At least 10 people are killed and 33 are missing as flash floods hit China's Gansu province. State broadcaster CCTV reported that continuous heavy rain since August 7 triggered flash floods. Chinese President Xi Jinping directed the local authorities to search for those missing. He also blamed "frequent occurrence of extreme weather" for the tragedy and asked all regions to "resolutely overcome complacency" and strengthen efforts to identify risks.&nbsp;Visuals show inundated areas in China's Gansu and Zhengzhou regions. Rescuers were seen guiding people through rushing grey water in a village.&nbsp;Roads were covered in silt and large stones. Natural disasters are common in China, especially during the summer when many regions are hit by extreme rain. At the same time, many areas bake in the heat.&nbsp;Last month, heavy rains in China's Beijing killed 44 people. The heavy rains ravaged roads and houses in northern China.&nbsp;Over 80,000 people had been evacuated to safer grounds. The power supply and communications in about 130 villages had been cut off because of the rains and floods.

<blockquote class="twitter-tweet">Severe flooding hits Gansu and Zhengzhou regions of China. Floodwaters rise and transport disrupted.<a href="https://twitter.com/SehgalRahesha?ref_src=twsrc%5Etfw">@SehgalRahesha</a> and <a href="https://twitter.com/rajnikalra6?ref_src=twsrc%5Etfw">@rajnikalra6</a> explain. <a href="https://t.co/NQLao3gqxH">pic.twitter.com/NQLao3gqxH</a>&mdash; WION (@WIONews) <a href="https://twitter.com/WIONews/status/1953751044493902245?ref_src=twsrc%5Etfw">August 8, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

&nbsp;China, one of the fastest-growing economies, is the world's biggest emitter of greenhouse gases.&nbsp;These gases cause climate change and make extreme weather more frequent. Many other parts of the world are also facing similar weather conditions.&nbsp;China aims to make its economy carbon neutral by 2060.

At least 10 people are killed and 33 are missing as flash floods hit China's Gansu province. State broadcaster CCTV reported that continuous heavy rain since August 7 triggered flash floods. 

At least 10 people are killed and 33 are missing as flash floods hit China's Gansu province. State broadcaster CCTV reported that continuous heavy rain since August 7 triggered flash floods. Chinese President Xi Jinping directed the local authorities to search for those missing. He also blamed "frequent occurrence of extreme weather" for the tragedy and asked all regions to "resolutely overcome complacency" and strengthen efforts to identify risks. Visuals show inundated areas in China's Gansu and Zhengzhou regions. Rescuers were seen guiding people through rushing grey water in a village. Roads were covered in silt and large stones. Natural disasters are common in China, especially during the summer when many regions are hit by extreme rain. At the same time, many areas bake in the heat. Last month, heavy rains in China's Beijing killed 44 people. The heavy rains ravaged roads and houses in northern China. Over 80,000 people had been evacuated to safer grounds. The power supply and communications in about 130 villages had been cut off because of the rains and floods.

44 people were killed in China last month due to rain-linked incidents in the Beijing region.

Watch: Shocking flood visuals from China emerge, Xi Jinping blames 'frequent extreme weather'; 10 killed

The UK's Deputy Secretary Angela Rayner, in a bold move, has formally demanded an explanation from China about the redacted portion of its planning document for the proposed ‘mega-embassy’ at the Royal Mint Court in London. Rayner has given a two-week deadline to Beijing to respond. China should either submit an unredacted drawing or justify the omission. The final decision on the application for the blueprint is expected on September 9.<h2>What is redacted? Why is it triggering fear in the UK?</h2>The proposed ‘mega-embassy’ drawing submitted by DP9, the planning consultancy representing the Chinese embassy, has some parts which were greyed out ‘for security reasons’. The basement master plan includes two underground suites and a tunnel, which is called by some critics a modern-day ‘spy dungeon’. Moreover, the ‘internal arrangements’ of the Cultural Exchange Building and Embassy House are also hidden.&nbsp;The US have reportedly pressurised the UK to reject the proposal on security grounds. Its proximity to the hub of sensitive communication infrastructures and key financial centres, has given rise to potential espionage risks.The proposed mega-embassy has been there since 2021; the first plan had a 620,000 sq ft diplomatic outpost. It was supposed to be 10 times the size of China’s existing base. It was supposed to contain the embassy, offices, 225 homes and a “cultural exchange” building. But there were significant protests about the location of the site. The Chinese Government had reportedly acquired this property for £255m in 2018. &nbsp;There had been protests from the activists outside the Chinese consulate in Manchester in 2022 and which led to a scuffle with security guards of the building. The fresh revival has sparked serious debates among Britons, with many critics of the Labour Party calling it a new low for the United Kingdom. However, observers, like Luke de Pulford of the Inter-Parliamentary Alliance on China, think that this hints at a denial of the proposed embassy plan.&nbsp;&nbsp;

In a letter, UK Deputy Secretary Angela Rayner has demanded an explanation from Beijing about the greyed-out parts of the drawing of the proposed  ‘mega-embassy’ within two weeks.

The UK's Deputy Secretary Angela Rayner, in a bold move, has formally demanded an explanation from China about the redacted portion of its planning document for the proposed ‘mega-embassy’ at the Royal Mint Court in London. Rayner has given a two-week deadline to Beijing to respond. China should either submit an unredacted drawing or justify the omission. The final decision on the application for the blueprint is expected on September 9. What is redacted? Why is it triggering fear in the UK? The proposed ‘mega-embassy’ drawing submitted by DP9, the planning consultancy representing the Chinese embassy, has some parts which were greyed out ‘for security reasons’. The basement master plan includes two underground suites and a tunnel, which is called by some critics a modern-day ‘spy dungeon’. Moreover, the ‘internal arrangements’ of the Cultural Exchange Building and Embassy House are also hidden. The US have reportedly pressurised the UK to reject the proposal on security grounds. Its proximity to the hub of sensitive communication infrastructures and key financial centres, has given rise to potential espionage risks. The proposed mega-embassy has been there since 2021; the first plan had a 620,000 sq ft diplomatic outpost. It was supposed to be 10 times the size of China’s existing base. It was supposed to contain the embassy, offices, 225 homes and a “cultural exchange” building. But there were significant protests about the location of the site. The Chinese Government had reportedly acquired this property for £255m in 2018. There had been protests from the activists outside the Chinese consulate in Manchester in 2022 and which led to a scuffle with security guards of the building. The fresh revival has sparked serious debates among Britons, with many critics of the Labour Party calling it a new low for the United Kingdom. However, observers, like Luke de Pulford of the Inter-Parliamentary Alliance on China, think that this hints at a denial of the proposed embassy plan.

In a letter, UK Deputy Secretary Angela Rayner has demanded an explanation from Beijing about the greyed-out parts of the drawing of the proposed &nbsp;‘mega-embassy’ within two weeks.

Spy hub at the heart of London? Why China's secret embassy plan is triggering fear in UK

Over 7,000 cases of the mosquito-borne chikungunya virus have been reported across the Guangdong province of China since July, resulting in Covid-style containment measures. Authorities of Foshan City, the worst-affected area, have directed hospitalisation for patients, where they will be protected with mosquito nets.&nbsp;They will only be discharged from the hospital after they test negative or complete a seven-day stay. The chikungunya virus spreads after an infected mosquito bites an individual. It causes severe joint pain and fever, which can last for years as well, according to a report by the BBC.&nbsp;This virus is rare in China but is common in South and Southeast Asia and parts of Africa. Along with Foshan, the outbreak of this virus has spread across multiple Chinese cities. According to the South China Morning Post, at least 12 other cities across Guangdong province were affected by chikungunya infections, with nearly 3,000 new cases recorded in the past week alone.&nbsp;The first case was also confirmed on Monday in Hong Kong after a 12-year-old boy was detected with chikungunya symptoms while visiting Foshan in July. “This is scary. The prolonged consequences sound very painful,” a user posted on Weibo.&nbsp;Meanwhile, health authorities confirmed all the reported cases are mild, and 95 per cent of patients are recovering within a week. Still, the US has advised all its people who are travelling to China to exercise “increased caution” in response to the outbreak.<h3>What is the chikungunya virus?</h3>This disease occurs after people are bitten by an infected mosquito. The symptoms of chikungunya occur within three to seven days, which include fever, joint pain, rash, headache, muscle pain, and swollen joints.&nbsp;In this case, patients feel better within a week most of the time, but in severe cases, the joint pain can last for months or even years. In this case, Newborns, the elderly, and people with underlying medical conditions, such as heart disease or diabetes, are more susceptible to the virus.

Foshan City has been directed to hospitalise patients, where their beds will be protected with mosquito nets. In addition, Hong Kong was also confirmed with the virus after a 12-year-old boy was detected with chikungunya symptoms.

Over 7,000 cases of the mosquito-borne chikungunya virus have been reported across the Guangdong province of China since July, resulting in Covid-style containment measures. Authorities of Foshan City, the worst-affected area, have directed hospitalisation for patients, where they will be protected with mosquito nets. They will only be discharged from the hospital after they test negative or complete a seven-day stay. The chikungunya virus spreads after an infected mosquito bites an individual. It causes severe joint pain and fever, which can last for years as well, according to a report by the BBC. This virus is rare in China but is common in South and Southeast Asia and parts of Africa. Along with Foshan, the outbreak of this virus has spread across multiple Chinese cities. According to the South China Morning Post, at least 12 other cities across Guangdong province were affected by chikungunya infections, with nearly 3,000 new cases recorded in the past week alone. The first case was also confirmed on Monday in Hong Kong after a 12-year-old boy was detected with chikungunya symptoms while visiting Foshan in July. “This is scary. The prolonged consequences sound very painful,” a user posted on Weibo. Meanwhile, health authorities confirmed all the reported cases are mild, and 95 per cent of patients are recovering within a week. Still, the US has advised all its people who are travelling to China to exercise “increased caution” in response to the outbreak. What is the chikungunya virus? This disease occurs after people are bitten by an infected mosquito. The symptoms of chikungunya occur within three to seven days, which include fever, joint pain, rash, headache, muscle pain, and swollen joints. In this case, patients feel better within a week most of the time, but in severe cases, the joint pain can last for months or even years. In this case, Newborns, the elderly, and people with underlying medical conditions, such as heart disease or diabetes, are more susceptible to the virus.

Foshan City has been directed to hospitalise patients, where their beds will be protected with mosquito nets. In addition, Hong Kong was also confirmed with the virus after a 12-year-old boy was detected with chikungunya symptoms.

Chikungunya outbreak: COVID-19-style curbs return after over 7,000 cases reported in China’s province — Details inside

&nbsp;China’s services sector showed a significant rebound in July, expanding at its fastest pace in 14 months, driven by a combination of domestic and foreign demand, according to the latest private-sector data. The S&amp;P Global China General Services PMI rose to 52.6 in July, up from 50.6 in June, marking the highest reading since May of the previous year. The PMI reading above 50 indicates expansion, while anything below suggests contraction. The strong performance in July contrasts with China's official services PMI, which edged down to 50.0 from 50.1 in June, signalling stagnation. However, the S&amp;P Global survey, which is regarded as a more accurate gauge of trends for smaller, export-focused companies, particularly along the East Coast, paints a more optimistic picture.<h2>Domestic stimulus and strong export orders drive growth</h2>The rise in services activity was notably supported by a surge in new business, especially in export orders. This marks the first increase in the export orders sub-index in three months, signalling that global trade conditions may be stabilising despite ongoing trade tensions. The demand for services, including tourism and food delivery, has been robust, boosted by consumer-orientated stimulus measures from Beijing. In addition to the surge in new business, employment in the services sector also rose at its fastest pace since July 2024, driven by an uptick in workload and improved business confidence. Service providers had reduced staffing levels earlier in the year but now appear to be increasing hiring in response to stronger demand.<h2>Inflationary pressures and rising costs for service providers</h2>While the services sector showed resilience, the rising costs for raw materials, fuel, and labour were a concern for many businesses. As a result, service providers were forced to raise their selling prices for the first time in six months. This, in turn, resulted in slower accumulation of backlogged work, a sign of improving efficiency as demand outpaced supply. Despite positive growth in services, concerns about China’s broader economic outlook persist. The country’s manufacturing sector has struggled, with weak demand weighing heavily on factory output.&nbsp;As a result, overall business confidence remains fragile, with a cautious outlook for the second half of the year due to potential slowdowns in exports and consumer sentiment. China’s economic recovery in the services sector has remained one of the bright spots, with strong consumer demand helping maintain positive momentum. However, the outlook for manufacturing and broader business activity will depend heavily on both domestic policy responses and external trade conditions.&nbsp;(With inputs from agencies)

The rise in services activity was notably supported by a surge in new business, especially in export orders. This marks the first increase in the export orders sub-index in three months, signalling that global trade conditions may be stabilising despite ongoing trade tensions. 

