Summary 80 | Bouygues Asia

Newsletter N°80 - September 2025

📉 Economic Outlook : From Tariffs to Trade Leverage: China’s Strategic Moves

The announced tariff increase on Chinese exports to the US has been postponed—once again— during the summer. The average effective tariff rate remains currently at around 40%, according to Fitch.

Several key economic indicators published recently suggest that China is preparing for the next stage, and the current reprieve may give it even more time to refine its position in a potential trade war while getting ready for upcoming negotiations. The overall economic backdrop appears solid: the country reported 5.8% growth for the first half of the year, ahead of even the most optimistic analysts’ expectations. Although the US remains the top destination for Chinese exports, its share of total trade has steadily declined, falling below 14% in June. This confirms a diversification trend, as exports overall are rising at a robust pace (7% year-on-year in June), driven largely by Southeast Asia and Africa.

China’s deliberate strategy to create “asymmetric dependence”—eliminating foreign inputs from its own supply chains while becoming indispensable in specific strategic sectors—has been reinforced through a tightly controlled export-license scheme covering roughly 700 products, many not end products but components or cornerstones of a specific supply chain. This policy has shown results in recent months: in April.

China retaliated against newly announced US tariffs by abruptly restricting magnet exports to the carmaking industry, prompting Washington to quickly seek a truce.

To obtain such an export license, a Chinese producer must declare and report the end products and end users of their goods, giving authorities the ability to target specific economic areas very precisely by suspending export licenses. In certain sectors—such as chemical precursors for pharmaceuticals—China already holds an almost monopolistic position.

However, this strategy remains delicate. Fully blocking certain supplies, or even hinting at such measures, would push trade partners to quickly seek alternatives.

At the same time, China is striving to project its image of a stable and reliable trade partner…

🏗️ Construction :Shimizu’s Innovation Machine: Advancing Construction through Automation and Digital Technologies

Shimizu Corporation, in partnership with Bosch Engineering and Yamasaki Construction, has officially begun field trials for its new autonomous bulldozer, the Smart Dozer, aiming to deploy it on construction sites by the end of 2025.

Faced with an aging workforce and a shortage of skilled operators, Japan’s construction industry has been searching for ways to maintain productivity while ensuring safety. The Smart Dozer project, in development since 2020, seeks to address this challenge by automating key earthmoving operations traditionally performed by human operators.

The bulldozer is equipped with high-precision environmental recognition systems capable of detecting obstacles, soil piles, other machinery, and terrain features in real time.

Its autonomous control systems manage the machine’s movements, blade operations, and emergency stops, while automatic route generation software calculates the optimal path for leveling the ground, adapting dynamically to site conditions.

Smart Dozer

Object recognition function

Automatic topographic map generation function

By automating heavy-duty operations, Shimizu expects the Smart Dozer to significantly improve productivity, reduce the workload for human operators, and enhance safety on site.

The company envisions extending this technology to other construction machinery, moving closer to fully unmanned construction environments.

🚗 Mobility : Baidu and Lyft to Launch Robotaxis in Europe in 2026

Chinese tech giant Baidu and U.S. ride-hailing leader Lyft have announced a groundbreaking partnership to deploy Baidu’s Apollo Go RT6 robotaxis across Europe beginning in 2026, pending regulatory approval. This marks Baidu’s first entry into the European autonomous taxi market and Lyft’s first major expansion beyond North America through its $200 million acquisition of FreeNow, which operates in nine countries and over 180 cities.

The initial rollout will target Germany and the United Kingdom, with plans to scale to thousands of vehicles across major European markets over the following years. Under the agreement, Lyft will manage the customer platform, fleet logistics, and regulatory engagement, while Baidu supplies the fully electric, purpose-built RT6 vehicles equipped with the Apollo Autonomous Driving Foundation Model (ADFM).

Baidu’s Apollo Go service already operates over 1,000 robotaxis in 15 cities worldwide and has completed more than 11 million rides. The RT6’s omnimodal sensor suite, 10-layer safety redundancy, and integrated text–image–speech processing showcase Baidu’s deep AI and autonomous driving expertise. Lyft CEO David Risher emphasized a “hybrid network approach,” blending robotaxis with human drivers for seamless customer experiences.

