Chinese AI Firm iFlyTek Eyes European Expansion amid U.S.-China Trade War

Chinese artificial intelligence company iFlyTek is expanding into Europe as U.S.-China trade tensions escalate, according to Vice President Vincent Zhan.

Speaking at Mobile World Congress in Barcelona, Zhan confirmed that iFlyTek is diversifying its supply chain and seeking new markets to reduce the impact of tariffs imposed by U.S. President Donald Trump.

iFlyTek's European Expansion Plans

iFlyTek, best known for its voice recognition technology, currently operates in France and Hungary and is set to open a Paris office in 2025 or 2026. The company also plans to expand into Spain and Italy next year.

"This shows that iFlyTek attaches great importance to the European market." the Company spokesperson noted.

U.S. Trade Restrictions and Tariffs on Chinese Tech

The expansion comes as the U.S. tightens restrictions on Chinese AI companies.

• Trump's new 20% tariffs target smartphones, laptops, video game consoles, smartwatches, and Bluetooth devices.
• Biden previously imposed restrictions on Chinese semiconductor imports, particularly on AI chips.
• iFlyTek has been on a U.S. trade blacklist since 2019, preventing it from purchasing Nvidia AI chips without U.S. approval.

To counter these trade restrictions, iFlyTek has been using Huawei-made chips and has integrated AI models from DeepSeek.

Mobile World Congress AI innovations

During the Mobile World Congress, iFlyTek showcased:

• A new AI-powered tablet that transcribes conversations in real time.
• A deepfake-detection phone that alerts users within six seconds.

The Future of iFlyTek in Europe

Despite U.S. trade challenges, Zhan remains optimistic:
"It is a challenge for us, but in the last two years, a lot of Chinese companies have started manufacturing AI chips."

As U.S.-China trade tensions continue, iFlyTek’s European expansion signals a strategic shift to reduce dependence on North America while solidifying its presence in global AI markets.
Source: Reuters