China begins construction on aviation megaproject in UAE

China Railway Construction Corporation (CRCC) has begun building the world’s largest aircraft maintenance complex in the United Arab Emirates, reports the South China Morning Post. This move comes despite the instability of the region.

The project, worth more than $5 billion and one of the largest construction deals a Chinese builder has secured in the region, will comprise eight large maintenance hangars for aircraft storage, covering about 1.21 million square meters (13 million square feet).

CRCC officially launched construction on Monday, with completion expected by 2030, according to state news agency Xinhua. The complex is located in Dubai South, a planned city formerly known as Dubai World Central.

Manus founders seek $1BN to undo Meta deal

The co-founders of Manus are exploring options to fulfill Beijing’s demand to unwind a takeover by Meta, reports Bloomberg. This includes raising about $1 billion from external investors to buy back the Chinese-founded AI operation.

Manus’s three founders—Xiao Hong, Ji Yichao and Zhang Tao—are in discussions about a round of funding at a valuation that would at least match the $2 billion Meta paid to acquire the agentic AI outfit, according to people familiar with the matter. The founders may chip in with their own money to finance the rest of the transaction, the people said.

If they go ahead, the next step would entail setting Manus up as a Chinese joint venture with those backers, ahead of a Hong Kong initial public offering, one of the people said, requesting not to be named discussing private deliberations.

CEOs of BASF, Thyssenkrupp to join German economy minister China trip

Top executives of BASF, Thyssenkrupp and Siemens Energy will participate in German Economy Minister Katherina Reiche’s first trip to China next week, ​reports Reuters. This comes at a time of ‌rising protectionism and shifts in global trade.

The visit comes three months after German Chancellor Friedrich Merz’s trip to the world’s second-largest economy, a trip aimed at resetting ties that are determined by key ​dependencies, most notably in the field of rare earths. “It is particularly ​important for the German government to position itself more resiliently in the area of raw ‌materials, ⁠and also to demand fair competition,” a spokesperson for Germany’s Economy Ministry said.

Reiche will be accompanied by Markus Kamieth, CEO of the world’s ​top chemicals maker BASF the company said. BASF in March opened ​its ⁠new €9 billion ($10 billion) complex in southern China’s Zhanjiang, its single largest investment ever. Miguel Lopez, CEO of German engineering conglomerate will also participate, as will ⁠Tim ​Holt, board member at power equipment maker Siemens, Germany’s third most valuable company, the two companies said.

China’s Chery aims to sell 1MN EVs abroad in 2026, eyes US market

Chery Automobile, China’s largest car exporter by deliveries, expects its overseas sales of electric vehicles (EVs) to jump as much as 27% this year, reports the South China Morning Post. This comes as a global energy crisis spurs demand for battery-powered vehicles.

Zhang Guibing, the president of Chery International, said that pure electric and plug-in hybrid models were projected to represent as much as 70% of the carmaker’s total deliveries outside the mainland in 2026. That would equate to roughly 1.05 million units, up from 827,000 EVs in 2025.

Zhang confirmed that Chery was considering an entry into the US market, the world’s second-largest automotive arena. “Every player envisions selling cars in that huge market,” he said, though he cautioned that the foray would be dependent on several unspecified factors.

China sets yuan at highest rate in three years

China’s central bank set the yuan’s daily reference rate against the US dollar at its strongest level in more than three years on Thursday, reports the South China Morning Post. This comes as global banks turn increasingly bullish on the Chinese currency.

The People’s Bank of China set the yuan’s midpoint rate, also known as the daily fixing rate, at 6.8349 to the US dollar on Thursday–the strongest showing since February 2023.

The move followed a 0.22% appreciation in the offshore yuan on Wednesday, after bouts of volatility over the past week. As of early afternoon on Thursday, the offshore yuan was trading at 6.803 per US dollar.

This year has been really busy already, but it feels like it is going to get busier, with consequences that are impossible to predict. For the world and for China. Just last week, we had Mr T visiting Beijing, and this week—what a coincidence!—Mr P. The Trump visit in retrospect resulted in no clear advantages for the US, and the most significant element of it from a longer-term view was probably Trump’s characterization of the island situation as being the “Taiwan problem”, effectively indicating that from the US perspective, it was a bargaining chip. The clear message from Mr P meeting was of a solid alliance and the Russian commitment to provide as much energy as needed to its big brother.

So what’s next? It is clear that the mid-term elections are going to be a big Blue wave. So time is running short to execute the MAGA agenda. And what is that in geopolitical terms? Our guess, and we are not alone in this, is that Cuba and NATO are the next big pieces. and it is either before November or not at all. A third piece may or may not have to do with the island. But if Trump has in some way indicated a fundamental shift in the US position on the island, then it is up to the Center to decide if and when.

So the sense is that everything is basically in play at this point. The next inflection point for the island is whether or not Mr T approves the defence package for the island already approved by Congress. Will that go through? And what do the bros and others behind Trump think about the importance of the semi-conductor industry on the island, and the island’s role in the geopolitical structure of East Asia?

So a huge sense of foreboding. Unprecedented in modern history. Although the markets around the world don’t seem to be paying much attention in that regard. The intent seems to be the remaking of the United States and the remaking of the world. Before the end of the year. And with that, you have a happy weekend.

Chinese investment in Europe hits 7-year high

Chinese investment in Europe hit a seven-year high of €16.8 billion ($19.5 billion) in 2025, reports the South China Morning Post. This was driven by a strong rebound in mergers and acquisitions (M&A) and record greenfield completions, a new report has found.

But the annual study, published on Tuesday by Rhodium Group and the Mercator Institute for China Studies, said that the pipeline may be thinning, with newly announced projects falling under pressure from Beijing’s push to retain industrial capacity at home and Europe’s growing regulatory barriers.

Chinese foreign direct investment in Europe–including the United Kingdom–rose 67% year on year in 2025, as China’s investors increasingly focused on the region. Europe’s share of China’s total global FDI jumped from 17% to nearly a quarter, according to the two think tanks. M&A activity drove the rebound, rising 89% year on year to €7.9 billion, while greenfield investment hit a record €8.9 billion, retaining its position as the primary channel for Chinese investment in the region.

China leads world in mobile payment adoption

China led the world in mobile payment adoption in 2025, with apps accounting for 89% of point-of-sale transaction value, reports Caixin. This is far above the global average of 37%.

The Global Payments Report 2026, based on data from 42 countries and regions, showed payment apps accounted for 37% of point-of-sale transaction value in 2025, and are projected to reach 46% by 2030, or $15.6 trillion, growing at an 8% compound annual rate.

On the Chinese mainland, the transformation is nearly complete. Payment apps accounted for 89% of point-of-sale spending in 2025, the highest globally, and are expected to rise to 94% by 2030. Unlike most Western markets, the country largely skipped widespread credit card adoption, moving directly into mobile-first payments under a tightly integrated ecosystem shaped by state support and platform scale.

Two Chinese supertankers pass Strait of Hormuz

Two Chinese very large crude carriers (VLCCs) sailed out of the Strait of Hormuz on the morning of May 20, reports Caixin. Their passage sees an easing of a weeks-long bottleneck for vessels trapped in the Persian Gulf after Iran closed the critical oil chokepoint.

The two 300,000-ton-capacity ships departed an anchorage off Dubai on May 19. Unlike other Chinese vessels that recently navigated the tense waterway, neither ship broadcast the “CHINESE OWNER & CREW” identity tag on their tracking systems while transiting the strait.

One of the exiting vessels, the Chinese-flagged Yuan Gui Yang, is operated by state-owned China COSCO. The ship entered the Persian Gulf in late February and loaded crude at Iraq’s Al-Bakr port on March 3 before being stranded. Now clear of the strait, it is expected to arrive at the Shuidong oil terminal in Guangdong province on June 4. The second Chinese VLCC to exit on May 20 was the Hong Kong-registered Xin Li Yang, part of the state-run Sinochem fleet. The vessel had been stranded since loading Qatari crude on March 2 and is now scheduled to arrive at Quanzhou port in Fujian province on June 7.

Chinese rare earth exports to Japan see small rebound, shortages remain

China’s exports of rare earth permanent magnets to Japan slightly rebounded in April after slumping the previous month, reports the South China Morning Post. But Japanese firms warn they are facing “severe” shortages as a diplomatic row between Beijing and Tokyo grinds on.

Shipments of permanent magnets from China to Japan rose by 2.5% in April compared with the previous month, according to Chinese customs data released on Wednesday. But the modest rise only partly offset the 17.3% drop recorded in March.

The slowdown has raised alarm among Japan’s industrial giants, as permanent magnets are essential components for a range of hi-tech products–from electric cars to advanced weaponry. China is the world’s largest supplier of the magnets.

Asset manager Schroders retreats from China

British asset manager Schroders is dismantling its wholly owned mutual fund business in China, reports Caixin. It will fully transfer its portfolios to Neuberger Berman and is seeking a buyer for its regulatory license after three years of unprofitable operations.

Schroder Fund Management (China) has applied to China’s securities regulator to hand over three mutual funds and core investment staff to Neuberger Berman Fund Management (China). A fourth, smaller bond fund will be liquidated.

Approved in January 2023, the wholly foreign-owned enterprise has struggled to scale. Despite injecting capital to reach a registered base of RMB 503 million ($74 million), Schroders managed only about RMB 1.7 billion in mutual fund assets by the end of March. The firm failed to turn a profit as it grappled with China’s reliance on bank and brokerage distribution channels, which demand high commission fees that severely squeeze margins for smaller fund managers.

Highs and lows

A study by Rhodium Group and the Mercator Institute for China Studies found that Chinese investment in Europe hit a seven-year high of €16.8 billion ($19.5 billion) in 2025, much of it driven M&As and greenfield projects in the EV and battery industries.

That number, while being an increase from 2024’s €10 billion, is still significantly lower than the numbers from a decade ago, when for instance in 2016, Chinese investment in Europe hit a record high of €47 billion. The number started to drop the following year due to a combination of tightened capital controls from Beijing, and increased scrutiny of Chinese takeovers by Europe.

Concerns in Europe have grown over Chinese ownership of critical infrastructure, such as ports, telecoms and energy grids, as well as the tendency of Beijing to heavily subsidize many of its industries, giving them an unfair price advantage. Beijing has repeatedly responded by accusing European leaders of protectionism. But in Europe’s view, China is not playing by the rules it agreed to when joining the WTO back in 2001—in 2025, China’s trade deficit with the EU reached €359.8 billion.

