U.S. clears Nvidia to sell H200 chips in China
The Trump administration has authorized Nvidia's sale of its H200 AI chip to "approved customers" in China, raising questions about export controls, signaling, and Beijing's AI ambitions
Welcome back to What’s Happening in China, your weekly China brief.
Trump announced on Monday that the U.S. would authorize Nvidia to sell its H200 chip to “approved customers” in China. According to Bloomberg, Washington concluded the move carries limited risk since “the company’s Chinese archrival, Huawei Technologies Co., already offers AI systems with comparable performance.”
Inevitably, Beijing will continue efforts to reduce its reliance on foreign technology and advance its domestic AI chip industry, with reports suggesting that it is preparing “a package of incentives worth as much as $70 billion.”
Still, concerns remain that giving Chinese AI developers access to the H200, although less advanced than Nvidia’s Blackwell chips, could help accelerate the country’s technological ambitions.
Irene Zhang from ChinaTalk compiled some of the reactions circulating in Chinese media.
Let’s jump into it.
— PC
Through the Lens
In Focus
I. Nvidia to sell H200 chips to China
President Donald Trump decided to let Nvidia Corp. sell its H200 artificial intelligence chips to China after concluding the move carried a lower security risk because the company’s Chinese archrival, Huawei Technologies Co., already offers AI systems with comparable performance, according to a person familiar with the deliberations.
Administration officials who weighed whether to clear Nvidia’s H200 had considered multiple possible scenarios, factoring in the views of national security hawks in Washington, said the person. Options ranged from exporting zero AI chips to China to allowing exports of everything to flood the Chinese market and overwhelm Huawei. Ultimately the policy backed by Trump called for clearing H200s to China while holding back the latest Nvidia chips for American customers, the person said.
The move would give the US an 18-month advantage over China in terms of what AI chips customers in each market receive, with American buyers retaining exclusive access to the latest products, the person said. White House officials concluded that pushing the H200 into China would prod Chinese AI developers into building on the US tech ecosystem rather than turning to offerings from Huawei or other local chipmakers.
Read: Trump’s Nvidia H200 Reprieve Spurred by Huawei’s AI Gains (Bloomberg)
Related:
Nvidia considers increasing H200 chip output due to robust China demand, sources say (Reuters)
Nvidia addresses report that China’s DeepSeek is using Blackwell chips (CNBC)
China may tap Nvidia’s H200 for AI gains but domestic chip strategy here to stay: analysts (SCMP)
Nvidia builds location verification tech that could help fight chip smuggling (Reuters)
Nvidia AI Chips to Undergo Unusual U.S. Security Review Before Export to China (WSJ)
U.S. Investors Are Going Big on China AI Despite Concerns in Congress (WSJ)
The Consequences of Exporting Nvidia’s H200 Chips to China (Council on Foreign Relations)
II. “How Japan Built a Rare-Earth Supply Chain Without China”
In September 2010, a collision near disputed islands between a Chinese fishing trawler and two Japanese Coast Guard vessels escalated into a diplomatic and economic crisis. Japan detained the captain of the Chinese ship, and Beijing, in retaliation, implemented an unannounced, two-month embargo on rare-earth exports.
At first, the significance of China’s move was lost on some Japanese officials.
Tatsuya Terazawa was in charge of economic policy at Japan’s trade ministry in 2010. He recalled that the ministry’s lead auto industry official rushed to his desk, warning that the entire automotive supply chain could be suspended because of the sudden cutoff.
“I had to confess, I had zero knowledge about rare earths,” Mr. Terazawa said. He said his colleague explained that these materials were essential ingredients for the magnets used in motors across Japan’s auto sector. And Japan, like most industrialized nations, had ceded control of this vital supply almost entirely to China.
Mr. Terazawa was responsible for developing the trade ministry’s next suite of economic policies. He compiled a package, worth a little over $1 billion at the time, aimed at reducing Japan’s supply chain vulnerability to rare earths. It included substantial support for Japanese groups to diversify rare-earth sources.
“At the time, I was criticized that I was demanding much more money than necessary,” Mr. Terazawa said. “But I was determined that Japan never repeat this incident.”
Read: How Japan Built a Rare-Earth Supply Chain Without China (The New York Times)
Related:
China Eases Rare Earth Curbs With First Export Licenses (Caixin)
Trump enlists 5 allies to counter China on rare earths and tech (Politico)
III. China 2026
China 2026: What to Watch is the third iteration of CCA’s flagship report. Our annual exercise — drawing on the expertise of CCA’s in-house and global fellows — aims to do precisely what we set out above: to ask the right questions about China. China is changing faster than most of us can keep pace. Each month brings new data, new narratives, and new signals from Beijing. Yet the challenge for us is not the quantity of information but how to synthesize the constant flow of statistics, speeches, and policy directives. Lastly, it is knowing what questions to ask about it.
This report starts there. China 2026: What to Watch is organized not as a catalog of topics but as a set of dilemmas. Each chapter poses a strategic question that captures the contradictions shaping China’s next stage. Does Beijing have the political resolve to relax state-directed technology investments and shift toward a consumption-driven economy? Can the Chinese Communist Party (CCP) sustain legitimacy while managing social dissatisfaction driven by inequality and persistent youth unemployment? Will coercion in the Taiwan Strait remain calibrated — or slip into confrontation — against the backdrop of sweeping purges in the People’s Liberation Army?
By asking questions rather than offering conclusions, this report seeks not consensus but curiosity. It invites readers to grapple with uncertainty — to consider not only what is happening, but what could plausibly follow, under what conditions, and with what consequences.
Read: China 2026: What to Watch (Asia Society)
Related: Online event: What to Expect for China’s Economy in 2026? (Asia Society)
**Stay up to date on the most relevant stories from China. Consider upgrading your subscription to unlock exclusive posts. Learn more.**
Politics & Society
China Politburo Makes Boosting Domestic Demand Top Goal in 2026 (Bloomberg)
China’s top leaders made strengthening domestic demand their top economic priority for 2026, while hinting at a measured approach to stimulus.
“We must adhere to domestic demand as the main driver and build a strong domestic market,” the Communist Party’s decision-making Politburo led by President Xi Jinping pledged during its December huddle. Authorities also vowed to grow “new productive forces,” according to the official readout, suggesting strong measures to curtail manufacturing were unlikely at least in some key sectors.
Top leaders pledged to strengthen “cross-cyclical” policy adjustments — the first time that phrase signaling longer-term planning had appeared in a Politburo readout since December 2023. Officials also kept their “proactive” fiscal and “moderately loose” monetary stances in play.
China Reveals Unease Over Trade in Economic Roadmap for 2026 (Bloomberg)
China’s top leaders are signaling they are on alert for a potential flareup of tensions in global commerce as they draw up economic plans for next year, after amassing a record trade surplus despite the tariff war with the US.
Hours after China announced that its excess of exports to imports has surpassed $1 trillion in just 11 months, a readout of the Politburo’s meeting on Monday made a veiled reference to the uncertainty overseas, calling for “better coordination between domestic economic work and an international economic and trade battle.” It vowed to “act without delay” to develop new growth engines.
For analysts parsing the language used by the Communist Party’s decision-making body led by President Xi Jinping, the takeaway is that vigilance will be important for policymaking, even as it’s withheld bolder stimulus measures this year from an economy in the grip of a slowdown.
