China is pushing a new model to boost international sales of its domestic bonds, with the Shanghai Clearing House (SHCH) leveraging global financial networks to expand the offshore yuan pool. Writing in a recent article, SHCH chief Ma Jianyang noted that the initiative was designed to solidify Shanghai’s dominance in offshore yuan derivatives clearing while insulating the domestic market from cross-border financial risks. As part of this push, SHCH will broaden its clearing services for offshore...
The Trump administration on Tuesday announced bans on imports of new Chinese robots and power inverters, citing threats to US national security and supply chain vulnerabilities. Without naming China, the Federal Communications Commission (FCC) expanded its Covered List to include two new categories of foreign-made equipment: advanced robotic devices and connected power inverters. The robotic devices included mobile robots, such as humanoids and quadrupeds. The action would ban the import and...
Back in 2009, when China’s economy was expanding at about twice today’s pace, a little-known private firm made a quiet bet on uncharted territory: Indonesia. The company was on a quest: to secure nickel, a vital industrial metal used in stainless steel production and, increasingly, to power advanced batteries. That bet proved lucrative. By leveraging Indonesia’s vast nickel reserves – the world’s largest – and securing greater control over upstream supplies, Tsingshan Group has grown into a...
China’s emergence as a global biotechnology innovation hub has become a source of strategic concern in the United States, prompting policymakers in Washington to re-evaluate how to respond to its growing influence, according to a recent report by a leading analytics firm. “The country’s latest biotechnology success is strategically important, with implications extending beyond healthcare innovation to include pharmaceutical supply-chain resilience, economic competitiveness and national...
Chinese President Xi Jinping and Brazilian President Luiz Inacio Lula da Silva agreed on Sunday night to accelerate negotiations for a trade agreement between China and Mercosur, a striking reversal for Brasilia, which for years led resistance to such a deal in the South American bloc. The two leaders spoke by telephone for more than an hour, according to a statement from the Brazilian presidency, and “coincided on the importance of speeding up the talks for a Mercosur-China agreement that...
China’s Ministry of Commerce has objected to Washington’s latest tariff on the country’s goods but signalled it will hold off on retaliation for now, noting the 12.5 per cent duty keeps the United States within the ceiling that the Trump administration promised in earlier talks. Washington was manipulating the issue of forced labour, the ministry said in a statement on Monday, calling the Section 301 investigation and the subsequent tariffs “a textbook act of unilateralism and protectionism”. It...
Germany’s drive to compete with Chinese imports is colliding with its long-standing tradition of Sunday rest, with policymakers and retailers now asking whether a century-old consensus still fits an economy struggling to regain its competitiveness. The latest flashpoint came in early July, when the country’s coalition government unveiled a package of measures to boost Germany’s competitiveness, including plans to let bakeries, confectioneries and public libraries operate longer on Sundays from...
China’s major chip manufacturers saw their profits skyrocket a staggering 2,579.5 per cent in the first half of 2026, fuelled by unprecedented demand for artificial intelligence and computing power, according to data from the National Bureau of Statistics (NBS) on Monday. The state agency attributed the surge to accelerated integration of AI across various fields, which in turn generated massive demand for computing power, according to Yu Weining, chief statistician of the NBS department...
Many of China’s private firms continue to face tough operating conditions, including intense market competition, persistent payment delays and weak domestic demand, though technology firms have shown stronger momentum, according to fresh survey results. The recent survey of 79 entrepreneurs from medium- and large-sized private firms found that more than 70 per cent of respondents described their current business conditions as difficult or very difficult, according to the Beijing-based Dacheng...
We have put together stories from our coverage last weekend to help you stay informed about news across Asia and beyond. If you would like to see more of our reporting, please consider subscribing. 1. After Apple leak, has India lost ground in its supply chain race with China? In the wake of a cyberattack on a local Apple partner, insiders say India has a long way to go before challenging China as a manufacturer. 2. China wants unique access to minerals with Indonesia offer, analyst says China...
China’s agriculture sector needs more advanced technology and innovation to boost yields and improve food security – not more farmland and crops, according to a rural policy expert. The remarks came after a state media investigation alleged that officials in central China had inflated the size of mandatory rice crops to hit their targets. CCTV programme Focus Report aired its investigation on July 14, claiming officials in Jianghua Yao – a county in Yongzhou, Hunan province – had misreported the...
