Xi, Putin, Kim, and Beijing's grand military spectacle
Fighter jets, tanks, and goose-stepping troops rolled past Tiananmen as Xi sought to signal strength at home and abroad
Welcome back to What’s Happening in China, your weekly China brief.
“The Chinese people’s rejuvenation cannot be blocked, and the noble goal of the peaceful development of human civilization must triumph,” Xi declared on Wednesday, surrounded by Russia’s Vladimir Putin, North Korea’s Kim Jong Un, Iran’s Masoud Pezeshkian, and other “friendly” leaders, as he presided over a military parade in celebration of the 80th anniversary of the end of WWII.
Fighter jets flew overhead as tanks, hypersonic missiles, underwater drones, and thousands of goose-stepping troops rolled down Chang’an Avenue, a display meant to project military might, fuel nationalism, and divert attention from a struggling economy.
Meanwhile, across the Pacific, Trump weighed in on social media: “May President Xi and the wonderful people of China have a great and lasting day of celebration. Please give my warmest regards to Vladimir Putin, and Kim Jong Un, as you conspire against The United States of America.”
Let’s jump into it.
— PC
Through the Lens
In Focus
I. A new world order?
Waving beatifically over the crowd of 50,000 spectators assembled in Beijing’s Tiananmen Square on Wednesday, Xi Jinping exuded an aura of confidence that many leaders in the west could only envy. To his left stood North Korea’s Kim Jong-un, the supreme leader of an increasingly strident hermit kingdom. To his right was the Russian president, Vladimir Putin, Xi’s “old friend” and China’s biggest ally in opposing the US-led world order. The last time that the leaders of these three countries were together in public was at the height of the cold war.
“Humanity once again faces the choice between peace or war, dialogue or confrontation,” the Chinese president told the gathered crowds. His insistence that China would “adhere to the path of peaceful development” was punctured somewhat by the country’s biggest ever military parade that marched through the square beneath his rostrum atop the Gate of Heavenly Peace, the entrance to the Forbidden City that has – on and off – been the seat of Chinese power since the 15th century.
Alongside Xi, Putin and Kim, a gaggle of global autocrats solemnly watched the display of Chinese military might.
The same day, more than 5,000 miles away, Volodymyr Zelenskyy and his allies assembled in Paris for a summit on the future of Ukraine, a country that has been racked by war since Russia’s full-scale invasion in 2022. The “coalition of the willing”, led by the UK and France, did not include the US. The optics of the new global order could not be clearer: an anti-western bloc, helmed by China, on one side, and a western alliance of democracies, lacking its traditional leader in Washington, on the other.
China’s military parade, in which more than 10,000 soldiers marched in unison alongside a sabre-rattling lineup of nuclear-capable missiles and underwater drones, was designed to celebrate 80 years since the end of the second world war. The parade had two aims: to promote the Chinese Communist party’s narrative about its role in defeating the Japanese in 1945, and to display Beijing’s political and military might on the world stage in 2025. Both serve to underline the legitimacy and power of the party, helmed by Xi, at home and abroad.
Read: Xi, Putin, Kim and the optics of a new world order (The Guardian)
Related:
China's massive military parade is closed to the public (CNBC)
Is This a New World Order? (ChinaFile)
China is using the SCO summit and Victory Day parade to showcase its vision of a new world order (Chatham House)
EU must understand Xi is getting started with his own international community ()
Historical Revisions on Parade (China Media Project)
Parading China’s Nuclear Arsenal Out of the Shadows (Center for Strategic and International Studies)
Hot mic catches Putin and Xi discussing organ transplants and immortality (The Guardian)
China’s Military Parade, in Photos: Xi Unveils New Weapons Alongside Putin and Kim (The New York Times)
II. 2025 Tianjin SCO summit
China plans to accelerate the creation of a development bank and set up an international platform for energy cooperation, Chinese President Xi Jinping announced Monday at a summit that represents an emerging challenge to U.S. global leadership with the participation of Russia and India.
Russian President Vladimir Putin and Indian Prime Minister Narendra Modi were among the leaders meeting in Tianjin, in northern China, for the annual summit of the Shanghai Cooperation Organization. The security forum was originally seen as a foil to U.S. influence in Central Asia and has grown in size and influence over the years.
Xi is attempting to expand the scope of the SCO. He announced initial plans for a development bank run by the organization, introduced a cooperation platform for green and energy industries and pledged $1.4 billion in loans over the next three years to the organization’s members.
Xi also said he was opening the way for SCO member states to use China’s BeiDou satellite system, an alternative to the GPS system controlled by the U.S.
Putin expressed support for Xi’s initiatives, saying he believes the SCO “could take on the leading role in efforts to form a more just and equal system of global governance in the world.”
Read: China's Xi announces new development bank at Tianjin summit (AP)
Related:
III. “My mom and Dr. DeepSeek”
Nearly three years after OpenAI launched ChatGPT and ushered in a global frenzy over large language models, chatbots are weaving themselves into seemingly every part of society in China, the U.S., and beyond. For patients like my mom, who feel they don’t get the time or care they need from their health care systems, these chatbots have become a trusted alternative. AI is being shaped into virtual physicians, mental-health therapists, and robot companions for the elderly. For the sick, the anxious, the isolated, and many other vulnerable people who may lack medical resources and attention, AI’s vast knowledge base, coupled with its affirming and empathetic tone, can make the bots feel like wise and comforting partners. Unlike spouses, children, friends, or neighbors, chatbots are always available. They always respond.
Entrepreneurs, venture capitalists, and even some doctors are now pitching AI as a salve for overburdened health care systems and a stand-in for absent or exhausted caregivers. Ethicists, clinicians, and researchers are meanwhile warning of the risks in outsourcing care to machines. After all, hallucinations and biases in AI systems are prevalent. Lives could be at stake.
Over the course of months, my mom became increasingly smitten with her new AI doctor. “DeepSeek is more humane,” my mother told me in May. “Doctors are more like machines.”
Read: AI chatbots are becoming lifelines for China’s sick and lonely (Rest of World)
Politics & Society
Diplomatic tour de force: China's Xi shows he's 'totally in charge' (Reuters)
When Chinese leader Xi Jinping organised his first parade to mark the anniversary of the end of World War Two, in 2015, he placed his two predecessors by his side in a show of respect and continuity of leadership.
Ten years on and having eliminated domestic opposition as he serves an unprecedented third term as president, Xi was flanked on Wednesday at the 80th anniversary parade by Russia's Vladimir Putin and North Korea's Kim Jong Un.
Chinese Communist Party leaders were interspersed among overseas guests.
The parade followed Xi's high-profile summit with Indian Prime Minister Narendra Modi at a weekend meeting of the Shanghai Cooperation Organization (SCO) in Tianjin, and the Chinese leader's rare visit to Tibet last month.
This display of diplomatic clout, stamina and geopolitical ambition has helped quell concerns among some China observers about the 72-year-old president's vitality, linked to sporadic absences and - so far unknown - succession plans. It has also helped divert domestic attention from slowing growth, experts say.
Longevity was on the leaders' minds as they walked up to the rostrum at Beijing's Tiananmen Square - Xi and Putin were caught in a hot mic moment discussing organ transplants and the possibility that humans could live to 150 years old.
"This week of triumphant diplomacy for Xi shows that he remains totally in charge of the elite politics of the Communist Party," said Neil Thomas of the Asia Society, a New York-based think tank. Unable to get the same legitimacy from economic growth as his predecessors, Xi has turned toward nationalism "to try and make up for it", Thomas said.
"It's a way to divert attention from economic challenges and to make his citizens proud to be Chinese, even if it's harder to feel that from the day-to-day experiences of unemployment, falling house prices and stagnant wages."
Xi underscored his elder statesman image with fashion choices: a grey suit in the style of those worn by Mao Zedong, matching his greying hair, in contrast to the black suits of his counterparts and his own black attire from a decade earlier.
His number two, Premier Li Qiang, whose role has diminished at home, was charged with relatively minor meetings with leaders of Malaysia and Uzbekistan. High-profile engagements with Kim, Modi, Turkish President Tayyip Erdogan and several others fell to Cai Qi, who heads the party's Central Secretariat, responsible for its sprawling administration.