China’s services sector showed a significant rebound in July, expanding at its fastest pace in 14 months, driven by a combination of domestic and foreign demand, according to the latest private-sector data. The S&P Global China General Services PMI rose to 52.6 in July, up from 50.6 in June, marking the highest reading since May of the previous year. The PMI reading above 50 indicates expansion, while anything below suggests contraction. The strong performance in July contrasts with China's official services PMI, which edged down to 50.0 from 50.1 in June, signalling stagnation. However, the S&P Global survey, which is regarded as a more accurate gauge of trends for smaller, export-focused companies, particularly along the East Coast, paints a more optimistic picture. Domestic stimulus and strong export orders drive growth The rise in services activity was notably supported by a surge in new business, especially in export orders. This marks the first increase in the export orders sub-index in three months, signalling that global trade conditions may be stabilising despite ongoing trade tensions. The demand for services, including tourism and food delivery, has been robust, boosted by consumer-orientated stimulus measures from Beijing. In addition to the surge in new business, employment in the services sector also rose at its fastest pace since July 2024, driven by an uptick in workload and improved business confidence. Service providers had reduced staffing levels earlier in the year but now appear to be increasing hiring in response to stronger demand. Inflationary pressures and rising costs for service providers While the services sector showed resilience, the rising costs for raw materials, fuel, and labour were a concern for many businesses. As a result, service providers were forced to raise their selling prices for the first time in six months. This, in turn, resulted in slower accumulation of backlogged work, a sign of improving efficiency as demand outpaced supply. Despite positive growth in services, concerns about China’s broader economic outlook persist. The country’s manufacturing sector has struggled, with weak demand weighing heavily on factory output. As a result, overall business confidence remains fragile, with a cautious outlook for the second half of the year due to potential slowdowns in exports and consumer sentiment. China’s economic recovery in the services sector has remained one of the bright spots, with strong consumer demand helping maintain positive momentum. However, the outlook for manufacturing and broader business activity will depend heavily on both domestic policy responses and external trade conditions. (With inputs from agencies)

The rise in services activity was notably supported by a surge in new business, especially in export orders. This marks the first increase in the export orders sub-index in three months, signalling that global trade conditions may be stabilising despite ongoing trade tensions.&nbsp;

China’s services sector expands at fastest pace in 14 months

China launched Pakistan's Remote Sensing Satellite (PRSS-01) into its present orbit on Thursday, July 31, aboard a Kuaizhou‑1A (KZ‑1A) rocket from its Xichang Satellite Launch Centre in Sichuan. The satellite successfully reached its planned orbit just minutes after its launch. Pakistan's Space and Upper Atmosphere Research Commission (SUPARCO), in collaboration with Indonesia-based Microsat China and state-owned China Electronics Technology Group Corporation (CETC), has achieved this feat. The satellite is supposed to enhance Pakistan's capability to respond to natural disasters. It also marks another milestone in the ever-enhancing cooperation in aerospace technology between China and Pakistan. However, questions will be raised in New Delhi as Pakistan's enhanced imaging capacity with the help of China is a security threat to India.<h2>Possible uses of PRSS-01</h2>It is Pakistan's fourth Earth observational satellite under the URAAN programme. It will be able to produce high-resolution images that will be used in vital tasks like disaster management, such as floods, landslides, and glacier melt; agricultural monitoring, deforestation tracking, and climate resilience planning; urban infrastructure, land-use surveys, and transportation mapping. This satellite is expected to bring the environmental monitoring capacity of Pakistan close to the level of developed nations.&nbsp; Before PRSS-01, Pakistan had other satellites like Badr Satellite Series (Badr-A, Badr-B) for low Earth orbit, PakTES-1A.<h2>Why PRSS-01 should concern India</h2>Even though touted for civilian utility, PRSS-01 has the capability to capture high-resolution images from approximately 1 m or better. Earlier, Pakistan had installed the PakTES-1A, which had very low-resolution images from 2.5-5 meters. This makes PRSS-01 a significant improvement, making it detailed enough for surveillance of military bases, radar installations, troops and vehicle movement. Even though no clear definition of a data sharing agreement between China and Pakistan is reported, but being built and launched using Chinese infrastructure, China might possibly retain the visuals from the satellite. Thus, making sensitive regions like Kashmir, Rajasthan, and Arunachal Pradesh more vulnerable.India does possess better satellite capabilities with a plethora of options like RISAT series, Cartosat Series, EMISAT, GSAT &amp; GSAT-7 Series, and &nbsp;Hyperspectral &amp; Infrared imaging instruments. Some of these are dedicated to strategic and border monitoring. Thus making it capable of day/night, all weather, ultra high resolution monitoring. Pakistan's recent satellite is a step towards bridging the technological divide. However, with improved technology, Pakistan is less reliant on commercial satellites like Maxar to produce images for regions within India. So it indeed is a security concern for India.&nbsp;&nbsp;

With the launch of PRSS-01, Pakistan has increased its imaging capability in South Asia, the Middle East, parts of Africa and China. Even though touted for civilian purposes, it has significant military and strategic capabilities. Does it pose any security threat to India? 

China launched Pakistan's Remote Sensing Satellite (PRSS-01) into its present orbit on Thursday, July 31, aboard a Kuaizhou‑1A (KZ‑1A) rocket from its Xichang Satellite Launch Centre in Sichuan. The satellite successfully reached its planned orbit just minutes after its launch. Pakistan's Space and Upper Atmosphere Research Commission (SUPARCO), in collaboration with Indonesia-based Microsat China and state-owned China Electronics Technology Group Corporation (CETC), has achieved this feat. The satellite is supposed to enhance Pakistan's capability to respond to natural disasters. It also marks another milestone in the ever-enhancing cooperation in aerospace technology between China and Pakistan. However, questions will be raised in New Delhi as Pakistan's enhanced imaging capacity with the help of China is a security threat to India. Possible uses of PRSS-01 It is Pakistan's fourth Earth observational satellite under the URAAN programme. It will be able to produce high-resolution images that will be used in vital tasks like disaster management, such as floods, landslides, and glacier melt; agricultural monitoring, deforestation tracking, and climate resilience planning; urban infrastructure, land-use surveys, and transportation mapping. This satellite is expected to bring the environmental monitoring capacity of Pakistan close to the level of developed nations. Before PRSS-01, Pakistan had other satellites like Badr Satellite Series (Badr-A, Badr-B) for low Earth orbit, PakTES-1A. Why PRSS-01 should concern India Even though touted for civilian utility, PRSS-01 has the capability to capture high-resolution images from approximately 1 m or better. Earlier, Pakistan had installed the PakTES-1A, which had very low-resolution images from 2.5-5 meters. This makes PRSS-01 a significant improvement, making it detailed enough for surveillance of military bases, radar installations, troops and vehicle movement. Even though no clear definition of a data sharing agreement between China and Pakistan is reported, but being built and launched using Chinese infrastructure, China might possibly retain the visuals from the satellite. Thus, making sensitive regions like Kashmir, Rajasthan, and Arunachal Pradesh more vulnerable. India does possess better satellite capabilities with a plethora of options like RISAT series, Cartosat Series, EMISAT, GSAT & GSAT-7 Series, and Hyperspectral & Infrared imaging instruments. Some of these are dedicated to strategic and border monitoring. Thus making it capable of day/night, all weather, ultra high resolution monitoring. Pakistan's recent satellite is a step towards bridging the technological divide. However, with improved technology, Pakistan is less reliant on commercial satellites like Maxar to produce images for regions within India. So it indeed is a security concern for India.

With the launch of PRSS-01, Pakistan has increased its imaging capability in South Asia, the Middle East, parts of Africa and China. Even though touted for civilian purposes, it has significant military and strategic capabilities. Does it pose any security threat to India?&nbsp;

China puts Pakistan’s remote sensing satellite-01 into space: Should India be worried about this?

China's military accused Taiwan on Wednesday of forcing its people to become cannon fodder as it raged against recent drills by the island's armed forces.&nbsp;Taipei's leaders "under the banner of protecting Taiwan, are harming and destroying Taiwan, and coercing the people to be cannon fodder", Beijing's defence ministry spokesman Zhang Xiaogang told a regular news conference.&nbsp;Taiwan this month held the 10-day "Han Kuang" military drills.&nbsp;&nbsp;Rather than only repelling a Chinese attack on its shores, Taiwanese troops this year also practised fighting invading forces in city streets.&nbsp;Beijing's military on Wednesday fumed over the exercise, describing them as "merely a show".&nbsp;"They cannot change the inevitable demise of Taiwan independence," Zhang said, accusing Taipei's ruling Democratic Progressive Party (DPP) of hatching an "evil plot".&nbsp;"We sternly warn the DPP authorities that unjust deeds will bring destruction, no matter what efforts they try, it will all be in vain," he added.&nbsp;Meanwhile, Taipei said Wednesday it had detected 33 sorties of Chinese "main and auxiliary warplanes", 23 of which entered its airspace.&nbsp;"Coordinating with naval vessels under the so-called 'joint combat readiness patrol,' they have harassed our surrounding air and sea areas," the island's defence ministry said.&nbsp;Communist China has never ruled Taiwan but Beijing insists the island is part of its territory and has threatened to use force to bring it under its control.&nbsp;Taiwan is keen to show the world, especially its key security backer Washington, that it is serious about boosting its defence capability.&nbsp;But this week reports emerged that US President Donald Trump's administration had denied permission for Taiwan's President Lai Ching-te to transit in New York as part of an official trip to Latin America next month.&nbsp;Taipei's foreign ministry in response said Lai had not been blocked from visiting the United States and that he had no plans to travel overseas "in the near future".&nbsp;Disclaimer: This story has been published from a news agency feed with minimal edits for grammar and punctuation. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

Rather than only repelling a Chinese attack on its shores, Taiwanese troops this year also practised fighting invading forces in city streets.