US seeks to counter Chinese tech sales overseas

US senators from both parties will unveil a bill aimed at countering Chinese sales ​of AI tools overseas, reports Reuters, which has seen a copy of the bill.

The legislation would create an office within the State Department to subsidize purchases by allied governments of US technology and ​streamline the procurement process. If passed, a fund worth $500 million would be ​created to help finance the program.

The bill would seek to ​ease foreign ⁠government procurement of US AI models, chips and other related software and hardware, as well as telecoms equipment, cybersecurity products, biotechnology, and cloud computing systems among other things.

China’s machinery, tech exports hit record in April

China’s exports of mechanical and electrical products rose to a monthly record in April, reports Caixin. At the same time, growth in shipments to the US turned positive for the first time in a year.

China exported $229.3 billion of mechanical and electrical products in April, up 20% from a year earlier and marking another monthly high, according to updated monthly data released Monday by the General Administration of Customs. In the first four months of the year, exports of such products rose 21.1% to $849 billion, contributing 12.7 percentage points to growth in overall goods exports.

Integrated circuits, computer products and complete vehicles remained strong, with April export values rising 100.1%, 47.7% and 44%, respectively, from a year earlier. Monthly exports of mechanical and electrical products have exceeded $200 billion for three straight months since the start of 2026.

Robot-dog maker Deep Robotics looks to Shanghai IPO

Hangzhou robot maker Deep Robotics is seeking to raise RMB 2.5 billion ($367.6 million) in a Shanghai listing, reports Caixin. This comes after the company turned profitable in 2025 on revenue that more than tripled.

Deep Robotics’ revenue rose from RMB 50.1 million in 2023 to RMB 103 million in 2024 and RMB 337 million in 2025, according to the prospectus published by the Shanghai Stock Exchange. The company posted net losses of RMB 25.9 million and RMB 13.3 million in 2023 and 2024, before recording a net profit of RMB 28.7 million in 2025.

Government subsidies made a meaningful contribution to the turnaround. Deep Robotics reported nonrecurring gains and losses of RMB 2.7 million, RMB 10.9 million and RMB 13.6 million between 2023 and 2025, most of which came from subsidies. Subsidies totaled RMB 11.9 million in 2025, exceeding one-third of net profit. Deep Robotics said in its filing that the relatively large amount of subsidies it received had a positive effect on its profitability.

Bilibili turns profit as AI boosts video supply

Chinese video platform Bilibili said first-quarter adjusted net profit rose 62% from a year earlier, reports Caixin. This comes as AI helped expand video supply and supported faster growth in advertising revenue.

Revenue rose 7% to RMB 7.47 billion ($1.09 billion). Net income was RMB 202 million, reversing a loss a year earlier, while adjusted net income was RMB 590 million. Gross margin rose to 37.1%, the company’s 15th consecutive quarter-on-quarter increase, aided in part by rapid growth in advertising, which accounted for 35% of revenue.

Chairman and chief executive Chen Rui said on an earnings call that AI had expanded both the quantity and quality of video content, calling it an opportunity the company could not afford to miss. He said short-video supply was already excessive across China’s internet content ecosystem, while high-quality medium-length video remained scarce. AI tools allow videos that previously required teams to be produced at low cost by one or two people, with similar effects in music, he said.

China’s BeiDou takes lead in BRI navigation market

Products and applications compatible with BeiDou, China’s home-grown navigation system, have captured 58% of the positioning, navigation and timing (PNT) market in countries that have signed up to the Belt and Road Initiative, reports the South China Morning Post citing an industry white paper.

There were now more than 20 BeiDou-related service centres in countries taking part in the initiative. Products and services related to the system had reached over 140 countries and regions by the end of last year, said the Global Navigation Satellite System and Location Based Services Association of China, a semi-official industry body.

The annual white paper, whose scope was expanded from standard satellite navigation to a comprehensive PNT system this year, found that Chinese PNT products and services had generated RMB 1.33 trillion ($195.6 billion) in total output value by last year. The foundational satellite navigation sector accounted for RMB 629 billion of that, up 9.24% year on year, the white paper said.

AI export wars

The US Congress is preparing a bill aimed at countering sales of Chinese AI tools overseas by subsidizing American tech. Senators from both parties are proposing an office be established in the State Department which will dedicate $500 million towards making it easier for foreign allies of the US to purchase American AI models, chips and other hardware and software.

Beijing has long supported its own tech industry with all sorts of subsidies and funding, ensuring China’s position on the global stage as a tech powerhouse. And it has been very successful. Chinese AI apps such as DeepSeek and Qwen are among the world’s most downloaded. While Chinese chips are still behind the top ones produced by Nvidia, all evidence suggests they are catching up.

On the other hand, the US policy during the Trump era has been especially uncoordinated. On the one hand, White House officials have been critical of China’s tech ambitions—even going as far as to accuse the Chinese of industrial espionage—and yet have allowed the sale of American tech, such as Nvidia’s H200 chips, to China. It appears as though the US is now feeling its grip on the global tech industry slipping and is hoping to entice its partners back.

Rising “bride prices” push rural Chinese men out of marriage

Soaring traditional “bride prices” remain a pervasive economic hurdle in rural China, reports Caixin. This results in young rural men becoming trapped in a cycle of financial strain that dampens their desire to marry and have children.

According to a recent study published in the international economics journal Economic Modelling, men from regions with steep bride prices—a traditional payment from the groom’s family to the bride’s— have significantly lower expectations and desires for marriage and childbirth. This trend is particularly pronounced among men in their late twenties.

The study notes that Chinese bride prices began to surge sharply around 2006, more than doubling by the late 2010s. Between 2013 and 2018, the average bride price stood at RMB 46,861 ($6,892). Meanwhile, the surveyed sample reported average savings of RMB 21,096 over the past year versus the 127,300RMB average bride price in 2025.

Australia orders Chinese investors to divest from rare earths company

Australia’s treasurer on Monday has again told investors with Chinese connections to dispose of shares in a domestic rare earths company with A$53.3 million ($38.2 million) in total assets, reports the South China Morning Post. The move suggests the country intends to tighten its grip on local control of the rare earths market, as global supply chains shift and the United States taps Australian sources.

Analysts said the move may be Australia’s way to diversify its rare earth supply chain, but that it does risk retaliation from China.

Treasurer Jim Chalmers made “further disposal orders” for investors in Perth-based Northern Minerals, the firm said on its website and to the Australian Securities Exchange.

Invoking the country’s Foreign Acquisitions and Takeovers Act, Chalmers called for Chinese investors and companies to shed about 1.68 billion shares, or 17.6% of the company’s total, according to Northern Minerals. The divestments must be made within 14 days.

China, Japan lead drop in foreign holdings of US Treasuries

China and Japan led a decline in foreign holdings of US Treasuries slid in March, reports Reuters citing data from the US Treasury Department.

Holdings of US ‌Treasuries slipped 1.5% to $9.348 trillion from a record peak of $9.487 trillion seen in February. Compared to a year earlier, Treasuries owned by foreigners were up ​3.3%.

China’s holdings of Treasuries ​dropped 6% to $652.3 billion in March from $693.3 billion in the previous month. March’s China holdings were the lowest since September 2008, when holdings tumbled ​to $618.2 billion. China is still the third-largest non-US owner of ​Treasuries, but its holdings have declined by more than 14% since the ‌beginning ⁠of 2025.

Evergrande liquidators seek $8.4 BN in HK lawsuit

The liquidators of China Evergrande Group are seeking RMB 57 billion ($8.4 billion) from three PricewaterhouseCoopers (PwC) entities in one of the largest corporate lawsuit claims in Hong Kong, reports the South China Morning Post. They argue the firm’s global coordinating arm assumed responsibility for audits linked to the collapsed developer’s accounting scandal.

Evergrande’s liquidators, Tiffany Wong and Eddie Middleton of Alvarez & Marsal, were pursuing the claim against PwC International, PwC Hong Kong and PwC China jointly, the High Court heard on Monday.

The court also heard an application by PwC International to be removed from the lawsuit before the main trial begins.

Ford to launch new European car models to fend off China

For will launch seven new models in Europe by 2029, reports Reuters. This comes as it seeks to grow its flagging passenger car sales, fight off fierce competition from Chinese rivals and maintain an edge in the continent’s commercial vehicle market.

“Our plan is to actually grow our market share... in a marketplace ​that is almost fracturing in terms of the number of competitors,” Jim Baumbick, Ford’s European president, told ​Reuters. “We need to stand out in a crowd.”

Just a decade ago Ford was Europe’s No. 4 automaker, selling more than 1 ‌million ⁠cars across the continent, according to data from industry lobby group ACEA. Last year, the company sold just over 426,000 cars and fell to eighth place behind Mercedes-Benz. Ford is trying to revive its fortunes when Chinese automakers, including BYD and Cheryn expanding into Europe with rapidly growing sales.

Ineligible bachelors

A survey carried out by international journal Economic Modelling found that young rural Chinese men are showing significantly lower expectations and desire for marriage and having children. The cause for this is cited as the Chinese custom of men being expected to give large sums of money to their future spouse’s family to gain approval for the wedding. While average “bride prices” vary by region, in some places they were RMB 127,300 ($18,721) in 2025.

Considering the survey respondents cited their annual average savings as just RMB 21,096, the price of getting married is beyond the means of many of the men. This is yet another example of the many social and financial challenges which are feeding China’s growing demographic decline. It is a well-known fact that rural China has long suffered from a large gender imbalance as a result of the One Child Policy and the traditional preference for boys (112 males born for every 100 females in 2021). There are anecdotes of rural Chinese men in some regions even seeking wives from poorer countries such as Vietnam, North Korea and the Philippines in response to this.

Underneath headline growth figures and flashy infrastructure lies multiple challenges for China as it moves into the future. The demographic issue is one of the most serious. Rural men not being able to afford to get married, urban women choosing not to have children due to career pressure, the gender imbalance, the overall sense of a lack of security and confidence in the future—all of these factors make it difficult to see a reversal of the ageing population.

China to purchase at least $17 BN in US agricultural goods

China has agreed to buy at least $17 billion in US agricultural products annually through 2028, reports the South China Morning Post citing a White House statement.

The commitment resulted from the summit between US President Donald Trump and Chinese President Xi Jinping last week and will be in addition to soybean purchase commitments that were made in October 2025, according to a fact sheet released by the White House.

The White House added that China had resumed imports of poultry from US states that the US Department of Agriculture (USDA) had determined were free of highly pathogenic bird flu.

China, US to establish trade, investment councils

China and the United States have agreed to establish trade and investment councils, reports the South China Morning Post. This follows the recent summit between the two countries’ leaders and sees them committing in principle to match each other’s tariff cuts on a reciprocal basis.