European regulators have accelerated their timeline, aiming for first paid robotaxi rides by spring 2026—paving the way for widespread commercial robotaxi services. This collaboration not only extends Baidu’s global footprint but also positions Lyft as a leading robotaxi platform in Europe, intensifying competition with Uber and homegrown AV initiatives.

Sleek, purpose-built electric RS6 vehicle that will be deployed in German and UK cities, capturing the technological and design sophistication of Baidu’s robotaxis.

⚡Energy: New Renewable Energy Source: Osmotic Power Arrives in Japan

A breakthrough in renewable energy: harnessing salt and fresh water to generate power around the clock

Japan has inaugurated its first osmotic power plant in the southwestern city of Fukuoka, marking only the second facility of its kind worldwide.
The plant is expected to generate about 880,000 kilowatt hours of electricity annually—enough to help run a desalination facility that supplies fresh water to Fukuoka and neighboring regions. That is roughly the equivalent of powering 220 Japanese households, according to the University of Technology Sydney.
Unlike solar or wind energy, osmotic power has the advantage of operating continuously, regardless of weather conditions, as it simply relies on the mixing of freshwater and seawater.

How does osmotic power work?
Osmosis is the natural process where water flows across a semipermeable membrane from a lower concentration to a higher concentration, attempting to equalize both sides.
In practice, osmotic power plants place freshwater and seawater on opposite sides of a special membrane. As water flows into the saltier side, the increased pressure drives a turbine connected to a generator, producing electricity.
At the Fukuoka facility, both treated wastewater and seawater are used. As the seawater becomes diluted and pressurized, part of it is directed through a turbine to create power.

Global progress and future challenges:
The Fukuoka plant builds on a growing global effort to harness osmotic energy. The world’s first facility opened in 2023 in Mariager, Denmark, developed by SaltPower. Similar pilot projects have been tested in Norway and South Korea, while prototypes have also been built in Spain, Qatar, and Australia.
Yet scaling up the technology is not without obstacles. A significant amount of energy is lost in pumping water and overcoming friction across membranes, which limits the net output. However, advances in membrane and pump design are gradually reducing these inefficiencies, raising hopes for more viable large-scale operations.

Experts see Japan’s new plant as an important milestone, proving that osmotic power can contribute to future renewable energy portfolios. With abundant saltwater and freshwater resources in many regions of the world—including Australia’s salt lakes—researchers believe the technology could eventually be scaled to support more communities.

Japan’s first osmotic power plant uses the process of osmosis to power a turbine that in turn creates energy.

🧠 Generative AI: SK Telecom Prioritizes Practical AI for Daily Life Over Benchmark Performance

SK Telecom is revolutionizing its artificial intelligence strategy by emphasizing real-world usability over competitive benchmarking, according to Kim Tae-yoon, Vice President overseeing the company's foundation model program. This approach positions the telecom giant as a leader among South Korea's five elite teams selected to develop the nation's sovereign AI foundation model.

User-Centric AI Philosophy:

"Rather than touting performance through benchmarks, we want people to actually use our AI and decide for themselves," Kim stated in a recent interview. This philosophy drives SK Telecom's focus on practical value in domestic industries and daily life applications, acknowledging that while matching world-leading performance may be challenging initially, Korean AI can excel in localized applications.

The company's flagship A.X (A dot X) model exemplifies this practical approach. Originally handling 10 million daily call summary requests through multiple LLM agents including ChatGPT and Claude, SK Telecom successfully transitioned to using exclusively its proprietary A.X model, achieving both cost reduction and performance improvement.

From Language to Omnimodal AI:

SK Telecom is advancing beyond text-based models toward "omnimodal" technology capable of processing text, images, speech, and video in an integrated manner. The company plans to develop multi-trillion parameter models using Mixture of Experts (MoE) architecture to maximize learning efficiency while maintaining computational feasibility.

Kim outlined the evolution: "We're moving from existing language-centered models to next-generation large omnimodal 'K-AI models' that can process text, voice, images, videos, and even actions through integrated reasoning capabilities".