China's military accused Taiwan on Wednesday of forcing its people to become cannon fodder as it raged against recent drills by the island's armed forces. Taipei's leaders "under the banner of protecting Taiwan, are harming and destroying Taiwan, and coercing the people to be cannon fodder", Beijing's defence ministry spokesman Zhang Xiaogang told a regular news conference. Taiwan this month held the 10-day "Han Kuang" military drills. Rather than only repelling a Chinese attack on its shores, Taiwanese troops this year also practised fighting invading forces in city streets. Beijing's military on Wednesday fumed over the exercise, describing them as "merely a show". "They cannot change the inevitable demise of Taiwan independence," Zhang said, accusing Taipei's ruling Democratic Progressive Party (DPP) of hatching an "evil plot". "We sternly warn the DPP authorities that unjust deeds will bring destruction, no matter what efforts they try, it will all be in vain," he added. Meanwhile, Taipei said Wednesday it had detected 33 sorties of Chinese "main and auxiliary warplanes", 23 of which entered its airspace. "Coordinating with naval vessels under the so-called 'joint combat readiness patrol,' they have harassed our surrounding air and sea areas," the island's defence ministry said. Communist China has never ruled Taiwan but Beijing insists the island is part of its territory and has threatened to use force to bring it under its control. Taiwan is keen to show the world, especially its key security backer Washington, that it is serious about boosting its defence capability. But this week reports emerged that US President Donald Trump's administration had denied permission for Taiwan's President Lai Ching-te to transit in New York as part of an official trip to Latin America next month. Taipei's foreign ministry in response said Lai had not been blocked from visiting the United States and that he had no plans to travel overseas "in the near future". Disclaimer: This story has been published from a news agency feed with minimal edits for grammar and punctuation. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

Rather than only repelling a Chinese attack on its shores, Taiwanese troops this year also practised fighting invading forces in city streets.

‘Coercing people to be cannon fodder’: China rages against Taiwan over recent military drills

In response to ongoing trade tensions with the United States and the challenges posed by US President Donald Trump’s tariffs, China has made a notable shift in its fiscal policy. The country has dramatically increased social welfare spending, marking the highest level of expenditure on social programs in nearly two decades. This pivot toward supporting domestic consumption and boosting household well-being comes as China faces a record budget deficit and an economic slowdown exacerbated by the trade war.According to data released on July 28, government spending on social welfare-related outlays reached nearly 5.7 trillion yuan ($795 billion) in the first half of 2025, representing a 6.4 per cent year-on-year increase. This marks the highest level of social welfare expenditure since 2007. The increase in social spending is almost double the rise in total government expenditure under the general public budget. In comparison, infrastructure-related spending saw a 4.5 per cent decrease from the previous year, signalling that the government is prioritising welfare over traditional investments in large-scale infrastructure projects.The uptick in social spending is part of a broader strategy to support domestic demand and counter the economic impact of US tariffs. Analysts suggest that the shift in fiscal policy is critical as China seeks to mitigate job losses and bolster its social safety net, which has been under pressure due to the trade conflict.<h2>New initiatives to boost birth rates and employment support</h2>In a direct effort to support families and improve employment prospects, the Chinese government has unveiled a nationwide cash handout program for couples. Starting later this year, families with children under the age of three will receive annual subsidies of 3,600 yuan ($501.5) per child. The initiative aims to address China’s declining birth rates, which have been exacerbated by rising living costs and limited childcare options.The decision to ramp up social welfare comes as government officials look to bolster domestic demand in the face of a declining export market. China’s shipments to the United States have slumped due to the ongoing trade war, with tariffs as high as 51 per cent on Chinese goods. Citigroup estimates that the cost of the child welfare program could reach up to 117 billion yuan ($16.30 billion) in the second half of 2025, while Morgan Stanley predicts it could cost around 100 billion yuan ($13.93 billion) annually.In addition to childcare subsidies, the government has also increased spending on social security and employment, with outlays rising by almost 8 per cent in the first half of 2025. A record low employment sentiment index, as revealed by the People's Bank of China’s recent survey, underscores the need for additional government support in this area.<h2>Strained government revenues and shifting priorities</h2>Despite the increased spending on social programs, government revenues have been under strain. Tax revenue for the first half of the year fell by 1.2 per cent year-on-year, amounting to 9.29 trillion yuan ($1.29 trillion). The most significant drop came from the vehicle purchase tax, which plunged 19.1 per cent, reflecting the impact of a government decision to extend the suspension of the levy on new energy vehicles through 2027. This shift to electric cars has also weighed heavily on consumption taxes, particularly those levied on gasoline and diesel.Meanwhile, local governments have been cautious in issuing new bonds, with 56 per cent of the annual quota for special local bonds already used up. This is lower than the 61 per cent average in previous years, as provinces are now prioritising social welfare programs over infrastructure projects. Despite this, China remains committed to major infrastructure projects, including the construction of a 1.2 trillion yuan ($167.18 billion) mega-dam in Tibet, though analysts suggest the scope for new infrastructure expansion may be shrinking.The government’s strategy of prioritising social spending over traditional growth drivers, such as infrastructure, reflects the pressing need to shore up domestic demand and maintain stability in an increasingly uncertain global environment.&nbsp;(With inputs from agencies)

The uptick in China's social spending is part of a broader strategy to support domestic demand and counter the economic impact of US tariffs. Analysts suggest that the shift in fiscal policy is critical as China seeks to mitigate job losses and bolster its social safety net.

In response to ongoing trade tensions with the United States and the challenges posed by US President Donald Trump’s tariffs, China has made a notable shift in its fiscal policy. The country has dramatically increased social welfare spending, marking the highest level of expenditure on social programs in nearly two decades. This pivot toward supporting domestic consumption and boosting household well-being comes as China faces a record budget deficit and an economic slowdown exacerbated by the trade war. According to data released on July 28, government spending on social welfare-related outlays reached nearly 5.7 trillion yuan ($795 billion) in the first half of 2025, representing a 6.4 per cent year-on-year increase. This marks the highest level of social welfare expenditure since 2007. The increase in social spending is almost double the rise in total government expenditure under the general public budget. In comparison, infrastructure-related spending saw a 4.5 per cent decrease from the previous year, signalling that the government is prioritising welfare over traditional investments in large-scale infrastructure projects. The uptick in social spending is part of a broader strategy to support domestic demand and counter the economic impact of US tariffs. Analysts suggest that the shift in fiscal policy is critical as China seeks to mitigate job losses and bolster its social safety net, which has been under pressure due to the trade conflict. New initiatives to boost birth rates and employment support In a direct effort to support families and improve employment prospects, the Chinese government has unveiled a nationwide cash handout program for couples. Starting later this year, families with children under the age of three will receive annual subsidies of 3,600 yuan ($501.5) per child. The initiative aims to address China’s declining birth rates, which have been exacerbated by rising living costs and limited childcare options. The decision to ramp up social welfare comes as government officials look to bolster domestic demand in the face of a declining export market. China’s shipments to the United States have slumped due to the ongoing trade war, with tariffs as high as 51 per cent on Chinese goods. Citigroup estimates that the cost of the child welfare program could reach up to 117 billion yuan ($16.30 billion) in the second half of 2025, while Morgan Stanley predicts it could cost around 100 billion yuan ($13.93 billion) annually. In addition to childcare subsidies, the government has also increased spending on social security and employment, with outlays rising by almost 8 per cent in the first half of 2025. A record low employment sentiment index, as revealed by the People's Bank of China’s recent survey, underscores the need for additional government support in this area. Strained government revenues and shifting priorities Despite the increased spending on social programs, government revenues have been under strain. Tax revenue for the first half of the year fell by 1.2 per cent year-on-year, amounting to 9.29 trillion yuan ($1.29 trillion). The most significant drop came from the vehicle purchase tax, which plunged 19.1 per cent, reflecting the impact of a government decision to extend the suspension of the levy on new energy vehicles through 2027. This shift to electric cars has also weighed heavily on consumption taxes, particularly those levied on gasoline and diesel. Meanwhile, local governments have been cautious in issuing new bonds, with 56 per cent of the annual quota for special local bonds already used up. This is lower than the 61 per cent average in previous years, as provinces are now prioritising social welfare programs over infrastructure projects. Despite this, China remains committed to major infrastructure projects, including the construction of a 1.2 trillion yuan ($167.18 billion) mega-dam in Tibet, though analysts suggest the scope for new infrastructure expansion may be shrinking. The government’s strategy of prioritising social spending over traditional growth drivers, such as infrastructure, reflects the pressing need to shore up domestic demand and maintain stability in an increasingly uncertain global environment. (With inputs from agencies)

The uptick in China's social spending is part of a broader strategy to support domestic demand and counter the economic impact of US tariffs. Analysts suggest that the shift in fiscal policy is critical as China seeks to mitigate job losses and bolster its social safety net.

China shifts focus to social welfare spending amid trade tensions with US

Taiwan has reported on Saturday that at least 17 People Liberation Army (PLA) aircraft sorties and 7 naval vessels are operating in waters surrounding the island, among them 8 sorties have crossed the Taiwan Strait median line and entered into the southwestern ADIZ. On Friday, Tariwan detected 26 aircraft sorties and 7 navy vessels and one official ship near its territory.

<blockquote class="twitter-tweet">17 sorties of PLA aircraft and 7 PLAN vessels operating around Taiwan were detected up until 6 a.m. (UTC+8) today. 8 out of 17 sorties crossed the median line and entered Taiwan’s southwestern ADIZ. We have monitored the situation and responded accordingly. <a href="https://t.co/4YvDm0BZCW">pic.twitter.com/4YvDm0BZCW</a>&mdash; 國防部 Ministry of National Defense, ROC(Taiwan) 🇹🇼 (@MoNDefense) <a href="https://twitter.com/MoNDefense/status/1948911144954994974?ref_src=twsrc%5Etfw">July 26, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<blockquote class="twitter-tweet"><a href="https://twitter.com/hashtag/FighterFriday?src=hash&amp;ref_src=twsrc%5Etfw">#FighterFriday</a> We take off, not just to fly, but to defend.<a href="https://twitter.com/hashtag/ROCAF?src=hash&amp;ref_src=twsrc%5Etfw">#ROCAF</a> <a href="https://twitter.com/hashtag/3rdTacticalFighterWing?src=hash&amp;ref_src=twsrc%5Etfw">#3rdTacticalFighterWing</a> <a href="https://t.co/xljnkExGFN">pic.twitter.com/xljnkExGFN</a>&mdash; 國防部 Ministry of National Defense, ROC(Taiwan) 🇹🇼 (@MoNDefense) <a href="https://twitter.com/MoNDefense/status/1948596571165401573?ref_src=twsrc%5Etfw">July 25, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

These incursions in Taiwan were reported just days after it concluded its largest-ever Han Kuang military exercises, which wrapped up on July 18. On July 16, the PLA was detected crossing the median line with 45 aircraft sorties. This recent spike in July is a part of ongoing Chinese military pressure around Taiwan during the drills. This continuous violation of the “grey zone” is a tactic China has been employing for a long time to increase pressure without directly engaging in a conflict.This is a new normal for Taiwan. The democracy is constantly learning to live under the radar of the People's Liberation Army unflinchingly. It is trying to adapt; the recent Han Kuang military drill tried to adapt scenarios of Chinese invasion, from emergency alerts to evacuation and retaliation.Beijing has maintained a goal of reunification of ‘One China’ since the Republic of China officials fled with the 1949 civil war and the rise of the Chinese Communist Party (CCP) led by Mao Zedong. Taiwan (officially the Republic of China) maintains an independent, political and economic system with strong public support and continues its sovereignty under tremendous surveillance and external pressure.&nbsp;Taiwanese President Lai Ching-te has reportedly asserted that Taiwan will not be intimidated and will continue to safeguard its democratic way, ‘Peace through strength’.The US consider Taiwan its key ally in Southeast Asia and have recently passed a bill called the Taiwan Conflict Deterrence Act, designed to discourage military action by China by revealing the corruption of Chinese Communist Party (CCP) officials. It allows the Treasury Secretary officials to block CCP officials from accessing funds held in U.S. financial institutions. In the Australia-United States Ministerial Consultation 2025 in Sydney, US and Australian officials reaffirmed the need for peace and stability in the region and opposition to any unilateral changes of the status quo. &nbsp;

The Taiwan Ministry of Defence had repeatedly claimed significant incursions from the People's Liberation Army, aircraft sorties and naval vessels. These repeated incursions are seen by critics as a scare tactic. It has become a new normal for Taiwan as it tries to adapt.