“The two sides will use the Trade Council as a forum to discuss issues such as tariff reductions on specific products,” China’s Ministry of Commerce said in a statement on Saturday, without providing further details. The world’s two largest economies also made progress on agricultural trade and aircraft, the statement added.

The new board of trade would allow Washington and Beijing to “manage bilateral trade across non-sensitive goods”, the White House said, while a separate board of investment would “provide a government-to-government forum for discussing investment-related issues”.

China to address US rare earth concerns

China will address US concerns about shortages of certain specialty ​rare earths caused by Beijing’s export controls, reports Reuters citing a factsheet released by ‌the White House outlining the major deals agreed during a summit last week.

China’s rare ​earth export controls—introduced in April 2025 ​in retaliation for US President Donald Trump’s Liberation ⁠Day tariffs—continue to tightly restrict exports of some ​rare earths despite a deal last October in which ​the White House says China agreed to allow shipments to freely flow.

“China ‌will ⁠address US concerns regarding supply chain shortages related to rare earths and other critical minerals, including yttrium, scandium, neodymium and indium,” it read.

China’s economy slows in April

China’s economic growth slowed in April as industrial output and retail sales growth missed expectations, reports Reuters. This comes as the country grappled with higher energy costs from the Iran ​war and sluggish domestic demand.

Data from the National Bureau of Statistics (NBS) showed on ‌Monday that factory output grew 4.1% from a year earlier last month, compared with a 5.7% rise in March and a Reuters poll forecast for 5.9% growth. It marked the slowest growth since July 2023.

Retail sales, a ​gauge of consumption, rose just 0.2% in April, cooling sharply from 1.7% in March ​and marking the weakest gain since December 2022. The figures were also ⁠well below forecast centred on a 2% increase.

Brazil reinstates tax break beneficial to Chinese vendors

Brazil has reinstated a tax exemption for imported goods worth $50 or less, reports Caixin. The move may give Chinese cross-border e-commerce sellers a lift as other markets such as the US and Europe tighten restrictions on low-value parcels from China.

President Luiz Inácio Lula da Silva signed an executive order removing federal import taxes on low-value parcels, reversing a policy introduced less than two years ago that had sharply raised costs for overseas online purchases. The decision lowers the overall tax burden on imported packages worth $50 or less to about 20.4%, down from as high as 44.5% previously. A $45 imported item that had cost Brazilian consumers roughly $65 after taxes would now cost about $54.

The move is expected to benefit Chinese online retailers and merchants that have aggressively expanded in Brazil, one of the world’s fastest-growing e-commerce markets and an increasingly important destination for Chinese exports.

The art of the deal

During the US President Donald Trump’s visit to Beijing, a number of deals were announced. Chief among them is the pledge by China to purchase 200 Boeing aircraft and the agreement to buy $17 billion worth of agricultural products over the next few years. Beijing also said it will address American concerns over rare earth export controls. The two sides have also agreed to set up councils to govern trade and investment—a sign that the two sides both desire to see a cooling of trade tensions.

Before Trump launched the trade war against China in 2022, US agricultural exports to China were around $40 billion a year. Even with this new deal of $17 billion, added onto the $10.5 billion negotiated in October 2025, the total amount still falls short of what it previously was. Likewise, the 200 planes committed is far below the 500 anticipated beforehand. The export controls statement was also very similar to one also made back in October and was vaguely worded.

To many analysts and commentators watching the much-anticipated summit last week, the results have been underwhelming. Deals have been made, but there is nothing which could not be canceled at any time. And it is not clear what if anything, the United States has offered in return.

Xi, Trump call for stability of US-China relationship

Sitting down for talks at the Great Hall of the People in central Beijing, US President Donald Trump and Chinese Leader Xi Jinping agreed to make stability a key goal of relations over the next three years, reports the South China Morning Post citing Chinese state-owned Xinhua.

Trump referred to Xi as a great leader and a friend, thanking him for the “magnificent welcome like no other”. He also invited Xi and first lady Peng Liyuan to visit the White House, setting the date for September 24.

Xi said China and US could be partners rather than rivals, and that “realizing the great rejuvenation of the Chinese nation and making America great again can coexist, complement each other and benefit the world”.

China to order 200 Boeing jets

China has agreed to ​buy 200 Boeing jets, reports Reuters citing comments from President Donald Trump to Fox News. The number that was far fewer than analysts ‌had expected, and the plane maker’s shares fell 4.1% that same day.

Details of the deal were not immediately available, including when and which type of jets would be delivered, but the amount was much smaller than the roughly 500-plane package that sources told Reuters was under discussion ahead of a meeting on Thursday between Trump and Chinese leader Xi Jinping.

The talks had been for 500 Boeing 737 MAX jets, plus possibly dozens of more expensive widebody jets in follow-on orders after the summit, according to sources familiar with the discussions. China has also been in talks for a similarly sized ​deal with European plane maker Airbus.

China restores US beef imports during Xi-Trump summit, raising concerns in Brazil

Brazil’s government expressed concern over China’s renewal of US beef import licences, warning the move could reshape competition in the country’s largest meat export market, reports the South China Morning Post.

A senior Brazilian government official told the South China Morning Post that the renewal brought “anxiety” to the sector and could affect domestic cattle prices. China is Brazil’s largest beef market, and the quota system already reduces the country’s competitiveness, the official said.

The comments came after Bloomberg News reported on Thursday that China had renewed import licences for hundreds of US beef plants during US President Donald Trump’s visit to Beijing for talks with Chinese leader Xi Jinping.

Chinese supertanker breaches Strait of Hormuz

A Chinese supertanker has successfully navigated the Strait of Hormuz, reports Caixin. The vessel managed to break through a near-total bottleneck caused by a dual naval blockade by the US and Iran.

On Wednesday morning local time, the Chinese-flagged, 310,000-ton very large crude carrier, or VLCC, Yuan Hua Hu sailed out of the Persian Gulf through the heavily contested strait. The vessel was fully loaded with crude oil sourced from Iraq’s Al Basrah Oil Terminal. A large car carrier, the Xiang Jiang Kou, exited the strait alongside it.

Both vessels belong to the Chinese state-owned maritime conglomerate China COSCO Shipping. According to Diaodubao, a maritime digital scheduling platform, the Yuan Hua Hu and the Xiang Jiang Kou turned off their automatic identification systems near an anchorage in Dubai on Tuesday evening. The ships only reactivated their tracking systems in the early hours of Wednesday while passing through the strait, broadcasting their status as “CHINESE OWNER&CREW.”

Baidu CEO says AI agents to be true metric of success

Baidu CEO Robin Li said that the key metric for success in the AI era should be “daily active agents” rather than token consumption, reports Caixin. The comments underscore his confidence in the transformative potential of AI agents in people’s everyday lives.

Speaking at the Create 2026 Baidu AI Developer Conference on Wednesday, Li emphasized that developers should shift their focus from foundational models to building practical applications, adding that token consumption only measures computing cost whereas AI agents represent actual value.

Li expects general-purpose AI agents to drive several major transformations. They will outstrip chatbots like ChatGPT in terms of executing complex tasks, Li said. AI agents will also reshape companies’ organizational structures by working as digital employees, prompting executives to adopt an agent-first strategy, he added.

Mr Trump and crew came to town and there were a series of meetings—and the core question is what does it all mean? What is the takeaway from this very rare and extremely significant meeting? We don’t know what was not reported. We don’t know what the private discussions were, what was said by either side, which makes it difficult to take a view. But the initial sense from us is that this was a PR triumph for the System in that it has been pitched to the world from Beijing as being a meeting of absolute equals. That the world is basically China and the United States and nothing else matters and that the two parties are fundamentally equal. Even ten years ago, five years ago, this would have not been the presumed background sense of the meeting. Today it is. Of course, China has become enormously more significant in all sorts of ways in the past few years. But it is the change in the position of the United States in the world, particularly during the Trump years, which has created the new perception. The core word is decline.

The meeting, therefore, was not so much a measure of how strong China has become—there are all sorts of problems in China half-hidden behind the opaque screen. The more important element is the sense of decline of the United States, from its former position of unassailable authority to its current perceived position in the global geopolitical game as the equal of China. Amazing.

Elizabeth Economy, writing in Foreign Affairs last December said that the United States was “not just abdicating its role in the current international system” but also “falling behind in the fight to define the next one.” Distracted by the divisiveness unleashed by the Trumpian rise, the US is falling behind on energy, the deep seas, the poles, cyberspace, and outer space, and its lead in other areas including AI is under threat. Regardless of what Mr T said, this meeting basically confirms that. At the same time, the positioning of the US is not necessarily forever, there are circumstances that would make it recoverable, and things may change in the coming months or years.

As to specific takeaways, will friendship break out between the two powers? Will China’s economy really be opened up to the bros? How many Boeing aircraft will they really buy? What will be the quid pro quo required in return for more US beef imports? And how on earth did we get here? Only the Shadow knows.

Have a great weekend.

Nearly half of young Chinese women say no to motherhood

Around 47% of Chinese women born after 2000 say they don’t plan to have children, reports Caixin citing a survey from Zhaopin on working mothers’ lives and career development.

The report found that 41.5% of companies have no targeted fertility or parenting-support measures, while 68.8% of women said the core cause of gender inequality at work is that “childbearing is a burden women cannot escape.” Only 26.7% of men shared that view.

The report found that 61.5% of working mothers believe they have “almost no chance” of promotion, while 21.6% said their chances are “very small.” Only 5.3% said they were likely or certain to be promoted.

Chinese carmaker Xpeng in talks to buy VW factory in Europe

Chines carmaker Xpeng is in talks with Volkswagen and other carmakers about buying a factory in Europe, reports the Financial Times. This comes as it looks to expand international sales.

“We are… discussing with [Volkswagen] to see if there is any possibility we can find a location here in Europe,” Elvis Cheng, Xpeng’s managing director of northeastern Europe, told the FT’s Future of the Car summit. VW did not immediately respond to a request for comment.

VW has said it needs to offload excess production capacity in Europe in response to weaker demand and rising competition. Xpeng builds its vehicles in the region at contract manufacturer Magna Steyr’s plant in Austria. But Cheng said the production line was running out of capacity.

Beijing cracks down on pharmaceutical kickbacks

China is tightening its grip on pharmaceutical sales practices, rolling out stringent new regulations to eradicate corruption and kickbacks in the country’s sprawling healthcare sector, reports Caixin.

