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Trump Lays Off About 200 ‘Government AI Experts’ Recruited Under Biden, Part of Musk’s DOGE Program

POLITIK

Tendenzblick

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June 16, 2025

Trump Lays Off About 200 ‘Government AI Experts’ Recruited Under Biden, Part of Musk’s DOGE Program

On April 28, 2025, President Donald Trump dismissed the majority of approximately 250 AI experts hired under the previous Biden administration, as reported by Time magazine. Angelica Quirarte, who led the recruitment effort during Biden’s tenure, emphasized that these specialists were strategically onboarded within a year to enhance government administrative efficiency. Quirarte estimates that only about 10% of this cohort will be retained following the layoffs.

Despite advocating for U.S. leadership in AI, Trump’s approach reveals a paradox: while launching high-profile initiatives like the Stargate program alongside industry leaders Masayoshi Son and Sam Altman, and issuing executive orders to bolster AI dominance, his administration simultaneously reduces the federal AI workforce. In early 2025, Russell Vought, director of the Office of Management and Budget, circulated a directive urging agencies to prioritize hiring candidates with proven expertise in designing and scaling AI systems in impactful environments. Furthermore, Trump signed an executive order promoting AI integration in education nationwide.

This dual stance—promoting AI advancement while cutting government AI talent—has disrupted continuity. The National AI Talent Surge Program had successfully transitioned 250 AI professionals from the private sector into government roles within the last 18 months of Biden’s administration. Many were embedded across departments, only to be swiftly laid off under Trump’s administration.

Former officials critique these actions as a significant waste of resources, noting that the administration now seeks to recruit the very talent it previously dismissed. Failure to attract qualified experts may compel reliance on costly external contractors.

These layoffs align with broader workforce reductions driven by Elon Musk’s leadership of the Department of Government Efficiency (DOGE), which has also dissolved key technology offices such as the U.S. Digital Service and the 18F technology office—known for pioneering digital solutions like the IRS’s Direct File system.

Federal agencies continue to face stiff competition from the private sector in attracting AI talent, where compensation is typically more lucrative. Julie Siegel, a senior official from the Biden-era Office of Management and Budget, underscores the difficulty of recruiting skilled AI professionals to government service.

Deirdre Mulligan, former director of the Office of the National AI Initiative, warns that the Trump administration’s policies exacerbate talent scarcity and undermine morale. She emphasizes the importance of workforce stability and respect for expertise to retain skilled professionals, cautioning that job insecurity may deter qualified individuals from public service altogether.

Angelica Quirarte, appointed in early 2024 to lead AI recruitment under the Biden administration, brings extensive senior experience in California state government across multiple administrations. She has long advocated for public service careers among tech professionals, highlighting programmers and engineers as natural problem-solvers well-suited to leveraging large datasets to improve public services. To support Biden’s AI talent acquisition, Quirarte founded and directed Tech to Gov, a nonprofit national tech recruitment initiative. She warned that the Trump administration’s abrupt layoffs would severely hinder efforts to attract skilled tech workers.

Initially, Quirarte intended to remain under Trump’s administration to continue recruiting AI talent. However, after 23 days, she resigned, citing a hostile work environment lacking goodwill, good governance, and constructive intentions. Quirarte emphasized that healthy democratic transitions require respect and nonpartisan collaboration.

Despite the U.S. government’s strategic aim to maintain technological leadership, it struggles to compete with the private sector on salary, making recruitment of AI experts challenging. The Biden administration invested significant resources to address this, including a $100 million training initiative announced in July 2024 by the White House Office of Science and Technology Policy.

In April 2024, Robin Carnahan, then director of the General Services Administration, highlighted government opportunities at a virtual job fair, emphasizing the meaningful impact of public service through AI innovation in automation, security, and legacy system integration.

Multiple federal programs supported AI recruitment during Biden’s term, including the Presidential Innovation Fellows within the General Services Administration and the Department of Homeland Security’s (DHS) AI Corps—a key civilian agency initiative designed to enhance service efficiency while safeguarding civil liberties.

By July 2024, these efforts had yielded tangible results: approximately 200 AI experts were hired government-wide, approaching the target of 500 by the next fiscal year.

The DHS AI Corps notably partnered with the Supply Chain Resilience Center to leverage AI for predicting critical supply chain disruptions impacting public safety. It also explored generative AI applications in combating human trafficking and child exploitation.

AI technologies proved instrumental in key DHS missions. For instance, Operation Restore Hope used machine learning to identify over 300 previously unknown victims of cyber child sexual abuse and their perpetrators by enhancing degraded images, providing new investigative leads.

Similarly, FEMA applies AI-driven image analysis to rapidly assess disaster damage, accelerating assistance delivery to affected communities.

Since Trump assumed office, federal agency layoffs and budget cuts have significantly undermined government departments, including those critical to AI initiatives. For instance, open government data platforms relied upon by U.S. colleges and businesses have suffered from lack of updates due to workforce reductions. This exemplifies the Trump administration’s contradictory stance of simultaneously “supporting AI development” while “laying off experts.”

This paradox reflects a complex interplay of governing philosophy, policy logic, and practical interests. Under Elon Musk’s Department of Government Efficiency (DOGE), which champions technology-driven disruption of traditional bureaucracy, Trump’s rhetoric of “breaking political correctness” aligns with aggressive layoffs and deregulation. However, this alliance neglects the government’s essential role in safeguarding public interests and executing long-term strategic planning.

Fundamentally, Trump’s AI policy embodies an “efficiency-first” ideology coupled with a “private sector-led” approach. This ambivalence is rooted in a skewed view of government: aiming to preserve national technological hegemony without embracing corresponding public responsibility. While such a strategy may invigorate market competition in the short term, it risks eroding government capacity, destabilizing research ecosystems, and accumulating social vulnerabilities over time.

For individuals like Quirarte—who sought meaningful public service—this environment dampens morale and enthusiasm. Likewise, displaced experts and AI talents, finding limited accommodation within the administration, are compelled to seek opportunities elsewhere, further draining federal expertise.

Source: Time Magazine, Reuters, AP News

Volkswagen China CTO: We’re working at the speed of China

Interview

Tendenzblick

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May 30, 2025

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Volkswagen China CTO: We’re working at the speed of China

The intelligent transformation of joint venture automobile enterprises has emerged as a central theme at this year’s Shanghai International Automobile Exhibition, particularly among German automakers, whose market share in China often exceeds 30%. As the pace of technological innovation accelerates in China, these companies are being compelled to evolve beyond traditional joint venture models.

Volkswagen Group stands out as one of the most proactive multinational players in this shift. During the auto show, Thomas Ulbrich (Wu Borui), CTO of Volkswagen China, and Han Sanchu, CEO of CARIAD China, Volkswagen’s software subsidiary, provided detailed insights on Volkswagen’s evolving intelligent strategy in China, the division of roles between the company and its local partners, and the group’s long-term localization objectives.

