Chinese artificial intelligence firm iFlyTek is strategically pivoting towards Europe amidst escalating trade tensions between the United States and China. According to Vice President Vincent Zhan, the company acknowledges the impact of the ongoing U.S.-China trade dynamics, noting that North America represents iFlyTek's most significant market outside of China in terms of demand.

In response to the trade headwinds, iFlyTek is proactively diversifying its supply chain to mitigate potential disruptions caused by tariffs. This strategic shift coincides with the company's expansion plans within the European market. U.S. President Donald Trump's recent imposition of 20% tariffs on various Chinese electronics, including smartphones, laptops, video game consoles, smartwatches, speakers, and Bluetooth devices, further underscores the urgency of iFlyTek's diversification efforts. These tariffs add to existing pressures, including those stemming from President Joe Biden's earlier tariffs on Chinese computer chips.

iFlyTek, boasting a market capitalization of 123 billion Chinese yuan ($16.97 billion), currently operates in France and Hungary, with an established office in the latter. The company intends to solidify its European presence by opening an office in Paris within the next year or two. Zhan revealed plans to extend operations to additional European countries, specifically mentioning Spain and Italy as potential targets for expansion in the coming year.

Hefei-based iFlyTek, renowned for its voice recognition technology, recently unveiled a new tablet in Barcelona designed to transcribe conversations. This product launch serves as a tangible demonstration of iFlyTek's commitment to the European market, according to a company spokesperson. The company's selection of expansion locations is heavily influenced by the presence of existing partnerships within those regions.

Notably, iFlyTek was placed on a U.S. trade blacklist in 2019, restricting its access to components from U.S. companies, such as Nvidia's AI chips, without explicit approval from Washington. In response to these restrictions, iFlyTek has explored alternative solutions, including utilizing chips manufactured by Huawei to develop its AI models and integrating models from DeepSeek. Zhan acknowledged the challenges posed by the U.S. restrictions but emphasized the growing capabilities of Chinese companies in AI chip manufacturing, suggesting a path towards self-reliance.