As trade tensions between the United States and China continue to escalate, Chinese artificial intelligence (AI) firm iFlyTek is accelerating its expansion into the European market. According to Vincent Zhan, Vice President of iFlyTek, the company is actively working to diversify its supply chain and reduce its reliance on North America, its largest market outside China.
Navigating Trade Tensions
The ongoing US-China trade war has significantly impacted Chinese tech firms, including iFlyTek. The latest round of tariffs announced by US President Donald Trump includes a 20% duty on various Chinese electronics, such as smartphones, laptops, smartwatches, and Bluetooth devices. These tariffs come in addition to restrictions imposed by former President Joe Biden, who previously introduced tariffs on Chinese computer chips.
To mitigate these challenges, iFlyTek is focusing on expanding its presence in Europe. The company currently operates in France and Hungary, with plans to open a new office in Paris by 2026. Furthermore, Zhan revealed that iFlyTek aims to expand into Spain and Italy next year.
Strengthening European Market Presence
iFlyTek is well known for its advanced voice recognition technology. At the Mobile World Congress in Barcelona, the company officially launched a new AI-powered tablet designed to transcribe conversations. A company spokesperson emphasized that this launch underscores iFlyTek’s commitment to the European market.
Zhan also mentioned that the company is carefully selecting expansion locations based on where it has strong business partnerships, indicating a strategic approach to growth in Europe.
Overcoming US Trade Restrictions
Since being placed on the US trade blacklist in 2019, iFlyTek has faced limitations on purchasing American technology, including AI chips from Nvidia. In response, the company has turned to domestic alternatives, using Huawei chips and integrating AI models developed by DeepSeek.
Despite the hurdles, Zhan remains optimistic, highlighting the growing number of Chinese companies now manufacturing AI chips. “It is a challenge for us, but in the last two years, a lot of Chinese companies have started manufacturing AI chips,” he said.
The Road Ahead
With its European expansion plans in motion, iFlyTek is positioning itself as a key player in the AI industry beyond China. As geopolitical and trade tensions continue to shape the global technology landscape, the company’s ability to adapt and diversify will be critical to its success.
