The Biden administration is planning to restrict Chinese companies' access to major cloud computing services such as Amazon Web Services and Microsoft Azure. The move, reported by the Wall Street Journal, involves requiring cloud providers to obtain government approval before serving Chinese firms that use these platforms to train AI models. This action is part of a broader effort to limit China's development of artificial intelligence technology, following earlier export controls on AI chips like Nvidia's A800. The US aims to contain China's technological advancement, particularly in AI, which is seen as crucial to its geopolitical and economic future. In response, China has imposed export controls on metals vital to chips, electric vehicles, and defense industries, signaling a reciprocal escalation in the US-China technological rivalry.

Kingsoft Cloud Holdings Ltd has signed a 2025 cooperation framework agreement with Xiaomi, effective July 29, 2025. The agreement involves Xiaomi providing IDC services for three years and selling network hardware for one year. The transactions are classified as continuing connected transactions under Hong Kong Listing Rules. The company, incorporated in the Cayman Islands, operates in cloud computing and has a recent analyst rating of 'Hold' with a HK$1.70 price target.

Kingsoft Cloud (03896) signed a framework agreement with Xiaomi on July 29, 2025, to provide IDC-related services and network hardware equipment. The agreement includes a three-year term for IDC services and a one-year term for hardware procurement, aiming to enhance cloud capabilities through Xiaomi's infrastructure and reduce operational costs.

The article reports significant Southbound Trading net outflows from Tencent (00700.HK), Xiaomi-W (01810.HK), and SMIC (00981.HK), while Meituan-W (03690.HK), Healthyway Inc (02587.HK), and Kingssoft Cloud (03896.HK) experienced net inflows. Tencent was the most active stock in Shanghai-Hong Kong Stock Connect with the highest net outflow, while Meituan-W was the most active in Shenzhen-Hong Kong Stock Connect with the highest net inflow.

Alibaba's shares rose over 8% after reports that Nvidia would resume AI chip sales in China, prompting Jefferies to highlight the move as a turning point for China's AI sector. The firm recommended six stocks, with Alibaba positioned to lead the rebound due to improved chip supply and cloud spending. Jefferies raised Alibaba's revenue growth forecast to 23% and noted its strong AI-related cloud revenue growth. Alibaba also announced a $53 billion AI/cloud expansion plan, including new data centers in Malaysia and the Philippines.