Plotting the Course to Xi’s Fourth Term: Preparations, Predictions, and Possibilities ( for China Leadership Monitor)
The defining question at the next Party Congress in 2027 more likely will be whether Xi identifies an heir-apparent rather than whether he will step down. His fourth term in office is likely to be characterized by a dichotomy between increasingly tumultuous internal politicking and relative policy continuity. In his fourth term, Xi’s age will make the succession issue an increasingly unavoidable aspect of politics in Zhongnanhai, and the possibility that most of Xi’s cronies might retire at the next Party Congress will intensify the jockeying to succeed him. By contrast, Xi is likely to stay the course on the policies he set during his first two terms. Policy dynamics in Beijing could become more volatile if succession politicking and policymaking become intertwined. Otherwise, the Taiwan issue is likely where we would see policy discontinuity during Xi’s fourth term. If the Democratic People’s Party (DPP) wins another presidential term, Xi could become more willing to pursue measures he so far has forgone, such as seizing Taiwan’s offshore islands or conducting military overflights of Taiwan, among other possibilities.
New Chinese Public Opinion Survey ()
The Chicago Council on Global Affairs and The Carter Center have just released the results of our recent public opinion survey in China, asking Chinese people their views on their country’s economy, sources of international strength, and preferred posture toward the world. Survey data with this level of methodological rigor and scope are rare for China these days. We are very pleased to present our results in the form of four reports organized by theme.
Act of defiance against China’s ruling party lasted less than an hour (The Times)
When police saw a slogan beamed on to the side of a building in a university district of the major Chinese city of Chongqing, they sprang into action.
The slogan called for the overthrow of the Communist Party. “Freedom is not a gift, it must be seized back,” it said.
“Rise up, people who refuse to be slaves, rise up and resist to reclaim your rights. Down with red fascism, overthrow the Communist tyranny.”
Video: In a Rare Sign of Protest, a Chinese Activist Challenges the C.C.P. (The New York Times)
In an act of defiance against China’s Communist Party, an activist projected anti-C.C.P. slogans on a building and managed to flee one of the world’s most surveilled countries without being caught.
China clamps down on feminists, they fight back (DW)
On the eve of International Women's Day in 2015, five young Chinese feminist activists — Wang Man, Zheng Churan, Li Maizi, Wei Tingting, and Wu Rongrong — were detained by police in Beijing and Guangzhou.
Their planned campaign was a simple one: to raise awareness about sexual harassment on public transportation.
Instead, they were charged with "picking quarrels and provoking trouble," a vague offense often used against activists. The "Feminist Five" case quickly became a landmark event, both inside China and internationally, marking a turning point for the country's feminist movement.
One of the five, activist Li Maizi (also known as Li Tingting), told DW that the detention left lasting scars: "For a long time, every time I heard a knock on the door, I would feel an overwhelming sense of fear."
Yet, she also believes the arrests had a paradoxical effect, amplifying feminist awareness in China. The case drew global attention and helped bring the issue of sexual harassment into the Chinese public consciousness.
Ten years on, China's feminist movement has undergone profound shifts. On one hand, public awareness of gender equality has grown: more women and LGBTQ+ communities are finding ways to speak out about domestic violence, workplace harassment, and gender discrimination.
On the other hand, the space for feminist voices has shrunk dramatically. Online platforms have become increasingly hostile to feminist content, while authorities have expanded censorship to silence gender-related debates.
China rules business must help pick up pension bill as population ages (Financial Times)
Chinese companies will have to start paying into employee pension plans this week, as Beijing pressures business to pick up the bill for an ageing population.
Many workers have long agreed to let employers off the hook for what should be mandatory pensions contributions, in exchange for higher salaries upfront.
However, China’s Supreme People’s Court last month outlawed such informal practices from September. Wu Jingli, a deputy chief judge, said its ruling would prevent business owners from exploiting their bargaining power and “actively address the issue of an ageing population”.
China’s pension system has come under strain in recent years as the working-age population falls and people live longer.
[…]
Experts and businesses have warned that sudden enforcement of contributions would hurt employers, who claim they cannot cope with the additional costs amid slowing economic growth and tepid consumer spending.
Jacky Zhou, the manager of an eatery in Shenzhen that specialises in luosifen — a river snail noodle soup from south-western Guangxi region — said rising labour costs had already forced his employer to shutter two outlets. Now, the local social security bureau was demanding unpaid contributions from the last six months of 2024, he said.
The company was planning to retreat to Nanning, the capital of Guangxi, where labour and rental costs are considerably lower.
“For a small business, breaking even is good enough these days,” Zhou said. “But when you’re hit with a sudden rise in cost like this, it becomes too exhausting just to keep the doors open.”
Historically, the gap between pension contributions and payouts has been covered by the government.
But local governments have been under growing fiscal pressure after a collapse in land sales reduced one of their primary revenue streams. The central government is also paying for stimulus programmes — such as subsidies for births and consumer goods — rolled out this year.
China’s Higher Ed Reform Pivots From Old Majors to New Tech (Sixth Tone)
China has launched a three-year push to overhaul universities, emphasizing AI, the sciences and new data tools to align degree programs with national development goals.
The plan, announced Thursday by the Ministry of Education, calls for building a national big data platform to track supply and demand across university programs, the first of its kind in China.
It also stresses stronger training for faculty, greater coordination between undergraduate, graduate and vocational programs, and new emphasis on the fundamental sciences alongside artificial intelligence.
China Tightens Rules on Study Aids to Ease Student Pressure (Sixth Tone)
Chinese cities have rolled out fresh education reforms aimed at easing the pressure on students, with new rules limiting the use of study aids in primary and secondary schools and guidelines setting national standards for desks and chairs.
The measures, announced ahead of the fall semester, build on the national “Double Reduction” campaign launched in 2021 to cut excessive homework and rein in private tutoring. Regulators are now turning their attention to study aids, including test prep books and worksheets long used to push students ahead.
Local governments are already tightening oversight. In August, Shanghai banned schools from profiting off books outside the approved curriculum, and pressuring families to buy them. No study aids can be used without official review, and vendors are barred from selling them on campuses.
Beijing’s Dangerous Game in Tibet (Foreign Affairs)
Chinese leaders’ animus toward the Tibetan leader, whom they have persistently demonized as “a wolf in monk’s clothing,” blinds them to the stabilizing role he plays in Sino-Tibetan relations. Although the Dalai Lama has used his influence to mobilize support for Tibetan freedom around the globe, he has often deployed his power to de-escalate conflicts in Tibet at critical moments. While Beijing blames the exiled leader for all unrest in Tibet, the historical evidence shows that the Dalai Lama’s personal commitment to nonviolence and dialogue has contained tactical escalation and political radicalization among Tibetans.
The Dalai Lama has been the key figure quelling violence when grassroots dissatisfaction has escalated into episodic uprisings in Tibet. In 1987–88, after protests in Lhasa spiraled into street violence, the Dalai Lama issued a stern warning to his fellow Tibetans to remain peaceful. Then, in 2008, when protests in Lhasa spread nationwide and escalated into vandalism targeting Chinese establishments, the Dalai Lama again intervened. He publicly threatened to resign his position as the leader of the Tibetan government in exile if the violence worsened. In both cases, Tibetans immediately backed off.
The Dalai Lama has also restrained the scope of the Sino-Tibetan conflict by opting to pursue regional autonomy within the People’s Republic of China instead of full independence for Tibet. He transformed what was once a maximalist struggle for national liberation into a diplomatic campaign for cultural accommodation. This conciliatory stance, motivated by the search for a middle ground between secession and surrender, came to be known as “the middle way.”
Dan Wang ()
Dan Wang at long last makes his solo ChinaTalk debut! We’re here to discuss and celebrate his first book, Breakneck.
We get into…
Engineering states vs lawyerly societies,
The competing legacies of the 1980s in China, One Child Policy and Tiananmen vs intellectual debate, cultural vibrancy, and rock and roll,
Methods of knowing China, from the People’s Daily and Seeking Truth to on-the-ground research,
How to compare the values of China’s convenient yet repressive society with the chaotic pluralism of the USA,
What Li Qiang’s career post-Shanghai lockdowns can tell us about the value of loyalty vs competence in Xi’s China.
Joseph Torigian on Xi, Party History, and the 9.3 Parade ()
This is a recording of the September 5 live conversation I had with Professor Joseph Torigian about his excellent book on Xi Jinping’s father - The Party's Interests Come First - The Life of Xi Zhongxun, the importance of history to the Party and to Xi Jinping, and how we might view the recent commemoration of the 80th anniversary of the “Victory in the Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War”.