On May 7, seven government bodies—including the National Medical Products Administration, the Ministry of Public Security and the National Health Commission—jointly issued the Pharmaceutical Representative Management Measures. Slated to take effect on August 1, the sweeping rules aim to standardize drug promotion and steer the pharmaceutical industry toward healthier, orderly growth.

According to a policy briefing from the National Medical Products Administration, the final rules clearly define the responsibilities of drug companies regarding the hiring, registration and conduct of pharmaceutical representatives. They also outline how hospitals should manage interactions with these representatives and specify the oversight duties of various government agencies.

Tesla China launches financing scheme ahead of Trump visit

Tesla China has launched a new financing scheme to attract more budget-conscious buyers, reports the South China Morning Post. This comes after its sales in the world’s largest EV market fell behind its domestic rivals, and ahead of Tesla CEO Elon Musk accompanying the US president on his China trip.

The US carmaker said on Wednesday that the down payment for a Shanghai-made Model 3 vehicle–priced at RMB 235,500 ($34,672)–would be slashed to RMB 55,900 from RMB 79,900 if the buyer chose a five-year car loan offered by Tesla.

“Our strong products, combined with attractive incentives for car purchases, will enable Tesla to sustain its robust sales momentum in 2026,” the company said in a statement.

Nvidia CEO joins Trump on China trip at last minute

Nvidia CEO Jensen Huang has joined US President Donald Trump on his trip to Beijing, boarding Air Force One during a stop en route to Beijing, reports the South China Morning Post. Trump then dismissed earlier reports that the tech leader had been snubbed as “incorrect”.

The White House confirmed that Huang had boarded Air Force One during a refuelling stop in Anchorage, Alaska. It added that Tesla and SpaceX CEO Elon Musk was also travelling on the presidential plane.

“Jensen is attending the summit at the invitation of President Trump to support America and the administration’s goals,” an Nvidia representative told the South China Morning Post.

A lonely future

A report by job search site Zhaopin found that 47% of Chinese working women born after 2000 do not want to have children, largely citing work pressure as the main reason. Many of the women surveyed said that motherhood would limit career advancement, and that their childbearing status was often considered when applying for new jobs.

2025 saw the lowest birth rate on record since 1949. The number of registered marriages has also been dropping, with the first quarter of 2026 seeing the lowest number since the start of the COVID pandemic in 2020. The pressures of building a successful career in such a stressful environment are clearly making women choose one or the other. And there is very little support in the Chinese workplace for those who wish to build a family.

On top of all of this is the cost of raising a child. China’s economy is slowing down and there is a general feeling of malaise and a lack of confidence in the future. Despite the government reversing the One Child Policy, and even offering all sorts of incentives for people to have children, until there is a fundamental shift in the zeitgeist of the country, the demographic decline is likely to continue. If nobody is having children, the future of China looks to be a lonely one.

China auto sales continue decline amid weak demand

Passenger-vehicle sales in April dropped 21.6% year-on-year to 1.625 million units, reports Caixin citing data released Monday by the China Association of Automobile Manufacturers (CAAM). For the first four months of 2026, domestic vehicle sales fell 20.6% to 6.447 million units.

Sales of gasoline-powered vehicles dropped 32.2% in April to 710,000 units, while new-energy vehicle sales fell 10.8% to 914,000 units. Even so, the sharper collapse in traditional car sales pushed electric and hybrid models to a record share of the market. New-energy vehicles accounted for 56.3% of domestic auto sales in April. In the passenger-car segment, their share rose to 61.4%, the first time it had exceeded 60%.

Adjustments to subsidy policies and a cooling of the price war that had supported volumes in earlier periods have dragged on sales this year. The conflict in the Middle East, which pushed up oil prices, has added another headwind by making gasoline vehicles less attractive.

US, China agree to oppose Hormuz Strait shipping tolls

Senior US and Chinese officials agree that no country can ​be allowed to exact shipping tolls in the Strait of Hormuz, reports Reuters citing the US State Department, describing it as a sign that ‌the two countries are trying to find common ground on efforts to pressure Iran to give up control of the vital waterway.

The State Department ​said Chinese Foreign Minister Wang Yi and US Secretary of State Marco Rubio discussed the issue in an April phone ⁠call.

“They agreed that no country or organization can be allowed to charge tolls to pass through international waterways like the Strait of Hormuz,” department spokesman ​Tommy Pigott told Reuters. The State Department has not previously provided a readout of the call in a break from its ​usual practice.

Beijing issues agentic AI development guidelines

Chinese regulators have jointly issued guidelines to standardize the development and application of AI agents, reports Caixin. The policy framework marks a critical step toward realizing Beijing’s broader ambition to deeply integrate the technology into key industries.

The Cyberspace Administration of China (CAC), the National Development and Reform Commission and the Ministry of Industry and Information Technology jointly published the document. It defines AI agents as intelligent systems with autonomous perception, memory, decision-making, interaction and execution capabilities.

The guidelines outline four main priorities: consolidating technological foundations, enforcing security safeguards, accelerating adoption through 19 representative application scenarios and building an innovation ecosystem. The CAC said the agencies will jointly monitor, assess and dynamically adjust the policies to ensure their effective implementation.

Brazil’s visa-free entry for Chinese sees surge in travel demand

Travel agencies are seeing a notable rise in inquiries and bookings for trips to South America by tourists from mainland China after Brazil’s visa-free entry policy for visitors from the mainland took effect on Monday, reports the South China Morning Post.

Coupled with the buzz of the 2026 Fifa World Cup in the US, Canada and Mexico, outbound travel from Chinese visitors to the Americas is expected to experience a surge as the summer travel peak approaches, said Suzhou, Jiangsu province-based online travel agency Tongcheng Travel.

As of noon on Tuesday, the search volume for Brazil-related keywords had jumped more than 15 times in the six days since the announcement of the visa exemption versus the previous six-day period, Tongcheng Travel found. The three most searched destinations were Sao Paulo, Rio de Janeiro and Brasilia.

Pop Mart to open debut dessert store in Hebei province

Chinese toymaker Pop Mart is set to open its first official physical Pop Bakery store in the coastal community of Aranya in Qinhuangdao, Hebei province, reports the South China Morning Post.

Pop Bakery, an independent dessert brand under Pop Mart, would sell desserts and tea drinks, with desserts as its core business, inside sources told the Post. The product line will include Skullpanda ice cream, Labubu butter cookies and Molly chocolate, they said.

The plan comes as the Hong Kong-listed company announced strong first-quarter growth on Tuesday, with total revenue surging 75 to 80% year-on-year.

Domestic decline

China’s domestic auto market is continuing its decline, with April sales being reported year by the country’s automobile manufacturers association as 21.6% lower than the same period the previous. When you include exports into the mix, the total sales for April only fell 2.5%, signalling the huge role overseas markets are playing in propping up China’s vehicle industry.

Other reports by the association show that in 2025, around 20% of all cars made in China were exported. Vehicles sold overseas can sell for a much higher price—in Europe they see roughly 11 times higher profit margins than the 4.1% they made at home, even despite the extra costs and tariffs. This has fueled accusations that China is using its excess industrial capacity to flood foreign markets, as despite the higher profit margins, they still sell at a lower price than many competitors. The China auto manufacturers have been known to receive massive subsidies from local governments.

There has been much talk of China’s massive trade imbalance, which hit a record $1.19 trillion in 2025. At the same time, there has been much talk of boosting consumer demand at home. However, all indications suggest that domestic consumption is still weak, and exports are continuing to prop the Chinese economy up. This is a pointer to China’s overall situation, characterized by various bright spots as well as significant problems, and also creates an obvious action point for all of China’s trading partners.

Hong Kong increases international student quotas as Chinese demand rises

Hong Kong is expanding its university enrollment quotas for non-local students, reports Caixin. This comes as a surging number of applicants from the Chinese mainland is driving admission standards to new heights.

A 2026 report on studying in Hong Kong by education company New Oriental Education & Technology shows that as applicant numbers skyrocket, undergraduate admissions have shifted toward a holistic assessment model. The influx has ushered in an era of fine-grained screening. The report indicates that actual admission thresholds for popular majors at top-tier institutions are now far higher than official minimums.

The Hong Kong government has repeatedly signaled its intention to expand the non-local student population. In 2024, the city raised the non-local student quota for publicly funded institutions from 20% to 40% of the local student population. Starting in the 2026-27 academic year, the cap for non-local self-financed undergraduate students will climb to 50%, while the cap for over-enrollment in taught postgraduate programs will rise from 100% to 120%. This paves the way for more Chinese mainland students to access higher education in the city.

Musk, Apple’s Cook, Boeing CEO to accompany Trump to China

Elon Musk, Apple’s Tim Cook, GE ‌Aerospace’s Larry Culp and Boeing’s Ortberg will join US President Donald Trump on his visit to China this week, reports Reuters citing a White House official.

Meta’s Dina Powell McCormick, BlackRock’s Larry Fink, Blackstone’s Stephen Schwarzman, Micron’s Sanjay Mehrotra, Mastercard’s Michael Miebach, Qualcomm’s Cristiano Amon and Visa’s Ryan ​McInerney will also join the trip, the official said. Cisco CEO Chuck Robbins was invited by the White House to join the China trip but ​was unable to attend as the company’s earnings will be released this week, a company spokesperson said.

Nividia’s Jensen Huang was not invited, the source said, with the White House focusing more on agriculture and commercial aviation matters, such as orders for Boeing planes, on the current trip, as well as discussions on lengthening the truce on the trade war.

Pakistan to become latest BRI country to sell “panda bonds”

Pakistan is poised to become the latest partner in the Belt and Road Initiative, to sell “panda bonds”, reports the South China Morning Post.

Islamabad seeks to raise as much as $250 million through its first-ever sale of the bonds–yuan-denominated debt instruments sold by foreign entities in mainland China’s onshore market–as early as this week. The three-year bonds, focused on sustainable development, will carry guarantees from the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank covering 95% of the debt issuance, according to Bloomberg.

Finance Minister Muhammad Aurangzeb confirmed on Saturday that Islamabad was preparing to access Chinese capital markets with the sale–the first tranche of a broader US$1 billion programme that Islamabad has been pursuing since at least December.

Chinese smart cars to control 20% of EU market by 2028: JPMorgan

Chinese-developed smart cars could account for a 20% share of the European market in 2028 at the expense of local peers, reports South China Morning Post citing a JPMorgan forecast.

Chinese carmakers from BYD, the world’s largest electric vehicle (EV) builder, to Stallentis-backed Leapmotor, are expected to deliver 2.5 million cars to customers in countries like Germany, Italy, France and the United Kingdom in 2028, a surge of 150% from about 1 million units last year, Nick Lai, head of auto research in Asia-Pacific at JPMorgan, said in an interview.