Ulbrich openly acknowledged that the Volkswagen Group’s traditional joint venture structure—centered on cooperation between its German headquarters and its two Chinese ventures, FAW-Volkswagen and SAIC Volkswagen, has become increasingly misaligned with the demands of China’s fast-moving automotive sector as the previous collaboration model between Germany and the two joint ventures is no longer compatible with the realities of the Chinese market, said Ulbrich.

In response, Volkswagen has established an independent technology company, Volkswagen China Technology Company (VCTC), located in Anhui province—effectively shifting a portion of its headquarters 7,000 kilometers eastward. This strategic move grants VCTC full technical authority and autonomy, responsibilities that were previously centralized in Wolfsburg, Germany.

According to Ulbrich, VCTC now serves as the sole technical interface for joint ventures such as FAW-Volkswagen and SAIC Volkswagen. Functioning as an independent R&D entity, VCTC possesses both decision-making authority and technical validation capabilities. Positioned within the same time zone as its key partners and operating fully in Chinese, VCTC is designed to move at “China speed” and respond directly to local market demands.

This localization initiative is part of Volkswagen’s broader strategy of “In China, for China.” Amid rising geopolitical tensions and increased global trade uncertainties—particularly under the protectionist policies of the current U.S. administration—this strategy aims to safeguard Volkswagen’s position in China’s market and ensure long-term business sustainability.

Beyond establishing VCTC, Volkswagen has deepened its commitment to local innovation through strategic, capital-bound partnerships. These include collaborations with Xpeng Motors and autonomous driving solution provider Horizon Robotics.

In 2022, Volkswagen invested €2.4 billion in Horizon and formed a joint venture CARIZON, focused on intelligent assisted driving. In 2023, it invested $700 million in Xpeng, with plans to integrate their jointly developed China Electronic Architecture (CEA) platform across Volkswagen’s electric vehicle lineup in China, including two co-developed models expected to launch in 2026.

These partnerships are already bearing fruit. Volkswagen’s ADAS (Advanced Driver Assistance Systems) platform with Horizon is gradually being implemented, leveraging China’s dynamic ecosystem of autonomous driving technology providers—such as Huawei, Momenta, DJI Automotive, DEEPROUTE.AI, and QCraft. Open collaboration with these companies has become a standard strategy across the industry, even among competitors like SAIC, BYD, and SAIC Volkswagen.

The Volkswagen-Horizon partnership has attracted particular attention due to its co-development model, which departs from the traditional supplier-client relationship. Han Sanchu describes Horizon not merely as a vendor, but as an ADAS One Team competence center. While Horizon focuses on deep algorithmic and architectural development, Volkswagen engineers manage rapid integration and system interfaces. This transparent, collaborative model overcomes the limitations typical of traditional Tier 1 and Tier 2 supplier arrangements.

Furthermore, the integration of Horizon’s technology is tightly aligned with the CEA platform, enabling Volkswagen to rapidly deploy L2+ and L2++ ADAS capabilities, with an eye toward achieving L3 autonomy by 2027. The high compatibility between Horizon’s software stack and Volkswagen’s CEA framework underscores the efficiency and long-term strategic alignment of the collaboration.

However, despite Volkswagen’s resolute push toward intelligent transformation in China, its various brands are progressing at different speeds. Notably, the CEA architecture and related ADAS technologies are not currently shared with the premium brand Porsche.

Ulbrich explained that Porsche models, which are designed and manufactured in accordance with European standards, do not currently support integration with the CEA platform. Given their import-based structure and differing engineering foundations, adapting these models to the CEA system is not feasible in the short term. Future integration, he noted, would depend on broader strategic alignment within the Volkswagen Group, as well as evolving technological and product development timelines.

With SAIC-Volkswagen and other joint ventures already established in intelligent systems and electrification, what is the current and future relationship between VCTC and the two joint ventures (FAW-Volkswagen and SAIC Volkswagen)? How will technology roles and responsibilities be divided going forward?

Reflecting on past practices, the previous cooperation model limited to direct collaboration between the German headquarters and the two joint ventures proved increasingly inadequate to meet the dynamic and specific demands of the Chinese market.

In response, with the establishment of VCTC, all technical authority and responsibilities previously centralized in Wolfsburg have been transferred to China. Moving forward, the joint ventures will interface exclusively with VCTC for technical cooperation, making VCTC their sole technical collaboration partner.

In essence, VCTC functions as an independent R&D entity separate from the Wolfsburg headquarters, empowered with full technical decision-making and validation capabilities.

Strategically located within the same time zone as the Chinese teams, VCTC aligns closely with local work rhythms and operates at what we call “China speed.” Moreover, VCTC adopts a fully localized approach—from mindset and communication style to working language—enabling more effective service to the Chinese market.

Importantly, VCTC holds a critical responsibility: ensuring that every Volkswagen Group model continues to embody the core reliability and safety standards that define the Volkswagen brand. Through this collaborative model, VCTC effectively integrates the “Volkswagen DNA” with technical solutions tailored for China, striking a balance between preserving tradition and driving innovation. This synthesis represents the fundamental role of VCTC within Volkswagen’s business ecosystem in China.

As a senior executive of Volkswagen Group, how do you assess the impact of rising global tariff barriers on the automotive industry? Do you foresee the industry moving away from global cooperation toward more regionalized production models?

The Volkswagen Group consistently upholds a core philosophy advocating for a consensus-driven, stable, and open trade system that encourages free dialogue and fosters the healthy growth of global trade.

From this standpoint, our “In China, For China” strategy is highly forward-looking. It functions as a protective umbrella, shielding our operations in the Chinese market from the uncertainties arising from current trade disputes, thereby ensuring the stability and sustainability of our business activities.

CARIAD and Horizon have established the joint venture CARIZON. Could you describe the current level of involvement from the Volkswagen Group and CARIAD? Regarding the ADAS program, how quickly can issues be identified and resolved when they arise?

First, the Volkswagen Group has long identified ADAS as a core strategic technology, particularly in the Chinese market where penetration rates are exceptionally high. This demand is driven not only by market factors but also by the need for continuous technological innovation. To accelerate capability development and address the complexities inherent in Volkswagen’s traditional processes, we established a joint venture with Horizon—a crucial step in advancing our ADAS capabilities in China.

Second, we have achieved a strong internal consensus on our collaborative approach. The relationship between Volkswagen and Horizon transcends the traditional supplier-client model; Horizon is not merely a vendor but an integral part of an ADAS One Team competence center we have jointly built. Horizon’s core engineers focus on deep software development, architectural design, and algorithms, while Volkswagen engineers lead rapid integration of peripheral architectures and interfaces. This co-development model effectively overcomes the “black box” limitations often seen in conventional Tier 1 and Tier 2 collaborations, enabling more efficient and transparent development.