Hong Kong & Macao
Jimmy Lai risks dying in jail, legal team warns UN (The Times)
Jimmy Lai’s legal team is making a fresh appeal for United Nations intervention after uncovering “chilling” evidence on the alleged systemic failure of Hong Kong authorities to provide life-saving treatment to prisoners with health problems.
Lai, 77, a British citizen and pro-democracy campaigner who has endured 1,700 days in solitary confinement, is waiting for a verdict in what has been widely decried as a sham trial over his vocal criticism of the Chinese Communist Party.
His supporters have repeatedly raised concerns about his health and treatment behind bars. Lai, a diabetic, has suffered significant weight loss and episodes of heart palpitations that led to a temporary postponement of his trial last month.
HK court blocks Portuguese citizen's bid to cut nat. sec sentence at top court (HKFP)
The Hong Kong Court of Appeal has denied a Portuguese citizen jailed under the Beijing-imposed national security law permission to appeal for a shorter sentence at the city’s top court.
In a Friday judgment, three appellate court judges – Jeremy Poon, Derek Pang, and Anthea Pang – shot down independence activist Joseph John’s application to take his bid for a shorter sentence to the Court of Final Appeal.
Companies snap up bargains in Hong Kong’s prime office rental market (Financial Times)
Multinational companies in Hong Kong are taking advantage of decade-low lease rates to expand or upgrade their premises, as agents and landlords hold out hope that the Asian financial hub’s prime office market might be bottoming out.
Companies including private equity group General Atlantic, hedge fund Point72 and law firm Akin have planned moves to newer, more centrally located facilities in recent months, according to property agents and industry executives, as rents have fallen by nearly half from their 2019 peak.
Hong Kong-based insurer FWD on Wednesday said it had signed the city’s “largest office lease” of the year — a decade-long contract for 330,000 sq ft in Swire Properties’ Taikoo Place — but did not disclose the rental terms.
The city’s property market has suffered from weak demand after tough pandemic restrictions and a crackdown on political dissent by Beijing starting in 2020 led to an exodus of expatriates and foreign companies.
A wave of new office towers coming into the market has exacerbated the supply glut. Average monthly prime office rents in Hong Kong’s financial district fell to about HK$90 (US$12) per sq ft in June, compared with HK$166 in 2019, according to commercial property group Cushman & Wakefield.
“Many tenants want to seize this opportunity as rents are bottoming,” said Fiona Ngan, head of occupier services at property agency Colliers in Hong Kong. “Given that rents at [better locations] are now at similar levels as their current premises, they’d think: ‘Why won’t I move and upgrade my office?’”
Hong Kong Probes Alleged Insider Trading by Staff at HKEX, SFC (Bloomberg)
Hong Kong is probing allegations of insider dealing that involve at least two individuals at the stock exchange and the city’s financial regulator as well as brokers and social media influencers, according to people familiar with the matter.
Authorities are investigating if regulatory staff at Hong Kong Exchanges & Clearing Ltd. and the Securities and Futures Commission tipped off traders and others to upcoming announcements involving dozens of listed companies over several years, the people said, asking not to be named because they aren’t authorized to divulge the details.
The probes have been ongoing for months, the people said. Such investigations can take years and may not always result in charges.
Some of the announcements that were allegedly leaked involve privatizations, which flourished over the past few years, the people said. The companies themselves aren’t necessarily connected to the probe, the people said.
Hong Kong has ambitious plans to tap into the $3.8 trillion digital assets market with new legislation rolled out last month that will allow licensed businesses to issue stablecoin, a type of cryptocurrency pegged to real-world assets like the US dollar. As mainland China has banned crypto trading and mining, the success of the stablecoin ecosystem in the city, as the country’s testing ground, could pave the way for an offshore yuan-backed token and further adoption of the technology eventually.
Experts have hailed the regulation as the first-of-its-kind in Asia, positioning the city almost on par with the US Genius Act, which has since galvanized a stablecoin frenzy. But the initial enthusiasm for the city’s stablecoin drive has been tempered by a cautious regulatory approach, keeping it from replicating the breakneck growth seen in the United States.
Some potential issuers have expressed frustration at the government’s stringent requirements, like huge liquid reserve and client identity verification for anti-money laundering, which raises compliance costs, according to two industry sources familiar with relevant discussions. A few of these potential issuers who earlier expressed strong interest have now taken a wait-and-see approach, as they are hesitant to apply in the first licensing round, one of the sources added.
Taiwan
Ahead of China's war parade, Taiwan president says aggression will fail (Reuters)
Taiwan President Lai Ching-te said on Tuesday that aggression will inevitably fail, pointing - on the day before a mass military parade in Beijing - to the lessons from World War Two and key victories Taiwan claims against Chinese forces in 1958.
Democratically governed Taiwan has over the past five years repeatedly complained about heightened Chinese military activity including war games around the island as Beijing steps up pressure to enforce territorial claims the government in Taipei rejects.
[…]
Taiwan has told its people not to attend Beijing's parade, to China's anger.
The most high profile person from Taiwan attending is Hung Hsiu-chu, a former chairwoman of Taiwan's largest opposition party the Kuomintang (KMT).
Rethinking the Threat: Why China is Unlikely to Invade Taiwan (Stimson Center)
This report draws on extensive research, including fieldwork in Taiwan, to assess the likelihood of a Chinese invasion. Contrary to dominant defense narratives in Washington, the analysis shows such a scenario would be among the most complex and dangerous military operations in history. From risk of nuclear escalation to prospects of political upheaval and economic catastrophe, the barriers to invasion are immense. U.S. defense policymakers should reconsider this assumption on which to establish future military plans and explore more probable conflict scenarios.
US and Taiwanese defence officials held secret talks in Alaska (Financial Times)
US and Taiwanese defence officials held secret talks in Alaska last week, days before President Xi Jinping flaunted China’s military might to the world at a parade attended by fellow strongmen.
Jed Royal, the Pentagon’s top Indo-Pacific official, met Hsu Szu-chien, then-Taiwan’s deputy national security adviser, in Anchorage, according to several people familiar with the matter.
The talks came months after a Washington meeting between more senior American and Taiwanese officials was cancelled, partly over concerns that it could derail a potential bilateral meeting between President Donald Trump and the Chinese president.
News of the meeting in Alaska comes amid questions about how far Trump is willing to support Taiwan as he seeks a summit with Xi and the two countries hold talks to end their trade war.
Taiwan accuses China of breaching international law over drilling (The Guardian)
Taiwan’s government has accused China of breaching international law by drilling for oil and gas inside Taiwan’s exclusive economic zone (EEZ) and immediately demanded it halt the activity.
The statement from the office of Taiwan’s president, Lai Ching-te, came after revelations first reported by the Guardian that several Chinese oil rigs and associated vessels had been detected inside Taiwan’s EEZ, near the disputed Pratas Islands, which are under Taiwanese control.
A report published by the Jamestown Foundation, a US-based thinktank, said the assets had been there for up to five years, and were all owned by the Chinese state-run China National Offshore Oil Corporation (CNOOC).
Their presence had not been previously reported. The Guardian independently confirmed the continued presence of most of them last week, using commercial civilian maritime tracking platforms.
Canada, Australia warships enter Taiwan Strait (CTV News)
A Canadian and an Australian warship entered the Taiwan Strait on Friday, one day after the Chinese military accused both countries of trying to stir tensions with naval exercises in the South China Sea.
The Canadian frigate, HMCS Ville de Québec, and the Australian guided-missile destroyer, HMAS Brisbane, entered the disputed waterway, which China claims as part of its territorial waters, early Saturday morning local time, according to the ships’ automatic identification system transponders.
The Department of National Defence would not confirm the transit was underway, but a spokesperson for Canadian Joint Operations Command said the agency would release a statement from Ottawa on Saturday evening.
Fear of China denies Taiwan film businesses a ‘Zero Day’ payout (Financial Times)
Taiwanese war drama Zero Day Attack has become a smash hit: the series, which imagines a Chinese attack on Taiwan, has topped viewer rankings on public television and streaming platforms in the month since its release.
But most of Taiwan’s commercial film industry is watching from the sidelines. After venture capital funds and production companies shunned the politically sensitive script, its creator Cheng Hsin-mei produced the show like an experimental film, with a group of like-minded directors, money from a public film fund and investment from tech billionaire-turned anti-China campaigner Robert Tsao.