In 2025, Chinese cars, comprising exports from China and locally built vehicles, represented 10% of total new car sales in western Europe. Penetration of pure electric and plug-in hybrid cars in the region could also rise from 29% in 2025 to 34% this year, according to the bank.

Huayou Cobalt to acquire Australia’s Atlantic Lithium for $210 MN

Chinese lithium battery materials maker Zhejiang Huayou Cobalt is planning to acquire Australia’s Atlantic Lithium for $210 million, reports Caixin. The all-cash deal is aimed at securing control of a key lithium project in Ghana and strengthening the Chinese company’s upstream resource base.

Under the agreement announced by Huayou Cobalt, the final purchase price for Atlantic Lithium will be determined based on capital gains taxes applied by the Ghana Revenue Authority. The deal is subject to regulatory clearances, including from Australia’s Foreign Investment Review Board, as well as authorities in China and Ghana.

The acquisition centers on Atlantic Lithium’s core asset, the Ewoyaa lithium mine. The site holds an estimated 36.8 million tons of mineral resources with a lithium oxide grade of 1.24%, translating to 1.1 million tons of lithium carbonate equivalent. In March, the project became the first lithium mine in the African nation to receive formal parliamentary approval for its mining lease.

Closer to home

Hong Kong is increasing its non-local student enrollment quotas for universities across the city. This comes amid a rise in the number of applicants from mainland China seeking an international standard of education while remaining close to home.

Interest in the traditional overseas study locations of the US and UK have been waning in the past few years, with a growing number of Chinese students choosing to remain closer to home. Places like Singapore, Malaysia and Thailand have seen notable uptakes in Chinese student enrollments—but none as much as Hong Kong. In 2025, just over 110,000 non-local students applied to study in Hong Kong, and it is estimated around 72% of those were from mainland China. The number for 2026 is sure to be much higher than that.

As perceptions of the outside world are changing within China, many still wish to have the prestige of an international education but view the traditional study locations such as the US and the UK as expensive, unsafe, less than welcoming to Chinese people. In contrast, Hong Kong is close to home, part of China and can provide the experience of being a part of an international community. All while still being in a culturally familiar environment, and within the safety net of the Chinese system.

US auto industry asks Trump: don’t open door to Chinese carmakers

As President Donald Trump prepares to fly to Beijing this week, the US auto industry and lawmakers on both sides of the aisle are sending him ​a simple message: Please don’t offer China any access to the US car market, reports Reuters.

Trump in January told the Detroit Economic Club that it would be “great” if Chinese automakers wanted to build ‌plants in the US and employ Americans, adding: “I love that. Let China come in, let Japan come in.”

His comments caused concern in an industry that had lobbied successive administrations to bar Chinese cars from the US market with tough data security rules and high tariffs on electric vehicles. So automakers, suppliers, steelmakers, unions and politicians have redoubled their efforts, arguing that Chinese automakers, with limitless state support, massive scale, an EV technology edge and rock-bottom prices, would crush domestic and other foreign producers, hollowing out the core ​of the US manufacturing base.

China’s marriage numbers drop to COVID-era low

China’s first-quarter marriage registrations fell to their lowest level for the same period since 2020, reports the South China Morning Post. This comes as the country continued to grapple with persistent demographic challenges amid a declining birth rate and a shrinking population.

In the first three months of this year, 1.697 million couples in China tied the knot, down 6.24% from the same period last year, according to data released by the Ministry of Civil Affairs.

The figure marked the lowest first-quarter total since 2020, when 1.557 million couples registered to marry amid the country’s first wave of Covid-19 pandemic lockdowns, according to financial data provider Wind. The first quarter is typically a peak season for marriages in China due to the Chinese New Year holiday.

Alibaba to rollout chat-style shopping to Taobao and Tmall

Users of the Alibaba’s flagship AI assistant Qwen will soon be able to use natural language to “talk” with the chatbot app to find and buy items listed on Alibaba’s Taobao and Tmall shopping platforms, reports the South China Morning Post citing one person familiar with the plan.

Taobao would also get a Qwen-backed AI shopping assistant, the person said, adding that the move was part of Alibaba’s broader initiatives to align its businesses with the group’s call for AI adoption. The person requested anonymity as the information is not public.

The move follows an update earlier this year, when Alibaba unveiled plans to embed Qwen more deeply across its sprawling ecosystem built over decades–spanning e-commerce, food delivery, travel booking and movie ticket purchases. The integration enables users to complete tasks through simple text or voice commands, reducing the need to navigate multiple apps and repeated clicks, and marks the latest push by the tech giant to turn its AI model into a gateway for daily services.

China’s April trade growth beats forecasts

China’s exports and imports grew much faster than expected in April, reports Caixin. This was fueled by strong demand for semiconductors and computing equipment tied to the global AI investment boom.

Exports rose 14.1% from a year earlier in dollar terms, while imports climbed 25.3%, customs data shows. The figures beat forecasts in a Caixin survey of 12 financial institutions, where economists projected average growth of 7.1% for exports and 16.1% for imports.

Growth in China’s overall exports was concentrated in tech-related products. High-tech exports jumped 40% year-on-year, while shipments of integrated circuits and automatic data processing equipment surged 99.6% and 47.3%, respectively. Imports also reflected strong demand for tech-related products. Imports of mechanical and electrical products rose 33.5%, with imports of integrated circuits and automatic data processing equipment increasing 54.7% and 90.6%, respectively.

China’s domestic airliner to improve cabin facilities

China’s aircraft maker COMAC is planning to upgrade the cabin capacity of its C919 narrowbody airliner to improve passenger experience and boost the plane’s chances of challenging the Boeing-Airbus duopoly, reports the South China Morning Post citing a source with knowledge of the plans.

Bigger overhead luggage compartments and drip-proof air conditioning outlets are among the design upgrades being sketched out by the Commercial Aircraft Corporation of China (COMAC).

“Comac has realised it must make passengers as comfortable as possible on the C919, when the initial novelty surrounding the home-grown jet has fizzled out and there are complaints about cabin experiences,” said the source, who asked not to be named. “One issue that constantly annoys passengers flying the C919–deterring some from choosing the aircraft–is strict luggage inspection at the gate,” the source said. “Passengers are more likely to be asked to check their bags rather than carry them on board, when cabin compartments are easily filled up due to their inadequate size.”

Car wars

American lawmakers and auto industry representatives have been urging Trump not to open the doors to Chinese carmakers ahead of his trip to Beijing to meet Chinese Leader Xi Jinping. The concern was fueled by comments Trump made several months ago that it would be “great” if Chinese automakers set up manufacturing facilities in the US, saying “let them in!”

Trump said that Chinese car factories on US soil would create jobs for American workers, but this seems to ignore the fact that most Chinese vehicle plants are now heavily automated with very few staff. This is one of the key differences between now and when Japanese carmakers set up factories in Americas in the 1980s. Meanwhile, Europe seems to have almost surrendered, the German and French carmakers are in trouble and the number of Chinese imports into the EU surpassed one million for the first time in 2025.

The bigger difference though, is that nowadays, cars are no longer just vehicles—they are essentially moving computers, with huge data collection capacity and also containing the potential for remote control. This goes beyond concerns over whether the American auto industry can compete with China’s state-backed, heavily subsidized vehicles, and moves into the realm of national tech security.

Trump is arriving in Beijing next Thursday for a meeting with huge implications, and huge risks too. The world is in an extremely unstable state, and the US and China are the two key players in all sorts of ways. There are various proxies out there, but the real game is being played between these two powers. Trump’s second term has sewn a dramatic shift in US policy in so many ways, but the signals in terms of China have not been consistent. The list of issues in which both countries have a role and which have major implications for the world is long. Iran, Ukraine, Panama, AI, trade and space are just the obvious ones at the top of the list. Oh, and of course the island. How that issue is addressed at the Beijing meeting has crucial important for East Asia and the world.

Meanwhile here is a short list of other recent news items that may be relevant to the discussion:

• US state department issues warning through diplomatic channels about alleged Chinese AI theft

• Beijing demands cancellation of Meta purchase of Manus In Singapore

• US order chip equipment manufacturers to halt shipments to China state-owned semi-conductor manufacturer Hua Hong

The weight of history is bearing down on us all, and Mr T says he is the guy who can do deals that will change the world. But change can go two ways. The world holds it’s breath.

Have a breathless but pleasant weekend.

Chinese vessel attacked by Iran in Strait of Hormuz

A large product tanker owned by a Chinese company was attacked off the coast of the United Arab Emirates’ Al Jeer port at the entrance to the Strait of Hormuz on May 4, reports Caixin. The deck reportedly caught fire.

At the time of the attack, the ship was visibly marked “CHINA OWNER & CREW.” A source familiar with the shipowner told Caixin that this was the first time a Chinese oil tanker had been targeted, adding that it was “psychologically hard to accept.”

Multiple commercial ships were attacked in the Strait of Hormuz and surrounding waters between May 3 and May 4. The onslaught began on May 4 when a 300,000-ton very large crude carrier operated by the Abu Dhabi National Oil Company was struck while navigating the strait. The UAE reported that the vessel was hit by two drones and condemned the Iranian assault as an act of “piracy.” The following day, the HMM Namu, a 38,000-ton general cargo ship owned by a South Korean shipping firm, was attacked off the UAE’s Umm Al Quwain port. The strike caused an explosion and fire, prompting the crew to issue a “MAYDAY” distress call.

RMB rate against dollar reaches three-year high

China’s central bank has set the yuan’s exchange rate at its strongest level against the US dollar in more than three years, reports the South China Morning Post. This comes as Beijing pushes to internationalize its currency.

The People’s Bank of China set the yuan’s midpoint rate at 6.8487 per US dollar on Thursday, the strongest level since April 2023. The fixing rate, used as a reference for daily market trading, was 6.8562 a day earlier.

Analysts expect the Chinese currency to continue appreciating in the months ahead–potentially reaching 6.65 per US dollar by the end of the year–but the upswing could create issues for the country’s vast export sector.

Samsung exits China home appliance market

Samsung China said that it will stop selling home appliances on the Chinese mainland, reports Caixin. The company will abandon a market it once dominated to focus its operations on mobile phones, semiconductors and medical equipment.

In a statement on Wednesday, Samsung said that it will cease sales of all household appliances on the Chinese mainland, including televisions, refrigerators, washing machines and air conditioners, stressing that it will continue sales of its mobile phones and maintain after-sales services for Chinese customers who have already purchased its home appliances.