Taiwan has reported on Saturday that at least 17 People Liberation Army (PLA) aircraft sorties and 7 naval vessels are operating in waters surrounding the island, among them 8 sorties have crossed the Taiwan Strait median line and entered into the southwestern ADIZ. On Friday, Tariwan detected 26 aircraft sorties and 7 navy vessels and one official ship near its territory.

The Taiwan Ministry of Defence had repeatedly claimed significant incursions from the People's Liberation Army, aircraft sorties and naval vessels. These repeated incursions are seen by critics as a scare tactic. It has become a new normal for Taiwan as it tries to adapt.

Living on the edge: Taiwan’s new normal as Chinese warplanes shadow its skies

After China announced the construction of the world's largest hydropower dam in Tibetan territory on the Brahmaputra River (known as the Yarlung Zangbo River), it sparked concerns from India and Bangladesh. In response, Beijing has issued an explicit statement defending the dam project, calling it a clean energy development and a matter of national sovereignty.&nbsp;"To build the hydropower project in the lower reaches of the Yarlung Zangbo River is fully within China's sovereignty," the official statement said. "The project aims to speed up clean energy development, improve local people's lives, and proactively respond to climate change," the official added.&nbsp;The announcement has raised concern in downstream nations such as India and Bangladesh about potential ecological disruption and water flow control. However, China claims that the development is being done with a high sense of responsibility in handling cross-border rivers and that the project meets the highest national industrial standards.&nbsp;"The planning, design, and construction... strictly follow the highest national industrial standards. The project puts a lot of emphasis on all-round ecological conservation, stays away from multiple environmentally sensitive areas, and vows to preserve the original ecosystem to the largest extent possible," the statement further added.

<blockquote class="twitter-tweet">To build the hydropower project in the lower reaches of the Yarlung Zangbo River is fully within China’s sovereignty. The project aims to speed up clean energy development, improve local people’s life, and proactively respond to climate change. China acts with a high sense of… <a href="https://t.co/9myFqIsUHw">pic.twitter.com/9myFqIsUHw</a>&mdash; CHINA MFA Spokesperson 中国外交部发言人 (@MFA_China) <a href="https://twitter.com/MFA_China/status/1947961982608691656?ref_src=twsrc%5Etfw">July 23, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<h3>What is India's stance?</h3>China maintained that the dam will not negatively impact downstream areas. Instead, it ensured that the hydropower facility would support disaster mitigation efforts along the river. Concluding the statement, China said that it is collaborating with downstream nations with necessary communication on the project in response to enhanced cooperation for the benefit of all people along the river basin.&nbsp;Meanwhile, Arunachal Pradesh Chief Minister Pema Khandu has described the dam as a "ticking water bomb" and a serious threat to existence. “Setting aside the military threat from China, it seems to me that this is a far bigger issue than anything else. It is going to cause an existential threat to our tribes and our livelihoods. It is quite serious because China could even use this as a sort of 'water bomb',” Indian news agency PTI quoted Khandu as saying.&nbsp;However, Assam Chief Minister Himanta Biswa Sarma downplayed any immediate threat from the project and said that the Brahmaputra is not completely dependent on the Yarlung Zangbo for its flow. "I am not immediately worried because the Brahmaputra is a mighty river, and it is not dependent on a single source of water," Sarma said.&nbsp;The announcement was made by Chinese Premier Li Qiang on Saturday (July 19, 2025) for the construction of the dam in the lower areas of the Brahmaputra River, locally known as Yarlung Zangbo, at Nyingchi City, situated close to the Line of Actual Control (LAC) in the vicinity of Arunachal Pradesh.

The announcement of the development of a dam on the Brahmaputra River has raised serious concerns for India and Bangladesh. However, China claimed that the project aims to speed up clean energy development and improve local people's lives.

After China announced the construction of the world's largest hydropower dam in Tibetan territory on the Brahmaputra River (known as the Yarlung Zangbo River), it sparked concerns from India and Bangladesh. In response, Beijing has issued an explicit statement defending the dam project, calling it a clean energy development and a matter of national sovereignty. "To build the hydropower project in the lower reaches of the Yarlung Zangbo River is fully within China's sovereignty," the official statement said. "The project aims to speed up clean energy development, improve local people's lives, and proactively respond to climate change," the official added. The announcement has raised concern in downstream nations such as India and Bangladesh about potential ecological disruption and water flow control. However, China claims that the development is being done with a high sense of responsibility in handling cross-border rivers and that the project meets the highest national industrial standards. "The planning, design, and construction... strictly follow the highest national industrial standards. The project puts a lot of emphasis on all-round ecological conservation, stays away from multiple environmentally sensitive areas, and vows to preserve the original ecosystem to the largest extent possible," the statement further added.

The announcement of the development of a dam on the Brahmaputra River has raised serious concerns for India and Bangladesh. However, China claimed that the project aims to speed up clean energy development and improve local people's lives.

China defends construction of world's largest hydropower dam on Brahmaputra river, Claims no downstream damage

China said on Wednesday that its hydroelectric power project, billed as the world's largest ever, on the Yarlung Zangbo river is within the country's sovereignty, and that it will help mitigate natural disasters. Chinese Foreign Ministry Spokesperson Guo Jiakun said that the project aims to improve people's lives. He claimed the project won't adversely impact downstream regions.&nbsp;"To build the hydropower project in the lower reaches of the Yarlung Zangbo River is fully within China's sovereignty. The project aims to speed up clean energy development, improve local people's lives, and proactively respond to climate change. China acts with a high sense of responsibility in harnessing cross-border rivers, and has rich experience in hydropower projects," he said.&nbsp;He said the authorities are adhering to the highest national industrial standards in the construction of the dam.&nbsp;"The planning, design, and construction of this newly announced project strictly follow the highest national industrial standards. The project puts a lot of emphasis on all-around ecological conservation, stays away from multiple environmentally sensitive areas, and vows to preserve the original ecosystem to the largest extent possible," he said.&nbsp;He further said that the project, once completed, will help in disaster reduction.&nbsp;"The project, once completed, will help prevent and mitigate disasters along the entire Yarlung Zangbo River, and will not adversely affect downstream regions. China is engaged in cooperation with downstream countries on sharing hydrological data, flood prevention, and disaster reduction. We have had necessary communication with them on the project, and will continue enhancing cooperation for the benefit of all people along the river basin," he said.&nbsp;Earlier this month, Arunachal Pradesh Chief Minister Pema Khandu said the project could pose an existential threat to India.&nbsp;"Setting aside the military threat from China, it seems to me that this is a far bigger issue than anything else. It is going to cause an existential threat to our tribes and our livelihoods. It is quite serious because China could even use this as a sort of 'water bomb'," he told PTI.

China said on Wednesday that its hydroelectric power project, billed as the world's largest ever, on the Yarlung Zangbo river is fully within the country's sovereignty, and that it will help mitigate natural disasters.

China said on Wednesday that its hydroelectric power project, billed as the world's largest ever, on the Yarlung Zangbo river is within the country's sovereignty, and that it will help mitigate natural disasters. Chinese Foreign Ministry Spokesperson Guo Jiakun said that the project aims to improve people's lives. He claimed the project won't adversely impact downstream regions. "To build the hydropower project in the lower reaches of the Yarlung Zangbo River is fully within China's sovereignty. The project aims to speed up clean energy development, improve local people's lives, and proactively respond to climate change. China acts with a high sense of responsibility in harnessing cross-border rivers, and has rich experience in hydropower projects," he said. He said the authorities are adhering to the highest national industrial standards in the construction of the dam. "The planning, design, and construction of this newly announced project strictly follow the highest national industrial standards. The project puts a lot of emphasis on all-around ecological conservation, stays away from multiple environmentally sensitive areas, and vows to preserve the original ecosystem to the largest extent possible," he said. He further said that the project, once completed, will help in disaster reduction. "The project, once completed, will help prevent and mitigate disasters along the entire Yarlung Zangbo River, and will not adversely affect downstream regions. China is engaged in cooperation with downstream countries on sharing hydrological data, flood prevention, and disaster reduction. We have had necessary communication with them on the project, and will continue enhancing cooperation for the benefit of all people along the river basin," he said. Earlier this month, Arunachal Pradesh Chief Minister Pema Khandu said the project could pose an existential threat to India. "Setting aside the military threat from China, it seems to me that this is a far bigger issue than anything else. It is going to cause an existential threat to our tribes and our livelihoods. It is quite serious because China could even use this as a sort of 'water bomb'," he told PTI.

China on ‘water bomb’ dam: Chinese Foreign Ministry Spokesperson Guo Jiakun said that the project aims to improve people's lives

'Will mitigate disasters': China on Yarlung Zangbo dam, 'water bomb' fear

On Monday, Iron ore prices surged to a four-month high. This reportedly comes after China unveiled a massive $167 billion hydropower project in Tibet, fuelling hopes of a demand revival in the construction and steel sectors.&nbsp;The steel-making commodity jumped as much as 2.9 per cent in Singapore to nearly $104 per ton. Steel futures in Shanghai also rose sharply, while prices for copper, aluminium, and zinc gained on the London Metal Exchange. The rally came after Premier Li Qiang launched construction of the five-tier Yarlung Tsangpo dam, one of China’s most ambitious infrastructure projects to date, signalling renewed state-led investment in metals-heavy sectors.<h2>China's mega dam project&nbsp;</h2>The dam project, which is reportedly worth over 1.2 trillion yuan ($167 billion), is being built in Tibet’s Himalayan belt. It involves a cascade of five interconnected hydropower dams and is expected to deliver a major boost to China’s power grid and clean energy ambitions. But beyond energy, the project is poised to lift demand for steel, cement, glass, and other industrial materials, offering much-needed relief to sectors hit hard by China’s prolonged property slump.&nbsp;The announcement signals a shift in Beijing’s growth strategy, with infrastructure spending once again being deployed as a counterweight to weak private investment and slowing exports.<h2>Iron ore posts first monthly rise since January</h2>Iron ore prices have now climbed for four straight weeks and are set for their first monthly gain since January. The renewed optimism is also backed by policy signals: Chinese officials have pledged to rein in excess competition and overcapacity in the steel industry, improving sentiment around mill profitability and future demand.&nbsp;The China Iron and Steel Association (CISA) said it held meetings with leading steelmakers and officials from the industry ministry last week. Companies reportedly vowed to address the problem of “involution” — a condition of intense competition that depresses margins and hinted at new regulatory tools to curb overcapacity, though details remain unclear.<h2>Metals rally on stimulus optimism</h2>By mid-morning trade on Monday, iron ore had risen 2.8 per cent to $103.60 per ton in Singapore. Rebar and hot-rolled coil contracts in Shanghai climbed more than 2 per cent, marking their strongest levels since March. On the London Metal Exchange, copper gained 0.5 per cent to $9,830 per ton, while zinc and aluminium also edged higher, reflecting broader optimism in the industrial metals complex.&nbsp;Traders are now watching for follow-through demand from the dam project and possible additional infrastructure stimulus from Beijing. For now, China’s mega-dam announcement appears to have jolted confidence back into metals markets, offering a rare bright spot in an otherwise uncertain global economic backdrop. (With inputs from the agencies)

The Yarlung Tsangpo dam project will boost demand for various industrial materials, signaling a shift in Beijing growth strategy towards infrastructure investment. Optimism in metals markets is returning amid stimulus hopes.