Third, the ADAS development process is deeply integrated with Volkswagen China’s CEA (China Electrical Architecture) platform. This tight integration enables us to rapidly deploy L2+ and L2++ advanced driver assistance functions, laying the foundation to achieve L3 autonomy by the end of 2027. The development roadmap is fully aligned with the CEA architecture.

Together, these strategic efforts and collaborative innovations allow us to deliver safe, reliable, and rapidly evolving ADAS solutions tailored to the needs of Chinese consumers.

Will Porsche leverage CARIAD China’s R&D advancements for its future intelligent vehicle designs? Additionally, can we expect further optimization of its intelligent driving functions?

The current CEA architecture is an electrical and electronic platform specifically tailored for the Chinese market. In contrast, Porsche models—imported from Europe—are designed and manufactured according to European architectural standards. Consequently, technical integration of the CEA platform with Porsche vehicles cannot be achieved in the short term. Any decision to adopt the CEA system for Porsche will require careful consideration of the Group’s overarching strategy, technological advancements, and product development timelines.

Source: 36kr, cnevpost, volkswagen group

What explains China’s reluctance to initiate military action in modern history?

POLITIK

Tendenzblick

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May 21, 2025

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What explains China’s reluctance to initiate military action in modern history?

The Chinese nation has historically been characterized by a profound commitment to peace. Across both interpersonal and international relations, many Chinese adhere to the principle: “If others do not offend me, I will not offend them.” This tenet, rooted in traditional virtues, reflects a noble and gentlemanly ethos.

However, as China was thrust into the modern international system—governed by power politics and strategic rivalry—this principle became increasingly untenable, despite its more assertive caveat: “If others attack me, I will attack them.” In the contemporary geopolitical landscape, states frequently engage in strategic competition, often employing deterrence and intimidation as central tactics. An explicit policy of “not firing the first shot” can be interpreted by adversaries as passivity, effectively inviting unchecked provocations so long as they avoid initiating hostilities. While the establishment of clear red lines may prevent miscalculations, it also exposes strategic vulnerabilities that opponents can exploit.

A stark historical example of this dynamic occurred during the Sino-French War (1883-1885). Following France’s invasion of Vietnam—a Qing tributary—the French fleet entered Mawei Port near Fuzhou in July 1884. Despite the absence of a formal declaration of war, and under the terms of unequal treaties granting French access to Chinese treaty ports, the Qing naval forces refrained from engaging the intruding fleet. This resulted in the anomalous situation where opposing fleets coexisted in the same harbor, even as tensions mounted. The French exploited this restraint, conducting hydrographic surveys and intelligence gathering with impunity, before launching a surprise attack on August 22 that annihilated the Imperial Chinese Navy within half an hour.

While the Qing fleet was inferior technologically—wooden steam-powered vessels compared to France’s more modern warships—the magnitude of the defeat was unusual. The root cause lay in Qing strategic restraint, driven by orders to avoid provoking conflict. Any premature Qing offensive, even if victorious, would have been politically condemned as an act of aggression, ceding the moral and diplomatic high ground to France.

This is not to cast simplistic judgments of weakness or incompetence upon the Qing government, nor to invoke outdated accusations of subservience to imperial powers. Rather, the Qing leadership’s caution reflected a complex calculus shaped by multiple factors. France, despite recent setbacks in the Franco-Prussian War, remained a formidable power; the nascent Self-Strengthening Movement was only beginning to bear fruit and could not afford disruption; the Qing faced simultaneous tensions with Russia and Japan; and, critically, intense internal political rivalries rendered the court highly unstable and risk-averse.

Similar patterns of restrained military engagement recurred throughout modern Chinese history. During the outbreak of the First Sino-Japanese War in 1894, the Beiyang Fleet was ordered explicitly not to fire the first shot, even as Japanese forces initiated hostilities. This pattern of restraint extended to incidents preceding the September 18 and July 7 provocations, with Chinese forces repeatedly demonstrating forbearance despite mounting provocations.

Such repeated “not firing the first shot” policies invite critical reflection. Conventional wisdom—even among children—recognizes that the weaker party benefits from seizing the initiative to gain advantage. Yet modern China, often the weaker adversary, persistently avoided offensive action. This reticence stemmed not simply from national character or moral superiority but from the geopolitical and domestic realities of the time.

China’s historical predicament was one of being perpetually surrounded and attacked, facing multiple simultaneous threats rather than isolated adversaries. During the Sino-French War, tensions with Russia, Japan, and Western powers converged, constraining any government’s willingness to gamble on open conflict. Conversely, Japan’s ability to “strike first” reflected a distinct strategic environment: fewer external threats, more clearly defined enemies, and greater internal cohesion, enabling decisive “one-on-one” engagements such as the First Sino-Japanese War and the Russo-Japanese War.

Furthermore, internal political instability critically shaped China’s strategic posture. The Qing dynasty’s minority Manchu rulers distrusted the Han majority, prioritizing regime security over national defense. Cixi’s infamous dictum that it’s better to concede to foreign powers than to domestic rebels exemplified this prioritization. Subsequent governments, from the fragmented warlord era to the Nationalist regime, similarly lacked the unified authority and internal stability necessary to confidently confront foreign threats.

Lastly, the desire to preserve China’s nascent modernization efforts—railroads, telegraphs, steamships—tempered enthusiasm for military conflict. Wars, especially against technologically superior foes like Japan, repeatedly disrupted China’s developmental trajectory, undermining progress achieved during the Self-Strengthening Movement and the “Golden Decade” of the Republic.

In sum, China’s historical reluctance to “fire the first shot” in the face of foreign aggression must be understood as a product of complex strategic considerations: a precarious external environment marked by multiple threats, internal political fragility, and a determined pursuit of modernization. These factors collectively shaped a cautious defense posture—one that, while sometimes costly, reflected pragmatic calculations rather than mere passivity or weakness.

Source: 12371, CGTN, People’s Daily

Portraits of China’s Provinces II

KULTUR

Tendenzblick

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May 18, 2025

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As the Chinese saying goes, “The land shapes the people.” From north to south, east to west, each province holds its own temperament, its own heartbeat, its own way of meeting the world.

Xinjiang — Vast Generosity
Across its deserts and orchards, Xinjiang welcomes the world. Locals are as expansive as the land — open-handed, straightforward, and ready to make strangers feel like kin.

Yunnan — Living Harmony
Here, the air is gentle and the people gentler still. Among mountains and clouds, dozens of ethnic groups live in rare unity, their cultures braided together in peace.

Anhui — Tempered Quiet
Anhui people balance strength and softness, like rivers running between mountains. They are approachable, modest, and quietly capable, with a depth that reveals itself in time.