Close to 170 mainland Chinese motorists are expected to arrive in Hong Kong on Saturday under an expanded cross-border travel scheme, with hotels rolling out accommodation, dining, shopping and parking packages to attract the new visitors. The Southbound Travel for Guangdong Vehicles scheme was extended to cover five more cities – Shenzhen, Foshan, Dongguan, Huizhou and Zhaoqing – from Saturday, with the daily quota of urban trips doubling to 200. A total of nine mainland cities in the Greater...
Beijing is doubling down on overland trade routes across Central Asia as continued disruptions in the Strait of Hormuz and the wider region expose the vulnerability of global shipping chokepoints. A new link to Afghanistan via Uzbekistan offers a practical example of this long-term diversification push. However, observers caution that security concerns and capacity constraints could make a meaningful shift away from sea freight difficult. Officially launched in May with pilot shipments, the...
China has added 14 entities from the European Union to its export control list, the Ministry of Commerce announced on Friday. Effective immediately, the order means the export of dual-use items – products with civilian as well as military application – from China to the named entities is prohibited, as is the shipment of dual-use items of Chinese origin to the listed companies and institutions. The move came after another round of sanctions from Brussels against Russia, announced on Thursday,...
We have selected seven stories from this week’s news across Hong Kong, mainland China, the wider Asia region and beyond that resonated with our readers and shed light on topical issues. If you would like to see more of our reporting, please consider subscribing. 1. US slaps fresh tariffs on China, 50-plus countries in latest wave The United States imposed late on Thursday a fresh wave of tariffs against 60 countries, including China, Japan, South Korea, India and European Union member states,...
Even as local retail spending remains resilient, Hong Kong consumers are shopping more across the border in mainland China, drawn by lower prices and wider adoption of digital payments, according to data from payment giant UnionPay International. Offline UnionPay card spending in mainland China by Hong Kong residents rose nearly 30 per cent year on year in the first half of 2026, while online and digital transactions recorded even stronger growth, data released on Thursday showed. The trend...
US senators broadly agree that Chinese connected vehicles should be kept off American roads. But a bipartisan attempt to codify and expand existing restrictions has exposed divisions over whether the proposed ban could ensnare European carmakers and increase costs for American electric-vehicle producers. The Senate Committee on Commerce, Science, and Transportation advanced the Connected Vehicle Security Act of 2026, a bill that would prohibit the import, manufacture and sale of connected...
The United States imposed late on Thursday a fresh wave of tariffs against 60 countries, including China, Japan, South Korea, India and European Union member states, hours before a temporary 10 per cent blanket levy was due to expire. The tariffs, ranging from 10 to 12.5 per cent, are the outcome of a Section 301 investigation into forced labour, with Washington arguing that existing measures have failed to keep goods produced with forced labour out of supply chains. “Today’s action will begin...
China’s durian imports rose 47 per cent, year on year, in the first half of 2026, with Thailand and Malaysia posting particularly strong gains, according to customs data, as Southeast Asian exporters offloaded a glut of the fruit that had sparked a price drop. Thailand exported nearly US$3.79 billion worth of the pungent spiky fruit shipped to China in the first half of 2026, the Chinese customs data showed, taking an 81 per cent share of the market. Thai shipments reached US$2.56 billion in the...
Economist Mary Lovely dismisses the claims that getting automakers to produce more cars in America proves tariffs work.
US lawmakers are examining tariffs, port fees and sanctions targeting China’s shipbuilding industry, as US Congress searches for ways to rebuild America’s severely diminished commercial fleet without increasing costs for US importers and consumers. At a House Foreign Affairs Committee hearing on Wednesday, members of both parties described China’s dominance of commercial shipbuilding as an economic and national security vulnerability, but witnesses cautioned that penalties alone would do little...
Washington is still not receiving sufficient critical mineral exports from China, US Trade Representative Jamieson Greer said on Wednesday, even as top American and Chinese officials met to finalise key economic deliverables for President Xi Jinping’s expected visit to the White House. “We are getting a flow of critical minerals from China. It’s not as much as we would want. It’s not at the pace we would want, but we are getting them,” Greer said during his testimony before the Senate Finance...
On July 9, a fire burned through a shoe factory in Jinjiang, Fujian province, killing at least 28 people. The accident signals a larger problem: firms operating under financial pressure often cut costs by compromising safety. China’s low-cost business model needs reform, but why has change been so difficult? The plant that burned employed hundreds of workers, yet company filings for 2025 indicate that only a handful of them were enrolled in pension and medical insurance plans. A fire-safety...