On Monday, Iron ore prices surged to a four-month high. This reportedly comes after China unveiled a massive $167 billion hydropower project in Tibet, fuelling hopes of a demand revival in the construction and steel sectors. The steel-making commodity jumped as much as 2.9 per cent in Singapore to nearly $104 per ton. Steel futures in Shanghai also rose sharply, while prices for copper, aluminium, and zinc gained on the London Metal Exchange. The rally came after Premier Li Qiang launched construction of the five-tier Yarlung Tsangpo dam, one of China’s most ambitious infrastructure projects to date, signalling renewed state-led investment in metals-heavy sectors. China's mega dam project The dam project, which is reportedly worth over 1.2 trillion yuan ($167 billion), is being built in Tibet’s Himalayan belt. It involves a cascade of five interconnected hydropower dams and is expected to deliver a major boost to China’s power grid and clean energy ambitions. But beyond energy, the project is poised to lift demand for steel, cement, glass, and other industrial materials, offering much-needed relief to sectors hit hard by China’s prolonged property slump. The announcement signals a shift in Beijing’s growth strategy, with infrastructure spending once again being deployed as a counterweight to weak private investment and slowing exports. Iron ore posts first monthly rise since January Iron ore prices have now climbed for four straight weeks and are set for their first monthly gain since January. The renewed optimism is also backed by policy signals: Chinese officials have pledged to rein in excess competition and overcapacity in the steel industry, improving sentiment around mill profitability and future demand. The China Iron and Steel Association (CISA) said it held meetings with leading steelmakers and officials from the industry ministry last week. Companies reportedly vowed to address the problem of “involution” — a condition of intense competition that depresses margins and hinted at new regulatory tools to curb overcapacity, though details remain unclear. Metals rally on stimulus optimism By mid-morning trade on Monday, iron ore had risen 2.8 per cent to $103.60 per ton in Singapore. Rebar and hot-rolled coil contracts in Shanghai climbed more than 2 per cent, marking their strongest levels since March. On the London Metal Exchange, copper gained 0.5 per cent to $9,830 per ton, while zinc and aluminium also edged higher, reflecting broader optimism in the industrial metals complex. Traders are now watching for follow-through demand from the dam project and possible additional infrastructure stimulus from Beijing. For now, China’s mega-dam announcement appears to have jolted confidence back into metals markets, offering a rare bright spot in an otherwise uncertain global economic backdrop. (With inputs from the agencies)

Steel, copper rally as Beijing bets on mega infrastructure to revive economy.&nbsp;

Iron ore surges as China’s $167 billion Tibet dam fuels demand hopes

President Xi Jinping has issued a rare and direct rebuke to local governments across China, questioning their rush into the same emerging sectors. Artificial intelligence, computing power and new energy vehicles.Speaking at a high-level urban development meeting, Xi asked if every province should be developing the same industries. His comments reflect growing concern that unchecked investment in a few favoured sectors is worsening industrial overcapacity.For example, even after a wave of consolidation, the EV sector is still running at below 50 per cent capacity. The blunt message comes amid mounting pressure to contain price wars and excess supply, which are eroding profits and fuelling deflation risks.<h2>China faces supply glut in key sectors</h2>China’s economy is showing signs of structural stress. &nbsp;Nominal GDP growth, which reflects changes in both output and prices, slowed to just 3.9 per cent in the second quarter.This marks the weakest level outside of pandemic years since 1993. Local governments continue to overbuild in key industries. New energy storage goals set by 26 provinces have already doubled the national target for 2025. &nbsp;Premier Li Qiang has pledged to rein in irrational competition in sectors like EVs, while the communist party's top economic body has vowed to regulate local investment strategies more strictly. &nbsp;Xi’s message also included a warning against overzealous urbanisation, calling for a pace aligned with real demand and economic fundamentals. A new report from the National Economic Research Institute reveals that China’s marketisation index has dropped significantly from its 2021 peak. &nbsp;The biggest decline was seen in government-market relations, indicating heavier state intervention and reduced market-led resource allocation. Researchers warn that government involvement in sectors like solar and EVs has distorted competition and caused market imbalances. Economists are calling for deeper reforms to rebuild fair, competitive market dynamics and restore investor confidence.&nbsp;

The blunt message comes amid mounting pressure to contain price wars and excess supply, which are eroding profits and fuelling deflation risks.

President Xi Jinping has issued a rare and direct rebuke to local governments across China, questioning their rush into the same emerging sectors. Artificial intelligence, computing power and new energy vehicles. Speaking at a high-level urban development meeting, Xi asked if every province should be developing the same industries. His comments reflect growing concern that unchecked investment in a few favoured sectors is worsening industrial overcapacity. For example, even after a wave of consolidation, the EV sector is still running at below 50 per cent capacity. The blunt message comes amid mounting pressure to contain price wars and excess supply, which are eroding profits and fuelling deflation risks. China faces supply glut in key sectors China’s economy is showing signs of structural stress. Nominal GDP growth, which reflects changes in both output and prices, slowed to just 3.9 per cent in the second quarter. This marks the weakest level outside of pandemic years since 1993. Local governments continue to overbuild in key industries. New energy storage goals set by 26 provinces have already doubled the national target for 2025. Premier Li Qiang has pledged to rein in irrational competition in sectors like EVs, while the communist party's top economic body has vowed to regulate local investment strategies more strictly. Xi’s message also included a warning against overzealous urbanisation, calling for a pace aligned with real demand and economic fundamentals. A new report from the National Economic Research Institute reveals that China’s marketisation index has dropped significantly from its 2021 peak. The biggest decline was seen in government-market relations, indicating heavier state intervention and reduced market-led resource allocation. Researchers warn that government involvement in sectors like solar and EVs has distorted competition and caused market imbalances. Economists are calling for deeper reforms to rebuild fair, competitive market dynamics and restore investor confidence.

The blunt message comes amid mounting pressure to contain price wars and excess supply, which are eroding profits and fuelling deflation risks.

Xi warns local governments on overbuilding in AI, EV, and energy sectors

A man in China dressed like a woman, had sex with reportedly over 1,000 men, secretly filmed them and posted the videos online. Police said the 38-year-old is now under arrest for sharing obscene content. Meanwhile, Chinese social media is appalled to learn of the terrible act committed by the man, who some say could be in his 60s. The incident happened in the city of Nanjing in eastern China’s Jiangsu province. The man is surnamed Jiao and earned from a membership fee he charged every person joining the online group to view his videos. Some of his videos got leaked and led some of the men he had slept with to recognise themselves. They filed a police complaint against Jiao. The creepy case is trending across Chinese social media.&nbsp;According to SCMP, the man dressed as a woman and painted his face. He wore a wig, make-up and long skirts. Jiao called these men over to his house, where he had installed a hidden camera that filmed his sexual exploits. Jiao, who also goes by the name “Nanjing Uncle Red” on social media, charged a membership fee of 150 yuan (US$21) per person. Some of the men who got intimate with him are said to have realised that he was a cross-dressing man. He did not charge the men for sex, but asked them to bring small gifts, such as fruits, food, etc.&nbsp;<h2>Close-up images of men circulating on social media</h2>Jiao claims to have slept with 1,691 men. However, the police believe the figure is exaggerated. No information has been released on the exact number of people he engaged with, and also about how much money he made out of the eerie practice. The police have warned people not to share clips and photos from Jiao's videos. But, close-up images of the men involved are circulating on Chinese social media. Family members and friends recognised some of them. There were others who saw these men and found their social media accounts.&nbsp;<h2>Women linked to Nanjing Uncle Red's victims concerned for their health</h2>Those revealed include a man whose mother teaches at a kindergarten, and another who was caught by his fiancée. People are now concerned about the health issues this horrific revelation could have led to. A woman noted, “I wonder how many women are victims behind these men." Another raised the concern that, going by the number of men he had targeted, "it is scary as you do not know whether those around you are one of Uncle Red’s visitors." Meanwhile, Nanjing’s Centre for Disease Control and Prevention told Chinese media outlet Jimu News that they have proposed giving health check-ups to those who are worried that they might be affected. China Newsweek quoted a lawyer as saying that if someone who is aware that they are carrying a contagious disease has unprotected sex with several people, they could be jailed for three to 10 years.

A man nicknamed Nanjing Uncle Red in China has been arrested for having sex with over 1000 men, secretly filming them and then posting the videos online. He used to make money by charging people who wanted to watch. 

A man in China dressed like a woman, had sex with reportedly over 1,000 men, secretly filmed them and posted the videos online. Police said the 38-year-old is now under arrest for sharing obscene content. Meanwhile, Chinese social media is appalled to learn of the terrible act committed by the man, who some say could be in his 60s. The incident happened in the city of Nanjing in eastern China’s Jiangsu province. The man is surnamed Jiao and earned from a membership fee he charged every person joining the online group to view his videos. Some of his videos got leaked and led some of the men he had slept with to recognise themselves. They filed a police complaint against Jiao. The creepy case is trending across Chinese social media. According to SCMP, the man dressed as a woman and painted his face. He wore a wig, make-up and long skirts. Jiao called these men over to his house, where he had installed a hidden camera that filmed his sexual exploits. Jiao, who also goes by the name “Nanjing Uncle Red” on social media, charged a membership fee of 150 yuan (US$21) per person. Some of the men who got intimate with him are said to have realised that he was a cross-dressing man. He did not charge the men for sex, but asked them to bring small gifts, such as fruits, food, etc. Close-up images of men circulating on social media Jiao claims to have slept with 1,691 men. However, the police believe the figure is exaggerated. No information has been released on the exact number of people he engaged with, and also about how much money he made out of the eerie practice. The police have warned people not to share clips and photos from Jiao's videos. But, close-up images of the men involved are circulating on Chinese social media. Family members and friends recognised some of them. There were others who saw these men and found their social media accounts. Women linked to Nanjing Uncle Red's victims concerned for their health Those revealed include a man whose mother teaches at a kindergarten, and another who was caught by his fiancée. People are now concerned about the health issues this horrific revelation could have led to. A woman noted, “I wonder how many women are victims behind these men." Another raised the concern that, going by the number of men he had targeted, "it is scary as you do not know whether those around you are one of Uncle Red’s visitors." Meanwhile, Nanjing’s Centre for Disease Control and Prevention told Chinese media outlet Jimu News that they have proposed giving health check-ups to those who are worried that they might be affected. China Newsweek quoted a lawyer as saying that if someone who is aware that they are carrying a contagious disease has unprotected sex with several people, they could be jailed for three to 10 years.

A man nicknamed Nanjing Uncle Red in China has been arrested for having sex with over 1,000 men, secretly filming them and then posting the videos online. He used to make money by charging people who wanted to watch.&nbsp;

Chinese man dressed as woman to have sex with 1,691 men and make money

China on Thursday said it foiled three spying plots, including one in which a government official was lured&nbsp;into a honeytrap put in motion by what it described as a “seductive beauty”. The nation ordered its employees to be vigilant against such ploys by foreign threats. China's security ministry said in a communique that foreign spies are increasingly becoming active in infiltrating&nbsp;the nation and stealing secrets. It further claimed that public officials were their targets. It, however, refrained from naming any country&nbsp;that is behind such plots.&nbsp;The ministry flagged a lack of belief and a weakened sense of discipline in officials who choose or are forced to divulge Chinese state secrets.&nbsp;"Individual officials have caused the damaging effects of leaking secrets due to a lack of belief, a weakened sense of discipline, and a loosened awareness of rules... harming national security and interests," the ministry said.<h2>Honeytrap in China</h2>The Chinese ministry illustrated its concern with the case of an employee, surnamed Li, who fell victim to a “meticulously designed honeytrap” as he was travelling abroad for work. It said Li was unable to resist the seductive beauty of an intelligence agent of another country. He was blackmailed with "intimate photos".&nbsp;"Unable to resist the seductive beauty of the foreign intelligence agent," Li was then blackmailed with "intimate photos" and forced to hand over official documents once back in China, it said.&nbsp;Li was sentenced to five years in prison for spying against China, the statement said.&nbsp;Another case involved a municipal cadre called Hou, who secretly photographed confidential documents and sold them to foreign spy agencies to recover lost savings from a gambling addiction. He also also punished.&nbsp;In a third case, the ministry said, a young official lost his job because he shared confidential information with a relative who sent the information to spy agencies abroad.