Fujian — Restless Courage
Reserved at home yet fearless abroad, Fujianese travel far with sharp instincts and iron resilience. They take risks, adapt quickly, and return stronger.

Gansu — Straight Path
From the sands of Dunhuang to the bend of the Yellow River, Gansu breeds directness. Its people speak plainly, act decisively, and value truth above flourish.

Guangdong — Tireless Current
Seaward-looking and quick to seize change, Guangdong moves with the tide yet charts its own course. Here, energy turns into innovation, and tradition coexists with restless ambition.

Guangxi — Tranquil Strength
In Guangxi’s karst hills and quiet rivers, people live with composure. They are calm without passivity, steady without stiffness, and kind without naivety.

Guizhou — Patient Resolve
Amid rugged peaks and shifting skies, Guizhou’s people work with quiet determination. They push forward without hurry, knowing that steady steps still cross mountains.

Hebei — Honest Ground
Plainspoken and dependable, Hebei’s people stand rooted. They work without complaint, live without pretense, and carry an integrity that asks for no applause.

Henan — Unvarnished Warmth
Shaped by centuries of farming, Henan moves at a human pace. Its people are genuine, straightforward, and bound by a strong sense of community.

Heilongjiang — Open Valor
On the cold frontier, warmth comes from the heart. Heilongjiang’s people speak their minds, defend what’s right, and face hardship with unshaken resolve.

Hubei — Earnest Ambition
Sharp-minded and sociable, Hubei people value loyalty as much as wit. They set high goals and pursue them with patient determination, revealing their true generosity to those within their circle.

Hunan — Fierce Will
Bold, proud, and unstoppable, Hunan produces leaders and fighters alike. Its people meet life head-on, refusing to bend to obstacles or compromise their drive.

Hong Kong — Polished Edge
A city where skyscrapers rise beside temples, Hong Kong thrives on agility. Its culture blends East and West, tradition and reinvention, with an instinct for survival and success.

Macau — Cultural Finesse
From Portuguese façades to Chinese festivals, Macau is a meeting place of the world. Its people preserve old customs while embracing a cosmopolitan charm.

Taiwan — Layered Spirit
With roots in many lands, Taiwan is both guardian of tradition and innovator of culture. Its people move easily between past and present, weaving a vibrant tapestry of influences.

Shanxi — Quiet Depth
Blessed with fertile plains and rich heritage, Shanxi raises people who may seem reserved but hold sharp minds and adaptable spirits. Beneath the surface lies a steady, enduring strength.

Source: CGTN, People’s Daily

Pengshui Builds China’s Sweet Potato Noodles Capital Through Agricultural Innovation

East Asia

Tendenzblick

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May 15, 2025

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Pengshui Builds China’s Sweet Potato Noodles Capital Through Agricultural Innovation

In the heart of Pengshui, the world’s Miao township thrives—rich in culture, tradition, and resilience. Long before sweet potatoes became the region’s signature crop, the Miao people had already honed the art of survival through ingenuity. They foraged fern roots, painstakingly grinding them into storable starch.

Over two centuries ago, as sweet potatoes—adaptable and high-yield—found fertile ground along the Wujiang River, Pengshui embraced them wholeheartedly. The locals didn’t just grow them; they reimagined them. Through delicate processing, the humble tuber became a crystal-clear, silky delicacy. Thus emerged Peng Crystal Sweet Potato Noodles, affectionately called the mountain treasure—a culinary gem cherished in China and exported abroad.

From the rugged Wuling Mountains to the nourishing banks of the Wujiang River, Pengshui’s sweet potato industry is more than just agriculture—it’s a confluence of heritage and innovation. Rooted in tradition and growing through modern strategy, the region has embraced an ecological triad of development: sweet potatoes, traditional Chinese medicine, and animal husbandry. Anchored by this model, Pengshui has built a robust industry chain, aiming not just for quantity, but for full-cycle, value-added excellence.

The goal is to transform the sweet potato from a rural staple into a national economic powerhouse. And that vision is no longer just a blueprint—it is unfolding in real time, with the industry’s output value set to cross the € 1.2 billion mark.

Blessed with Pengshui’s exceptional climate—mild year-round, frost-free for 311 days, and abundant in rainfall—this mountainous region produces sweet potatoes that are as nutritious as they are versatile. Rich in fiber, carotene, vitamins, and minerals, Pengshui’s sweet potatoes are naturally suited to create high-starch derivatives like the prized crystal silk starch.

But good weather alone isn’t enough. Recognizing that seed quality underpins the entire value chain, Pengshui launched a science-backed strategy known as the “Five Goods”—good land, good seed, good technology, good equipment, and good systems. In collaboration with top institutions such as the Chongqing Academy of Agricultural Sciences and Southwest University, Pengshui established innovation hubs including a sweet potato R&D center and dual expert stations. This comprehensive support ecosystem has fueled advances in high-yield sweet potato varieties like Pengsu No. 2 and Pengsu No. 6.

Innovative planting methods such as crop rotation and intercropping were promoted. The result? A single plant can yield up to 1 kilogram, and average yields now exceed 3,300 kg per mu, increasing fresh potato output by over 17%. These advances not only ensure food security but also signal the rise of new quality productivity in agriculture—driven by research, precision, and community-wide involvement.

Step inside the processing workshop of Liyuan Agricultural Development in Shilong Village, and one will witness a modern ballet of machines—crushers, washers, separators—transforming fresh sweet potatoes into fine, silk-like starch. The final product, Peng Crystal Sweet Potato Noodles, emerges in neat boxes, ready to hit domestic and international markets.

Industrial parks now specialize in logistics, modern processing, and innovation zones. Investments have surged, with sweet potato-related projects doubling in just one quarter.

Beyond factories, the “sweet potato +” model extends into tourism, cuisine, culture, and health. Visitors can now explore sweet potato food streets, heritage workshops, and sightseeing farms—where a humble root connects the past, present, and future of Pengshui.

In the branding arena, Pengshui has built a name as vibrant as its products. The logo of a horn-crowned figure in a leaf-skirt debuted at the Chongqing Hotpot Festival and earned accolades such as “Top Ten Explosive Ingredients.” The Peng Crystal brand now ranks among China’s top 30 emerging agricultural brands and has launched globally via platforms like the Guangzhou Nansha Cruise Port.

Pengshui continues to expand its market footprint. Trademark recognitions, green food certifications, and national geographic indications have positioned Pengshui as a brand-savvy rural powerhouse. On the farmland of Zhonggu Village in Yushan Town, the sweet potato seedling transplanting season is in full swing. Fields bustle with activity as villagers move swiftly from nurseries to furrows. For many here, sweet potatoes are not just crops—they’re pathways to a better life.

