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Hong Kong can take the regulatory high road amid US-China AI decoupling

Hong Kong can position itself as a regulatory bridge between US and Chinese AI ecosystems amid escalating decoupling, as US export controls on AI models backfire by accelerating Chinese innovation and creating a 'sovereign AI premium.' Chinese AI firm Zhipu AI's stock surged 48% after open-sourcing its GLM-5.2 model, while US restrictions forced Anthropic to shut down its flagship models globally due to impractical nationality verification.

read1 min views1 publishedJun 25, 2026
Hong Kong can take the regulatory high road amid US-China AI decoupling
Image: Scmp (auto-discovered)

As a global ‘sovereign AI premium’ emerges and US weaponisation of AI models triggers panic, Hong Kong can bridge diverging AI ecosystems

The market realignment over the past week starkly captures the self-defeating logic of America’s technology containment strategy.

surged by 48 per centintraday after it announced the open-source release of its GLM-5.2 foundation model. The rally continued this week, with Zhipu’s shares trading at an

intraday highof HK$2,980 (US$380) in the morning of June 22, briefly driving market capitalisation past HK$1.2 trillion – a 25-fold appreciation on its January debut.

orderedCalifornia-based Anthropic to block foreign access to its new Fable 5 and Mythos 5 models. Because Anthropic could not practically verify user nationalities in real time, it had to shut down both flagship models globally for everyone, lock out its own non-American staff and downgrade affected subscribers to an older model.

Although Washington blamed a “jailbreak” security vulnerability, Anthropic’s technical review showed the exploit involved only minor flaws that already exist in other publicly available models.

The situation is profoundly ironic. Anthropic supported Washington’s export controls, actively lobbying for stricter cross-border limits. Having helped build this regulatory framework, the company is now trapped by it, exposing a fundamental flaw in techno-nationalist logic. Washington treats software models like physical nuclear components, yet software cannot be embargoed like hardware. Because code moves instantly, denying access simply drives other nations to develop alternative technologies more quickly.

restrictedNvidia’s advanced silicon, expanded its

blacklistand globalised these controls by bringing foundational open-source models under its restrictive umbrella.

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