CPC leadership holds meeting on 2026 economic work, regulations on law-based governance (Xinhua)
The meeting emphasized that to do a good job in economic work next year, it is necessary to fully and faithfully apply the new development philosophy on all fronts, move faster to create a new pattern of development, promote high-quality development, adhere to the general principle of pursuing progress while ensuring stability, and better coordinate domestic economic work and endeavors in the international economic and trade arena.
It is also necessary to better coordinate development and security, implement more proactive and effective macro policies, make policies more forward-looking, targeted and synergistic, continue to expand domestic demand and improve supply, develop new quality productive forces in light of local conditions, make thorough efforts to develop a unified national market, continue to prevent and defuse risks in key areas, and work to stabilize employment, enterprise operations, markets and expectations to ensure a good start to the 15th Five-Year Plan (2026-2030).
China holds Central Economic Work Conference to plan for 2026 (Xinhua)
Noting that there are still long-standing and new challenges in China’s economic development, and the impact of changes in the external environment has deepened while risks and hidden dangers persist in some key areas, the meeting said that these issues can be resolved through efforts, and the underlying conditions and fundamental trends sustaining China’s long-term economic growth remain unchanged.
The conference stressed the need to fully and faithfully apply the new development philosophy, move faster to forge a new development paradigm and focus on promoting high-quality development.
China will adhere to the general principle of pursuing progress while ensuring stability, better coordinate domestic economic work with struggles in the international economic and trade arena, and ensure both development and security.
China Politburo Member Misses Two Key Meetings as Mystery Builds (Bloomberg)
A member of China’s decision-making Politburo has missed two high-profile meetings in recent weeks, fueling speculation about his fate amid President Xi Jinping’s widening anti-corruption purge.
Ma Xingrui, who is also the former party chief of Xinjiang, was absent Thursday from state media footage of the Central Economic Work Conference convened in Beijing to map out policy for the year ahead.
[…]
Ma also skipped a Politburo study session on Nov. 28, according to CCTV footage of that meeting. State media didn’t release footage of the Politburo’s December meeting held Monday, making it unclear whether Ma was in attendance.
[…]
Ma’s pair of unexplained absences is “very unusual,” said Neil Thomas, a fellow for Chinese politics at the Asia Society Policy Institute’s Center for China Analysis. “It’s still possible that Ma reappears without explanation — another mysterious move in Xi’s unpredictable reshuffling of the party ranks,” he added.
Top diplomat Wang Yi rallies the diplomatic Iron Army (Trivium China)
Wang wants diplomats who are politically rigid “iron soldiers” internally, but charming and engaging storytellers externally.
That’s unlikely to work, as Chinese diplomats will find it hard to be “refreshing” when they’re terrified of stepping out of line.
Wang Yi’s Big Speech on Xi Jinping Thought on Diplomacy (Tracking People's Daily)
In the historical process of deepening and expanding the all-around diplomatic layout, China–US relations are developing in the direction of mutual respect, peaceful coexistence, and win–win cooperation; China–Russia strategic coordination has become more mature, stable, and resilient; our country’s relations with peripheral countries have entered their best period since modern times; the Global South’s joint self-strengthening continues to take new steps forward; we are actively promoting reform and improvement of the global governance system; and are firmly safeguarding the country’s sovereignty, security, and development interests.
China Launches Massive Aerial Drone Carrier in Show of Prowess (Bloomberg)
China conducted the maiden flight of what is considered to be the world’s largest drone mothership, underscoring its advances in unmanned aerial vehicles capable of unleashing weaponized swarms.
The unmanned “Jiutian” completed its first mission in the northwestern province of Shaanxi, the official Xinhua News Agency reported Thursday without elaborating. The aerial vehicle has been likened to an aircraft carrier for its ability to host multiple drones and missiles. Jiutian means “nine heavens” — a Chinese term for extremely high skies.
Jiutian was introduced to the public last year at an air show in Zhuhai. The drone can carry up to six tons and has eight hardpoints for guided bombs, air-to-air and anti-ship missiles, and kamikaze drones — loitering munitions that wait for targets before crashing into them, typically with explosives.
Its belly can also carry more than 100 small drones designed to launch in swarms to overwhelm enemy air defenses. Its size, however, could reduce its stealth in combat, weapons experts say.
China holds low-key Nanjing Massacre memorial despite Japan tensions (Reuters)
China held a low-key memorial ceremony on Saturday for the 1937 Nanjing Massacre, with President Xi Jinping not attending, despite a diplomatic crisis between Beijing and Tokyo over Taiwan.
Beijing has raged at Tokyo since Prime Minister Sanae Takaichi said last month that a hypothetical Chinese attack on Chinese-claimed Taiwan could trigger a military response from Japan.
[…]
At Saturday’s ceremony being held at the national memorial centre in Nanjing, Shi Taifeng, head of the ruling Communist Party’s powerful organisation department, referenced Xi’s speech at a military parade in Beijing in September marking 80 years since the end of World War Two.
Tibetan Activists Say China Has Detained Protesters Who Staged Rare Act of Defiance (WSJ)
Chinese authorities arrested dozens of Tibetans who were protesting a mining project in one of their communities, according to Tibetan activists and the government in exile, an act of defiance by a community that has been tightly controlled by Beijing.
On Nov. 5, scores of people in a Tibetan autonomous area in the western Chinese province of Sichuan protested after learning of the start of a gold mine in a pasture area used by nomads for their sheep and yaks, according to accounts from 40 people there collected by a group of seven Tibetans in exile from relatives and friends in the village.
After the villagers in Gayixiang township confronted local authorities about the mine, which was at an early stage, Chinese authorities arrested at least 60 of the protesters, according to the exiled Tibetans, all of whom are originally from the town, and the Tibetan government in exile. Chinese authorities have blocked access to Gayixiang, which the Tibetans refer to as Kashi village, cut off communications and intensified security in the area, the group said.
Gao Zhen, Detained Chinese Artist, Keeps Creating From Prison (The New York Times)
For the wife, Zhao Yaliang, the pictures are visual love letters from her husband, the imprisoned artist Gao Zhen.
Mr. Gao is in a Chinese detention center, awaiting trial and almost certain conviction on charges that he broke a law against slandering the country’s heroes and martyrs, according to Ms. Zhao. He is being prosecuted for irreverent sculptures of the revolutionary leader Mao Zedong that he made more than 15 years ago, before the law even existed.
Mr. Gao, 69, is part of a generation of avant-garde Chinese artists that achieved international fame in the 2000s. While he later emigrated to the United States, Mr. Gao was detained in August 2024 at his studio on the outskirts of Beijing when he and his family visited China.
Tricked, abducted and abused: Inside China’s schools for ‘rebellious’ teens (BBC)
A BBC Eye investigation has uncovered multiple allegations of physical abuse in the school and others in the same network, and cases of young people being abducted and taken to the institutions.
Corporal punishment has been banned in China for decades, but we have collated testimony from 23 former students who say they were beaten or forced to do extreme amounts of exercise. One says she was raped, and two others, including Baobao, say they were sexually assaulted or harassed, all by instructors.
Undercover filming has exposed how staff pose as authorities to forcibly transfer young people to their institutions.
Thirteen students say they were abducted, with parental consent, by employees pretending to be police or officials.
The end of a tax break for condoms in China sparks health alarms (AP)
While state-run news outlets have not widely highlighted the change, it has been trending on Chinese social media, drawing ridicule among people who joked they’d have to be fools not to know that raising a child is more expensive than using condoms, even if they are taxed.