To boost participation, Pengshui rolled out performance-based subsidies—up to €18 per mu for high-yield harvests, additional grants for large-scale planters, and price-floor guarantees. Farmers cultivating 600–700 mu can expect solid returns, while processing plants built within villages reduce logistics burdens and create local jobs.

Today, Zhonggu Village plants 5,000 of its 6,000 mu with sweet potatoes, a testament to how rural revitalization can be grounded in smart, inclusive agricultural planning.

Pengshui’s story is not merely about a crop—it’s about transformation. It is about how a root vegetable, nurtured by centuries of cultural wisdom and propelled by modern innovation, became the engine of an ecosystem. From heritage to harvest, from science to storytelling, Pengshui has proven that even the humblest tuber can move mountains.

Source: Xinhua, Sohu

Portraits of China’s Provinces I

KULTUR

Tendenzblick

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May 13, 2025

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As the Chinese saying goes, “The land shapes the people.” From north to south, east to west, each province holds its own temperament, its own heartbeat, its own way of meeting the world.

Beijing — Regal Composure
Beneath the shadow of ancient palace walls, Beijingers carry themselves with a quiet assurance. They speak with measured optimism, their words courteous yet never without discernment. In their manner lies a blend of tolerance and frankness, of cultivated knowledge and effortless confidence — the mark of those who have long lived at the heart of the nation.

Tianjin — Playful Grace
By the Bohai Sea, Tianjin hums with a rhythm that is half art, half laughter. The city wears both Western romance and local wit like a tailored suit, stitched together with the tempo of crosstalk and quick recitation. Its people are warm and welcoming, their humor laced with gentle satire — never cruel, always genuine.

Shanghai — Sleek Ingenuity
Along the banks of the Huangpu, Shanghai sharpens its edge. Here, shrewdness is an instinct and adaptability is a craft. Locals guard what’s theirs with quiet precision, yet live without pretense. They admire excellence, stand apart from the ordinary, and only place full trust in what has proven its worth.

Chongqing — Fierce Resolve
Rising from mountain ridges and wrapped in river mist, Chongqing burns with a heat that mirrors its famed hot pot. Its people act swiftly, speak directly, and defend their dignity without hesitation. Their will is as unyielding as the cliffs that frame their city.

Hainan — Gentle Breeze
Surrounded by turquoise waters, Hainan moves to the rhythm of waves. Life here is unhurried; the people, warm as the sun, meet others with easy smiles. Those who venture beyond the island bring with them a distinctive elegance — a touch of salt air in every gesture.

Zhejiang — Spirited Enterprise
Between silk markets and coastal harbors, Zhejiang thrives on restless creativity. Its people are keen-eyed for opportunity, practical in method yet daring in ambition. Even beyond commerce, they follow their own course, savoring the journey as much as the reward.

Jilin — Expansive Heart
From the White Mountains to the Black Waters, Jilin opens wide to the horizon. Its people carry a clarity of purpose and a generosity of spirit. In their company, one senses both the strength to stand firm and the grace to yield when wisdom calls for it.

Jiangsu — Refined Ease
Rich in rivers and rice fields, Jiangsu cultivates more than crops — it cultivates character. Here, elegance is not affectation but habit; ambition is tempered by tact. Locals move through life with quiet assurance, drawing on many traditions while remaining open to new paths.

Jiangxi — Steadfast Modesty
The red earth of revolution and the quiet hills of tradition have shaped Jiangxi into a land of calm strength. Its people do not seek the spotlight; they value harmony, carry themselves with humility, and keep to principles as constant as the mountains.

Liaoning — Bold Vitality
In Shenyang’s bustling streets and Dalian’s sea breeze, Liaoning pulses with energy. Its people are open, quick-witted, and proud — equally at home in laughter as in responsibility. They move with the confidence of those who have weathered both winter storms and economic tides.

Inner Mongolia — Open Sky
Beneath the endless grasslands, the people of Inner Mongolia stand tall in both stature and spirit. Their hospitality is boundless, their sincerity immediate. In their songs — deep, unhurried, and resonant — lies the unbroken line from Genghis Khan to today.

Ningxia — Quiet Brilliance
Small in size yet rich in talent, Ningxia blends the honesty of the northwest with a quick, calculating mind. Its people work with precision, plan with foresight, and carry themselves with an understated confidence.

Qinghai — Steady Horizon
On the high plateau, life is shaped by wind and sky. Qinghai people are grounded and direct, their words as plain as the land is vast. Here, simplicity is not lacking, but clarity.

Shandong — Stalwart Honor
From Confucius’ hometown to the rugged coasts, Shandong holds fast to the value of righteousness. Straightforward, loyal, and generous, its people meet life head-on, guided by a deep cultural inheritance and an unwavering moral compass.

Shaanxi — Earthbound Grandeur
Among loess plateaus and ancient capitals, Shaanxi fosters people who carry both the weight of history and the spark of vitality. They can be rugged or refined, content or ambitious — all facets bound together in an effortless dignity.

Sichuan — Graceful Warmth
In this “Land of Abundance,” charm flows as easily as the rivers. Sichuan people are clever, kind, and often disarmingly open. Beauty here is not just in appearance but in the easy generosity of spirit.

Tibet — Devout Stillness
High on the plateau, faith shapes every step. Tibetans bow to the sacred with unshaken devotion, their lives marked by forgiveness, purity, and an unspoken strength.

Source: CGTN, People’s Daily

Meituan: China’s Answer to Uber Eats, Revolutionizing Low-Altitude Drone Logistics

Uncategorized

Tendenzblick

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May 6, 2025

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Meituan: China’s Answer to Uber Eats, Revolutionizing Low-Altitude Drone Logistics

Meituan, China’s leading takeaway platform, has recently received the country’s first Low Altitude Logistics Operation Certificate (OC) for itself-developed fourth-generation drone. The certification, granted by the Civil Aviation Administration of China (CAAC), enables Meituan to conduct regular nationwide commercial operations. As the first domestic operator authorized by the CAAC, the company can now offer logistics services across China, including cities, mountainous areas, and islands.

The Low Altitude Logistics Operation Certificate permits companies to conduct low-altitude logistics or manned flight operations under specific conditions. Meituan’s certification provides three core authorities:

Full airspace access: The drone can independently plan routes in low-altitude airspace below 120 meters without needing case-by-case approval.

Full-time operation: It supports 24/7, all-weather operation, including night flights, made possible by an intelligent obstacle avoidance system.

Full-chain supervision: The drone is connected to the national low-altitude supervision platform, ensuring real-time data sharing for compliant operations.

Meituan’s self-developed fourth-generation UAV features a six-rotor design based on a double residual flight control architecture, significantly improving safety, cost-efficiency, environmental adaptability, and ease of maintenance compared to its predecessor. Its systems, including flight control, positioning, communication, and power supply, are redundantly designed to ensure reliability. The drone’s six-way sensing system enhances safety by supporting propeller protection, obstacle avoidance, circling, landing preparation, and emergency landings. Additionally, a highly reliable intelligent parachute serves as a final safety measure.