The reluctance of Taiwan’s entertainment business establishment to get involved reflects the stark choice it faces between creative freedom and the commercial lure of China, a movie market 30 times the size of its own but one fraught with political taboos.
Taiwanese investors, producers and actors frequently turn down projects that touch on issues sensitive to Beijing authorities because they fear losing out on opportunities in China and even at home, according to more than a dozen people in the industry interviewed for this story.
World
Asia & Pacific
India’s Modi meets Xi on his first China trip in seven years as Trump’s tariffs bite (CNN)
Chinese leader Xi Jinping told India’s Narendra Modi the “right choice” is for their countries to be friends as the two met in China for first time in seven years – a new milestone in a nascent rapprochement between the world’s most populous nations accelerated by shared frictions with the United States.
Xi and Modi’s highly-anticipated meeting Sunday, on the sidelines of a regional summit in the eastern port city of Tianjin, comes as both nations face stiff US tariffs under President Donald Trump’s global trade war, as well as Western scrutiny over their relationships with Russia as the war in Ukraine grinds on.
Modi’s SCO summit visit shows China and India want to reset relations. But the ‘Dragon–Elephant Tango’ will be tough (Chatham House)
Prime Minister Narendra Modi’s attendance at the SCO Summit in Beijing should be seen as the culmination of efforts by India and China to reset relations after a fraught period in the bilateral relationship. However, despite significant progress and the impetus brought by US tariffs, fundamental grievances have yet to be resolved.
Prabowo walks diplomatic tightrope with China visit amid Indonesia protest lull (SCMP)
Indonesian President Prabowo Subianto made a swift trip to Beijing to attend China’s World War II victory commemoration parade on Wednesday, with his spokesman citing the importance of maintaining strategic ties and the easing of unrest at home.
Analysts said the tightly timed visit reflected Jakarta’s effort to reassure key diplomatic partners and project stability abroad following global coverage of Indonesia’s violent protests over the weekend, but warned it carried “political risks” at home if perceived as dismissive of protesters and their demands.
Presidential spokesman Prasetyo Hadi confirmed Prabowo’s trip late on Tuesday. “To maintain strong ties with China, the president agreed to travel tonight and return the next evening,” he said, as quoted by state news agency Antara.
Prasetyo said the president had decided to proceed with the visit after he had “reviewed the situation and received reports from all relevant agencies confirming that conditions are improving”.
How Xi-Kim talks marked China’s ‘full-throated endorsement’ of North Korea on world stage (SCMP)
From a rare multilateral debut at Tiananmen Square to a high-stakes summit with Chinese President Xi Jinping, followed by an exclusive banquet, Beijing’s privileged treatment of North Korean leader Kim Jong-un was a calculated display of solidarity between the two communist neighbours, analysts said.
In a subtle yet seismic shift, Beijing notably avoided any mention of “denuclearisation of the Korean peninsula” during what was Kim’s first visit to China in over six years.
Instead, Beijing emphasised its special bond with Pyongyang and the region’s “peace and stability” amid a deepening China-US rivalry.
With ties to China restored and reinforced by Xi’s pledges of further economic support, pundits said Kim’s visit had strengthened Pyongyang’s alignment with both Beijing and Moscow, while boosting his leverage in regional politics.
In a meeting with Kim at the Great Hall of the People, Xi described their two countries as “good neighbours, good friends and good comrades who have shared weal and woe and helped each other in time of need”.
FBI’s Wellington post may undermine regional crime fighting (The Strategist)
Australian and New Zealand police work with their Chinese counterparts across several crime themes. For example, Taskforce Blaze—a standing operation between the Australian Federal Police and the Chinese National Narcotics Control Commission—has seized 28 tonnes of illicit drugs and precursors since its inception in 2015.
For its part, New Zealand Police has a host of formal and informal arrangements with China, including a working group on law enforcement cooperation.
The framing of the legat office as a geostrategic initiative to counter Chinese influence could challenge such arrangements. Police cooperation is often conditional on cordial relations between the respective governments.
Clark and Key's China visit sends wrong message (Newsroom)
The attendance of democratic former leaders such as Clark and Key alongside heads of state like Putin and Kim conveys a message of moral equivalency and political subservience. It grants symbolic validation to a worldview that is fundamentally at odds with the values that New Zealand upholds.
Clark and Key’s attendance at this military parade also contributes to the normalisation of China’s efforts to rewrite history and deflect international scrutiny.
Americas
Chinese provinces ready business delegations to US amid shaky tariff truce (SCMP)
More Chinese entrepreneurs and local government representatives could soon be packing for New York and California, aiming to take advantage of a recent stabilisation in US-China relations to hop across the Pacific and scout out potential trade and investment opportunities.
Visits by delegations from China in the coming months will seek to leverage the pro-business amity and autonomy of local authorities in the US to advance economic ties, as Beijing encourages subnational exchanges.
China’s major exporting provinces, including Zhejiang, are set to dispatch economic missions to major American cities and states in the coming months, the Post has learned.
One source involved in Zhejiang’s export sector said such visits would not be feasible without Beijing’s tacit approval, nor the recently extended pause in blanket tariff increases agreed to by the world’s two largest economies.
“Of course [trips to the US] must be meticulously planned under Beijing’s auspices and we also think it’s good timing now that there is another 90-day extension [after bilateral trade talks in Stockholm],” the source said.
China Projects Confidence in the Face of Trump’s Tariff Storm (China Leadership Monitor)
The main takeaway of this review is that the Trump administration did not do its homework in advance of launching its trade war on China. Instead, it launched a war without a plan. During the past five years, it did not take stock of China’s preparations for this trade war, Xi’s own political imperatives, or America’s own dependencies and vulnerabilities vis-à-vis China. In so doing, the Trump administration secured a place in history alongside Napolean’s winter invasion of Russia. In both cases, a dangerous blend of under-preparedness, hubris, and ignorance of the other side’s capabilities generated an unwise opening move followed by a costly and embarrassing retreat.
Historically, though, America’s strength has not been its avoidance of mistakes but rather its capacity for correcting them. To do so effectively with China now, Washington should devote less energy to trying to influence Beijing and focus more on itself and its partners. At its heart, the U.S.–China rivalry is a race to the frontier of innovation. Whichever country does better in building capacity in 21st century industries, like AI, robotics, nuclear fusion, quantum computing, and biotechnology, will benefit from the shadow of the future.
US Pulls TSMC’s Waiver for China Shipments of Chip Supplies (Bloomberg)
The US has revoked Taiwan Semiconductor Manufacturing Co.’s authorization to freely ship essential gear to its main Chinese chipmaking base, potentially curtailing its production capabilities at that older-generation facility.
American officials recently informed TSMC of their decision to end the Taiwanese chipmaker’s so-called validated end user, or VEU, status for its Nanjing site. The action mirrors steps the US took to revoke VEU designations for China facilities owned by Samsung Electronics Co. and SK Hynix Inc. The waivers are set to expire in about four months.
Washington’s move means that TSMC, Samsung and SK Hynix’s suppliers will have to apply for individual approvals when they want to ship semiconductor equipment and other gear covered by US export controls to the affected China facilities, instead of the blanket authorization those suppliers currently have because of the plants’ VEU status.
China Slaps Up to 78% Tariffs on U.S. Fiber Optic Imports in First-Ever Anti-Circumvention Case (Caixin)
China will impose steep anti-dumping duties of up to 78.2% on certain U.S.-made fiber optic products starting Sept. 4, the Ministry of Commerce said Wednesday, escalating trade frictions between the world’s two largest economies.
The tariffs target a niche category of fibers known as cutoff wavelength-shifted single-mode fiber, or G.654.C fiber, optimized for long-haul and undersea networks. The ministry said U.S. producers were exporting these products to China in order to evade duties already applied to another fiber product.
According to the ministry, Corning Inc. will face a duty of 37.9%, OFS Fitel LLC will be taxed at 33.3%, and Draka Communications Americas Inc. will incur a 78.2% duty. All other U.S. exporters will be subject to the maximum rate of 78.2%. The measure builds on anti-dumping penalties China first levied on U.S.-origin single-mode fiber more than a decade ago.
‘Unrestrained’ Chinese Cyberattackers May Have Stolen Data From Almost Every American (The New York Times)
China has hacked into American power grids and companies for decades, stealing sensitive files and intellectual property such as chip designs as it seeks to gain an edge over the United States.