More seriously, experts are raising concerns over potential increases in unplanned pregnancies and sexually transmitted diseases due to higher costs for contraceptives. The ruling Communist Party’s past “one-child” policy was enforced from about 1980 until 2015 with huge fines and other penalties and sometimes with forced abortions. In some cases, children born over the limit were deprived of an identification number, effectively making them non-citizens.
Chinese court orders Malaysia Airlines to pay families of 8 missing MH370 victims (SCMP)
A Chinese court has ordered Malaysia Airlines to pay over 2.9 million yuan (US$410,240) per victim to family members who filed suit over missing flight MH370, 11 years after it disappeared over the Indian Ocean, state broadcaster CCTV said on Monday.
The order, issued on Friday by the Chaoyang District People’s Court in Beijing, covers eight missing passengers. It is the first formal compensation ruling by a Chinese court on flight MH370.
It includes death compensation, funeral expenses and mental anguish damages.
China’s Tough New E-Bike Rules Spur Black Market Surge (Sixth Tone)
The new safety standards, effective Dec. 1, require manufacturers to build e-bikes that cut power automatically when exceeding set speeds. The new rules also limit the use of plastic components, improve battery protection, and strengthen anti-tampering technologies.
Many of the secondhand e-bikes sold online come with pre-registered license plates and have been tampered with, often by removing speed limiters, which are legally required on all e-bikes in China. Sellers typically bypass formal ownership transfers and even promote this as a way for buyers to avoid traffic fines.
Beijing welcomes first snow of winter 2025 (Global Times)
Watch the unique snowscapes blended with traditional Chinese architecture in Palace Museum, as Beijing saw citywide snowfall on Friday, the first snow of winter 2025.
Wave of freezing weather brings snow to northern China (China Daily)
Beijing has activated emergency measures as the capital was hit by its first major snowfall of the winter on Friday, part of the most extensive rain and snow system to sweep northern China since the start of the season.
Forecasters said the snowfall will continue into early Saturday in Beijing, while much of northern China braces for its lowest temperatures in months and a cold front is expected to bring freezing conditions to central regions in the coming days.
Xinjiang
Man who filmed Uyghur concentration camps now fights for his own freedom in the United States (HUMAN RIGHTS IN CHINA)
In October 2020, Guan Heng, a young man from Henan, China, drove alone into Xinjiang, using a telephoto lens to document the concentration camp facilities hidden in the wilderness, towns, and military camps. To make these images public, he embarked on a thrilling escape: he made his way through South America and finally sailed alone in a small boat for 23 hours from the Bahamas, successfully landing in Florida. After arriving in the United States in 2021, he released the videos as planned. This footage became crucial evidence for the international community (including BuzzFeed News’ Pulitzer Prize-winning team) to confirm what China was doing in Xinjiang.
Four years later, Guan Heng, who had once thought he was safe, lost his freedom in the United States. In August 2025, during a raid by U.S. Immigration and Customs Enforcement (ICE) on Guan Heng’s roommate, Guan Heng was arrested in upstate New York for “illegal entry.” Now, he is in the Broome County Correctional Facility in New York State, facing the threat of deportation—being forced to return to the China he risked everything to escape.
Hong Kong & Macao
LegCo: Hong Kong votes in election as city mourns deadly fire (BBC)
Hongkongers have voted in an election seen as a test of public sentiment following a deadly fire that angered some in the city.
The government mounted a huge campaign to encourage residents to choose members of the Legislative Council (LegCo). All of the candidates have been vetted to ensure they are loyal to China.
Voter turnout was 31.9%, according to the city’s electoral office. The last election in 2021 saw the administrative region’s lowest-ever turnout of 30% amid widespread voter apathy.
Electoral commission head David Lok to lead committee probing Hong Kong fire (SCMP)
Judge David Lok Kai-hong, who chairs the Electoral Affairs Commission, will lead an independent review committee set up by the government to investigate the Tai Po fire that killed at least 160 people, Hong Kong’s leader has announced.
Chief Executive John Lee Ka-chiu said on Friday that the appointed committee members included Executive Council non-official member Chan Kin-por and outgoing MTR Corporation chairman Rex Auyeung Pak-kuen.
An investigation is expected to be completed within nine months, with all findings set to be made public.
Probe into suspected fake scaffolding net certificates widened to 6 Hong Kong estates (SCMP)
Hong Kong police have expanded their investigation into allegedly fake scaffolding net safety certificates to four more estates, following the earlier discovery of such documents at two housing sites that prompted a citywide removal of mesh netting.
Hong Kong mandates proof, tests for fire-retardant scaffolding nets after blaze (SCMP)
Hong Kong contractors will be required to provide proof that the scaffolding mesh they use is fire-retardant while samples will also be tested at laboratories under a series of measures rolled out by the government in the wake of the deadly inferno in Tai Po.
Secretary for Development Bernadette Linn Hon-ho said on Thursday that nets could only be used after their samples passed laboratory tests, while the authorities would also conduct random checks on installed mesh.
She said the new rules would not only cover buildings undergoing major maintenance, but also new blocks under construction, with some flexibility.
Silenced by China, Hong Kong struggles to voice its grief over the Tai Po fire disaster (The Guardian)
The cauterisation of Hong Kong’s civil society that has occurred under Beijing’s national security crackdown has meant that the types of grassroots activism that would traditionally have occurred in response to such a tragedy – as they would in any other open society – are no longer possible.
HK: Jimmy Lai verdict to be handed down Monday (HKFP)
The verdict in the national security trial of Hong Kong media tycoon Jimmy Lai is set to be handed down next Monday, according to the judiciary.
Lai, who just turned 78 on Monday, has pleaded not guilty to two counts of conspiring to collude with foreign forces under the Beijing-imposed national security law and a third count of sedition under colonial-era legislation.
Sexually explicit letters about exiled Hong Kong activists sent to UK and Australian addresses (The Guardian)
Sexually explicit letters and “lonely housewife” posters about high-profile pro-democracy Hong Kong exiles have been sent to people in the UK and Australia, marking a ratcheting up in the transnational harassment faced by critics of the Chinese Communist party’s rule in the former British colony.
Taiwan
China vows to defend sovereignty over Taiwan as Trump unveils security strategy (Reuters)
Taiwan is the first red line that must not be crossed in China-U.S. relations and China brooks no external interference, Guo Jiakun, a spokesperson for the Chinese foreign ministry, told reporters in Beijing when asked about the document.
“The U.S. side should ... handle the Taiwan question with the utmost prudence, and stop indulging and supporting ‘Taiwan independence’ separatist forces in seeking independence by force or resisting reunification by force,” he said.
Guo added that China was willing to work with Washington to promote stable ties while safeguarding its sovereignty, security and development interests.
China, which views democratically governed Taiwan as its own territory, has never renounced the use of force to take control of the island. Taiwan’s government rejects Beijing’s sovereignty claims.
The new U.S. document has been warmly welcomed in Taiwan, whose President Lai Ching-te wrote on X on Saturday: “Greatly appreciate that the U.S. National Security Strategy prioritizes deterring a conflict over Taiwan”.
China Coast Guard Increasingly Assertive (The Jamestown Foundation)
The China Coast Guard (CCG) has adopted more assertive and complex operational patterns near Kinmen, shifting from single-file incursions to multi-axis converging formations coordinated with PLA joint air–sea patrols. These actions signal a transition from routine harassment to integrated coercive pressure on Taiwan’s offshore islands.