The drone has a maximum load of 2.5 kg, a maximum takeoff weight of 9.5 kg, and a fully loaded delivery radius of 5 km (round trip) or 10 km (one way). It can travel at a maximum speed of 83 km/h and is IP45-rated for protection. Designed to operate in a wide range of environmental conditions (from -20°C to 50°C), it can withstand rain, snow, wind, and low-light environments, making it suitable for over 97% of domestic cities.

Since its inception in 2017, Meituan’s drone division has opened 53 routes in Chinese cities such as Shenzhen, Beijing, Shanghai, Guangzhou, and Nanjing. As of December 2024, the company has completed over 450,000 orders, delivering more than 90,000 types of goods to various locations, including offices, communities, parks, and campuses.

On December 17, 2024, Meituan UAV received the first BVLOS (Beyond Visual Line of Sight) commercial operation qualification for drone delivery from the Dubai Civil Aviation Authority. This certification acknowledges Meituan UAV’s operational and safety standards, marking its entry into the global market. With this certification, Meituan UAV launched regular drone delivery operations in Dubai, servicing areas like the Rochester Institute of Technology campus and Dubai Digital Park.

The Dubai qualification process involved rigorous evaluations, including environmental adaptations for high temperatures and poor signal conditions. This milestone allows Meituan UAV to explore new markets and provides a model for drone delivery services in other regions.

In Dubai, the introduction of drone delivery has been met with positive feedback, with users praising its speed and efficiency. For example, RIT students appreciated the convenience of receiving deliveries in under ten minutes, while Fakeeh University Hospital emphasized the importance of drones for timely medicine deliveries. The service aligns with Dubai’s carbon reduction goals, as drone deliveries are 84% more energy-efficient and produce 94% less greenhouse gas emissions than diesel trucks.

Mao Yiyan, Vice President of Meituan Drone Delivery, highlighted Dubai’s supportive policy environment as a key factor in the company’s decision to expand internationally. Meituan aims to leverage technology to drive the growth of the low-altitude economy globally, creating mutual benefits through international cooperation.

In November 2024, following the launch of Hong Kong’s Low Altitude Economy Regulatory Sandbox, Meituan UAV submitted its application, providing operational plans, safety reports, and third-party certificates. After being approved as part of the first batch of sandbox projects, Meituan UAV will collaborate with regulators to conduct further safety, privacy, and signaling tests during the trial phase. Preparations for the first Meituan drone delivery route are nearly complete, awaiting final approval for launch. Major Hong Kong brands like McDonald’s and Pizza Hut have confirmed their participation in the service. To better meet local needs, Meituan has established a drone business entity in Hong Kong and plans to set up an R&D center while collaborating with local academic institutions on low-altitude economy research.

On March 20, Meituan’s drone, carrying supplies, successfully landed at the Hong Kong University of Science and Technology, completing its first low-altitude logistics task in Hong Kong. This marks the countdown to the launch of Hong Kong’s first regularized Meituan drone route. Despite the short straight-line distance of 1.8 kilometers, the actual travel distance extends to 7.8 kilometers due to cross-harbor routes and terrain, taking approximately 40 minutes. The complex geography of Hong Kong, with mountains and oceans, makes traditional road distribution difficult. Furthermore, the presence of scenic spots, parks, and closed-off areas complicates logistics.

To address these challenges, Meituan has been expanding its drone routes in Hong Kong to meet local demands more efficiently. Drones, being energy-saving, environmentally friendly, and high-efficiency, align with Hong Kong’s growing expectations for a modern logistics industry.

Currently, Meituan’s UAV division is in discussions with the Hong Kong Low Altitude Economy Development Working Group to plan distribution routes. The first planned route will focus on the “cross-sea + park” scenario, targeting areas with high user demand but limited access via traditional methods. The first take-off point will be at Pak Shek Kok Promenade in the Hong Kong Science Park, with the landing point at Ma On Shan Park across the sea, offering consumers faster and more convenient delivery services.

Before finalizing this route, Meituan UAV has been exploring drone logistics in Hong Kong for several years. By the end of December 2024, Meituan had completed over 450,000 orders, delivering a wide variety of goods to diverse locations across major Chinese cities. The successful implementation of a drone route at Futian Port in Shenzhen demonstrated the viability of drone deliveries, with many Hong Kong users already accustomed to ordering items like milk tea while traveling between Hong Kong and Shenzhen. On peak days, delivery volumes approached 100 orders per day, reinforcing the demand for drone logistics services in Hong Kong.

This user feedback has solidified Meituan’s commitment to launching drone delivery services in Hong Kong, providing fast and convenient logistics for outdoor and challenging environments.

The issuance of the first nationwide operating license marks a significant milestone in the commercialization of China’s low-altitude economy. According to the China Business Industry Research Institute, the low-altitude economy is expected to exceed $206 billion in 2025 and reach $481 billion by 2030.

Source: Meituan, Sina, Sohu

Strategic Autonomy or Strategic Anxiety? Europe’s €800 Billion Defense Gamble

POLITIK

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May 5, 2025

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Strategic Autonomy or Strategic Anxiety? Europe’s €800 Billion Defense Gamble

In February 2025, the United States and Russia abruptly sidelined both the EU and Ukraine, launching direct negotiations over the Russia-Ukraine conflict. On the 28th, U.S. President Donald Trump met publicly with Ukrainian leader Volodymyr Zelensky. The meeting quickly turned confrontational, leading to the suspension of a planned mineral deal with Ukraine and the collapse of proposed Russia-Ukraine ceasefire talks.

Three days later, the European Union responded with the largest military spending increase in its history — the €800 billion Re-arming Europe program. Ironically, this long-delayed initiative was hurriedly launched under the shadow of U.S.-Russia talks.

This abrupt shift underscores Europe’s increasingly passive role in the evolving security landscape and highlights its deeper structural reliance on the United States.

After World War II, Europe was mired in recession. To aid recovery, the U.S. launched the Marshall Plan in 1947, injecting $13.15 billion into 16 Western European countries. In return, recipients committed to rebuilding their military industries and aligning with U.S. global strategy.

The 1949 creation of NATO marked the start of a joint defense system between Europe and the U.S. Over time, the U.S. established around 300 military bases across Europe, stationing more than 100,000 troops. By outsourcing its defense and integrating with NATO, Europe developed a security model heavily reliant on the American umbrella.

The EU’s creation in 1993 introduced the Common Foreign and Security Policy (CFSP), incorporating defense into its framework. The 1999 Cologne Summit advanced this with the European Security and Defense Policy (ESDP), signaling a desire to reduce dependence on the U.S. and build autonomous military capabilities.