But a sweeping cyberattack by a group known as Salt Typhoon is China’s most ambitious yet, experts and officials have concluded after a year of investigating it. It targeted more than 80 countries and may have stolen information from nearly every American, officials said. They see it as evidence that China’s capabilities rival those of the United States and its allies.
The Salt Typhoon attack was a yearslong, coordinated assault that infiltrated major telecommunications companies and others, investigators said in a highly unusual joint statement last week. The range of the attack was far greater than originally understood, and security officials warned that the stolen data could allow Chinese intelligence services to exploit global communication networks to track targets including politicians, spies and activists.
Mexico considering imposing tariffs on China, president says (Nikkei Asia)
Mexican President Claudia Sheinbaum said on Thursday that her government is considering imposing tariffs on imports from countries that do not have trade agreements with Mexico, including China.
The tariffs would be part of "Plan Mexico," an initiative to boost domestic industry amid tariffs imposed by U.S. President Donald Trump on some imports from Mexico.
"We are considering imposing certain tariffs," Sheinbaum said at her daily news conference, adding that the recipients will be countries that don't have trade agreements with Latin America's second-largest economy, including China.
Sheinbaum did not provide details on which products or sectors could be affected.
China’s 2024 Brazil investment doubled to highest level since Covid: report (SCMP)
Chinese investment in Brazil more than doubled last year, reaching the highest level since before the pandemic, making the South American country the third main destination for Chinese capital worldwide, a business group report released on Thursday said.
The report, released by the Brazil-China Business Council, said Chinese firms confirmed 39 projects in 2024 worth US$4.18 billion, a 113 per cent increase from the year before.
The surge would make Brazil the leading destination for Chinese capital among emerging economies. Worldwide, it ranked behind only the United Kingdom and Hungary.
The report said there has been a shift in the nature of deals, with companies now favouring smaller projects linked to Brazil’s industrial policy and the global energy transition, rather than the mega acquisitions that once defined Chinese investment.
Europe
Xi Jinping hails China-Russia ties for withstanding test of geopolitical uncertainties (SCMP)
China and Russia have withstood the test of international changes and will continue to support each other, President Xi Jinping told his Russian counterpart Vladimir Putin in a high-profile meeting that showed solidarity amid growing pressure from the United States and its allies.
“Chinese-Russian relations have stood the test of international circumstances and serve as a model of interstate relations, eternal good-neighbourliness, friendship, comprehensive strategic interaction, mutually beneficial cooperation and win-win,” Xi told Putin at the beginning of their meeting on Tuesday morning.
“China is willing to maintain close high-level interactions with Russia,” Xi said, adding that China would coordinate positions “in a timely manner” on issues concerning each other’s core interests and major concerns.
The meeting, which was followed by a banquet at Xi’s residence in the Zhongnanhai compound, took place amid calls by both powers to establish a new multipolar global order to challenge the one they said was dominated by the US-led West.
Both face what they call “economic bullying” as Beijing fights a heated trade war with Washington. The US is also suggesting slapping fresh sanctions on Russia if it refuses to enter peace negotiations with Ukraine following a summit between Putin and US President Donald Trump.
Why China and Russia are unlikely to move the Power of Siberia-2 pipeline forward (Atlantic Council)
While Russian President Vladimir Putin traveled to Beijing this week to meet with Chinese President Xi Jinping, Russia’s energy giant Gazprom sought to establish a cross-border connection of a different kind. In Beijing on September 2, Gazprom CEO Alexei Miller announced that a “legally binding memorandum” had been signed for the Power of Siberia 2 (PoS-2) natural gas pipeline, according to Interfax, a Russian news agency. It would be easy to see this as a major step forward in the relationship between Moscow and Beijing, but there are reasons to caution against this interpretation. For starters, the Chinese side has not yet confirmed this news, suggesting that the pipeline is not, in fact, finalized.
If Russia and China both threw their weight behind completing the PoS-2, then Western capitals would not be wrong to perceive it as evidence of Putin and Xi deepening their countries’ economic, political, and perhaps even military cooperation. But the pipeline is unlikely to advance—at least not with great urgency. Moscow’s enthusiasm for the project is not matched by Beijing.
China to Add Russians to Visa-Waiver Program (Caixin)
China will soon include Russians in its continually expanding visa-waiver program, as travel between the neighbors continues to grow.
The Ministry of Foreign Affairs announced Tuesday that the trial policy will be valid for one year from Sept. 15, allowing holders of ordinary Russian passports to enter China for up to 30 days for purposes including business, tourism, family visits, exchanges and transit.
Watching China in Europe with Noah Barkin—September 2025 Edition ()
Europe is feeling the effects of an emboldened Beijing and Moscow. In the last week alone, von der Leyen’s plane was the victim of a suspected Russian interference attack and Moscow rained down bombs on Kyiv, killing nearly two dozen people and severely damaging the EU delegation office. A new report from the International Institute for Strategic Studies (IISS) shows that Russia’s attacks on critical infrastructure in Europe almost quadrupled in 2024 compared to the year before. One of the clearest takeaways from the EU-China summit in late July was that Beijing is in no mood to compromise with what Chinese leaders see as a weakened, vulnerable Europe. Over the coming months, the onus will be on the EU to follow through on von der Leyen’s warning that relations with China are at an “inflection point” that could lead to a closing down of the European market.
Germany probes Chinese bid for electronics giant (Taipei Times)
Berlin is probing whether Chinese e-commerce giant JD.com Inc’s (京東集團) bid to take over a major German electronics retail group presents a risk to the country’s security, government sources said on Tuesday. It is the latest case of an attempted Chinese investment in Europe’s top economy facing official scrutiny. Some deals have been watered down or blocked in recent years on national security grounds.
JD.com announced in July that it had signed a deal to acquire Ceconomy AG, the parent company of two major retailers, MediaMarkt and Saturn, valuing the German group at 2.2 billion euros (US$2.6 billion).
The agreement was not yet finalized, but Ceconomy’s management recommended that its shareholders accept the offer.
China Firms Rush to Europe as Trump Upends Trade (Bloomberg)
Some of China’s biggest ecommerce and logistics companies such as JD.com Inc. are making a beeline to Europe’s warehouses once again, as US President Donald Trump’s tariffs reshape manufacturers’ supply chains and markets.
In the UK, for instance, Chinese firms have taken up more than 2 million square feet of space this year, potentially on track to beat the 2.3 million square feet uptake at the height of the pandemic in 2021, according to data from CoStar. A similar phenomenon is playing out across continental Europe, with landlords noticing an increase in inquiries from Chinese groups.
“Europe is the last major market where Chinese firms can expand at speed, making them an increasingly important force in shaping the region’s logistics landscape,” said Claire Williams, head of UK and European industrial research at Knight Frank in London. This is set to continue due to trade policy shifts, she added.
Though the world’s two largest economies have yet to reach a deal over tariffs, manufacturers in China have been seeking alternative markets for their goods as they brace for higher US tariffs. That is prompting logistics firms to expand their footprint in Europe, marking the second wave of a warehouse boom that started in the continent during the pandemic, which had upended supply chains and prompted nearshoring.
China issues anti-dumping ruling on European pork, charges deposits (SCMP)
China has made a preliminary determination that Europe is dumping pork and pork by-products into its market, causing “material injury” to the domestic industry, Beijing’s Ministry of Commerce said on Friday.
The announcement, which carries a “provisional anti-dumping measure” in the form of cash deposits, marks an escalation in China-EU trade tensions after major French cognac producers were exempted from punitive levies stemming from a similar investigation.
“Starting September 10, importers of the products under investigation shall, based on the margin of deposit determined for each company in this preliminary ruling, provide corresponding deposits,” the ministry said.
Car industry calls for EU to copy China and include hybrids in emissions push (Financial Times)
Europe should follow the Chinese “playbook” and include hybrids in its push to lower emissions from cars, industry bosses have said, as they warned Brussels that sticking to its 2035 ban on petrol engines put the bloc’s biggest industry at risk.
Ola Källenius, the president of European car industry body ACEA, told the Financial Times that China was the most advanced country in “decarbonisation of mobility” thanks to a policy encouraging not just electric vehicles but also hybrids and other technologies to cut emissions.
“No date, no ban, technology openness . . . if that playbook has been successful, why are we not willing to at least discuss the European version of that?” Källenius, who is also chief executive of Mercedes-Benz, said.
[…]
EU officials are reluctant to revise the 2035 combustion engine ban as sales of EVs have risen this year on the back of more affordable new offerings.
