yalda Hakim the situation was “horrifying”.

“It’s utterly grim right now – it’s the epicentre of suffering in the world,” he said of Sudan.

The war between the Sudanese army and the paramilitary Rapid Support Forces (RSF) – who were once allies – started in Khartoum in April 2023 but has spread across the country.

A child receives treatment at a camp in Tawila after fleeing Al Fashir . Pic: AP
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A child receives treatment at a camp in Tawila after fleeing Al Fashir . Pic: AP

The fighting has inflicted almost unimaginable misery on a nation that was already suffering a humanitarian crisis.

Famine has been declared in some areas and Mr Fletcher said there was a “sense of rampant brutality and impunity” in the east African nation.

“I spoke to so many people who told me stories of mass executions, mass rape, sexual violence being weaponised as part of the conflict,” he said.

The fall of a key city

Last month, the RSF captured Al Fashir – the capital of North Darfur state – after a siege of more than 18 months.

Hundreds have been killed and tens of thousands forced to flee, according to the UN and aid groups.

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Explained: Key Sudan city falls

The World Health Organisation said more than 450 people alone were reportedly killed at a maternity hospital in the city.

RSF fighters also went house to house to murder civilians and carried out sexual assault and rape, according to aid workers and displaced people.

The journey to escape Al Fashir goes through areas with no access to food, water or medical help – and Mr Fletcher said people had described to him the “horrors” of trying to make it out.

“One woman [was] carrying her dead neighbour’s malnourished child – and then she herself was attacked on the road as she fled towards Tawila,” he told Sky News.

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Investigating thousands missing in Sudan’s war

Such is the violence in Al Fashir, blood from mass killings appears to stain the sand in satellite images from Yale’s Humanitarian Research Lab, Mr Fletcher added.

“We’ve got to make sure there are teams going in to investigate these atrocities. Al Fashir is a crime scene right now,” he said.

“But we’ve also got to make sure we’ve got protection for civilians from the future atrocities.”

Children at the forefront of suffering

Mr Fletcher told Yalda Hakim that children had “borne the brunt” and made up one in five of those killed in Al Fashir.

He said a child he met “recoiled from me” and “flinched” when he gestured towards a Manchester City logo on his shirt when they were kicking a ball around.

“This is a six-year-old, so what has he seen and experienced to be that terrified of other people?” he asked.

He’s urging the international community to boost funding to help civilians, and a “much more vigorous, energised diplomacy” to try to end the fighting.

“This can’t be so complex, so difficult, that the world can’t fix it,” he told Sky News.

“And we’ve seen some momentum. We’ve seen the quad – Egypt, America, Saudi, the UAE just recently – getting more engaged.

“I’m in daily contact with them all, including the White House envoy, Dr Massad Boulos, but we need to sustain that diplomatic engagement and show the creativity and patience that’s needed.”

Read more:
Genocide unfolding in Darfur, warns Sudanese government

Tens of thousands killed in two days’ in Sudan city

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In full: Monday’s The World

Hopes of an imminent end to the violence currently look unlikely.

Sudan’s military leader, General Abdel-Fattah Burhan, said on Friday that his forces would not stop until the RSF is wiped out.

“This war will not come to an end with a truce, but when rebels are destroyed,” he said – according to a statement from Sudan’s ruling council.

“We call on all Sudanese to join the fight, and for those who can carry weapons to come forward.”

The RSF and the Sudanese army have previously agreed to various ceasefire proposals during their two-and-a-half-year-old war, but none have succeeded.

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