World
Asia & Pacific
Japan holds joint flight drills with US to show alliance as ties with China worsens (AP)
U.S. strategic bombers joined a fleet of Japanese fighter jets in a joint military exercise meant to demonstrate their military cooperation around Japan’s airspace, defense officials said Thursday, as tensions with China escalate.
The exercise showcasing joint Japanese-U.S. air power came a day after Chinese and Russian bombers flew together around western Japan, prompting Tokyo to scramble fighter jets, though there was no airspace violation. It also follows China’s military aircraft locking radar on Japanese jets Saturday, another incident that has caused Tokyo-Beijing relations to further deteriorate.
Japan, U.S. defense chiefs share serious concern over China radar incident (Kyodo News)
Japanese Defense Minister Shinjiro Koizumi said Friday he and his U.S. counterpart, Pete Hegseth, shared serious concern over intensifying tensions in the region in light of the recent radar lock-on incident involving Japanese and Chinese fighter jets and long-range joint patrol by Chinese and Russian bombers near Japan.
The two defense chiefs, speaking for about 40 minutes via telephone, agreed that Japan and the United States will maintain close communication to calm the situation.
Koizumi also said he is arranging a trip to the United States early next year for his second face-to-face meeting with Hegseth, following the one held in late October in Tokyo shortly after the new Cabinet was formed under Prime Minister Sanae Takaichi.
U.S. backs Japan in dispute with China over radar incident (NBC News)
“China’s actions are not conducive to regional peace and stability,” a State Department spokesperson said late Tuesday, referring to the radar incident.
“The U.S.-Japan Alliance is stronger and more united than ever. Our commitment to our ally Japan is unwavering, and we are in close contact on this and other issues.”
Japanese Chief Cabinet Secretary Minoru Kihara welcomed the comments, saying they “demonstrate the strong U.S.-Japan alliance.”
Japan-China hotline seen not functioning after radar incident (The Japan Times)
A hotline between Japanese and Chinese defense authorities does not appear to be working after an incident in which Chinese military aircraft directed radar at Japanese Self-Defense Forces jets, sources have said.
Chinese FM responds to Japan’s claim that ‘China didn’t answer hotline’ (Global Times)
When asked to comment on reports that China did not answer Japan’s “hotline call” regarding the issue of the “radar illumination,” Guo said: “As I’ve already addressed the related questions, the spokesperson for the Chinese PLA Navy made it clear on December 7 that the training airspace and waters were announced in advance. For specific details, we recommend that further inquiries be directed to the relevant Chinese authorities.”
Japan denies receiving notice from China before jet radar incident (Nikkei Asia)
Japan’s defense minister denied receiving navigational warnings from China regarding its naval training exercise prior to Saturday’s incident in which a Chinese military aircraft targeted its radar at Self-Defense Forces aircraft.
“China claims to have announced the training airspace and sea area in advance, but we are not aware of any such prior notification,” Japanese Defense Minister Shinjiro Koizumi said Tuesday at a lower house budget committee meeting. The incident occurred over international waters near the coast of Japan’s southernmost prefecture of Okinawa.
Studio Ghibli co-founder Hayao Miyazaki’s Chinese show cancelled as Japan row rumbles on (SCMP)
An exhibition based on the works of the celebrated Japanese animator Hayao Miyazaki in the southern Chinese city of Guangzhou has been postponed as relations between the two countries continue to deteriorate.
Studio Ghibli, the Oscar-winning anime studio which Miyazaki co-founded, announced the decision on Tuesday without giving a reason.
Commentary: Japan is learning the hard way what unabashed US-China power politics really means (CNA)
The China–Japan dispute, and Washington’s response, is less an anomaly than a reflection of a more volatile, transactional era – one in which reassurance is selective, pressure is routine and great powers feel fewer constraints on their behaviour.
US partners can no longer assume dependable solidarity from Washington, just as China’s neighbours cannot count on reliable economic engagement from Beijing. These trends will only accelerate efforts by all states to diversify their trade ties, build redundancy into their supply chains, strengthen inter-regional cooperation and invest more seriously in their own defence capabilities.
Philippines says China coast guard damages fishing vessels (DW)
Three Filipino fishermen were injured and two fishing boats suffered “significant damage” after Chinese coast guard vessels fired water cannon at them and cut anchor lines, Philippine authorities said Saturday.
The incident, which involved some 20 Philippine fishing boats, occurred on Friday near the Sabina Shoal, a fish-rich area in the South China Sea.
Beijing claims the South China Sea almost in its entirety in the face of an international ruling that the assertion is legally unfounded.
Vietnam steps up South Reef expansion, careful not to provoke China (UPI)
Vietnam has quietly accelerated land reclamation at South Reef, a once-remote coral feature in the contested Spratly Islands, signaling a new strategic turn as pressure from China intensifies across the South China Sea.
New satellite imagery reviewed by analysts shows significant dredging, reinforced embankments and the early formation of what appears to be a sheltered harbor and logistics zone.
South Reef,- known in Vietnamese as Đá Nam, has long been one of Hanoi’s lesser-developed outposts. But the latest construction suggests Vietnam is moving to harden a chain of positions that could strengthen surveillance, resupply and defensive coordination across the southern Spratlys.
China Seeks Fair South China Sea Order as It Rejects 2016 Ruling (The China-Global South Project)
China’s vice-foreign minister told a major forum on Wednesday that Beijing wants to ease disputes with Southeast Asian neighbours in the South China Sea and build a “fair and just” maritime order.
At the same time, China is still rejecting a key international legal ruling against its claims and is facing a fresh confrontation with the Philippines at sea.
Creeping Sovereignty? China’s Maritime Structures in the Yellow Sea (West Sea)(Beyond Parallel)
China’s use of its coast guard to patrol the perimeter of the PMZ and shadow Korean government and research vessels in the area is not a technical violation of the fisheries agreement or of UNCLOS.
But these “civilian” installations for potential dual use purposes, and China’s harassment of South Korean vessels resemble “creeping sovereignty” grey zone tactics in the Yellow Sea that Beijing employed in the militarization of the South and East China Seas.
Wang Huning Indonesia Visit: Strategic Implications (The China-Global South Project)
One of China’s highest-ranking political figures, and among President Xi Jinping’s closest ideological advisers, visited Jakarta last week, in a move that underscored Beijing’s deepening interest in its relationship with Indonesia.
Pax Americana is over — what comes next for Southeast Asia? (ThinkChina)
The disordering of the international system within a bipolar distribution of power will generate challenges and opportunities for countries in Southeast Asia. The principal challenge is that there will not be a strong leading power to act as a convener of regional efforts to address transnational challenges or a first responder to crises. America no longer appears willing to perform that role, and China does not seem interested in taking it on.
The Association of Southeast Asian Nations (ASEAN) can try to spur regional collective action to address transnational challenges, but it will be resource-constrained in its efforts to mobilise major responses to address challenges. This will place growing pressure on countries and companies to deal on their own with public health crises, natural disasters, climate adaptation and migration. It will also place stress on regional countries to uphold norms such as freedom of navigation and peaceful settlement of disputes.
On the flip side, there will also be more diplomatic space for institutional entrepreneurialism to address transnational challenges. New plurilateral groupings of like-minded countries will have more room to develop. There will also likely be more room for regional countries to contribute ideas to rule-making around new issues and emerging technologies, such as cybersecurity and regulations on the use of AI.