The home appliance segment has increasingly dragged down Samsung’s overall profitability. In 2025, its visual display (VD) and digital appliance (DA) division recorded an operating loss of 200 billion South Korean won ($138 million). In the same year, the net profit of Samsung’s China sales entity plunged 44% year-on-year to 168.1 billion won.

Trump administration invites Boeing, Nvidia, Apple CEOs for China visit

The Trump administration is inviting CEOs from Nvidia, Apple, Exxon and other big companies to accompany the president on ‌his trip to China next week, reports Reuters citing news platform Semafor.

Executives from Qualcomm, Blackstone, Citigroup and Visa are also on the invitation list, according to the report.

Reuters said it was ⁠not able to confirm the full list of companies invited, but ​a different source said several CEOs received invitations on Wednesday evening.

China turning to younger seniors to solve rural elder-care shortage

Facing a rapidly aging population and the hollowing out of rural households, China is formalizing a novel solution for elderly care: asking younger seniors to look after their older neighbors, reports Caixin.

Eleven government departments, including the Ministry of Civil Affairs, recently issued guidelines to promote “mutual elderly care.” The plan mandates that by 2030, at least 70% of urban and rural communities will have facilities supporting this mutual-aid model. By 2035, the government wants a highly organized system that fulfills seniors’ needs for daily check-ins, social engagement, and emotional support.

To execute the plan, the new guidelines designate village officials and community leaders as the backbone of the initiative. Younger seniors will serve as the primary workforce, providing assistance with meals, cleaning, transportation, medical needs, emergencies, rehabilitation, and disease prevention. Special-needs seniors, or those living in remote areas without public services, will be encouraged to relocate to centralized communities that meet building and fire safety standards.

Chinese companies struggle to attract talent abroad, LinkedIn exec

Chinese companies expanding overseas are having trouble recruiting local frontline sales and compliance professionals as they struggle to market themselves to desired job seekers, reports Caixin, citing an executive at LinkedIn.

Local frontline sales staff are the most urgently needed talent for Chinese firms going global, particularly versatile professionals who understand local languages, cultures and business development, Zhang Fei, general manager of the new business development department for LinkedIn’s talent solutions in China, said in a recent interview with Caixin.

Local compliance specialists familiar with local laws and industry regulations are also in high demand with significant talent gaps, he said, adding that while management roles can sometimes be filled by people dispatched from the headquarters, relying on expatriates for client-facing positions is generally inefficient, making localized hiring the optimal choice.

Rising airfares see train travel uptake during China’s May holiday

China’s civil aviation passenger volume unexpectedly dropped during the May Day holiday for the first time since the pandemic, reports Caixin. This comes as rising fuel costs and changing vacation schedules dampened flight demand.

Air travel fell 5.7% year-on-year to 10.54 million passengers between May 1 and May 5, while railway journeys grew 4.6% to 1.06 billion, pushing total cross-regional movement up 3.5% to 1.52 billion trips, according to the Ministry of Transport.

The slump is largely linked to the Middle East conflict, which has driven up global jet fuel prices, says Caixin. In early April, Chinese airlines hiked domestic fuel surcharges by up to 500%. Additionally, the country’s three major state-owned airlines restricted third-party ticket agents on online travel platforms, significantly reducing the availability of discounted fares.

EU plan to phase out Chinese tech could cost $400Bn, Chinese study

European Union proposals to tighten cybersecurity by phasing out equipment from Chinese suppliers risk costing the bloc over $400 billion in ​the next five years, with Germany facing nearly half of ‌the burden, reports Reuters citing China’s Chamber of Commerce to the EU (CCCEU).

Under new cybersecurity rules, the EU plans to phase out components and equipment from “high-risk” suppliers ​in critical sectors, a move criticized by China’s telecoms giant ​Huawei, which is set to be among the affected companies.

A study for the CCCEU, carried out by KPMG, said the forced replacement of Chinese suppliers across 18 critical sectors would ​cost the EU 367.8 billion euros ($432.83 billion) between 2026 and 2030. ​The EU would have to replace hardware and write down assets and contend ‌with ⁠lower efficiency and delayed digitalization, the report said.

Chinese chipmakers outpace US in R&D spending

China’s largest chip producers channelled a larger proportion of revenue into research and development (R&D) than their US peers, first-quarter earnings show, reports the South China Morning Post. This comes as Beijing presses ahead with its tech self-reliance drive amid an AI boom.

Beijing-based Moore Threads spent half of its revenue on R&D in the quarter ended March 2026, while Shanghai-based MetaX spent 45% over the same period, according to exchange filings. By contrast, US chipmakers such as AMD and Intel have typically spent between 20 and 30% of their revenue on R&D in recent years.

Chinese R&D ratios are also expected to converge with those of US peers as revenue grows, a trend already visible among more established domestic chip designers, analysts say.

Chinese box office sees weak May holiday growth

China’s box office revenue edged up just 1.4% year-on-year to RMB 758 million ($111 million) during the Labor Day holiday, reports Caixin citing official data. This comes as some sudden film withdrawals exacerbated an already subdued market.

During the five-day break from May 1 to 5, theaters recorded 20.9 million visits, a 10% increase from the same period last year, driven by a drop in average ticket prices from RMB 39.5 to RMB 36.3, according to ticketing platform Maoyan.

The Labor Day holiday slate was initially expected to feature 18 new releases, but only 12 ultimately got screened. The comedy “If I Were You” and the crime thriller “All the Good Eyes” abruptly postponed their releases right before the holiday, sparking a trending topic on the social media platform Weibo on May 1. Several other films also failed to premiere during the holiday.

Opportunities abound

In an interview with Caixin, a LinkedIn China executive said that Chinese companies struggle to attract local talent when expanding into overseas markets. Frontline staff, as well as compliance and local regulation specialists are in the highest demand, the executive said. This highlights perhaps one of the biggest challenges Chinese companies face in becoming truly international.

Given the rapid expansion of Chinese companies overseas in the past several years—Chinese overall M&A grew 40% year-on-year in 2025, with much of that concentrated in the Global South—it would seem plausible that they would offer strong employment opportunities. One Chinese executive CER spoke to estimated that the overseas expansion of Chinese companies will over time create 6 million jobs.

If job seekers around the world put aside reservations about the geopolitical backdrop, they may find Chinese companies provide strong opportunities for entry into a variety of sectors, especially those at the forefront of technology. Higher level management roles in such Chinese companies may be unlikely or not in prospect given the nature of the system, but given the employment prospects at the moment with economic changes and AI at the forefront any job opportunities will surely be welcome.

Fireworks factory explosion in Hunan kills 26, injures 61

A massive explosion at a fireworks factory in central China has killed 26 people and injured 61 others as of Tuesday, reports Caixin. The incident has prompted top leaders to order an immediate investigation and a nationwide safety review during the country’s Labor Day holiday.

The blast occurred around 4:43pm local time on Monday at a workshop owned by Huasheng Fireworks Manufacturing and Display in Liuyang, a city in Hunan province renowned as China’s “hometown of fireworks.” As of 8am Tuesday, the first round of search and rescue operations confirmed the casualties, with the injured rushed to local hospitals for emergency treatment, according to the state-run Hunan Daily.

The deadly incident casts a shadow over Liuyang, a major hub for pyrotechnics that supplies about 60% of the domestic market. According to a February 2025 report by the People’s Daily, the city is home to 431 fireworks production enterprises, employing over 300,000 people. In 2024, Liuyang’s fireworks industry generated a total output value of RMB 50.22 billion ($7.35 billion), which has played a significant role in narrowing the local urban-rural income gap.

EU bans Chinese inverters from power projects

The EU has banned Chinese inverters from all EU-funded schemes in a move Brussels described as the first in a series of actions targeting high-risk suppliers, reports the South China Morning Post. This is the most direct step the block has taken yet to cut Chinese clean energy hardware out of publicly funded projects.

A European Union official said Brussels had identified four countries as high-risk–China, Russia, North Korea and Iran–but only China, which controlled 80% of global supply, had a dominant presence in the European inverter market. The official said Brussels had identified cybersecurity and dependency risks in inverters–devices that convert renewable power into grid-ready electricity.

Chinese brands Huawei Technologies and Sungrow ranked as the world’s top two solar-inverter manufacturers in the first half of last year, ahead of Germany’s SMA and Austria’s Fronius, according to a report published by natural resources consultancy Wood Mackenzie in January.

Hong Kong’s CK Hutchison exits UK’s VodafoneThree in $5.82BN deal

CK Hutchison said it has agreed to exit its 49% stake in UK mobile operator VodafoneThree in a £4.3 billion ($5.82 billion) deal that will see it fully divest from the country’s largest carrier by subscribers, reports the South China Morning Post.

The transaction would allow the Hong Kong-listed conglomerate to unlock value from a business with more than 28 million customers in the United Kingdom, according to a filing to the Hong Kong stock exchange. The stake is held through its telecoms unit, CK Hutchison Group Telecom Holdings. CK Hutchison expects to record a gain of about HK$4.7 billion ($600 million) from the disposal, based on current estimates.

CK Hutchison Holdings said the exit would enable it to “monetize its investment at an attractive valuation”, with proceeds going towards strengthening its financial position, funding expansion and improving liquidity.

Irish regulator investigates Shein for transferring data to China

Ireland’s Data Protection Commission has opened an ‌inquiry into Chinese online retailer Shein over the transfer of European users’ data to China, reports Reuters citing the company’s lead EU privacy regulator.

The DPC, which has the power to impose heavy fines, will examine and assess ​the extent to which the company’s Europe, Middle East and Africa headquarters in Dublin ​has complied with its relevant obligations under the EU privacy rules—known as ⁠the General Data Protection Regulation, it said in a statement.

When personal data is transferred to ​a country outside the EU, GDPR requires that data is given equivalent protections to those it would ​have within the bloc, according to the regulator.

The DPC last year fined China’s TikTok 530 million euros ($619 million) over concerns about how it protects user information and ordered the short video platform to suspend data transfers to China ​unless its processing were made to comply.

US moves to ban Chinese and other foreign labs from certifying electronics

The US has proposed new rules that would bar testing laboratories in countries lacking mutual recognition agreements (MRAs), including China, from certifying electronic equipment for the US market, reports Caixin.

If implemented, the measure could cut off more than 150 testing facilities on the Chinese mainland from certifying electronics exports, raising costs for many manufacturers with US operations while escalating technological tensions between Washington and Beijing.