China on Thursday said it foiled three spying plots, including one in which a government official was lured into a honeytrap put in motion by what it described as a “seductive beauty”. The nation ordered its employees to be vigilant against such ploys by foreign threats.

China on Thursday said it foiled three spying plots, including one in which a government official was lured into a honeytrap put in motion by what it described as a “seductive beauty”. The nation ordered its employees to be vigilant against such ploys by foreign threats. China's security ministry said in a communique that foreign spies are increasingly becoming active in infiltrating the nation and stealing secrets. It further claimed that public officials were their targets. It, however, refrained from naming any country that is behind such plots. The ministry flagged a lack of belief and a weakened sense of discipline in officials who choose or are forced to divulge Chinese state secrets. "Individual officials have caused the damaging effects of leaking secrets due to a lack of belief, a weakened sense of discipline, and a loosened awareness of rules... harming national security and interests," the ministry said. Honeytrap in China The Chinese ministry illustrated its concern with the case of an employee, surnamed Li, who fell victim to a “meticulously designed honeytrap” as he was travelling abroad for work. It said Li was unable to resist the seductive beauty of an intelligence agent of another country. He was blackmailed with "intimate photos". "Unable to resist the seductive beauty of the foreign intelligence agent," Li was then blackmailed with "intimate photos" and forced to hand over official documents once back in China, it said. Li was sentenced to five years in prison for spying against China, the statement said. Another case involved a municipal cadre called Hou, who secretly photographed confidential documents and sold them to foreign spy agencies to recover lost savings from a gambling addiction. He also also punished. In a third case, the ministry said, a young official lost his job because he shared confidential information with a relative who sent the information to spy agencies abroad.

China flagged a lack of belief and a weakened sense of discipline in officials who choose or are forced to divulge Chinese state secrets.&nbsp;

China asks public servants to resist 'seductive beauty of spies' in massive honeytrap warning

Chinese examinations can get really tough and competitive. This prompted one of the female students to get a man to impersonate her and take an exam on her behalf. The bizarre incident unfolded in Wuhan where a male student of the Zhongnan University of Economics and Law tried to write an exam for a woman. The news of a man dressing up like a woman, with a wig, face mask and a hair band spread in the Chinese online community. The university has confirmed the incident and is taking action against those involved. While the identity of the man has not been revealed, the woman who got him to write the paper on her behalf is surnamed Li. Images of the man running away from the exam hall are circulating on social media. Also Read: <a href="https://www.wionews.com/trending/chinese-tv-host-zhu-slammed-for-giving-chicken-drumsticks-to-boys-heres-why-it-is-a-problem-1751711327213">Chinese TV host slammed for giving chicken drumsticks to boys. Here's why it is a problem</a>&nbsp;<h2>Man wore a wig, face mask and hair band</h2>A person wrote about the incident: “I heard someone was caught impersonating a candidate during the senior accounting exam this morning. Apparently, it was a man dressed as a woman?” The man had dressed up as a woman complete with a wig and a hair band and was taking the exam. However, an invigilator got suspicious and could clearly see that this person was wearing a wig. They asked the impersonator to remove the wig, after which he ran from the room. Reportedly, another student in the hall recognised the man. Also Read: <a href="https://www.wionews.com/science/length-of-a-man-s-fingers-can-reveal-his-sex-drive-shorter-finger-means-1751705942841">Length of a man's fingers can reveal his sex drive. Shorter index finger means...</a>&nbsp;The unravelling happened at an internal university exam. The incident happened on June 24 and the university confirmed it the next day. It also announced the name of the female student who got the man to take the exam. The female student surnamed Li allegedly hired the man she met online to take the Advanced Accounting exam on her behalf. It is not known whether the man was paid to do so. Meanwhile, as per university regulations, she is facing academic expulsion. The incident got people on social media talking. One of them highlighted the lengths people can go to to succeed in exams in China. "The pressure to succeed in Chinese academia is immense," a user wrote, adding that expulsion for "cheating is a huge blow to her future prospects." Meanwhile, some of them saw the hilarity of the situation, wondering why would a man agree to wear a wig which is so "obvious."

A man dressed up as a woman to give an exam on her behalf in China. He obviously got caught in the middle of the exam. Social media is amused by the incident and people cannot believe how he thought he would pull it off. 

Chinese examinations can get really tough and competitive. This prompted one of the female students to get a man to impersonate her and take an exam on her behalf. The bizarre incident unfolded in Wuhan where a male student of the Zhongnan University of Economics and Law tried to write an exam for a woman. The news of a man dressing up like a woman, with a wig, face mask and a hair band spread in the Chinese online community. The university has confirmed the incident and is taking action against those involved. While the identity of the man has not been revealed, the woman who got him to write the paper on her behalf is surnamed Li. Images of the man running away from the exam hall are circulating on social media. Also Read: Chinese TV host slammed for giving chicken drumsticks to boys. Here's why it is a problem Man wore a wig, face mask and hair band A person wrote about the incident: “I heard someone was caught impersonating a candidate during the senior accounting exam this morning. Apparently, it was a man dressed as a woman?” The man had dressed up as a woman complete with a wig and a hair band and was taking the exam. However, an invigilator got suspicious and could clearly see that this person was wearing a wig. They asked the impersonator to remove the wig, after which he ran from the room. Reportedly, another student in the hall recognised the man. Also Read: Length of a man's fingers can reveal his sex drive. Shorter index finger means... The unravelling happened at an internal university exam. The incident happened on June 24 and the university confirmed it the next day. It also announced the name of the female student who got the man to take the exam. The female student surnamed Li allegedly hired the man she met online to take the Advanced Accounting exam on her behalf. It is not known whether the man was paid to do so. Meanwhile, as per university regulations, she is facing academic expulsion. The incident got people on social media talking. One of them highlighted the lengths people can go to to succeed in exams in China. "The pressure to succeed in Chinese academia is immense," a user wrote, adding that expulsion for "cheating is a huge blow to her future prospects." Meanwhile, some of them saw the hilarity of the situation, wondering why would a man agree to wear a wig which is so "obvious."

A man dressed up as a woman to give an exam on her behalf in China. He obviously got caught in the middle of the exam. Social media is amused by the incident, and people cannot believe how he thought he would pull it off.&nbsp;

'The wig was too...': Man dressed up as woman to cheat in an exam. What happened next has...

A popular TV host in China is facing backlash for openly favouring boys over girls. Zhu Dan, known for &nbsp;TV programmes like Do You Remember and The X Factor, admitted on camera during a show that “boys need more nutrition to grow" than girls. While cooking chicken soup on the variety show Wonderland, the 44-year-old categorically stated that the drumsticks should be given to the two boys, and the chicken wing should be served to the girl. Zhu is married to actor Zhou Yiwei and has a son and a daughter. Her statement on television has infuriated people across China where chicken drumsticks are considered a desirable cut of meat and are often only presented to someone one is leaning towards. Also Read: <a href="https://www.wionews.com/trending/how-pop-mart-s-wang-ning-became-china-s-10th-richest-after-global-labubu-frenzy-1751622686398">How Pop Mart’s Wang Ning became China’s 10th richest after global Labubu frenzy</a>&nbsp;<h2>Give the drumsticks to boys, Zhu said on TV</h2>Zhu later openly admitted that she likes boys more than girls. While telling a show member to give the chicken drumsticks to the boys, Zhu said, "The two young men are still growing and need more nutrition to develop." She then stated that chicken wings should be given to another female guest, 21-year-old Ouyang Didi. Notably, the boys - Zhou Yiran and Dong Sicheng - &nbsp;were 25 and 28 years old. After witnessing the entire chicken soup saga, another participant on the show, actress Ning Jing, asked Zhu if she "particularly favoured boys". Zhu replied without hesitating, “A little”.Zhu continued to flame the fire by saying more inappropriate things. She added that the reason why parents favour children of the opposite sex is because of &nbsp;“heterosexual attraction”. Also Read: <a href="https://www.wionews.com/science/length-of-a-man-s-fingers-can-reveal-his-sex-drive-shorter-finger-means-1751705942841">Length of a man's fingers can reveal his sex drive. Shorter index finger means...</a>&nbsp;<h2>Zhu has angered people in China</h2>The popular host said that this is why fathers prefer daughters and mothers prefer sons. In China, historically a male child has been preferred over females. While the thinking has changed in most parts of the country, in some regions it still remains a problem. This is the same in India, where the problem has led to banning sex identification of a child before birth. Zhu's words on national television have triggered anger and enraged people. People on social media slammed Zhu for saying such things. A user wrote, “The most ridiculous thing is that she doesn’t even realise it’s inappropriate to say such things on a show. As a host who literally works with her mouth, shouldn’t she at least know what’s appropriate to say? I honestly don’t understand how she became a nationally famous host." Another said, "So she thinks that girls don’t need nutrition to grow up?" Zhu has responded to the criticism and issued a public apology on June 18. She said "had seen all criticisms and suggestions,” and thanked people for the feedback. She said she will try to "correct and grow". Zhu was earlier in the eye of a storm when she confused the names of several celebrities at a fashion show.

On national television, Chinese TV host Zhu favoured two boys. She talked about how she felt about boys and girls and who she preferred. She openly admitted her love for boys and is being criticised for it. 

A popular TV host in China is facing backlash for openly favouring boys over girls. Zhu Dan, known for TV programmes like Do You Remember and The X Factor, admitted on camera during a show that “boys need more nutrition to grow" than girls. While cooking chicken soup on the variety show Wonderland, the 44-year-old categorically stated that the drumsticks should be given to the two boys, and the chicken wing should be served to the girl. Zhu is married to actor Zhou Yiwei and has a son and a daughter. Her statement on television has infuriated people across China where chicken drumsticks are considered a desirable cut of meat and are often only presented to someone one is leaning towards. Also Read: How Pop Mart’s Wang Ning became China’s 10th richest after global Labubu frenzy Give the drumsticks to boys, Zhu said on TV Zhu later openly admitted that she likes boys more than girls. While telling a show member to give the chicken drumsticks to the boys, Zhu said, "The two young men are still growing and need more nutrition to develop." She then stated that chicken wings should be given to another female guest, 21-year-old Ouyang Didi. Notably, the boys - Zhou Yiran and Dong Sicheng - were 25 and 28 years old. After witnessing the entire chicken soup saga, another participant on the show, actress Ning Jing, asked Zhu if she "particularly favoured boys". Zhu replied without hesitating, “A little”. Zhu continued to flame the fire by saying more inappropriate things. She added that the reason why parents favour children of the opposite sex is because of “heterosexual attraction”. Also Read: Length of a man's fingers can reveal his sex drive. Shorter index finger means... Zhu has angered people in China The popular host said that this is why fathers prefer daughters and mothers prefer sons. In China, historically a male child has been preferred over females. While the thinking has changed in most parts of the country, in some regions it still remains a problem. This is the same in India, where the problem has led to banning sex identification of a child before birth. Zhu's words on national television have triggered anger and enraged people. People on social media slammed Zhu for saying such things. A user wrote, “The most ridiculous thing is that she doesn’t even realise it’s inappropriate to say such things on a show. As a host who literally works with her mouth, shouldn’t she at least know what’s appropriate to say? I honestly don’t understand how she became a nationally famous host." Another said, "So she thinks that girls don’t need nutrition to grow up?" Zhu has responded to the criticism and issued a public apology on June 18. She said "had seen all criticisms and suggestions,” and thanked people for the feedback. She said she will try to "correct and grow". Zhu was earlier in the eye of a storm when she confused the names of several celebrities at a fashion show.