55 people and Chinese company charged with corruption over Nepal airport (AP)
Former Nepali ministers, officials and a Chinese company were charged with corruption over financial irregularities during the construction of an international airport.
The Commission for Investigation of Abuse of Authority filed on Sunday cases against 55 people and the China CAMC Engineering Company Limited, one of the biggest such cases in the Himalayan nation, accusing them of inflating construction expenses by more than $74 million. It remains unclear when the hearing will begin.
Two officials of the Chinese company have been named in the charges filed at the Special Court in Kathmandu, which handles corruption cases related to government dealings.
Americas
U.S.-China AI talent race heats up (CNBC)
Beijing is engineering more of this momentum as it seeks tech self-sufficiency. The Ministry of Education said in August that one-fifth of higher education programs nationwide have been revamped in the last two years — with a slew of majors cut or added — to channel more students into AI and integrated circuits fields.
It’s not necessarily that China is much better at attracting global AI talent, but the ability to keep more AI experts at home “could have a major impact on talent flows,” Tufts University’s Miller pointed out to me in an email.
Meanwhile, U.S. immigration rules could make it difficult for AI researchers to work in the U.S., he said.
Chinese whistleblower in the US is being hunted by Beijing with the help of Silicon Valley tech (AP)
Retired Chinese official Li Chuanliang was recuperating from cancer on a Korean resort island when he got an urgent call: Don’t return to China, a friend warned. You’re now a fugitive.
Days later, a stranger snapped a photo of Li in a cafe. Terrified South Korea would send him back, Li fled, flew to the U.S. on a tourist visa and applied for asylum. But even there — in New York, in California, deep in the Texas desert — the Chinese government continued to hunt him down with the help of surveillance technology.
Mexico’s Congress approves tariff hikes on imports from China and others (AP)
Mexico’s Congress approved Wednesday most of the tariff increases proposed by the government on more than 1,400 products imported from China and other countries that do not have free trade agreements with Mexico.
The Senate passed the measure Wednesday evening, following the lower chamber, which had approved the increases before dawn. The governing Morena party of President Claudia Sheinbaum, who said the tariffs were necessary to spur domestic production, controls both chambers. The Senate passed the legislation with 76 votes in favor, five against and 35 abstentions.
Europe
Zelenskiy says China taking steps to intensify cooperation with Russia (Reuters)
Ukrainian President Volodymyr Zelenskiy said on Wednesday following a report from the head of Kyiv’s foreign intelligence service that Russia and China were taking steps to intensify cooperation.
Zelenskiy said the steps involved shifts by Russia to give up aspects of its sovereignty to Beijing.
“We ... note that China is taking steps to intensify cooperation with Russia, including in the military-industrial sector,” he wrote on X. “Partner intelligence services have similar information.”
Later, in his nightly video address, Zelenskiy noted the report, focusing on the state of the Russian economy, had revealed Russia’s “growing dependence on China”.
“In Russian history, no one has ever surrendered sovereignty to such a great extent to China or any other stronger nation,” he said.
EU fears China’s role in Russia’s war on Ukraine is deepening (SCMP)
European Union members have observed an uptick in China’s support for Russia, multiple sources said, as Moscow’s invasion of Ukraine prepares to drag into its fourth year.
Officials are parsing evidence of an increase in battlefield weapons being shipped from China to Russia, to add to the well-documented flow of goods with dual civilian and military uses between the two states.
“We note that 80 per cent of critical dual-use goods come to Russia either through or from China. They claim to be neutral and to provide no weapons – this is only partly true,” said one senior European official.
‘They’re no longer hiding’: How Russia is shipping liquefied natural gas to China despite sanctions (France 24)
The Valera, for its part, sails under the Omani flag. The address associated with its manager in the Equasis database is in the United Arab Emirates and matches that of a hotel known to house Russian companies that manage shadow ships.
However, in the case of the recent December 8 delivery, the Valera made no effort to conceal its position, keeping its transponder active for almost the entire voyage. “It’s direct delivery to Beihai terminal, where Russia and China are no longer hiding on this movement,” Kpler said to our team.
“The transparency of the Valera delivery is a sign of further reduction in Chinese reservations to receive sanctioned Russian products,” Malte Humpert, an investigative journalist for the specialist publication gCaptain, also wrote in an article.
Brussels ramps up China de-risking while France and Germany pull further apart (SCMP)
With the end of the year approaching, the European Commission is rapidly ramping up its de-risking efforts through a flurry of broadsides against Chinese firms – even as the bloc’s most powerful member states appear to be moving in different directions on China.
Foreign subsidy regulation probes were launched against online retailer Temu and Nuctech, a maker of airport scanning equipment, on Wednesday and Thursday respectively.
E-commerce giant Temu saw its Dublin headquarters raided by investigators looking for evidence of subsidies that distort the EU’s single market. This mirrored the commission’s dramatic raid of Nuctech’s EU offices last year. On Thursday, the commission announced it had deepened its probe into Nuctech.
Early Thursday morning, meanwhile, negotiators from the European Council – made up of the 27 member states – and the European Parliament agreed on new rules that will make it mandatory to screen inbound investments in dual-use or military sectors.
[…]
The polarity between the EU’s two most powerful member states is deepening the incoherence of its China strategy, away from Brussels’ preferred hard line.
“It is no longer a ‘Franco-German axis’, certainly not on China, and it has not been for a while,” said Alicia Garcia-Herrero, Asia-Pacific economist at Natixis.
“The irony is that Germany has much more to lose from not realising what is happening. The China shock is much more about Germany than any other European economy. Is it blindness or vested interest of a few large German companies?”
Macron’s trade ultimatum to China goes from private to public: fix surplus or face tariffs (SCMP)
Emmanuel Macron has warned Beijing that Europe would be forced to retaliate with “strong measures” against Chinese goods – including punitive tariffs modelled after US policy – if a trade imbalance between the two sides remains unaddressed well into 2026.
Back in Paris, fresh from a diplomatic visit to China that ended on Friday, the French president told business newspaper Les Echos that China was “effectively killing their own customers” by running unsustainable surpluses while curbing imports.
“I told them that if they do not react, we Europeans will be forced, in the next several months, to take strong measures and to de-cooperate, following the example of the United States – for instance, by imposing tariffs on Chinese products,” Macron said in the story, published on Sunday.
Hitting China with tariffs should be ‘last resort’, German foreign minister says (SCMP)
German Foreign Minister Johann Wadephul has warned that Europe must be “extremely cautious” about slapping tariffs on China, as it could prompt Beijing to take countermeasures that could turn into a “spiral”.
[…]
“I would say that such measures should only be considered as a last resort and we should be extremely cautious.
“Because once you get into such a cycle, there is usually a ping-pong effect or a spiral with further counter-reactions and this only harms free trade,” he said.
Germany eyes rare earths during FM’s China visit (DW)
Taiwan, trade ties and German access to critical rare earth minerals topped the agenda during German Foreign Minister Johann Wadephul’s first visit to China.
DB’s China-sourced bus procurement sparks trade unions criticism amid calls for ‘economic patriotism, Der Spiegel reports (Sustainable Bus)
A large Deutsche Bahn e-bus tender has ignited a political and labour backlash after BYD emerged as a key supplier, according to reporting by the German newspaper Der Spiegel out on December 9th.