International luxury car brands from Mercedes-Benz to Land Rover took a further beating in China last month as wealthy consumers continued to shun expensive petrol-powered vehicles. Struggling against competition from China’s rising electric vehicle (EV) powerhouses, international marques would find it more difficult to retain their market share and maintain profitability in the world’s largest automotive market, analysts said. According to data from the China Passenger Car Association (CPCA),...
China’s electric vehicle (EV) industry sits at the centre of numerous economic and geopolitical trends: consumer spending, environmental protection, trade policy, high-end manufacturing, technology and more. In this short series, we assess the current state of the sector within these broader contexts. Here, Yeon Woo Lee asks whether Beijing has written a blueprint for developing countries to kick-start their own contenders in the field. Emerging markets once seemed like also-rans in the global...
Over the past year, China’s Belt and Road Initiative has seen rapid development in Central Asia. This has been evidenced by the launch of several railway and road routes connecting China’s industrial and economic centres to logistics hubs in Uzbekistan, Turkmenistan and Tajikistan. China’s improved transport to the region reflects two interrelated trends: growing trade momentum and Central Asia’s strengthening position in continental logistics. Last year, China became the largest trading partner...
Chinese tourists are being unfairly blamed for Kyoto’s overtourism crisis, according to a new report, even as data shows mainland visitor numbers have fallen sharply amid worsening ties between China and Japan. The report released earlier this month by the Kyoto City Tourism Association’s destination management organisation said many local residents assumed crowded public transport, congestion at popular sights and rising hotel prices were being driven by mainland Chinese tour groups. But...
US President Donald Trump on Monday signed an executive order aimed at reducing dependence on China for defence-related critical minerals, directing military contractors to shift away from Beijing-linked supply chains beginning in January 2027. Without naming China, Trump’s executive order stresses the need to maintain US military dominance “in an era of renewed great power competition”. “The United States must secure its supply chains against physical, cyber, and economic subversion,” it...
As trade tensions with China reach boiling point, EU officials are ramping up engagement with Beijing in search of an off-ramp. Quietly behind the scenes, though, Europe is preparing for a trade war. In Brussels, a steely determination has set in to ensure the bloc’s manufacturing heartlands are not deindustrialised by the “China Shock 2.0”. With some industries already haemorrhaging jobs, the EU’s resilience-building and de-risking plans are now laced with deterrents as Brussels looks to...
Facing Europe’s ever-widening trade deficit with Beijing, Berlin is increasingly singing the same tune as Paris. The two nations displayed a united front at this year’s Franco-German Ministerial Council, which will soon be put on paper in a joint road map due by September at the request of Germany. “Our work between Germany and France is indispensable at a time when Russia threatens our security, when the People’s Republic of China challenges our economy, and when the transatlantic partnership...
European pilots have found “no major hardware risks” with the Chinese-made C919 passenger jet during a months-long flight testing process in China, which is now beginning to wrap up, according to two sources with knowledge of the matter. The news indicates that the C919 has taken a step closer to winning a crucial endorsement from European safety regulators, but the sources cautioned that the completion of in-flight testing did not mean that certification was imminent. The “test drive” by...
The UK move to take over British Steel fuels a brewing dispute with China amid political leadership change in London.
As Norwegian World Cup footballer Erling Haaland’s herbal drink advertising blitz captivates millions, his home country has emerged as a popular destination for Chinese travellers. An increasing number of Chinese citizens have visited Norway over the past two years, with interest surging during this summer’s international football competition. The draw was largely Norway’s scenic allure, but in recent weeks Haaland’s social-media stagecraft had amplified the appeal, tourism professionals...
European policymakers have watched Chinese carmakers roll in like a slow but unstoppable tide over the past few years: affordable, polished and threatening one of the continent’s proudest industrial legacies. Many have warned about the dismantling of their automotive prides following the new China shock. A crown jewel of Europe’s industrial output, the automotive sector represents directly and indirectly a total of more than 13 million jobs in the EU. It was no accident that electric vehicles...
In the latest move to bypass Western-dominated financial systems and step up the internationalisation of the yuan, China is linking its retail payment networks with the United Arab Emirates. Users will soon be able to use domestic mobile apps to scan QR codes and make payments in either country, under a recent agreement between state-owned Bank of China (BOC), UnionPay International, and the UAE central bank’s subsidiary Al Etihad Payments. “The partnership would help expand the scope of...
The UK government said taking the firm into public hands would safeguard "a vital national capability".