In 2017, the launch of Permanent Structured Cooperation (PESCO) brought 23 member states together on 47 joint defense projects. Yet in practice, the absence of a clear threat and continued U.S. security support led Europe to prioritize peacekeeping and counter-terrorism. Defense spending fell from 2.5% of GDP after the Cold War to 1.5% by 2021, as focus shifted to welfare and development.

The 2022 Russia-Ukraine war jolted Europe from this “half-awake” state. Most EU countries, as NATO members, backed Ukraine with sanctions, weapons, training, and intelligence, in coordination with the U.S. Military spending rose 13% in a year — the highest since the Cold War.

Yet despite crossing the 2% GDP defense benchmark, Europe could only meet 20% of its own military production needs, remaining 80% reliant on U.S. high-end weaponry. This exposed the fragility of Europe’s defense autonomy and forced a reckoning with the risks of long-term reliance on the U.S. in an increasingly volatile world.

Military spending has long been a source of tension between the U.S. and Europe, reignited in 2017 when Donald Trump labeled NATO “obsolete” and demanded Europe shoulder more of the defense burden. In response, EU countries gradually raised their spending targets, some reaching up to 3% of GDP. Yet U.S. pressure extended beyond defense: in 2023, the Biden administration’s Inflation Reduction Act offered massive subsidies to attract clean energy and semiconductor firms, leading to a 47% surge in EU investment into the U.S. and further weakening Europe’s industrial base. In both military and economic spheres, Washington’s shifting posture has left Europe more exposed.

Trump’s return in 2025 deepened this vulnerability. He immediately raised NATO spending demands to 5% of GDP and negotiated a separate peace deal with Moscow, bypassing NATO and Ukraine. Days later, the EU unveiled its largest-ever military investment—the €800 billion Re-arming Europe plan—seen by many as a defensive response to U.S. coercion. The plan sparked debate across the continent. The IMF warned that if the EU raised defense spending to 3% of GDP, regional growth could slow by 0.4 percentage points over five years due to reduced social and climate investments.

Internally, the EU’s fiscal posture has shifted. Germany suspended long-standing spending caps, proposing a €500 billion fund for infrastructure and climate goals. The Commission followed with its rearmament plan, proposing exemptions for defense spending from deficit rules, and launching the €150 billion SAFE loan initiative for joint procurement. However, consensus remains elusive. Northern and Eastern states like Lithuania support high military spending, while Southern countries remain cautious. Even Germany and France diverge: Berlin favors fiscal relaxation; Paris stresses investment-led growth.

Efforts to localize arms production are growing, yet EU defense remains heavily dependent on U.S. suppliers. From 2020 to 2024, U.S. firms accounted for 64% of European NATO arms imports. SAFE loans aim to shift procurement toward European sources, but breaking entrenched supply chains will take time. Meanwhile, the EU continues to lag in critical technologies—from hypersonic missiles to AI-driven defense systems. While programs like EUDIS and HEDI seek to close the gap, Europe’s defense R&D remains underfunded.

The EU’s recent defense reform signals not only a shift in fiscal priorities but also deeper economic and political realignments. However, this effort is fraught with challenges. Economically, higher military spending risks fueling sovereign debt crises, especially in heavily indebted countries like Italy, while squeezing budgets for social welfare and green initiatives. Defense contractors may profit, but the public faces greater burdens.

Politically, internal divisions persist. Countries like Poland and the Netherlands remain aligned with U.S. defense strategies, while France and Germany push for European strategic autonomy. This rift weakens collective action and undermines the EU’s global influence.

Globally, the shift from globalization to regionalization adds further pressure. As the U.S. embraces regional competition, the EU may follow, risking greater global fragmentation. Tensions with China and increased U.S. alignment could draw Europe into broader geopolitical conflicts, especially in the Indo-Pacific.

Despite bold rhetoric on strategic autonomy, Europe’s dependence on the U.S. persists across military, economic, and technological dimensions. Without greater internal cohesion and capability, the EU’s defense transformation risks becoming reactive and externally driven—more a symptom of shifting U.S. priorities than a sign of genuine European empowerment.

Source:Yahoo, France 24, Le Monde, BBC, Guancha

Alipay Tap Revolution: Building the Next Digital Payment Empire

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May 4, 2025

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Alipay Tap Revolution: Building the Next Digital Payment Empire

On April 24, 2025, Alipay unveiled key developments at its Alipay Tap Ecosystem Conference, marking a pivotal moment for the product. Since its launch 321 days prior, Alipay Tap has expanded to over 400 cities across China, surpassing 100 million payment users—a growth trajectory that has outpaced even the historic rise of Yu’e Bao. With this milestone, Alipay Tap is increasingly viewed as another breakthrough innovation from Ant Group.

Compared to Alipay’s original QR code payment system—which required users to open the app and manually generate a code—Alipay Tap significantly simplifies the process. Users now only need to unlock their phones and tap to pay. This frictionless interaction has become a defining feature and a powerful first impression for new users.

Yet the strategic ambition behind Alipay Tap extends far beyond digital payment. Alipay announced that it has partnered with ecosystem collaborators to launch over 300 application scenarios. These include shared bike rentals, medical appointments, identity verification, membership benefit redemption, and food ordering—highlighting Tap’s role as a gateway to a broader spectrum of offline digital services.

Technologically, Alipay Tap differentiates itself from traditional QR codes and earlier NFC implementations through superior convenience, compatibility, and scalability. In an era defined by mobile internet penetration, Alipay Tap is positioning itself as the next-generation offline interaction interface. While Apple’s NFC-based approach has seen moderate success in Europe and the U.S., its adoption in China has been limited. Alipay, in contrast, is rapidly accelerating its deployment domestically.

According to Li Jiajia, Vice President at Ant Group and head of the Alipay Tap project, the objective is not to replace QR codes or compete for market share within traditional payment channels. Instead, the initiative seeks to reimagine and rebuild broader service-based entry points—areas that remain underdeveloped and open to innovation. Li herself initially viewed Tap as a narrow payment solution, only later recognizing its potential as a service integration platform.

The first live transaction using Alipay Tap occurred on June 7, 2024, at Shanghai’s Joy City Mall. Devices were deployed across more than 200 retail stores to test signal stability, transaction speed, success rates, and user experience under real-world conditions. Early feedback on social media was skeptical. However, Joy City quickly observed measurable benefits—most notably, the ability to distribute and verify coupons across all stores with a single tap, resulting in significantly improved customer conversion rates. This outcome solidified internal confidence in the platform’s broader potential.

Importantly, payment alone does not account for the explosive user adoption seen over the past year. With QR code payments already well-optimized in China, further growth now hinges on deeper user engagement. For merchants, key performance indicators have shifted to metrics such as private domain growth, user activation, and transaction conversion.