On national television, Chinese TV host Zhu favoured two boys. She talked about how she felt about boys and girls and who she preferred. She openly admitted her love for boys and is being criticised for it.&nbsp;

Chinese TV host slammed for giving chicken drumsticks to boys. Here's why it is a problem

As the US and China hold onto a fragile trade truce, Beijing is growing increasingly concerned about Washington’s escalating efforts to isolate Chinese firms from global supply chains. Ahead of a key deadline on July 9, US officials are deep into negotiations with trading partners across Asia and Europe, pushing for agreements that include restrictions on Chinese goods or demand commitments to counter China’s alleged unfair trade practices. The first of these deals, a two-tiered tariff agreement with Vietnam, introduces a 20 per cent tariff on Vietnamese exports to the US, with a 40 per cent levy on goods believed to be transshipped through the country, often as part of a broader strategy to avoid US tariffs.&nbsp;While Vietnam has become a hub for Chinese companies seeking to sidestep tariffs by reassembling products and labelling them as Vietnamese-made, this agreement could significantly affect trade flows. According to reports, as much as 28 per cent of Vietnam’s exports to the US in 2022 included Chinese content. Other Asian nations, including India and South Korea, are negotiating similar “rules of origin” agreements to qualify for tariff exemptions, with India pushing for a lower threshold than the US demands.<h2>China responds with defiance</h2>In response, China has repeatedly voiced its opposition to such trade agreements, warning that it will not accept deals that harm its interests. The Ministry of Commerce has reiterated that China will “resolutely counter” any agreements designed to exclude Chinese companies from supply chains. Foreign minister Wang Yi is expected to bring up these concerns during his diplomatic tour of Europe, where the US has also been pressing for similar measures.The US has also been exploring the possibility of export controls on high-tech products like semiconductors, targeting Chinese firms’ access to advanced manufacturing tools. Taiwan recently added Huawei Technologies and Semiconductor Manufacturing International Corp. to its entity list, further complicating the situation for Chinese companies seeking to maintain their supply chains.<h2>A shift toward “trusted” supply chains</h2>The broader risk for China is that these isolated trade pacts could eventually coalesce into a new global trade system focused on “trusted” supply chains, leaving Chinese firms on the outside. Beijing has expressed concern that countries, particularly within the EU, may align more closely with the US in the coming months, further constricting China’s access to global markets. The EU, which is China’s largest export destination for electric vehicles, has already been accused by Brussels of “weaponising” rare earths and magnets, a key element in China’s manufacturing strategy.If the US and its partners reach agreements on global supply chain security, export controls, and ownership rules, similar to provisions in the UK-US deal, China could be forced into a defensive stance. The EU’s stance remains delicate, with Washington leveraging its stronger economic ties to press for commitments that could further isolate Chinese firms.<h2>Transshipment and loopholes</h2>As the US crackdown on Chinese transshipment practices continues, the situation in Southeast Asia remains murky. Chinese businesses have quickly adapted to new US tariffs by shifting production across the region to countries like Vietnam, Indonesia, and Thailand, where products are minimally altered before being exported to the US. Despite attempts by local authorities to close loopholes, such as Vietnam’s stricter enforcement and Malaysia’s crackdown on illegal rerouting, the reality is that enforcement remains challenging. Chinese companies are skilled at bypassing regulatory hurdles, even creating supply chains that make it appear as though goods are coming from other countries.This transshipment activity is expected to persist in the region, with experts noting that customs enforcement remains inconsistent and many businesses simply avoid unloading containers altogether in an effort to avoid inspection. This practice raises concerns that the US tariffs may not have their intended impact, especially if enforcement remains lax or the rules governing trade deals remain too vague.&nbsp;(With inputs from agencies)

US officials are deep into negotiations with trading partners across Asia and Europe, pushing for agreements that include restrictions on Chinese goods or demand commitments to counter China’s alleged unfair trade practices.

As the US and China hold onto a fragile trade truce, Beijing is growing increasingly concerned about Washington’s escalating efforts to isolate Chinese firms from global supply chains. Ahead of a key deadline on July 9, US officials are deep into negotiations with trading partners across Asia and Europe, pushing for agreements that include restrictions on Chinese goods or demand commitments to counter China’s alleged unfair trade practices. The first of these deals, a two-tiered tariff agreement with Vietnam, introduces a 20 per cent tariff on Vietnamese exports to the US, with a 40 per cent levy on goods believed to be transshipped through the country, often as part of a broader strategy to avoid US tariffs. While Vietnam has become a hub for Chinese companies seeking to sidestep tariffs by reassembling products and labelling them as Vietnamese-made, this agreement could significantly affect trade flows. According to reports, as much as 28 per cent of Vietnam’s exports to the US in 2022 included Chinese content. Other Asian nations, including India and South Korea, are negotiating similar “rules of origin” agreements to qualify for tariff exemptions, with India pushing for a lower threshold than the US demands. China responds with defiance In response, China has repeatedly voiced its opposition to such trade agreements, warning that it will not accept deals that harm its interests. The Ministry of Commerce has reiterated that China will “resolutely counter” any agreements designed to exclude Chinese companies from supply chains. Foreign minister Wang Yi is expected to bring up these concerns during his diplomatic tour of Europe, where the US has also been pressing for similar measures. The US has also been exploring the possibility of export controls on high-tech products like semiconductors, targeting Chinese firms’ access to advanced manufacturing tools. Taiwan recently added Huawei Technologies and Semiconductor Manufacturing International Corp. to its entity list, further complicating the situation for Chinese companies seeking to maintain their supply chains. A shift toward “trusted” supply chains The broader risk for China is that these isolated trade pacts could eventually coalesce into a new global trade system focused on “trusted” supply chains, leaving Chinese firms on the outside. Beijing has expressed concern that countries, particularly within the EU, may align more closely with the US in the coming months, further constricting China’s access to global markets. The EU, which is China’s largest export destination for electric vehicles, has already been accused by Brussels of “weaponising” rare earths and magnets, a key element in China’s manufacturing strategy. If the US and its partners reach agreements on global supply chain security, export controls, and ownership rules, similar to provisions in the UK-US deal, China could be forced into a defensive stance. The EU’s stance remains delicate, with Washington leveraging its stronger economic ties to press for commitments that could further isolate Chinese firms. Transshipment and loopholes As the US crackdown on Chinese transshipment practices continues, the situation in Southeast Asia remains murky. Chinese businesses have quickly adapted to new US tariffs by shifting production across the region to countries like Vietnam, Indonesia, and Thailand, where products are minimally altered before being exported to the US. Despite attempts by local authorities to close loopholes, such as Vietnam’s stricter enforcement and Malaysia’s crackdown on illegal rerouting, the reality is that enforcement remains challenging. Chinese companies are skilled at bypassing regulatory hurdles, even creating supply chains that make it appear as though goods are coming from other countries. This transshipment activity is expected to persist in the region, with experts noting that customs enforcement remains inconsistent and many businesses simply avoid unloading containers altogether in an effort to avoid inspection. This practice raises concerns that the US tariffs may not have their intended impact, especially if enforcement remains lax or the rules governing trade deals remain too vague. (With inputs from agencies)

US officials are deep into negotiations with trading partners across Asia and Europe, pushing for agreements that include restrictions on Chinese goods or demand commitments to counter China’s alleged unfair trade practices.

China braces for US trade deals aimed at excluding China from global supply chains

Taiwan will be holding its largest annual military exercise next week and will, for the first time, combine conventional war games and urban survival drills under “unprecedented” live-fire conditions to be prepared for an invasion by China. The measure signals growing fear in Taipei that Beijing could trigger a prolonged conflict requiring both military defence and civilian resilience. The 41st Han Kuang exercise, scheduled from July 9 to 18, would test joint operational readiness under “unprecedented 10-day, round-the-clock live-fire conditions”, the Taiwanese defence ministry said on Tuesday.This year’s edition would incorporate the “whole-of-society resilience” approach, introduced last year by Taiwanese leader William Lai Ching-te as an updated civil defence model, it said.The urban drills would feature air-raid warnings, mass evacuations, and critical infrastructure protection to simulate a full-graded response to war.&nbsp;Major General Tung Chi-hsing, head of the ministry’s joint operations planning division, said that integration of civil defence and national mobilisation is key to Taiwan’s overall resilience.The simulation will start with cyberattacks or economic coercion and escalate to conflict.The drills will also test the ability of Taiwanese forces to repel incursions and defend towns and prolonged warfare testing, assessing both military and civilian systems under continuous attack.&nbsp;Troops will rehearse rapid relocation, backup command activation, and communications blackout protocol, while legal experts will participate in the exercises to ensure the military actions are consistent with international and domestic laws.&nbsp;The Han Kuang drills will run concurrently with the 35th Tung Hsin national mobilisation drill, and include a full 14-day call-up for reservists, notably the 206th Infantry Brigade.A major new addition is the “2025 Urban Resilience (Air Defence) Exercise,” which will be coordinated with local governments and take place over July 15 to 18.&nbsp;Chu Sen-tsuen, manpower mobilisation director of Taiwan’s All-out Defence Mobilisation Office, said the goal of the drill “is to strengthen urban preparedness and validate evacuation, sheltering, and rescue protocols”.Each region will hold a 30-minute air raid drill, using phone alerts, sirens, TV and radio broadcasts, and loudspeakers.&nbsp;&nbsp;In the capital, Taipei, plus Taichung in central Taiwan and Tainan in the south, the full 10-day Han Kuang timeline would be compressed into a single-day simulation combining air defence, war-gaming and urban survival tasks.“Failure to comply with evacuation orders may result in fines of NT$30,000 to NT$150,000 (about US$1,030 to US$5,130) under the Civil Defence Act,” Chu warned.&nbsp;“By combining conventional combat readiness with civilian preparedness, this year’s Han Kuang marks a turning point in Taiwan’s defense strategy—a whole-of-society effort to endure the worst-case scenario,” said Su Tzu-yun, a senior analyst at the government-funded Institute for National Defence and Security Research.Beijing, which views Taiwan as part of China, has vowed to pursue unification by force if necessary.&nbsp;&nbsp;The United States has cited intelligence reports to warn that the PLA may be ready to attack Taiwan by 2027.

Beijing, which views Taiwan as part of China, has vowed to pursue unification by force if necessary. The United States has cited intelligence reports to warn that the PLA may be ready to attack Taiwan by 2027. 

Taiwan will be holding its largest annual military exercise next week and will, for the first time, combine conventional war games and urban survival drills under “unprecedented” live-fire conditions to be prepared for an invasion by China. The measure signals growing fear in Taipei that Beijing could trigger a prolonged conflict requiring both military defence and civilian resilience. The 41st Han Kuang exercise, scheduled from July 9 to 18, would test joint operational readiness under “unprecedented 10-day, round-the-clock live-fire conditions”, the Taiwanese defence ministry said on Tuesday. This year’s edition would incorporate the “whole-of-society resilience” approach, introduced last year by Taiwanese leader William Lai Ching-te as an updated civil defence model, it said. The urban drills would feature air-raid warnings, mass evacuations, and critical infrastructure protection to simulate a full-graded response to war. Major General Tung Chi-hsing, head of the ministry’s joint operations planning division, said that integration of civil defence and national mobilisation is key to Taiwan’s overall resilience. The simulation will start with cyberattacks or economic coercion and escalate to conflict. The drills will also test the ability of Taiwanese forces to repel incursions and defend towns and prolonged warfare testing, assessing both military and civilian systems under continuous attack. Troops will rehearse rapid relocation, backup command activation, and communications blackout protocol, while legal experts will participate in the exercises to ensure the military actions are consistent with international and domestic laws. The Han Kuang drills will run concurrently with the 35th Tung Hsin national mobilisation drill, and include a full 14-day call-up for reservists, notably the 206th Infantry Brigade. A major new addition is the “2025 Urban Resilience (Air Defence) Exercise,” which will be coordinated with local governments and take place over July 15 to 18. Chu Sen-tsuen, manpower mobilisation director of Taiwan’s All-out Defence Mobilisation Office, said the goal of the drill “is to strengthen urban preparedness and validate evacuation, sheltering, and rescue protocols”. Each region will hold a 30-minute air raid drill, using phone alerts, sirens, TV and radio broadcasts, and loudspeakers. In the capital, Taipei, plus Taichung in central Taiwan and Tainan in the south, the full 10-day Han Kuang timeline would be compressed into a single-day simulation combining air defence, war-gaming and urban survival tasks. “Failure to comply with evacuation orders may result in fines of NT$30,000 to NT$150,000 (about US$1,030 to US$5,130) under the Civil Defence Act,” Chu warned. “By combining conventional combat readiness with civilian preparedness, this year’s Han Kuang marks a turning point in Taiwan’s defense strategy—a whole-of-society effort to endure the worst-case scenario,” said Su Tzu-yun, a senior analyst at the government-funded Institute for National Defence and Security Research. Beijing, which views Taiwan as part of China, has vowed to pursue unification by force if necessary. The United States has cited intelligence reports to warn that the PLA may be ready to attack Taiwan by 2027.