Beijing has condemned the latest efforts by US lawmakers to curb Chinese access to leading semiconductor chips and chipmaking equipment, warning that they would lead to “arbitrary disruption and damage” to global supply chains. The stark assessment followed reports on Tuesday that three major export control bills targeting China – the AI Overwatch Act, the Match Act and the Chip Security Act – are set to be folded into the National Defence Authorisation Act (NDAA) in the US Senate, the annual...
Africa’s exports to China have surged since Beijing expanded its zero-tariff policy across the continent in May, as customs data showed signs of emerging trade links in a range of new sectors alongside traditional categories such as critical minerals. China’s imports from Africa soared by 21.1 per cent and 40.2 per cent year on year in May and June, respectively – outpacing the overall growth in Chinese imports over the same period, customs data showed. The increase was partly driven by China’s...
The European Union is prepared to introduce emergency measures to combat China’s extraordinary export surge as new figures showed the trade gap had widened dramatically, its top trade enforcer said on Tuesday. Safeguard measures that permit tariffs and quotas to be enforced to combat sudden import surges may “become legitimate on a case-by-case basis”, Denis Redonnet told the European Parliament’s trade committee. Redonnet, the EU’s deputy director general for trade, added that the bloc had...
China called on the United States and Iran to stick with peace plans after a resumption of missile strikes in the Middle East spurred a jump in oil prices. “Reigniting the conflict does not serve any party’s interests,” a spokesman for China’s Ministry of Foreign Affairs said on Wednesday. “We call on the US and Iran to follow through on their memorandum of understanding, resolve disputes through dialogue and negotiation, and avoid resorting to force.” Brent crude, the global oil benchmark, rose...
The European Commission has been clearly signalling its intention to wage a trade war against China. Brussels’ intent to counter the so-called China shock 2.0 – the wave of subsidised Chinese exports such as electric vehicles (EVs), solar panels and batteries – is no longer merely a verbal threat but appears to be an imminent decision. Comparing current trade tensions between the European Union and China with the trade conflict between Europe and Japan in the 1970s and 1980s reveals striking...
For much of the post-Cold-War era, the European Union understood economic interdependence as a source of mutual prosperity. Open markets, free trade and multilateral rules were regarded not merely as economic principles but as the foundations of European normative influence. That assumption is rapidly giving way to a different logic. In an era of intensifying geopolitical rivalry, Brussels increasingly views trade, investment and technology as the power instruments of strategic competition. The...
Three months after moving from China to Japan, Alisa Lin has yet to buy a single drink from Mixue – the Chinese ice cream and tea giant – despite being a frequent customer back home, where a cup costs under five yuan (73 US cents) during promotions. “It’s not a very popular brand here. Only one of my friends in Japan has ever bought it,” Lin said, adding that value for money was the main consideration behind her own consumer choices in Tokyo. While Mixue’s basic teas are cheap, a plain bubble...
China is trying to “infiltrate” the US-Mexico-Canada trade agreement via Mexican automotive investments, a US manufacturing trade group said, as Washington indicated it would not renew the agreement that comes up for review this month. However, analysts cautioned that full decoupling from China’s automotive industry remains difficult, given North America’s continued dependence on Chinese-sourced motor vehicle components and Mexico’s legacy of export manufacturing plus quick access to the US...
Beijing has downplayed reports that the World Bank will phase out lending to China by 2031, with the Ministry of Finance noting that the nation’s advancing economy and changing development needs were shifting cooperation away from financing and towards knowledge sharing. “This is the natural result of changing domestic needs and the transformation of bilateral cooperation,” the ministry said in a statement on Wednesday, referring to the World Bank’s declining lending to China in recent...
The European Union set an October deadline for “tangible results” in tackling its growing trade deficit with China, after the two sides held talks in Brussels in an attempt to avoid a trade war. “Not everything will be solved, not everything will be fixed, but we think that between now and October, our teams have sufficient time to deliver the tangible results,” EU trade chief Maros Sefcovic told reporters on Monday, according to Bloomberg News. He spoke after “intensive, focused and...
Talks between EU trade commissioner and Chinese commerce minister come as bloc seeks to limit influx of Chinese imports.
A heatwave sweeping across Europe has triggered a massive surge in sales for Chinese home appliances, with e-commerce giant Alibaba recording triple-digit growth for air conditioners and fans on its overseas platforms. On AliExpress, Alibaba’s international retail site, the June debut of air conditioners in Germany saw warehouse inventory for a 2.35-kilowatt Midea model completely wiped out by Thursday, according to data from Alibaba. The trend was also stark in southern Europe. Fan sales in...