EVs accounted for 17 per cent of the EU market from January to July including Norway and Iceland, while hybrids and plug-in hybrids captured 43 per cent of the market. The EV ratio is expected to reach 22.6 per cent next year, according to Schmidt Automotive Research.
Källenius stressed that the car industry was committed to decarbonisation with hundreds of billions of euros already invested in the shift to electric. But Europe also needs to invest more heavily in charging infrastructure and supply chains, areas that China’s industrial strategy has focused on to promote EVs in addition to purchase subsidies.
“If you want to increase the chance of success of that electrical main road, that’s where we also need to put money in,” he added.
Venice’s Lion of St Mark’s Square was at least part made in China, study suggests (The Guardian)
The great bronze statue of a winged lion perched atop one of two granite columns in Venice’s St Mark’s Square has watched over the city for centuries.
But Italian scientists have now found evidence to suggest the iconic statue was at least in part made in China, and possibly ended up in Venice via the Silk Road after being brought back by the father and uncle of the merchant and explorer Marco Polo.
Middle East & North Africa (MENA)
Why China is hesitant to support Syria’s new government as al-Sharaa faces a crucial month (Chatham House)
Nine months on since the fall of Bashar Al Assad in Syria, China is yet to formally recognize the country’s new government, led by President Ahmed al-Sharaa.
Beijing, a ‘strategic partner’ of the former regime, is particularly concerned about the prominence of Uighur foreign fighters within Syria’s security and defence structures.
While Beijing has engaged with the new Syrian government via its ambassador, its concerns mean it will likely continue to act with restraint and may be hesitant to support any moves to lift the remaining UN sanctions on al-Sharaa and other officials.
In turn, al-Sharaa is unlikely to clamp down on foreign fighters that make up an important part of his support base amid ongoing instability and conflict with other groups.
This deadlock comes during a crucial month for al-Sharaa, with elections scheduled for mid-September before the new Syrian leader is set to address the UN General Assembly for the first time. In the long-term, it could also undermine Damascus’s hedging policy, aimed at avoiding over-reliance on the US.
Xi Jinping reiterates support for Iran nuclear programme amid Western pressure (SCMP)
Chinese President Xi Jinping doubled down on his support for Iran to “safeguard its national sovereignty” and vowed to promote a widely accepted solution to the Iranian nuclear issue as Tehran faces mounting Western pressures over its nuclear programme.
“China attaches importance to Iran’s repeated affirmation that it does not seek to develop nuclear weapons, respects Iran’s right to peaceful use of nuclear energy,” Xi told his Iranian counterpart, Masoud Pezeshkian, according to state-owned broadcaster CCTV.
“China will continue to uphold justice and promote a solution to the Iranian nuclear issue that addresses the legitimate concerns of all parties,” Xi said.
Sub-Saharan Africa
South Africa asks China to postpone naval exercises that coincide with possible Trump trip for G20 (AP)
South Africa’s Department of Defense said Thursday it has asked China to postpone naval exercises that would have brought Chinese and Russian warships to South African waters around the time the country hosts a Group of 20 summit.
U.S. President Donald Trump has been invited to attend the summit in Johannesburg on Nov. 22 and Nov. 23, although it’s unclear if he will attend following his criticism of South Africa as a country he has “a lot of problems with.”
South Africa holds joint naval exercises with China and Russia — its partners in the BRICS bloc — every two years and the exercises scheduled for late November were part of that agreement. China is the lead nation of this year’s exercises to be held in South African waters.
The Department of Defense said in a statement its request to China to postpone the naval exercises was to ensure they “do not impact on the logistical, security and other arrangements associated with South Africa’s G20 Presidency.”
Business, Economy & Finance
China Eyes Curbs on Stock Speculation to Foster Steady Gains (Bloomberg)
China’s financial regulators are considering a number of cooling measures for the stock market as they grow concerned about the speed of a $1.2 trillion rally since the start of August, people familiar with the matter said.
The measures proposed to top policymakers in recent weeks include the removal of some short selling curbs, the people said, asking not to be identified as the information is private. Authorities are also contemplating options to rein in speculative trading on concern a sharp reversal might inflict heavy losses on retail investors.
With an epic boom and bust from 2015 not forgotten, officials are seeking to cultivate steadier gains that will help revive the economy and consumer sentiment. The deliberations also coincided with China’s push to show off its military might at a Sept. 3 parade to commemorate the 80th anniversary of the end of World War II. The government often seeks to instill stability in its capital markets around major national events.
China Securities Regulatory Commission Chairman Wu Qing signaled determination to ensure stock market stability at a symposium he convened in Beijing at the end of last month, pledging to consolidate the “positive momentum” of the market, while promoting “long-term, value, and rational investing.”
Chinese stocks slide the most in five months (Financial Times)
Chinese stocks slid the most in five months on Thursday, a day after President Xi Jinping projected his nation’s global ambition with a landmark military parade in Beijing.
The blue-chip CSI 300 benchmark fell 2.1 per cent, while Hong Kong’s Hang Seng index dropped 1 per cent. China’s tech-focused Star 50 index shed 6.2 per cent.
The CSI 300 surged more than 10 per cent in August, fuelled by a rally in technology companies such as chip designer Cambricon. Prior to Thursday’s fall, the index was up more than 14 per cent for the year, reaching its highest level since 2022.
The sell-off is the largest since early April, when US President Donald Trump’s tariff threats on China caused the CSI 300 to drop more than 7 per cent in one day.
Market participants saw an opportunity to take profits from the tech rally, said Zhao Jian, head of a research institute at Hong Kong-based asset manager Atlantis Investment.
Banking stocks rose as the so-called national team — an array of institutions that can work together to support the market — was said to be buying financial shares.
China’s Rich Pour Billions to Compete for Access to Bridgewater Hedge Funds (Bloomberg)
Bridgewater Associates’ hedge funds have become so popular in China that wealthy investors are pouring billions into the nation’s major private banks just for the right to buy them.
Lenders including China Merchants Bank Co. are reserving the US investment firm’s products for their top clients, in many cases requiring them to hold at least 10 million yuan ($1.4 million) at the firm. Demand is so strong that customers can only buy Bridgewater funds worth a tiny fraction of their bank assets, and sometimes get shut out entirely, according to people familiar with the matter.
While Bridgewater’s global products have struggled with lackluster long-term performance over the past decade, the firm is on a roll in China. Returns topped 35% in 2024, even as market declines early in the year hammered some rivals. The firm’s strategy, known as All Weather Plus that combines founder Ray Dalio’s hallmark risk-parity with active management, increased its assets under management by about 40% last year to more than 55 billion yuan.
Nasdaq Proposes Stricter IPO Rules, Raising Bar for Smaller Chinese Listings (Caixin)
Nasdaq is moving to tighten its listing standards, a step that could sharply limit the flow of smaller Chinese companies onto the exchange even after U.S. audit disputes have been resolved.
In a proposal announced Wednesday, the exchange said it would raise the minimum public float and fundraising requirements for new listings, while enforcing faster suspension and delisting procedures for companies that fail to meet ongoing standards.
For companies listing under income-based standards, the minimum public float would rise from $5 million to $15 million. Firms with deficiencies and a market value below $5 million could face swifter suspension and delisting. For companies that primarily operate in China, new IPOs would need to raise at least $25 million.
Nasdaq said the proposed rules were submitted to the Securities and Exchange Commission. If approved, the tougher IPO standards would take effect immediately, with a 30-day grace period for companies already in the pipeline. The new suspension and delisting rules would be implemented within 60 days of approval.
The move revives concerns first raised under Nasdaq’s “restrictive markets” policy adopted in 2021. That standard targeted jurisdictions, including Chinese mainland and Hong Kong, where auditors could not be inspected by the Public Company Accounting Oversight Board (PCAOB). Chinese companies seeking to list had to raise at least $25 million or 25% of their post-offering market value.
China's August factory activity beats estimates, expanding at fastest pace in 5 months (CNBC)
China’s manufacturing activity unexpectedly returned to growth in August on the back of a recovery in new orders and export business, a private survey showed Monday, helped by an extended trade-war truce with the U.S.
The RatingDog manufacturing purchasing managers’ index came in at 50.5, sharply beating estimates of 49.7 from economists polled by Reuters.
The gauge signaled the fastest rate of expansion since March, rebounding from July’s 49.5. A reading below 50 signals contraction while one above that threshold suggests an expansion.