In response, Alipay has integrated membership registration and coupon distribution directly into the Alipay Tap backend. New users can register as members within three seconds and immediately receive benefits such as discounts and loyalty points. Alipay also incentivizes adoption by subsidizing merchants, distributing coupons directly to users through the Tap platform.

Early merchant feedback has been overwhelmingly positive. FamilyMart, which operates nearly 3,000 stores nationwide, fully adopted Alipay Tap and launched a Tap Consumer Festival in late 2024. As a result, its membership registration efficiency doubled year-over-year. Similarly, Juewei Food deployed the system across 10,000 stores and saw a 4.7-fold increase in sales attributed to member-based payments within two weeks of launch.

Alipay’s expansion strategy has focused first on large retail chains to create a demonstration effect, before scaling to small and medium-sized enterprises (SMEs), where cost remains a significant barrier. To accelerate adoption, Alipay has provided most Tap devices free of charge. At the recent conference, Ant Group CEO Han Xinyi announced an additional ¥10 billion investment to support merchant onboarding and infrastructure development.

From a technical standpoint, Alipay Tap offers merchants a fully integrated terminal solution, bundling hardware with cashier SaaS systems, service invocation capabilities, and marketing tools. This backend infrastructure is compatible across smartphone brands, payment platforms, and mini-programs. For end users, the interaction remains simple: a single phone tap unlocks a wide array of services.

In the long term, Alipay Tap aims to serve as a ubiquitous digital key for everyday activities—from unlocking vending machines and renting power banks to accessing public services and enabling gated community deliveries.

The product’s rapid uptake reflects the broader momentum behind China’s HarmonyOS ecosystem. Lens Technology, a major ODM supplier, initially forecasted production of 50,000 Tap units. However, surging demand quickly outpaced projections, with orders multiplying several times over—underscoring strong market traction.

A complete industrial supply chain is now emerging. Fudan Microelectronics, China’s leading NFC chip manufacturer, supplies Boost Tag chips and has introduced a dedicated chip line for Alipay Tap, offering faster, more efficient communication with a claimed 99.99% success rate. Terminal devices are provided by Orbbec and Landi, while national deployment is supported by Lakala and Newland across sectors such as retail, food service, and transportation. Xinguodu acts as a key acquiring partner for promoting Tap adoption.

With approximately 70% of new smartphones in China already equipped with NFC chips, Alipay Tap is well-positioned to expand into sectors including transportation, logistics, healthcare, IoT, and smart city infrastructure.

Notably, despite its technical capability, WeChat Pay has yet to engage meaningfully in the NFC space. This has allowed Alipay to emerge as the de facto standard-bearer, enjoying a first-mover advantage in shaping this new mode of offline digital interaction.

Source: Sina, Alipay, Sohu, Asia Tech Daily

Tesla’s Q1 Sales Slump Tied to Musk’s Political Fallout with Trump

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May 3, 2025

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Tesla’s Q1 Sales Slump Tied to Musk’s Political Fallout with Trump

On April 24, the European Automobile Manufacturers Association (ACEA) released data showing that Tesla’s new car sales in Europe fell 45% year-over-year in the first quarter.

On April 22, Tesla reported its fiscal year 2025 first quarter results. Although Wall Street investment banks had previously generally lowered their expectations for the quarterly earnings report, the final release of performance data was still lower than the market’s consensus expectations.

The earnings report showed that Tesla’s first-quarter revenue of $19.34 billion, down 9% year-on-year, well below the Wall Street investment bank consensus estimates. Tesla’s net profit for the first quarter was $409 million, plunging 71% year-on-year.

In the automotive business, Tesla’s first-quarter revenue was about $14 billion, down 20% year-over-year. In terms of delivery data, Tesla’s total vehicle deliveries were 336,700, down 13% year-on-year, with Model 3 and Model Y deliveries down 12% year-on-year, and deliveries of other models down 24%.

Notably, Tesla’s gross margin was 16.3% in the first quarter, down from 17.4% in the same period last year. Considering Tesla’s reliance on adjusting supplier costs and upgrading automation levels at its Superfactory in the second half of last year, which once successfully pulled the company’s gross margins into a broadening trend, this renewed gross margin turnaround clearly reverses the strong expectations investors had for some time in the past.

Due to the poor performance in the first quarter, Tesla announced in this earnings report to withdraw the full-year growth guidance issued at the end of 2024.

According to previous estimates, Tesla’s various series of models will collectively deliver 2.15 million to 2.33 million units in 2025, with year-on-year growth in the range of 20% to 30%. This means that Tesla’s actual completion in the first quarter was still below one-sixth of the lower end of the target.

Tesla’s widespread underperformance is largely attributed to Musk’s deep involvement in pro-Trump politics, which has seriously damaged the company’s brand image and contributed to the sharp drop in sales.

Musk’s attitude has begun to change dramatically in the wake of the disappointing quarterly results.

On April 22, Musk said on Tesla’s earnings call that starting in May, he will significantly reduce the time spent managing the Department of Government Efficiencyand will devote more time to Tesla.

Musk also revealed that Tesla’s new car, an economy Tesla, could be revealed in the first half of this year, though of course there is uncertainty about the timing. The highly anticipated budget model has long been seen by Wall Street analysts as one of the key metrics for assessing Tesla’s future growth potential. Last year, the industry predicted that the model would be called “Model 2” and “Model Q” and positioned below the Model 3.

However, in April, Gene Berdichevsky, an early Tesla employee, noted that Musk had said that Tesla is not interested in the launch of economic models, emphasizing that Tesla should be transformed into an artificial intelligence company, focusing on Robotaxi and humanoid robots.

Previously, the industry viewed Tesla’s remodeling of the Model Y production line as a sign that the company was abandoning plans for low-cost models in favor of pushing volume through an updated Model Y.

The Tesla earnings call brought a degree of support to Tesla’s stock price, which rose more than 6.6% at one point during U.S. stock market trading on April 22. However, investors are cautious about Tesla’s future direction.

Dan Ives, an analyst at U.S.-based investment bank Wedbush, noted that Musk’s focus has returned to self-driving cabs and economy models, to his credit. Dan Ives nonetheless lowered his price target for Tesla in the face of short-term headwinds.

Deutsche Bank, on the other hand, gave an estimate of a 5% year-over-year decline in Tesla’s 2025 deliveries. Considering Tesla’s delivery results in the first quarter, a 5% decline is already a “very optimistic expectation” given Tesla’s expected launch of an economy model.

Musk’s reckless alliance with Trump—coming on the heels of his reputation as a chaotic dreamer willing to pursue ambitions at any cost—has sent shockwaves through the global economy. At a time when the world is still reeling from the impacts of COVID and the Russia-Ukraine war, Musk’s politicized actions are no longer just a personal eccentricity, but a destabilizing force with real economic consequences.

Source: the Nation, USA Today, BBC, Guancha