The Prof G Pod with Scott Galloway
The Prof G Pod with Scott Galloway

China Decode: Hong Kong's AI Crackdown, Lululemon’s Marketing Backlash, and World Cup Fever

June 23, 2026

AI Summary

5 min read

China Decode: Hong Kong's AI Crackdown, Lululemon’s Marketing Backlash, and World Cup Fever

On a Monday after the Dragon Boat Festival holiday, Chinese markets rebounded sharply—the Shanghai Composite closed up 1.78% and the Shenzhen Component finished up 2.13%, its highest level in 11 years. The People's Bank of China held its key lending rates steady. Bank of China gained 2.8%, semiconductor equipment company Narrow Technology rose 3.3%, and electric battery maker CATL climbed 4.4%. But the market data was backdrop to three developments that reveal deeper currents in China's relationship with technology, global brands, and sports.

The AI Iron Curtain Tightens Around Hong Kong

JP Morgan Chase has reportedly blocked its Hong Kong employees from accessing Anthropic's AI models, citing licensing terms that restrict use in Greater China. Goldman Sachs had already made a similar move. The decision follows Anthropic's own policy of barring Chinese nationals working for the company from working on its frontier models, Fable and Mythos. At the same time, Washington escalated pressure on Dutch chipmaker ASML, alleging that advanced lithography equipment—potentially including extreme ultraviolet (EUV) machines—may have reached China. ASML issued an emphatic denial, saying it has never shipped an EUV machine or any component specifically designed for one to China. The U.S. Depart

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What you'll learn

  • 1 (02:08) **Welcome & Market Check-In** - James and Alice introduce the three main topics of the episode: AI restrictions in Hong Kong, Lululemon’s marketing backlash, and World Cup fever.
  • 2 (03:10) **JP Morgan & Goldman Restrict AI Models in Hong Kong** - Both banks cut off employee access to Anthropic’s AI models in Hong Kong, citing licensing terms that restrict use in Greater China.
  • 3 (03:36) **US Escalates Pressure on ASML Over Chip Equipment** - Washington is pushing the Dutch chipmaker over allegations that advanced lithography equipment may have reached China.
  • 4 (05:15) **Deep Dive: The Significance of the ASML Allegation** - James argues the ASML story is more significant than the AI model restrictions, as the chip gap is the biggest strategic gap between the US and China.
  • 5 (08:27) **The Hong Kong Dilemma & AI Model "Distillation"** - The hosts debate whether the AI model restrictions are political or a genuine competition concern over "distillation" of proprietary tech.
  • 6 (14:19) **Assessing the US Strategy on Tech Competition** - The hosts question the effectiveness of Washington's piecemeal approach to restricting China's AI progress.
  • 7 (20:58) **Lululemon's Great Wall Marketing Backlash** - A Lululemon promotional event at the Great Wall of China backfires after a drum in the imagery is perceived as Japanese, triggering nationalist backlash on Chinese social media.

+ Full timestamped outline available in the app

Guests on this episode

James King

Show Notes

Alice Han and James Kynge dive into why JPMorgan has cut its Hong Kong employees off from Anthropic's Claude. That comes after Goldman Sachs quietly restricted AI access for their employees in the city. With ChatGPT already blocked on the mainland, are U.S. companies drawing a new line around Hong Kong? And what does it mean for the city's future as a global financial hub?

They also discuss Lululemon's Great Wall yoga festival, which was meant to celebrate Chinese culture. Instead, a Japanese-style drum in the promotional imagery set off a nationalist firestorm — over 50 million views on Weibo and counting. It's the latest in a long line of foreign brand missteps in China. Why is it so hard to get it right?

And finally: China hasn't qualified for the World Cup — but football fans have found someone to root for: Chinese referee Ma Ning, who has picked up sponsorships from Lenovo and Hisense and 210,000 new social media followers.

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The Prof G Pod with Scott Galloway

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