Post-Transformer Innovation Research:

Starting in late 2025, SK Telecom will launch research into "post-transformer" architecture to address current limitations in computational efficiency and energy consumption. This groundbreaking approach aims to move beyond the transformer backbone that powers GPT and LLaMA models, seeking improved performance for long-context data and multimodal information processing.

"Proposing a post-transformer architecture signals our intent to explore research that breaks away from existing structures," Kim explained, emphasizing collaboration with top machine learning faculty from Seoul National University and KAIST.

Comprehensive Service Integration:

SK Telecom's AI strategy extends across multiple touchpoints through its A. (A dot) personal assistant, which has evolved into a comprehensive AI secretary service. The platform now offers:

Multi-LLM agent functionality supporting eight global models including ChatGPT, Claude, Perplexity, and proprietary A.X
Daily life management integrating calendars, schedules, sleep analysis, and routine optimization
Voice conversation capabilities with natural dialogue flow
Cross-device accessibility through both mobile apps and PC web platforms

Industrial Applications and SK Group Integration:

Beyond consumer services, SK Telecom plans to integrate AI across SK Group's manufacturing, energy, biotech, and semiconductor operations. Potential applications include automating call centers, assisting with report writing, and analyzing industrial processes—uses that deliver immediate operational benefits.

The consortium approach includes partnerships with Krafton (gaming AI), 42dot (mobility services), Rebellions (AI semiconductors), and LINER (knowledge search), creating a comprehensive ecosystem for AI deployment across industries.

SK Telecom's strategy represents a fundamental shift in AI development philosophy, prioritizing user experience and practical problem-solving over technical performance metrics. This approach positions the company to create genuinely useful AI tools that integrate seamlessly into Korean users' daily routines while building toward sovereign AI capabilities that serve national technological independence.

Summary of SKT Consortium's Technology and Development Experience

🏙️ Smart Cities: Woven City Launches: The Next Step in Smart Urban Living

In autumn 2025, Toyota will officially inaugurate Phase 1 of Woven City, its bold urban laboratory at the foot of Mount Fuji on the former Susono industrial site. This project marks Toyota's transformation from a car manufacturer into a global leader in mobility and innovation.

A City Designed for Co-Creation:

Currently spanning 47,000 square meters, Woven City will soon welcome around 360 residents, primarily Toyota employees and their families. The site is conceived as a vibrant, real-world testing platform: at its heart, 19 partner companies—ranging from startups to major corporations and universities—will jointly develop tomorrow's city. Here, smart mobility, AI-powered living, assistive robotics, green energy, and connected homes are tried and tested, with direct feedback from residents and participants guiding development.

Innovation at the Core:

Woven City draws on the technological strength of Toyota and its partners. Autonomous vehicles, hydrogen-powered mobility, smart residential infrastructure, and intelligent energy networks will all be part of daily life. The project aims to expand the concept of mobility to encompass not just people, but also goods, information, and energy—benefiting everyone.

A Respectful and Inclusive Urban Model:

Woven City was designed from the outset as an inclusive, sustainable community, and in March 2023 earned the prestigious LEED Platinum environmental certification—a first for a Japanese city. Community is central, with residents (“Weavers”) and visitors co-creating tangible solutions for better urban living. An innovation accelerator (“Woven City Challenge”) is also available to nurture new talent and guarantee ongoing progress.

Woven City - Mount Fuji

A Long-Term Vision:

Phase 1’s launch on September 25, 2025, is just the beginning: the city will gradually expand to eventually host up to 2,000 residents, opening its doors to the public from 2026. Insights and lessons from this initial stage will shape the city’s development and future experiments.

Timeline:

📡Telecom: Rakuten Mobile Unveils "Saikyou-kun" SIM Vending Machine and AI Avatar Customer Service

Rakuten Mobile has introduced revolutionary "Saikyou-kun" (The Strongest) SIM vending machines at its Rakuten AI Optimism conference on July 30, 2025, enabling complete mobile service contracts without staff interaction. The prototype allows users to contract voice SIM services (both eSIM and physical SIM) through an automated process that includes identity verification via ID scanning and facial recognition cameras, significantly streamlining the traditionally cumbersome mobile signup process.