The proposal stipulates that testing labs and certification bodies in countries that lack either an MRA with the US or a comparable reciprocal trade agreement will lose Federal Communications Commission recognition. The affected facilities would see their accreditation phased out within two years.

Safety first

At least 26 people were killed and 61 more injured in a massive explosion at a fireworks factory in China’s central Hunan province, the same factory which just three months ago was fined for safety violations, when an employee had been found placing two chemicals in close vicinity which are known to react with each other and explode. This tragic explosion is the latest of various incidents that highlight an inconsistency in the implementation of safety regulations.

This comes in the wake of the tragic fire in a residential building in Hong Kong in late 2025, when over 168 people lost their lives. In 2024, 39 people were killed in Jiangxi province after a fire spread through a commercial building, which was attributed to illegal welding work being done. The year before that, a gas explosion in a restaurant killed 31 after staff discovered a leak but did not evacuate the restaurant before attempting repairs. The list goes on.

On the other hand, it is undeniable for those living on the ground that China is also safe in many ways. Violent crime and drug use are much less common than in many other countries. As China’s economy has grown at breakneck speed, and the lives of millions of people have been tangibly improved, other areas have yet to catch up—a notable one being this lack of consistency in the implementation of laws and regulations. This leads to somewhat indifferent attitudes towards safety and corners being cut. And that is what often leads to tragic accidents. A lot of media nowadays tend to polarize coverage of China—it’s either the safest and most high-tech place in the world, or everything is on the brink of collapse. The truth is more nuanced than either.

China’s top airlines swing to profit in Q1

China’s top three state-owned airlines returned to profit in the ​first quarter of 2026, reports Reuters. The swing was helped by robust demand during the Lunar New Year holiday and recovering global travel, although the outlook is overshadowed ‌by higher fuel costs amid the war in Iran.

The sector entered 2026 on a stronger footing, with Guangzhou-based China Southern Airlines reporting a net profit of RMB 1.48 billion ($216 million) for the first three months, swinging from a loss of RMB 747 million in the same period last year.

Flagship carrier Air China posted a RMB 1.71 billion net profit, compared with a loss of RMB 2.04 billion last ​year. Shanghai-headquartered China Eastern Airlines reported a net profit of RMB 1.63 billion, versus a year-earlier loss of RMB 995 million.

China Southern Airlines, Xiamen airlines sign agreement for 137 Airbus planes

China Southern Airlines and its subsidiary ​Xiamen Airlines have signed ‌agreements with Airbus to purchase 102 and 35 ​A320neo series aircraft ​respectively, reports the South China Morning Post.

The orders carry a combined list price of $21.37 billion, although both carriers received discounts, according to a statement from China Southern. The deal was pending approval from the airline’s shareholders and relevant state authorities, the statement added. The aircraft would be delivered to China Southern between 2028 and 2032 and to Xiamen Airlines between 2029 and 2032.

China Southern’s board said the purchase would help both carriers capitalize on major state-led development initiatives, including the Greater Bay Area and the Belt and Road Initiative, while strengthening their competitive position through a more modern fleet.

Geely joins Chery, BYD in profit decline as subsidies dry up

Geely, Chery and BYD, the most profitable listed Chinese carmakers in 2025, all reported double-digit declines in net profit in the first quarter, reports the South China Morning Post. The loss comes as reduced purchase incentives take effect.

Hangzhou-based Geely, the country’s second-largest carmaker behind BYD, said in a filing on Wednesday that its net profit for the January-March period slid 27% year-on-year to RMB 4.17 billion ($610 million). The profit slump came even as growth in exports and sales of high-end models boosted first quarter revenue by 15% from a year earlier to RMB 83.8 billion, an all-time high for the period.

Chinese EV buyers were exempt from the country’s 10% vehicle sales tax last year, but are now paying a 5% levy. The tax will return to the full 10% rate in 2028. Geely attributed its profit decline mainly to losses in foreign exchange, but its total sales volume for the quarter inched up only 1% from a year earlier to 700,940 units.

Wind turbine maker Ming Yang nearly doubles profit in 2025

Ming Yang Smart Energy nearly doubled its net profit in 2025, reports Caixin. This comes as recovering wind turbine prices and surging delivery volumes helped ease years-long domestic price wars.

The Shanghai-listed turbine maker reported that its 2025 revenue rose 40.3% year-on-year to RMB 38.1 billion ($5.6 billion), while net profit attributable to shareholders jumped 90.7% to RMB 660 million. Ming Yang delivered 18.3 gigawatts of wind turbines last year, including 16.1 gigawatts onshore and 2.2 gigawatts offshore.

The company ranked second in China for new installations in 2025, with more than 18.9 gigawatts of added capacity, capturing over 15% of the domestic market, according to BloombergNEF. Recovering turbine prices significantly improved profitability. Gross margin for Ming Yang’s wind turbines and related accessories, which accounted for 82% of its total revenue, reached 6.4% in 2025, up 6.8 percentage points from the previous year.

China steel profits shrink as costs and EU tariffs bite

Profits at China’s major steel mills fell in the first quarter, reports Caixin. This comes as the industry grappled with persistently high raw material costs, sluggish domestic demand and the financial toll of the EU’s newly implemented carbon border tax.

First-quarter combined profits for major Chinese steelmakers dropped 5.1% year-on-year to RMB 21.7 billion ($3.2 billion), squeezing their profit margin to a razor-thin 1.46%, the China Iron and Steel Association reported Wednesday. First-quarter revenue for major steelmakers rose 1.2% year-on-year to RMB 1.49 trillion.

Operating costs rose 1.5% during the period. Jiang Wei, secretary-general of the association, attributed the increase to the conflicts in the Middle East, which have driven up oil prices, mining costs, and freight rates. Consequently, prices for raw materials like iron ore and coking coal have remained high since late February. Despite record-high port inventories of 170 million tons in April, imported iron ore prices hovered between $105 and $110 per ton.

Taking to the skies

China’s top three state-owned airlines—Air China, China Southern Airlines and China Eastern Airlines—saw a return to profit for the first quarter of 2026. The three airlines all saw profits of over RMB 1 billion, compared to significant losses in the same period the year before. In a sign of confidence of the sectors’ long-term recovery, China Southern announced a purchase of 137 Airbus planes—with 35 of those going to its subsidiary, Xiamen Airlines. Just one month ago, China Eastern also signed a deal for 101 Airbus planes.

All of this comes amid increased fuel prices due to the ongoing uncertainty of the Iran War. As flights have been disrupted around the world—especially those from Middle Eastern carriers such as Emirates, Etihad and Qatar—Chinese airlines appear to have found an opportunity despite those increased costs. Due to Western airlines being unable to use Russian airspace means that Chinese airlines are able to offer Asia-Europe flights for a shorter flight time—and therefore lower fuel cost—than their European counterparts.

And the numbers do support this. During March—the height of the Iran war to date—Air China recorded a 28% rise in international passenger traffic, and the other Chinese airlines have posted similar numbers. Meanwhile, industry estimates suggest the Chinese share of all routes between Europe and East Asia are in the range of 50-70%, while for North America and East Asia, they are around 30-45%. As many Chinese sectors are making their presence felt worldwide—EVs, green energy tech, mobile phones and AI among others—could Chinese airlines come to dominate the skies in the years ahead?

US orders chip equipment companies to halt shipments to Hua Hong

The US Department of Commerce ​last week ordered multiple chip equipment companies to halt certain tool shipments to China’s second-largest chipmaker, Hua Hong, reports Reuters citing two people familiar with the matter. The move is the latest action to slow the country’s development ‌of advanced chips.

The department sent letters to at least a handful of companies informing them of the new restrictions on tools and other materials destined for two Hua Hong facilities that US officials believe may make China’s most sophisticated chips, the people said.

Top US chip equipment companies Lam Research, Applied Materials and KLA, each of which has significant business supplying China, were among those believed ​to have received a letter, the sources added.

BYD reports 55% drop in first-quarter profit

Chinese electric vehicle (EV) producer BYD reported a drop in first-quarter net profit as weakness in its domestic market outweighed rising exports, reports the South China Morning Post.

The mainland’s largest and most profitable EV maker reported a net profit of nearly RMB 4.09 billion ($590 million) for the first three months of the year, a drop of 55% compared with a year earlier. Revenue came in at RMB 150.2 billion, down 11.8% from a year earlier.

The first-quarter revenue was the lowest quarterly figure since the April to June period in 2024, while the net profit was the least since the first quarter of 2023, as slowing growth at home weighed on earnings.

China cracks down on illegal EV battery recycling

China has launched a two-month nationwide campaign to crack down on illegal operations in the recycling market for used electric-vehicle (EV) batteries, reports Caixin.

The regulatory push aims to clean up a fragmented industry plagued by informal workshops, securing the supply of critical resources as the country prepares for retiring power batteries to exceed 1 million tons by 2030. The battery recycling sector has long been plagued by a network of unlicensed workshops that dismantle batteries or illegally repurpose them into substandard products. These informal operators bypass safety and environmental standards, allowing them to undercut formal recycling companies burdened by high compliance costs.

Five government agencies, including the Ministry of Industry and Information Technology (MIIT) and the Ministry of Ecology and Environment, announced the joint initiative on Monday. Regulators plan to punish a group of violators by the end of May and publicize typical cases by the end of June to deter others from committing similar violations.

Beijing to fully ban sale of drones from May 1

Beijing will impose a blanket ban on the sale and rental of drones starting May 1 in the city, reports Caixin. This makes the capital the first city in China to introduce such sweeping restrictions.

The new rules prohibit drones and their core components from being brought into the city and strictly limit where they can be stored. Existing owners will have three months to complete real-name registration with local police.

Amid online rumors that industry leader DJI had already removed its products from store shelves in Beijing, the company told Caixin its sales and services in the city will continue as normal until the May 1 deadline. After that, it will adjust its distribution channels to comply with the new rules. DJI added that the company will work with relevant parties to ensure safe and compliant operations.

Chinese AI startup Lightelligence sees 383% rise on HK IPO

Shares of Shanghai Xizhi Technology, better known as Lightelligence, rose 383.6% on their Hong Kong debut Tuesday, reports Caixin. The IPO marks the largest first-day gain for a new main board listing in nearly a decade.

The stock for the company which develops optoelectronic computing solutions designed to accelerate AI workloads closed at HK$886 ($113) per share after opening 380% higher. The initial public offering, priced at the top of its range at HK$183.2, raised HK$2.4 billion in net proceeds and generated massive demand, with the retail tranche oversubscribed nearly 5,785 times by nearly 380,000 investors.