China Rolls Out Subsidized Consumer Loans to Boost Spending (Caixin)
China launched a yearlong program Monday to subsidize household consumer loans, part of a nationwide effort to cut borrowing costs and spur spending as policymakers seek to revive demand.
Under the plan, announced by the Ministry of Finance and two other agencies, residents who take out loans at 24 designated financial institutions will receive a 1 percentage point interest subsidy from Sept. 1, 2025, through Aug. 31, 2026. The policy excludes credit cards and is limited to loans that can be verified as used for consumption.
Chinese Regions Dial Back Car Subsidies as Funds Dry Up (Caixin)
Multiple provinces in China are reining in vehicle trade-in subsidies, dealing a blow to auto sales and casting doubt on the durability of the national stimulus program.
On Sept. 4, the Department of Commerce in Hubei province said it was cutting auto trade-in incentives to two levels — 3,000 yuan ($411) and 5,000 yuan — from a previous range of 7,000 to 15,000 yuan. The application process has also become more complex. Starting Sept. 5, buyers must obtain an eligibility voucher before purchasing a new car. The provincial platform releases a limited number of vouchers daily, with volume adjusted according to fund usage. The tighter policy has led some sales staff to suggest buyers seek subsidies in neighboring provinces instead.
China steps in to tame animal spirits as solar sector racks up billions in losses (Financial Times)
China has ordered the solar sector to rein in overcapacity and cut-throat pricing as the biggest manufacturers suffer billions of dollars in losses.
Six of the largest Chinese cell and panel makers saw their combined first-half losses double to Rmb20.2bn ($2.8bn) from a year earlier, with all but one reporting widening losses, according to financial information provider Wind. The losses compare with record profits in 2022 and 2023.
Solar is one of the industries at the heart of Beijing’s concerns about “involution”, which refers to excess production fuelling a race to the bottom in prices. It has added to China’s deflationary pressures, a key economic problem for President Xi Jinping, and stoked tensions with trading partners as companies turn to exporting their products.
“This ‘animal spirit’ made solar companies succeed in the past, and now it is the same ‘animal spirit’ — ultra competitiveness, wanting to outlast their competitors — that has led to this mismatch” between supply and demand, said Bo Zhengyuan, a partner at Beijing-based research consultancy Plenum.
The 19 Percent Revisited: How Youth Unemployment Has Changed Chinese Society (Asia Society)
Against the backdrop of a difficult job market and the broken dreams of tens of millions of young Chinese, a marked shift in perceptions of inequality is occurring. In representative national surveys before 2014, the majority of respondents believed that inequality in Chinese society was largely the result of individual failings in an ascendant China. By 2023, the majority saw inequality as a structural failing, related to unequal opportunities, corruption, and a failing economy.45
This is important, as CCP rule is bolstered by performance legitimacy. Without elections, the government often argues its system provides “whole process democracy”46 whereby the people are constantly consulted and their wishes are granted. While some may scoff at this formulation, it is true that decades of stratospheric growth have bought the CCP significant support among a broad swathe of the population. In many senses, the original social contract of the reform period has been a grand bargain: the people stay out of politics, and the CCP provides the conditions for them to have a better life. However, as the first edition of this project argued, as growth wanes and the system is no longer seen as equal or able to provide, the CCP will need new forms of legitimacy.
One such form is CCP rhetoric about the dangers of the external environment, which Xi described as “high winds and perilous waves” at the 20th Party Congress. Presenting the rest of the world, and particularly the United States, as chaotic and poorly governed delegitimizes democracy as an alternative system. The CCP has effectively eliminated all viable organized opposition, such that it is difficult to imagine a rival party emerging from the grassroots.
This suggests that while youth unemployment poses a significant headache for the CCP, it is unlikely to be a source of dramatic upheaval. Ironically, although youth unemployment is high and growth is slowing, the issue has not yet completely snuffed out young people’s hopes. They continue to strive against ever-tougher odds, which in turn makes them more conservative and pliant — they have much to lose by rocking the boat. Consequently, competition for stable jobs in the government and party membership has increased in recent years.
This is not a vote for the system but rather a reflection of the deep anxieties that young people feel about their futures. Many find themselves with few alternatives but to continue reaching for a hollow dream in a system they no longer believe in. An entire generation is growing up with deep reservations about the status quo, questioning what it means to live the “good life.” As anthropologist Biao Xiang has noted, the anxieties expressed by many Chinese youth today are fundamentally existential.47 How they respond will profoundly shape China’s future.
Changing Course in a Storm: China’s Economy in the Trade War (China Leadership Monitor)
China is weathering deflation, a property-sector collapse, and renewed trade tensions with the United States through calculated restraint rather than panic. Exports remain resilient via market diversification and price cuts. Chinese leaders are deploying targeted fiscal interventions, pursuing supply-side reforms, and combating “involution”–destructive race-to-the-bottom competition eroding profits across industries. This strategic patience reveals Beijing’s fundamental gamble: accept short-term economic pain to build long-term technological dominance and self-sufficiency. The leadership believes that the emerging high-tech sectors will ultimately replace both lost export markets and the crumbling property engine. This is a high-stakes bet on China’s ability to transform its economic model under pressure.
China's BYD cuts sales target, sources say, as white hot growth cools (Reuters)
BYD has slashed its sales target for this year by as much as 16% to 4.6 million vehicles, two people with knowledge of the matter said, as the Chinese EV giant faces its slowest annual growth in five years and other signs that its era of record-setting expansion could be drawing to a close.
China's largest automaker told analysts in March it was targeting sales of 5.5 million vehicles for 2025. But internally, the number has been downgraded multiple times in recent months, according to the people.
The latest figure of at least 4.6 million vehicles was communicated inside the company and to select suppliers last month to help guide planning, according to the people, both of whom spoke on condition of anonymity.
[…]
The people didn't give a reason for the cut. However, one of them said it comes as BYD feels the heat from growing competition with rivals such as Geely Auto and Leapmotor.
Starbucks China valued at about $5 billion by bidders, sources say (Reuters)
Most of the bidders seeking to buy a portion of Starbucks' China operations have submitted offers valuing the business at as much as $5 billion, said two people who have knowledge of the deal discussions.
That quotation would make a potential deal one of the most valuable China unit divestments by a global consumer company in recent years.
The offers, which have not been reported previously, would let Starbucks push ahead with the sale in a market where it faces sluggish economic growth and stiff competition from local brands.
China former securities regulator investigated for suspected corruption, watchdog says (Reuters)
A former top Chinese securities regulator, Yi Huiman, has been put under investigation over suspected violations of law, China's anti-corruption watchdog said on Saturday.
The Central Commission for Discipline Inspection said in a brief statement on its website that Yi, who once led the China Securities Regulatory Commission (CSRC), was being investigated and "suspected of serious violations of discipline and law".
Tech & Media
China chip startups race to replace Nvidia amid U.S. export bans (Rest of World)
DeepSeek said last month that its latest artificial intelligence model is compatible with domestic AI chips that would be released soon, unleashing a surge of interest in a handful of Chinese chipmakers.
Startup chip designer Cambricon became China’s most expensive stock by price-earnings ratio as investors bet that U.S. export controls would force China to fast-track development of its own chip ecosystem to reduce dependence on Nvidia. A group of Chinese chip and AI model companies recently announced a “chip-model” alliance to push for greater self-sufficiency, and several AI chip designers are preparing initial public offerings to tap investor interest.
DeepSeek’s announcement confirmed that Chinese AI developers are able to engineer models in a way that may not require Nvidia’s most advanced graphics processing units (GPUs). Nvidia’s latest earnings forecast assumed no H20 chip sales to China. For small chip designers in China, the uncertainty over access to Nvidia chip supplies creates a major opportunity.
But which Chinese company, or companies, will fill the Nvidia void is still unclear. Huawei is the current market leader. Many other chip designers are struggling with high research and development costs, a small customer base of mostly state-owned enterprises, U.S. blacklisting, and limited chip fabrication capacities.
Chinese firms still want Nvidia chips despite government pressure not to buy, sources say (Reuters)
Alibaba, ByteDance and other Chinese tech firms remain keen on Nvidia's artificial intelligence chips despite regulators in Beijing strongly discouraging them from such purchases, four people with knowledge of procurement discussions said.
They want reassurance that their orders of Nvidia's H20 model, which the U.S. firm in July regained permission to sell in China, are being processed, and are closely monitoring Nvidia's plans for a more powerful chip, tentatively named the B30A and which is based on its Blackwell architecture, two of the people said.