The vending machine features a large touchscreen interface with avatar-based guidance that will transition to AI-powered customer service in the final version. The process begins with Rakuten ID login, followed by SIM type selection, plan confirmation, and payment setup. For physical SIMs, cards are dispensed within minutes after identity verification, while eSIM users receive QR codes for profile setup—a notable improvement over traditional online contracts requiring multiple devices.

"Saikyo-kun" is an automatic contract SIM vending machine that lets you sign up for Rakuten Mobile voice SIMs on the spot.

Commercial deployment is planned for fall 2025, initially targeting Rakuten Mobile shops before expanding to stations, airports, and public spaces. The company envisions "anytime, anywhere smartphone contracting" to complement its aggressive AI strategy.

AI Avatar Customer Service Innovation:
Rakuten Mobile is simultaneously developing lifelike AI avatar customer service that mimics real shop staff through blinking, facial expressions, and eye contact tracking regardless of user position. During conference demos, the avatars engaged visitors with personalized questions about contracts and services, providing encouraging responses that enhanced user experience.

Market Context and Competition:
This automation push comes as Japan's mobile market faces labor shortages and increasing competition. While prepaid SIM vending machines already exist at major airports like Haneda and Narita for international travelers, Rakuten's innovation extends to full voice service contracts—a first for Japan's telecom industry.

The initiative aligns with Rakuten's broader AI strategy, including the full-scale launch of "Rakuten AI" agent services integrated into the Rakuten Link app, positioning the company as a technology innovator in Japan's traditionally conservative telecom sector.

🎬 Media & Content: Internet Usage Surpasses Traditional TV for the First Time Across All Age Groups in Japan

Japan's Ministry of Internal Affairs and Communications (MIC) released its 2024 Information and Communication Media Usage Survey on June 27, marking a historic shift in the nation's media consumption landscape. For the first time since the survey began including people in their 70s, internet usage time exceeded traditional real-time TV viewing on holidays across all age groups.

Key Usage Statistics:

Daily average media consumption time (all age groups):

Weekdays: Internet 181.8 minutes (+8.2 min) vs. TV 154.7 minutes (-8.2 min)
Weekends: Internet 183.7 minutes (+4.0 min) vs. TV 182.7 minutes (-19.3 min)

Comparison of real time consumption of TV (in red) and internet (in blue) during weekdays (top) and weekends (down)

The survey, conducted among 1,800 people aged 13-79 from December 2-8, 2024, shows a continuing decline in TV viewership. The percentage of people watching real-time TV dropped to 72.1% on weekdays (-3.0%) and 69.1% on weekends (-4.1%).

Demographic Breakdown and Generational Shifts:

Age-specific trends reveal dramatic changes:

40s: Internet usage surpassed TV for the first time on weekends
60s: Experienced the most significant decline in TV viewing time on both weekdays and weekends

YouTube dominates with 83.3% usage rate, followed by Amazon Prime Video (39.2%), TVer (32.2%), and Netflix (26.1%).

Japanese Media Landscape Context:

Japan's media ecosystem reflects a fundamental generational divide. While internet usage has grown consistently since 2017, traditional TV maintained dominance among older demographics until recently. The "golden time" (7-10 PM) viewing patterns show younger generations increasingly choosing internet over traditional broadcasts, with YouTube emerging as a "second channel" competing directly with major networks.

OTT vs. Traditional TV consumption patterns:

Connected TV data shows YouTube ranking second only to Nippon TV in daily viewing time among households using streaming services
TVer (Japan's free catch-up service) reaches 32.2% usage, positioning it as a bridge between traditional and digital consumption
Traditional broadcasters are adapting: 2025 will see comprehensive OTT measurement integrated into official ratings alongside traditional TV metrics

The survey represents a watershed moment for Japan's media industry, signaling the end of TV's dominance even among traditionally loyal older viewers. As internet usage becomes universal across age groups, broadcasters face unprecedented pressure to adapt their content distribution strategies beyond traditional linear programming.