For policymakers and unions, the prospect of a Chinese manufacturer delivering a major share of DB’s next-generation bus fleet raises concerns about procurement strategy at a time of heightened sensitivity to domestic job protection.
EU watchdogs raid Temu’s Dublin HQ in foreign subsidy investigation (The Guardian)
Temu’s European headquarters in Dublin have been raided by EU regulators investigating a potential breach of foreign subsidy regulations.
The Chinese online retailer, which is already in the European Commission’s spotlight over alleged failures to prevent illegal content being sold on its app and website, was raided last week without warning or any subsequent publicity.
“We can confirm that the commission has carried out an unannounced inspection at the premises of a company active in the e-commerce sector in the EU, under the foreign subsidies regulation,” a commission spokesperson said on Thursday.
China says talks with EU on electric vehicle minimum price plan resumed (Reuters)
China’s commerce ministry on Thursday said negotiations with the European Union over a minimum price plan for China-made electric vehicles have restarted and would continue into next week, while urging the bloc not to talk independently with manufacturers.
The 27-member bloc approved duties of up to 45.3% in October 2024 after the European Commission began investigating whether China’s EV makers were benefiting from unfair subsidies that could lead to a supply glut in Europe.
Ford and Renault Team Up in Europe to Compete Against Low-Price Chinese Cars (WSJ)
The first of the next-generation EVs—to be designed by Ford, co-developed by both companies on a Renault technology platform and built by Renault in northern France—will reach European dealerships in 2028.
Carmakers are increasingly turning to partnerships to save money as different regions embrace different technologies at different speeds. The competition is especially fierce in Europe, where Chinese makers, led by SAIC Motor and BYD, have burst onto the scene with low-cost technology. The market share of Chinese producers jumped collectively to around 6.7% of the European market in the third quarter, according to Schmidt Automotive Research.
Spain emerges as BYD’s European launchpad (Nikkei Asia)
Spain imported the largest number of BYD vehicles in the European Union in the first 10 months of the year, with analysts saying the Mediterranean country is a more attractive launchpad for the Chinese automaker than other ports in Western Europe.
Spanish customs data provider Datacomex released figures in November showing that 28,400 BYD vehicles arrived at Spanish ports between January and October. Within the European Union, Italy was just behind Spain. Outside of the bloc, the U.K. received nearly twice as many cars.
Spain was not the final destination for many of the cars, but a springboard to other markets within the EU. Analysts said lower operating costs in Spain make it more attractive than the Netherlands and Belgium.
Royal Navy to scale back training around China (The Telegraph)
The Royal Navy is to reduce overseas training in the Indo-Pacific and the Middle East amid concerns that stealth cost cuts are destroying Britain’s ability to project power and challenge China.
Al Carns, Labour’s armed forces minister, who unveiled the plan, said the decision was intended to strengthen “homeland defence” by focusing on activity with Nato in the Atlantic, Arctic and European waters, which were increasingly being threatened by Russian warships.
The decision means ships will be deployed on fewer training exercises outside Britain’s immediate neighbourhood, casting doubt on the Senior Service’s ability to fight anywhere in the world.
British universities’ reliance on Chinese fees fuelling self-censorship, say academics (Financial Times)
Academics from across the UK higher education sector have warned that financial ties to Beijing have led to self-censorship, as the government and universities come under pressure to improve safeguards against Chinese state influence on British campuses.
Andreas Fulda, a China scholar at Nottingham university, said he had endured death threats among other types of online harassment in response to research that was critical of the Chinese state.
“Our universities are, in a way, sleepwalking into a state of super-complex surrender, so to speak,” he said. “Sheffield Hallam is the warning bell.”
Middle East & North Africa (MENA)
Iran hosts trilateral meeting with China and Saudi Arabia (Iran International)
The meeting reviewed progress in implementing the Beijing accord, which restored diplomatic relations between Tehran and Riyadh after a seven-year rift and set out commitments to reopen embassies and expand political and economic ties.
According to China’s foreign ministry, the three sides called for an immediate halt to Israeli actions against Palestine, Lebanon, and Syria, and condemned violations of Iran’s national sovereignty and territorial integrity. The statement also said the parties look forward to expanding cooperation in various fields, including economics and politics.
China’s Top Diplomat to Visit Middle East This Week (The China-Global South Project)
China’s top diplomat Wang Yi will begin a tour of the Middle East on Friday for bilateral talks in the United Arab Emirates, Saudi Arabia and Jordan, Beijing said Thursday.
Wang will visit from 12 to 16 December for talks with foreign ministers “to exchange views on bilateral relations, the situation in the Middle East and major issues of common concern”, China’s foreign ministry said in a statement.
U.S. Forces Raid Ship, Seize Cargo Headed to Iran From China (WSJ)
A U.S. special operations team boarded a ship in the Indian Ocean last month and seized military-related articles headed to Iran from China, U.S. officials said, a rare interdiction operation at sea aimed at blocking Tehran from rebuilding its military arsenal.
The ship was several hundred miles off the coast of Sri Lanka when the operatives boarded it and confiscated the cargo before letting the vessel proceed, the officials said. The U.S. had been tracking the shipment, according to the officials and another person familiar with the operation.
Sub-Saharan Africa
China supports South Africa’s continued participation in G20 cooperation: FM spokesperson (Xinhua)
China supports South Africa in continuing to participate in the Group of 20 (G20) cooperation, foreign ministry spokesperson Guo Jiakun said on Friday.
Guo made the remarks at a regular news briefing when asked to comment on the U.S. statement -- after the country took over the presidency of the G20 this month -- that it would not invite South Africa to participate in the 2026 G20 summit and cooperation within the framework of the G20.
Global Institutions & Multilateral Relations
Almost 70% of people globally are comfortable with their government buying Chinese-made clean technologies, new survey finds (Chatham House)
Responses collected in summer 2025 across 33 markets revealed that around half of consumers surveyed are at least somewhat likely to consider buying Chinese-made solar panels or EVs – whereas nearly 7 in 10 support their governments purchasing Chinese-made solar panels and wind turbines to some degree.
Despite some governments being vocal over security concerns of tech dependence and China’s growing influence, consumers seem more relaxed – especially younger people.
‘As China becomes more closely associated with supplying affordable versions of these increasingly popular products, China’s soft power continues to grow,’ says Lee.
Business, Economy & Finance
5 takeaways from China’s Central Economic Work Conference as Beijing maps its 2026 growth path (CNA)
Held from Dec 10 to 11 in Beijing, the agenda-setting meeting - attended by the country’s top leaders - took stock of the economy and laid out policy priorities for the year ahead.
Many of the commitments reaffirmed existing policy pledges such as boosting domestic demand and stabilising foreign investment, underscoring Beijing’s focus on continuity and fine-tuning rather than sweeping new measures.
At the same time, analysts say the readout offers fresh clues about where the world’s second-largest economy sees the biggest pressures - and where it believes growth can still be sustained - as it navigates a challenging domestic landscape and an uncertain external environment.
China Signals Continued Expansionary Policy for 2026 (Caixin)
China’s top leadership has pledged to maintain an expansionary policy stance in 2026, as the year marks the start of the country’s 15th Five-Year Plan.
The Politburo said Monday that it will retain the 2025 policy framework — “more proactive” fiscal measures and a “moderately loose” monetary stance — while strengthening the foresight, precision and coordination of macro policy and increasing both counter-cyclical and cross-cyclical adjustments.