The institutional tranche of the offering was oversubscribed nearly 54 times. The company secured about RMB 1.4 billion ($205 million) from 20 cornerstone investors, who took up roughly half of the deal. The lineup included tech giants such as Alibaba and Lenovo, as well as prominent global funds including GIC, Baillie Gifford, BlackRock, Temasek, and UBS Asset Management.

No sales

The US has ordered multiple chip equipment companies to halt shipments of certain tools to China’s second largest chipmaker, Hua Hong. The ban comes shortly after Hua Hong announced that is has developed the manufacturing technology to produce 7-nanometer chips—crucial for use in all sorts of tech, from smartphones to AI training models. Currently, the only Chinese company that can produce them is SMIC.

As Beijing pushes forward with its goal of self-sufficiency in technology, this ban appears to be aimed at throwing a wrench in the works. The underlying question is that if this is so important, then why did it take the US so long. It has surely been clear that Hua Hong has been working on developing this capability for several years, and one then wonders if implementing such a ban now is perhaps too late. Hua Hong may be able to replace the tools with ones from non-US companies, or via various backchannels.

The US is still considered to be ahead in terms of top tier technologies, but China is widely seen as catching up rapidly. One advantage that China has is clear policy direction and strong support from the state. And also, the White House is sending mixed signals. The recent approval by Washington of sales to China of Nvidia’s powerful H200 chips—which are considered crucial in terms of training AI models—is one example of this.

Beijing orders cancelation of Meta purchase of Manus

China ordered Meta to unwind its $2 billion-plus acquisition of AI startup Manus, reports Reuters. This comes as Beijing tightens scrutiny of US investment in domestic startups developing frontier technologies.

The National Development and Reform Commission’s office for ‌reviewing the security of foreign investments said it would “prohibit foreign investment in Manus in accordance with laws and regulations, and requires the parties involved to withdraw the acquisition transaction”. It did not name Meta or other overseas investors in Manus.

It was not immediately clear on what grounds China was ​seeking the annulment of a deal involving a Singapore-based company and how, if at all, a completed acquisition transaction would be unwound. But analysts and lawyers said the rare ⁠move to unwind a completed deal underscores how Beijing was looking to establish its jurisdiction over cross-border transactions involving Chinese assets, shareholders or technology under its national security review regime.

China warns of retaliation over EU green tech regulations

China warned the European Union it could retaliate over a proposed industrial law that would impose strict local-manufacturing requirements and investment barriers in key green-technology sectors, reports Caixin. The move may escalate trade tensions between the two economies.

China’s Ministry of Commerce said Monday that it had submitted formal comments to the European Commission on Friday expressing “serious concerns” about the EU’s Industrial Accelerator Act, or IAA. A ministry spokesperson said the act would impose restrictive requirements on foreign investment in four strategic emerging industries—batteries, electric vehicles, photovoltaics and critical raw materials—and would create exclusive EU-origin requirements in public procurement and support policies. Those measures amount to severe investment barriers and systemic discrimination, the spokesperson said.

Proposed March 4, the IAA aims to raise manufacturing’s share of EU GDP to 20% by 2035 from 14.3% in 2024. It would introduce “EU-made first” requirements for public procurement and subsidized projects. It would also require prescreening for direct foreign investments exceeding 100 million euros ($117 million) from countries that account for more than 40% of global manufacturing capacity in strategic sectors—a threshold widely seen as aimed at China.

Beijing outlines greater protection plan for gig workers

China has vowed to better protect the country’s vast gig-economy workforce, reports the South China Morning Post. This comes as the economic slowdown leads millions of people to sign up for delivery, ride-hailing and other informal jobs on online platforms.

The 12-point plan–issued by the State Council, China’s cabinet, and the Communist Party’s Central Committee–pledges stronger labor protections for “new employment groups”, or gig workers, across a number of areas.

The document calls for timely and fair wage payments, a stronger social security system, enhanced labor protections during extreme weather, and greater transparency in how platforms’ algorithms allocate orders, price fees and set time limits, among other measures.

China faces “France-sized” demographic loss

China’s population is projected to fall by about 60 million over the next decade, reports the South China Morning Post citing a report from research firm Rhodium Group. Such a drop would threaten economic activity in wealthier coastal provinces and putting growing pressure on the public pension system.

The report estimated that China could lose the equivalent of nearly France’s entire population over the coming 10 years.

In a nation of 1.41 billion people, a decline of this scale would weigh on labour productivity, consumption and social security, including in richer coastal provinces that have powered much of China’s growth over the past four decades.

China delivers its largest LNG carrier ship

China has delivered its largest-ever liquefied natural gas (LNG) carrier, reports the South China Morning Post. This brings the number of domestic shipyards capable of designing and building the advanced vessels to five, as the country steps up its challenge to South Korea’s dominance in the high-value sector.

The milestone was marked by China Merchants Heavy Industry (Jiangsu), a subsidiary of China Merchants Group, which delivered the 180,000-cubic-meter vessel on Sunday, according to a company press release.

Construction on the 298.8-meter-long ship, named Celsius Georgetown, began in October 2023 as the first of six identical vessels ordered by Danish firm Celsius Shipping, with the second slated for delivery in three months, the shipbuilder said.

No exit

Beijing is doing all it can to stop US tech giant Meta’s acquisition of AI startup Manus, despite the fact the Chinese-owned company has relocated its business to Singapore, and that Manus staff and tech have already begun integrating into Meta operations there.

Last month both the CEO and the chief scientist of Manus were summoned to Beijing for talks with regulators and were then barred from leaving the country—and appear to still be in China at present. It appears that in Beijing’s eyes, despite the company relocating its entire operation outside of the country, that because of the nationality of the founders, or the fact they originally set up in China, they are still accountable to Chinese law.

This obviously serves as a warning to other Chinese companies that may consider moving their operations overseas—pick one side or the other, there is no middle way. And another takeaway is that the tech world is becoming fundamentally divided.

US state department issues global warning about alleged Chinese AI theft

The US State Department ​has ordered a global push to bring attention to what it says are widespread efforts by Chinese companies to steal intellectual property from American AI labs, reports Reuters citing a diplomatic cable it has viewed.

The cable, sent to diplomatic and consular posts around the world, instructs diplomatic staff to speak to their foreign counterparts about “concerns over adversaries’ extraction and distillation of US AI models.”

The Chinese Embassy in Washington responded by saying that the accusations are baseless. “The allegations that Chinese entities are stealing American AI intellectual property are groundless and are deliberate attacks on China’s development and ​progress in the AI industry,” it said in a statement to Reuters.

China imposes first fine for unauthorized overseas listing

China’s securities regulator has penalized a domestic company for listing on a foreign exchange without completing the required regulatory filing, reports Caixin. This marks its first enforcement action of this kind.

The Heilongjiang bureau of the China Securities Regulatory Commission (CSRC) plans to fine Heilongjiang Zhongneng Liangke Agricultural Technology RMB 3 million ($439,000). Zhongneng Liangke is the domestic operating entity of Zhong Guo Liang Tou, which went public on the Nasdaq Stock Market on October 1, 2025, through a merger with a special purpose acquisition company.

The CSRC alerted US regulators about the compliance failure immediately after the listing. As a result, Zhong Guo Liang Tou’s shares were suspended on their debut day and remain halted. Jiang Zhenjun, the executive responsible for the filing, faces a RMB 1.5 million fine. The regulator also proposed a RMB 500,000 penalty for the company’s legal counsel, Guangdong Xinyu Law Firm, and a RMB 200,000 fine for its lawyer, Li Huabin. The parties have the right to request a hearing before the decisions are finalized.

China develops cost-saving iron battery for renewable energy storage

Chinese scientists have achieved a breakthrough in “all-iron flow battery” technology that could sharply reduce the cost of storing renewable energy while significantly extending battery lifespan, reports the South China Morning Post.

A team from the Institute of Metal Research under the Chinese Academy of Sciences (CAS) reported the development of a highly stable electrolyte capable of sustaining thousands of charge-discharge cycles with virtually no capacity loss.

Lithium costs over 80 times more than iron as a raw industrial material at present. An iron battery may offer a potential solution to one of the biggest bottlenecks in the global energy transition, according to the researchers. All-iron flow batteries–relying on abundant, inexpensive iron and non-flammable water-based electrolytes–have emerged as an attractive candidate for long-duration storage.

Chinese-made EVs account for 1/3 South Korean market

Electric vehicles (EVs) made in China now account for one in every three new registrations in South Korea, reports the South China Morning Post. This comes as Tesla’s Shanghai-built models power the surge and Chinese carmakers start to gain traction.

Sales of China-made EVs in South Korea soared to 25,000 units in the first quarter of 2026, marking a 286.1% increase from a year earlier, according to data from the Korea Automobile and Mobility Association (Kaida). Over the same period, Korean carmakers sold about 51,000 units, but grew at a much slower pace of 126.1%.

The market share of EVs manufactured in China rose from 4.7% in 2022 to 33.9% last year, while that of Korean EVs fell from 75% to 57.2%, according to the data.

Chinese flights to Central Asia up sharply

Central Asia is quickly emerging as a key market for Chinese travellers, supported by robust traffic growth, expanding air links and deeper economic ties under Beijing’s Belt and Road Initiative, reports the South China Morning Post citing analysts.

Data from the Civil Aviation Administration of China showed that passenger traffic to Central Asia grew 59.3% in 2025 from a year earlier, marking one of the fastest growth rates among all regions tracked, said Mayur Patel, commercial and industry affairs leader for Asia-Pacific at OAG Aviation.

Patel said travel demand between Central Asian countries and China would be more significant in the near future and was “possibly underappreciated” at present. He added that already by summer 2024, Chinese airline frequencies to the region had risen by 120% above 2019 levels, representing the strongest and most consistent pandemic recovery of any global region.

A word of warning

The US State Department has sent out a cable to diplomatic and consular posts around the world instructing staff to raise the issue of efforts by Chinese companies to allegedly steal intellectual property from American tech companies with their counterparts.

The timing of the announcement, with a Trump visit to Beijing apparently coming up next month, appears to be an attempt by the administration in Washington to rally support from other nations around the world in countering what they seemingly view as a threat to what is still US tech supremacy. The visit has already been delayed once, but if and when it does occur, but the tech competition is going to be just one of several huge issues likely to be discussed.

The US has been talking about Chinese industrial espionage for over a decade, and there is no doubt that the Chinese are quick learners and voracious collectors of information. Basically, all the big AI companies have pointed to this problem, and the warning comes not long after OpenAI warned US lawmakers that the Chinese company DeepSeek was distilling its models without authorization.