The B30A - if approved for sale by Washington - is likely to cost about double the H20, which currently sells for between $10,000 and $12,000, those two people said.
Chinese tech firms perceive the potential B30A pricing, reported by Reuters for the first time, as a good deal, they added. One said the B30A promises to be up to six times more powerful than the H20.
Both chips are downgraded versions of models sold outside China, developed specifically to comply with U.S. export restrictions.
China Has a Different Vision for AI. It Might Be Smarter. (WSJ)
Since the release of OpenAI’s ChatGPT nearly three years ago, Silicon Valley has spent mountains of money in pursuit of AI’s holy grail: artificial general intelligence that matches or beats human thinking. Enthusiasts say it will give the U.S. insurmountable military advantages, help cure cancer and solve climate change, and eliminate the need for people to perform routine work such as accounting and customer service.
In China, by contrast, leader Xi Jinping has recently had little to say about AGI. Instead, he is pushing the country’s tech industry to be “strongly oriented toward applications”—building practical, low-cost tools that boost China’s efficiency and can be marketed easily.
The diverging visions represent a head-to-head bet with significant stakes. If China’s gamble turns out to be wrong, it could find itself lagging far behind the U.S. in the most consequential technology of the 21st century.
But if AGI remains a distant dream, as more people in Silicon Valley now believe, China will be in position to steal a march on its global rival in wringing the most out of AI in its current form, and spread its applications worldwide.
Already in China, domestic AI models similar to the one that powers ChatGPT are being used, with state approval, to grade high-school entrance exams, improve weather forecasts, dispatch police and advise farmers on crop rotation, say state media and government reports.
Tsinghua University, China’s equivalent of the Massachusetts Institute of Technology, is rolling out an AI-powered hospital, where human doctors will be assisted by virtual colleagues armed with the latest data on diseases. Intelligent robots are being deployed to run automotive “dark factories” and inspect textiles for flaws while still on the loom.
“They see highly impactful AI applications not as something to theorize about in the future but as something to take advantage of here and now,” said Julian Gewirtz, a former National Security Council official who specialized in tech competition with China during the Biden administration.
China Is Using the Private Sector to Advance Military AI (WSJ)
For years, Chinese leader Xi Jinping has tried to recruit his country’s civilian institutions to help the People’s Liberation Army modernize, a concept known as “civil-military fusion.” With AI, the campaign appears to be producing results.
China’s military has gone outside its typical network of state-owned defense contractors and military-linked research institutes in recent years, tapping hundreds of suppliers including private companies and civilian universities in a push to incorporate AI into its operations and weapons systems, according to new data published Wednesday by researchers at Georgetown University.
While the U.S. and Chinese militaries have both sought to tap the knowledge and innovative energy of universities and the private sector, the data indicates the PLA has been able to do it more systematically. That gives China a potential leg up in the challenging task of weaving AI into national defense, security analysts say.
It also puts the U.S. in a bind as it tries to prevent China from developing technologies that might give its military an edge over American forces.
“Just in this data set, the sheer ambition of what they’re trying to do is surprising,” said Cole McFaul, a senior research analyst at Georgetown’s Center for Security and Emerging Technology who helped gather the data. “That there’s such a wide range of these technologies speaks to our limited ability to really hammer or constrain China’s military modernization.”
China Enforces AI Content Labeling Rules to Curb Misuse (Caixin)
China’s long-anticipated rules requiring artificial intelligence (AI)-generated content to be labeled took effect Monday, forcing tech companies and social media platforms to clearly mark material made with AI.
The new regulation, jointly issued by the Cyberspace Administration of China, the Ministry of Industry and Information Technology, the Ministry of Public Security and the National Radio and Television Administration, mandates both explicit and hidden labels for synthetic content.
Explicit labels include watermarks, text notices or audio prompts that users can easily see or hear. Hidden labels embed digital identifiers in metadata that are invisible to ordinary users but detectable by platforms. AI service providers must apply both forms where applicable.
Platforms are also required to verify whether content uploaded by users was created with AI and label it accordingly with tags such as “AI-generated,” “possibly AI-generated” or “suspected AI-generated.” Users who post AI-generated content must declare it and use platform-provided tools to add labels.
The rule prohibits tampering with, deleting or forging labels and bans offering tools or services to help others conceal AI-generated content. The measure was first floated as a draft in September 2024, formally issued in March, and came into force on Sept. 1, 2025.
Anthropic to stop selling AI services to majority Chinese-owned groups (Financial Times)
Anthropic will stop selling artificial intelligence services to groups majority owned by Chinese entities, in the first such policy shift by an American AI company.
The San Francisco-based developer of Claude AI is trying to limit the ability of Beijing to use its technology to benefit China’s military and intelligence services, according to an Anthropic executive who briefed the Financial Times.
The policy, which takes effect immediately, will potentially apply to Chinese companies from ByteDance and Tencent to Alibaba.
“We are taking action to close a loophole that allows Chinese companies to access frontier AI,” said the executive, who added that the policy would also apply to US adversaries including Russia, Iran and North Korea.
The executive said the policy was designed “to align with our broader commitment that transformational AI capabilities advance democratic interests in US leadership in AI”.
Science, Health & Environment
China’s Summer of Climate Whiplash Brings Heat, Floods, and Drought (Sixth Tone)
China has just endured its hottest summer on record, marked by deadly swings between extremes, from floods that killed 44 in Beijing to blistering temperatures across the northeast.
China’s National Climate Center said average temperatures from June to August reached 22.31 degrees Celsius, the highest since records began in 1961. The heat drove millions to riverbanks, shopping malls and even underground air-raid shelters, while air conditioner sales in the Northeast surged as much as ninefold.
In Mohe, China’s northernmost city and a popular summer retreat, guesthouse owners scrambled to install AC units as heatwaves dampened bookings. To ease the shortage, major AC brands dispatched 100,000 units and more than 3,000 technicians from across the country to “rescue” the northeast.
Arts & Culture
Beijing 8-bit bops + 33EMYBW meets Björk ()
In this issue: math-rock with a message from Sichuan, games and good times motorik from Beijing, fuzzed up punk from Shanghai, Lanzhou emo, leading Chinese producer 33EMYBW meets Björk, and a nightclub hidden on the 21st floor of a tower block in Chengdu.
New Music 新唱片发行: The Curly 卷毛怪/Fog Umbrella 雾伞/Salty Mountain 咸山 (Live China Music)
Hailing from Qunazhou, The Curly are the latest shoegaze to fall punch-drunk in love with. Their debut EP Lonely Lover is as good as they come - assured, woozy, with a starry-eyed romanticism that isn’t afraid to bear its soul. Employing a more delicate touch to their sonic swirl, the band are anchored by its lead singer’s ethereal voice, which is deftly integrated into its wall of guitars. Music to sway to with an emotional undercurrent that’ll catch you off guard.
Sports
Chinese Brand Severs Ties With Marathon Winner Amid Controversy (Sixth Tone)
Just three days after amateur runner Zhang Shuihua won this year’s Harbin Marathon, her sponsor — Chinese sports brand 361 Degrees — terminated her contract on Wednesday, and all of their related content had been deleted from Zhang’s social media accounts.
The rift comes after users flooded the sports brand’s livestreaming commentary section, demanding that the brand cut ties with the athlete. An anonymous informed source told domestic media that the decision between 361 Degrees and Zhang to part ways was “mutual.”
Zhang, a nurse at the First Affiliated Hospital of Fujian Medical University, completed the race in an incredible 2:35:27, earning her the title the “fastest nurse” in China. However, her victory in the capital of China’s northeastern Heilongjiang province made headlines not only for her outstanding time but also for comments that she made in a tearful post-run interview.
In it, she implored her department head to recognize her extra-curricular pursuit. “I just want my boss to support me changing shifts on the weekend, because everyone knows how busy and tired medical staff are,” she said.
China launches selection for men's football coach, targets 2030 World Cup qualification (Xinhua)
The Chinese Football Association (CFA) announced Friday that it has opened applications for the men's national team head coach, setting a clear target of qualifying for the 2030 FIFA World Cup.
The application period runs from September 5 to 20. Candidates must meet seven requirements, including having prior experience as head coach in major international tournaments or top professional leagues in Europe or Asia, and being under 60 years old in principle. Nationality is not restricted.
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