Business Brief (March 12): China Calls for Human Control Over Military AI Applications

1. The International Energy Agency (IEA) agreed to release 400 million barrels of strategic petroleum reserves in response to potential global energy supply disruptions caused by the ongoing war in the Middle East. The agency's chief explained that this measure aims to stabilize energy markets and soften the impact rising from the regional conflict on global oil supplies and prices. [para. 2]

2. The conflict between Iran and Israel escalated, with the U.S. President Donald Trump stating that U.S. military operations against Iran are nearly concluded, but no official orders to stop operations have been received. Israel's defense minister affirmed that joint U.S.-Israeli military campaigns will continue as long as necessary to achieve their goals. Iran conducted its 40th "True Promise 4" operation by striking over 50 Israeli targets, signaling a new battlefield reality for Israel. Additionally, Iranian forces targeted U.S. military bases in Jordan and Saudi Arabia and issued a warning about the possibility of blockading the vital Strait of Hormuz. [para. 3]

3. China's Ministry of National Defense advocated for human control over military artificial intelligence (AI) applications, raising concerns about the ethical and security implications of the U.S. military's use of AI. China maintains that military use of AI should always remain human-led, opposes using technology for military hegemony, and argues that an AI arms race threatens sovereignty and territorial security. [para. 4]

4. The People's Bank of China, at its 2026 technology conference, mandated regulated and secure advancement of artificial intelligence in the financial sector. They emphasized risk prevention, stronger regulations, and the promotion of high-quality development to harness digital momentum, strengthen financial standards, and enhance regulatory service capabilities. [para. 5]

5. In response to security risks associated with the open-source AI agent OpenClaw, the Ministry of Industry and Information Technology introduced a “six dos and six don’ts” guideline, including strict internet security and cautious use of skill marketplaces. The National Supercomputing Internet offered OpenClaw users 10 million free tokens for two weeks, and reduced pricing on additional tokens, making them more affordable than previous market rates. [para. 6]

6. Nvidia CEO Jensen Huang predicted in a detailed post that AI agents will soon become mainstream, signaling a transformative phase for software and applications. Huang foresees the need for trillions of dollars in investments to build the required AI infrastructure and anticipates traditional app formats will fade as AI agents dominate the digital landscape. [para. 7]

7. China announced the global debut of its independently developed T1200 ultra-high-strength carbon fiber, a material ten times stronger than ordinary steel and a quarter of its density. Its exceptionally lightweight and high strength make it suitable for strategic industries like aerospace, low-altitude economies, and humanoid robotics. [para. 8]

8. According to Forbes’ 40th annual billionaires list, Elon Musk remained the world’s richest individual with a net worth of $839 billion. The total billionaire wealth reached $20.1 trillion, and the average net worth was $5.8 billion, up from $5.3 billion last year. The U.S. had 989 billionaires and China ranked second with 539. Donald Trump’s wealth rose by 27% to $6.5 billion, ranking him 645th globally. [para. 9]

9. In domestic news, China experienced over a 20% decline in automobile sales year-on-year during the first two months, attributed to policy shifts. Universities raised concerns about OpenClaw's security risks, with some banning its campus use. National railway fixed-asset investment grew 5.4% to 72.2 billion yuan in January-February. Gasoline prices in Hong Kong surpassed HK$30 per liter, leading airlines to increase fuel surcharges. [para. 10]

10. On the corporate front, Tencent unveiled a comprehensive lineup of "Lobster" AI models and announced upcoming products. Huawei launched "Xiaoyi Claw," Baidu released "DuClaw," and Tencent Cloud raised AI agent platform prices. Chinese large language models held the top three spots globally for OpenClaw usage, led by StepFun’s Step 3.5 Flash. Volkswagen’s operating profit dropped 53% in 2025, with ongoing weak performance in China. Nio Inc. posted its first quarterly profit and aims for full-year profitability in 2026. [para. 11]

11. Internationally, a top rare earth supplier agreed to deliver 75% of its heavy rare earth output to Japan, and Donald Trump warned Iran against mining the Strait of Hormuz. The ongoing Middle East conflict disrupted the aviation sector, prompting airlines to adjust fares in response to surging fuel prices. [para. 12]