China’s record $1 trillion-plus trade surplus shows the renminbi should be allowed to appreciate (Chatham House)
China’s goods trade surplus with the world has surpassed $1trillion this year for the first time. According to official data announced on Monday, China’s merchandise trade surplus rose $111.7 billion in November to notch up a surplus of $1.08 trillion in the first 11 months of the year, up 22.1 per cent from the same period last year.
Estimates for the full-year surplus vary. But Capital Economics, a London-based research firm, forecasts it will rise to a total $1.23 trillion, equivalent to just over one per cent of global GDP.
China urges trade partners against tariffs as record surplus stirs tensions (Reuters)
China’s Premier Li Qiang on Tuesday urged trading partners to reject rising protectionism, a day after the world’s second-largest economy posted a record $1 trillion trade surplus driven by a rush of exports to non-U.S. markets.
Beijing is now facing broadening tensions with major trading partners beyond the U.S., which are calling on China to do more to reform its $19 trillion economy and reduce its dependence on exports to support growth.
China’s second-ranking official pressed the heads of the IMF, World Bank, World Trade Organization and others to strengthen global governance in response to the growing number of economies imposing levies on imported goods, China included.
IMF urges China to rebalance its economy (AP)
The head of the International Monetary Fund has urged China to fix its economic imbalances, saying the country of 1.4 billion people is too big to rely on exports for its growth.
China’s global exports have been rising while shipments to the United States have contracted after President Donald Trump hiked taxes on imports from China and many other countries. Earlier this week, Beijing reported its trade surplus for 2025 had already exceeded a record $1 trillion.
IMF Managing Director Kristalina Georgieva said the heavy reliance on exports risks provoking more moves by its trading partners to curb imports from China.
China’s massive RMB manipulation (Robin J Brooks)
This begs the question how this undervaluation has been allowed to persist for so long. One reason is that China has a big voice in multilateral institutions like the International Monetary Fund (IMF), which is supposed to flag currency imbalances. The fact that China carries so much weight has silenced the IMF on this important issue. Another reason is that multilateralism is close to dead these days. It hardly needs saying that everyone just does what’s best for them currently, regardless of what that means for others. China - unfortunately - isn’t alone in this regard.
China to Issue Ultra-Long-Term Special Government Bonds in 2026 (Bloomberg)
China’s finance ministry plans to issue ultra-long-term special government bonds next year, with proceeds used to support major national strategies and security initiatives.
Funds will also be directed toward large-scale equipment upgrades and consumer goods trade-in programs, the ministry said in a statement Saturday. The announcement came after a meeting to implement decisions from the Central Economic Work Conference.
The ministry didn’t provide details on the nationally strategic or key construction projects where the funds will be deployed.
China Inflation Seen Picking Up as Bad Weather Lifts Food Prices (Caixin)
China’s consumer inflation likely accelerated in November as bad weather pushed up vegetable prices, while factory-gate deflation is expected to remain broadly unchanged from October.
A Caixin survey of 13 domestic and international institutions shows economists generally expect November’s consumer price index (CPI) inflation to rise, with an average forecast of 0.7% year-on-year — 0.5 percentage points higher than the actual reading in October.
Zhang Yu, chief macro analyst at Huachuang Securities, expects CPI growth to accelerate to around 0.7%, driven mainly by food. Since late October 2025, low temperatures, increased autumn rain and freezing and flood damage in some regions have tightened vegetable supply, she said, while noting the impact is unlikely to last.
For the producer price index (PPI), the survey’s average forecast shows it likely fell 2.1% year-on-year in November, unchanged from October.
China Vanke seeks one-year extension on second onshore bond, sources say (Reuters)
China Vanke is seeking to extend repayment for a second onshore bond by one year, two sources familiar with the matter said on Friday, as the cash-strapped developer struggles amid a prolonged property slump.
The proposed extension is for a 3.7 billion yuan ($525 million) note due December 28 , the sources said, adding that the interest rate would be unchanged at 3% during the extension.
Bondholders may submit additional proposals before a vote, said the sources, who declined to be identified as the matter was not publicly disclosed. A meeting is scheduled for December 22.
China Shadow-Banking Platform Freezes $2.8 Billion, Leaving Thousands Locked Out (Caixin)
A local financial asset exchange in East China has frozen withdrawals on products worth more than 20 billion yuan ($2.8 billion), leaving nearly 10,000 investors unable to access their holdings and prompting investors to gather and seek a repayment plan, according to multiple investors.
The crisis highlights lingering vulnerabilities in China’s shadow banking system, where lightly regulated local financial asset exchanges long served as gray-market financing channels.
Beijing Moves to Rein in Steel Exports With New Licensing Rule (Caixin)
China will require export licenses for nearly all steel products starting Jan. 1, 2026, a significant move to rein in surging overseas shipments that have drawn global scrutiny and fueled trade disputes.
The Ministry of Commerce and the General Administration of Customs jointly announced the measure on Friday, noting that the licensing regime will cover most steel-related exports — including crude iron, billets, coils, plates, pipes, and scrap. Exemptions will be limited to a few finished products such as fasteners and household appliances.
China’s Polysilicon Giants Join Forces to Tackle Overcapacity (Bloomberg)
Several major Chinese polysilicon producers have set up a joint venture to help ease overcapacity in the raw material used in the solar supply chain, according to company registration data.
The entity, called Beijing Guanghe Qiancheng Technology Co., brings together 10 companies with a registered capital of 3 billion yuan ($425 million), a company filing on Qichacha shows. Polysilicon giant Tongwei Co. will hold a 30.35% stake through a unit, while GCL Technology Holdings Ltd. and Xinjiang Daqo New Energy Co. will control 16.79% and 11.13%, respectively.
China’s solar sector is struggling with overcapacity, which has squeezed profit margins and fueled price wars. In response, the polysilicon producers have been planning a $7 billion fund to buy and shut down more than 1 million tons of capacity. A person familiar with the newly formed venture confirmed that it will serve as a vehicle to conduct capacity buyouts from smaller players.
Cosco Shipping Places Record $7 Billion Order for Greener Ships (Caixin)
China Cosco Shipping Group has placed a record-breaking domestic order for 87 new vessels from China State Shipbuilding Corp. (CSSC) in a deal valued at over 50 billion yuan ($7 billion), as the maritime giant races to modernize its fleet and cement its global position.
The deal, announced Monday, includes around 47 billion yuan in cross-border yuan settlement, and marks a major investment in larger, more environmentally friendly, and technologically advanced vessels. Cosco Shipping said the initiative will help optimize its fleet structure and support global supply chain stability as the maritime sector undergoes rapid transformation.
China’s ZTE may pay over $1 billion to the US over foreign bribery allegations, sources say (Reuters)
Chinese telecoms equipment maker ZTE Corp may pay more than $1 billion to the U.S. government to resolve years-old allegations of foreign bribery, according to two people familiar with the matter.
ZTE , which already paid some $2 billion in penalties to U.S. authorities over export violations during President Donald Trump’s first term, has for years faced probes by authorities around the world into alleged bribes to secure telecom contracts.
This year, the Justice Department has moved ahead with a U.S. investigation into ZTE for allegedly violating the Foreign Corrupt Practices Act (FCPA) in South America and other regions, the sources said. The act prohibits payments or anything of value to foreign officials to obtain business.
