AI is no longer a cost-cutting solution in China - Asian Tech Roundup

Plus: Companies warned to prepare for Mythos

Welcome to Computing's weekly roundup of tech news in Asia. This week we look at China’s new ruling on AI, how countries are preparing for Anthropic’s Mythos, and the ongoing dispute between Samsung workers and management in South Korea.

At a time when Western companies are gleefully slashing staff numbers in the name of AI, China has decided to follow a different path.

The Hangzhou Intermediate People’s Court has ruled that an employer who fired an employee for refusing to accept a 40% pay cut, after an AI took over some of his responsibilities, acted illegally. A court in Beijing ruled the same way in a separate case.

In effect the courts have said that companies are making the voluntary decision to adopt artificial intelligence, and cannot transfer the financial burden of that choice onto employees. That means AI is no longer a cost-cutting solution in China.

Australia

• A new study has found that only 1% of Australians fully trust AI systems, with concerns focused on misinformation, privacy, job losses, and governance gaps. Source
• The NSW Liberal Party proposed creating ultra-secure “digital embassies” - sovereign-style datacentre precincts for Pacific nations and Five Eyes allies. The idea is positioned as both a cybersecurity and geopolitical initiative. Source
• Cognizant plans to spend upward of US$270 million on employee severance and other personnel-related costs as part of layoffs under its “Project Leap” initiative to enable an AI-enabled operating model. Source

China

• A court in China has ruled it illegal for companies to fire employees on the grounds that AI can do the job more cheaply. A judge with the Hangzhou Intermediate People’s Court said, "We don't believe AI technology has reached the point where it can substantially replace human workers.” Source
• Researchers at Trend Micro disclosed details of a new China-aligned espionage campaign targeting government and defence sectors across South, East, and Southeast Asia - and Poland. Source
• DeepSeek could be valued at up to $50 billion in first funding round according to people familiar with the matter, as the start-up seeks to reverse a strategy of rejecting external funding. Source
• ByteDance is launching paid subscription plans for its Doubao AI chatbot, but most users have proven reluctant to pay due to high prices and limited professional features. Source
• Samsung has announced it will halt all home appliance sales in mainland China, citing intense competition from domestic brands and a strategic shift towards its semiconductor business. Source
• Donald Trump is expected to invite tech CEOs including Tim Cook (Apple), Jensen Huang (Nvidia) and Cristiano Amonand (Qualcomm) to join him on an upcoming trip to China. Source
• Huawei has launched the world’s thinnest tablet. Huawei claims that the Matepad Pro Max is 4.7mm thick and weighs 499 grams. Source

India

• IT firm Coforge stock rose by more than 11% on Wednesday after robust earnings and profits surpassing analyst expectations. Source
• The Securities and Exchange Board has advised Indian financiers to audit their information security systems and practices, in light of the potential gaps Anthropic’s Mythos Preview might identify. Source
• Cognizant is reportedly planning to lay off between 12,000 and 15,000 employees globally, with the majority of job cuts expected in India. Source

Japan

• Chinese-made humanoid robots are being deployed at Tokyo's Haneda Airport to assist with baggage handling, address labour shortages and improve efficiencies. Source
• Financial services firm MUFG is integrating Google’s Gemini AI to offer customers personalised shopping and savings recommendations. Source
• Japan is preparing to launch round-the-clock trading of Japanese government bonds (JGBs) using blockchain technology, aiming to modernise its financial markets and improve global investor access. Source
• SoftBank is in discussions with Nvidia to develop AI servers manufactured in Japan, as part of efforts to boost domestic AI infrastructure and reduce reliance on overseas technology. Source

Singapore

• The Monetary Authority of Singapore (MAS) has convened the CEOs of Singapore’s banks and financial institutions to discuss the impact and potential risks posed by Anthropic’s Mythos model. Source

South Korea

• Samsung Electronics hit a market capitalisation of $1 trillion (£793 billion), making the South Korean chip giant only the second firm in Asia to reach the milestone after TSMC. Source
• South Korea's benchmark KOSPI index surpassed 7,000 for the first time, powered by Samsung’s gains. Source
• Nonetheless, Shin Je-yoon, board chairman of Samsung Electronics is urging workers and management to find common ground in a pay dispute, warning in an internal memo that proposed strikes will hurt employees as well as investors and risk a knock-on effect for the Korean economy. Source
• Shares of SK Hynix surged 13% to a record high on Monday, seemingly on the back of US Big Tech announcements of yet more capital spending on AI infrastructure. Source

Taiwan

• A 23-year-old university student has been arrested for hacking the TETRA communication system used by Taiwan’s high-speed rail network to trigger emergency braking procedures. Source
• TSMC has signed a 30-year agreement to purchase all power generated by the Hai Long offshore wind project, supporting Taiwan’s energy transition as AI chip demand surges and the island faces an energy crunch. Source
• MediaTek has opened Taiwan’s most advanced datacentre, designed to support AI development and maintain the company’s competitive edge in the semiconductor sector. Source

Elsewhere in Asia

• Indonesia: Indonesia's economy grew at its fastest annual pace in more than three years in the first quarter of 2026.
• Thailand: TikTok is investing $25 billion in Thailand to expand its data infrastructure, including new servers and storage facilities. It also plans to develop digital literacy and e-commerce curricula for local entrepreneurs and the workforce. Source
• Asia: The Asian Development Bank (ADB) has announced $70 billion in backing for new energy and digital infrastructure initiatives by 2035. Source
• Asia: A new Dell and IDC study found Asia-Pacific businesses are rapidly moving from “cloud-first” to multi-hybrid cloud architectures to support AI workloads and modern enterprise operations. Source

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