China has made a two-pronged strategic move to leap ahead in artificial intelligence while reducing its exposure to crude oil, according to a report. In Silicon Valley, Chinese AI models have challenged U.S. dominance. Moonshot AI launched Kimi K3, an open-source model that directly competes with Anthropic's Claude Fable 5, despite Anthropic alleging Moonshot distilled output data from Claude. Last week, Alibaba released Qwen3.8-Max, its largest AI model to date, using 2.4 trillion parameters and a mixture-of-experts architecture, with lower inference pricing and support for up to one million tokens of context. Test results showed it matched OpenAI's GPT5.6-Sol and outperformed Fable 5 in multimodal reasoning, visual agent, coding, office intelligence, real-world understanding, and visual perception. Separately, China has reportedly begun manufacturing its own immersion deep ultraviolet (DUV) lithography machines approximately two weeks ago, challenging ASML's near-monopoly. The unidentified Chinese toolmaker plans to manufacture around five DUV machines this year and 20 by 2027. Additionally, CXMT (ChangXin Memory Technologies) made a blockbuster debut with a 466% gain in a single day on Shanghai's STAR Market, jumping from its IPO price of 8.66 yuan to open near 49.50 yuan.