Tech & Media
DeepSeek is Using Banned Nvidia Chips in Race to Build Next Model (The Information)
DeepSeek, the Chinese AI startup, has been developing its next major model using several thousand Nvidia’s state-of-the-art Blackwell chips which the U.S. has forbidden from being exported to China, according to six people with knowledge of the matter.
The chips DeepSeek is using were smuggled into China, the people said, through a convoluted scheme that involves sending them to data centers in countries that are allowed to buy them, and then dismantling the servers containing the chips and importing the equipment in pieces to China.
China adds domestic AI chips to official procurement list for first time (Financial Times)
China has put domestic artificial intelligence chips on an official procurement list for the first time, bolstering the nation’s tech sector ahead of US President Donald Trump’s move to allow Nvidia exports to the country.
The Ministry of Industry and Information Technology recently added AI processors from Chinese groups including Huawei and Cambricon to its government-approved list of suppliers, according to two people familiar with the matter.
The step was designed to enhance the use of domestic semiconductors in China’s public sector and could be worth billions of dollars in new sales to local chipmakers.
AI kids’ toys give explicit and dangerous responses in tests (NBC News)
Miiloo — manufactured by the Chinese company Miriat and one of the top inexpensive search results for “AI toy for kids” on Amazon — would at times, in tests with NBC News, indicate it was programmed to reflect Chinese Communist Party values.
Asked why Chinese President Xi Jinping looks like the cartoon Winnie the Pooh — a comparison that has become an internet meme because it is censored in China — Miiloo responded that “your statement is extremely inappropriate and disrespectful. Such malicious remarks are unacceptable.”
Asked whether Taiwan is a country, it would repeatedly lower its voice and insist that “Taiwan is an inalienable part of China. That is an established fact” or a variation of that sentiment. Taiwan, a self-governing island democracy, rejects Beijing’s claims that it is a breakaway Chinese province.
China to Require Real-Name Registration for All New Drones (Caixin)
According to two newly issued national standards released by the State Administration for Market Regulation, beginning May 1, 2026, drone users must complete real-name registration to activate their devices. Authorities will then monitor each drone’s flight status in real time.
Science, Health & Environment
The Married Scientists Torn Apart by a Covid Bioweapon Theory (The New York Times)
In 2020, a Chinese virologist fled to the United States, aided by allies of President Trump who sought to promote her unproven theories about the origins of Covid-19. Her husband still can’t find her.
China Taps Private Insurance for Costly New Drugs (Sixth Tone)
China has unveiled its first state-backed catalog of costly innovative drugs for private insurers to cover, making the industry pick up more of the nation’s soaring health-care costs.
Issued Dec. 7 by the National Healthcare Security Administration, the catalog will take effect Jan. 1, 2026. It supplements the state-funded National Reimbursement Drug List (NRDL) and is part of China’s effort to build a multi-tier health security system by 2030.
Jailed for gene-editing, a notorious scientist is not done yet (Financial Times)
He Jiankui’s experiment with human embryos caused global outrage. Can he make an unlikely comeback?
Arts & Culture
The Top 100 Mandopop Singles of 2025 (Michael Hong)
More than any other year, I’ve had no idea what goes at the top—maybe it’s just me, but it’s felt like a really weak year for Mandopop. There’s plenty that seemed to adapt to current trends—Quanzo doing Afropop; waa wei being brat—and songs that seemed to point further—Ann Bai’s bedroom take on UK Garage; the mutant pop songs dreamed up by JinxZhou—but some of my favourites were about re-interpreting the past: one of my most-listened to songs that wasn’t a single was babygrape’s “2u,” which opens with a sample of Adrienne Lenker’s “anything.”
Canto Wrap: Top Cantopop Singles of 2025 (Michael Hong)
The ballad still reins supreme and unfortunately, it means that I’ve been largely checked out of the Hong Kong scene. Around September, I realized that I never ended up updating my Spotify playlist—I thought I’d just leave it for the end-of-year list but reflecting at that point, a lot of it was treacly balladry and pop-rock stompers that few would be interested in. Here we are now in December with a showing of the stuff that left an impression on me amidst a fairly weak year—the year’s top song comes from the artist of the year, with a second album to accompany her earlier out this Friday.
New Music 新唱片发行: j-fever 小老虎 x Soulspeak/DJ小女孩/ΛNGELVS (Live China Music)
The dream team of j-fever and Soulspeak returns! j-fever, whose freewheeling, philosophical, and poetic take on life’s mysteries has made him one of my favorites in the hip-hop scene, spent a week with LA-based producer Soulspeak, whose soulful, fluid, and dexterous production has only aged like fine wine. It’s a calming, more soothing mode for the already laidback duo - but it resonates that much more - a pair of old friends reconnecting and knowing exactly where the other is in their life. A joyful collaboration that you just wanna slip into.
New Music 新唱片发行: Mola Oddity/eden2001 & aint./CNdY (Live China Music)
Experimental electro pop supergroup Mola Oddity - consisting of Mandopop singer Amber Kou aka Birdy K, Yider (of NaraBara), and Asr - wow once again with their latest six-piece lineup - brought to stunning life on the new EP CAVE CRACKERS. With the addition of guitarist Songkaer Muhatai, bassist Russell, and drummer Olson Wang - its melting pot of esoteric grooves, world music abstractions, and pop finesse tastes even richer and more dynamic - finding playful melodious dexterity as they tackle and propel six old tracks into new sonic forms. Raw, wild, and alive - Mola Oddity has never sounded better.
Translated Chinese Literature: New Fiction (China Books Review)
Here’s a roundup of some recent translations of Chinese literature that you might have missed. Read on for off-kilter realism from the northeast, poetry in blue, a boy’s mission deep into guerrilla territory, the Bildungsroman of a shut-in, and a body horror with an allegorical thread.
Sports
Gu Ailing seizes victory with last-run comeback at home World Cup (Xinhua)
China’s Olympic champion Gu Ailing claimed the women’s halfpipe gold with a stunning last run at the FIS Freeski World Cup here on Saturday, while Finley Melville Ives of New Zealand took the men’s title.
Interview: Gu Ailing’s journey from courage to wisdom in her second Olympic cycle (Xinhua)
“I probably, especially this year, have matured a lot. I see injuries as a real challenge now. Before, I just didn’t think about it and that was it,” she explained.
“A big part of competing in the Olympics is actually making it to the Olympics, getting through the season smoothly, making it to February in Milan. That in itself is a major goal, and many people already can’t achieve it.”
Navigating her second Olympic cycle, Gu insists on treating each experience as fresh. “I feel like every competition I go through is like my first one. This is my first time having a second Olympic cycle,” she said. “I compete like I’ve never lost, I train like I’ve never won.”
China secures women’s singles tilte at WTT Finals in advance (Xinhua)
Sun Yingsha, Wang Manyu, Kuai Man and Chen Yi reached the women’s singles semifinals to secure the title for China in advance at the World Table Tennis (WTT) Finals here on Friday.
Su Bingtian, first Chinese to run 100m under 10 seconds, says ‘goodbye, my dearest track’ (SCMP)
China’s Su Bingtian, Asia’s fastest man, announced his retirement from athletics on Tuesday, saying his body had told him to “pass the baton”.
But Su said he had shown Chinese sprinters that “everything is possible” as he reflected on a career in which he was the first from his country to break the 10-second barrier for the 100 metres.
The breakthrough came when Su ran 9.99 seconds in 2015 at a Diamond League meet in Oregon, in the United States.
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