Beijing, which views Taiwan as part of China, has vowed to pursue unification by force if necessary. The United States has cited intelligence reports to warn that the PLA may be ready to attack Taiwan by 2027.&nbsp;

Taiwan to merge war games and urban survival tests in drill to prepare people for a China invasion

Iran has reportedly stepped up talks with China to buy dozens of Chengdu J-10C multirole fighter jets, shifting course from a troubled deal with Moscow for the Su-35 aircraft. This comes as Tehran races to modernise its ageing air force in the face of mounting threats from Israel and the US. According to a report by The Moscow Times, Tehran is now in advanced negotiations to purchase 36 J-10C aircraft from China. The move comes as Iran's planned acquisition of 50 Russian Su-35 fighter jets has stalled, with only four aircraft delivered since the 2023 agreement. Iran’s push for modern warplanes has gained urgency following last month’s joint Israeli-American aerial campaign, which struck several Iranian sites, including nuclear infrastructure.&nbsp;<h2>Chinese Chengdu J-10C vs Russian Su-35</h2>As per reports, Iran has long been interested in the J-10 series and has tried acquiring 150 units as early as at least 2015. However, as per Militarnyi, that deal fell through due to payment disputes — China insisted on foreign currency, while Iran, under tight sanctions and low on hard cash, offered oil and gas as barter. A now-lifted UN arms embargo had further complicated the talks.The Chinese J-10C, a 4.5-generation fighter compatible with long-range PL-15 air-to-air missiles, is already in service with the Pakistani air force and is considered a cost-effective and capable alternative to the Russian Su-35. What's more, the 4.5 generation single-engine fighter plane happens to be significantly cheaper than the Su-35 by around $40-60 million.<h2>Why not the Su-35?</h2>Iran's deal with Moscow for Su-35s, signed in 2022, was seen as a major step in rearming the Islamic Republic's air force. However, the agreement has suffered repeated setbacks. Despite official statements from Tehran that deliveries would begin in early 2023, only a handful of aircraft have materialised. In March 2025, it was reported that a batch of Su-35s originally slated for Iran had instead been redirected to Algeria.<h2>Iran's outdated fleet under strain</h2>While Iran, as of early 2025, had around 150 fighter planes in service, the fleet consists largely of ageing American aircraft procured before the 1979 Islamic Revolution, including F-4 Phantom II (64 units), F-5E/F Tiger II (35) and F-14A Tomcat (41). Many of these planes, as per reports, are either non-operational or require constant maintenance to remain flight worthy. The air force also operates around 18 MiG-29A/UBs acquired in the late 1980s and early 1990s, but these too are showing their age.Over the past decade, Iran has relied heavily on domestically produced surface-to-air missile systems to form the backbone of its air defences. But during the so-called "Twelve Day War" — the name unofficially given to the recent Israeli-American strikes — these systems were swiftly suppressed by Israeli air defences.&nbsp;

Iran’s push for modern warplanes has gained urgency following last month’s joint Israeli-American aerial campaign, which struck several Iranian sites, including nuclear infrastructure. 

Iran has reportedly stepped up talks with China to buy dozens of Chengdu J-10C multirole fighter jets, shifting course from a troubled deal with Moscow for the Su-35 aircraft. This comes as Tehran races to modernise its ageing air force in the face of mounting threats from Israel and the US. According to a report by The Moscow Times, Tehran is now in advanced negotiations to purchase 36 J-10C aircraft from China. The move comes as Iran's planned acquisition of 50 Russian Su-35 fighter jets has stalled, with only four aircraft delivered since the 2023 agreement. Iran’s push for modern warplanes has gained urgency following last month’s joint Israeli-American aerial campaign, which struck several Iranian sites, including nuclear infrastructure. Chinese Chengdu J-10C vs Russian Su-35 As per reports, Iran has long been interested in the J-10 series and has tried acquiring 150 units as early as at least 2015. However, as per Militarnyi, that deal fell through due to payment disputes — China insisted on foreign currency, while Iran, under tight sanctions and low on hard cash, offered oil and gas as barter. A now-lifted UN arms embargo had further complicated the talks. The Chinese J-10C, a 4.5-generation fighter compatible with long-range PL-15 air-to-air missiles, is already in service with the Pakistani air force and is considered a cost-effective and capable alternative to the Russian Su-35. What's more, the 4.5 generation single-engine fighter plane happens to be significantly cheaper than the Su-35 by around $40-60 million. Why not the Su-35? Iran's deal with Moscow for Su-35s, signed in 2022, was seen as a major step in rearming the Islamic Republic's air force. However, the agreement has suffered repeated setbacks. Despite official statements from Tehran that deliveries would begin in early 2023, only a handful of aircraft have materialised. In March 2025, it was reported that a batch of Su-35s originally slated for Iran had instead been redirected to Algeria. Iran's outdated fleet under strain While Iran, as of early 2025, had around 150 fighter planes in service, the fleet consists largely of ageing American aircraft procured before the 1979 Islamic Revolution, including F-4 Phantom II (64 units), F-5E/F Tiger II (35) and F-14A Tomcat (41). Many of these planes, as per reports, are either non-operational or require constant maintenance to remain flight worthy. The air force also operates around 18 MiG-29A/UBs acquired in the late 1980s and early 1990s, but these too are showing their age. Over the past decade, Iran has relied heavily on domestically produced surface-to-air missile systems to form the backbone of its air defences. But during the so-called "Twelve Day War" — the name unofficially given to the recent Israeli-American strikes — these systems were swiftly suppressed by Israeli air defences.

Iran’s push for modern warplanes has gained urgency following last month’s joint Israeli-American aerial campaign, which struck several Iranian sites, including nuclear infrastructure.&nbsp;

Why is Iran ditching Russian Su-35s for Chinese J-10C jets? Tehran's urgent military upgrade explained

Two Chinese artificial intelligence chip startups are seeking to raise a combined 12 billion yuan (approximately $1.65 billion) through initial public offerings (IPOs) in Shanghai, banking on US export restrictions to drive local demand for homegrown GPUs. According to Reuters, Beijing-based Moore Threads plans to raise 8 billion yuan, while Shanghai-based MetaX is targeting 3.9 billion yuan. Both companies have filed to list on the STAR Market, the Shanghai Stock Exchange’s tech-focused board.<h2>Betting on Beijing’s push for chip self-sufficiency</h2>The twin IPO plans underscore China’s effort to nurture domestic GPU champions critical to artificial intelligence development. Reuters reports that demand for local substitutes has become urgent as Washington has tightened export controls. The latest US restrictions, imposed in April, ban Nvidia’s advanced H20 chips from being shipped to China.&nbsp;Washington’s export curbs also prevent Chinese AI chip designers from accessing leading-edge manufacturing at foundries like Taiwan Semiconductor Manufacturing Co. (TSMC), restricting their ability to produce cutting-edge semiconductors.<h2>Sanctions seen as both threat and opportunity</h2>In their IPO prospectuses, Moore Threads and MetaX acknowledged US sanctions pose significant risks. However, they also pointed to the same restrictions as an opportunity to build market share. As per Reuters, Moore Threads told US restrictions on high-end GPU exports were “prompting Chinese companies to accelerate domestic substitution processes.”&nbsp;The company, blacklisted by the US Entity List in late 2023, is barred from working with TSMC. MetaX noted that “geopolitical pressures are forcing relevant domestic clients to use domestically-produced GPU&nbsp;products,” strengthening local ties with suppliers and customers.<h2>Heavy losses underline massive R&amp;D costs</h2>Both firms remain loss-making, highlighting the steep costs of developing competitive GPUs. According to Reuters, Moore Threads reported revenue of 438 million yuan in 2024 with a net loss of 1.49 billion yuan. Losses in 2023 and 2022 were 1.67 billion yuan and 1.84 billion yuan respectively.&nbsp;&nbsp;MetaX generated 743 million yuan in 2024 revenue but lost 1.4 billion yuan, following 871 million yuan in 2023 losses and 777 million yuan in 2022. He Hui, semiconductor research director at Omdia, told Reuters that accessing China’s capital market is “crucial for them to continue their research and development.”<h2>Part of Beijing’s broader chip push</h2>The IPO bids come amid China’s intensifying push to reduce reliance on foreign technology and build a self-sufficient semiconductor ecosystem.&nbsp;Reuters notes that Beijing is channelling resources to help local firms achieve the scale necessary to lower costs and compete globally. Moore Threads and MetaX design GPUs to rival Nvidia’s products but face competition from domestic peers such as Huawei, Cambricon, Hygon, and other startups.&nbsp;Both firms were founded in 2020 by veterans of major US chip companies. MetaX was founded by former AMD executives, including Chairman Chen Weiliang, AMD’s former global head of GPU design. Moore Threads was founded by ex-Nvidia executives, including Chairman Zhang Jianzhong, Nvidia’s former China AI chip head.<h2>Sector sees surge in fundraising activity</h2>The new IPO plans follow Biren Technology, another Chinese AI chipmaker, which recently raised around 1.5 billion yuan and is preparing for a Hong Kong IPO, Reuters reports.&nbsp;As US export restrictions tighten, Chinese companies are racing to develop domestic alternatives, with China’s capital markets now underlining their strategic importance by providing much-needed funding.&nbsp;(With inputs from the agencies) &nbsp;

Amid US chip sanctions, Moore Threads and MetaX seek major IPOs on China STAR Market, highlighting Beijing push for semiconductor self reliance and the rising strategic value of homegrown AI hardware.

Two Chinese artificial intelligence chip startups are seeking to raise a combined 12 billion yuan (approximately $1.65 billion) through initial public offerings (IPOs) in Shanghai, banking on US export restrictions to drive local demand for homegrown GPUs. According to Reuters, Beijing-based Moore Threads plans to raise 8 billion yuan, while Shanghai-based MetaX is targeting 3.9 billion yuan. Both companies have filed to list on the STAR Market, the Shanghai Stock Exchange’s tech-focused board. Betting on Beijing’s push for chip self-sufficiency The twin IPO plans underscore China’s effort to nurture domestic GPU champions critical to artificial intelligence development. Reuters reports that demand for local substitutes has become urgent as Washington has tightened export controls. The latest US restrictions, imposed in April, ban Nvidia’s advanced H20 chips from being shipped to China. Washington’s export curbs also prevent Chinese AI chip designers from accessing leading-edge manufacturing at foundries like Taiwan Semiconductor Manufacturing Co. (TSMC), restricting their ability to produce cutting-edge semiconductors. Sanctions seen as both threat and opportunity In their IPO prospectuses, Moore Threads and MetaX acknowledged US sanctions pose significant risks. However, they also pointed to the same restrictions as an opportunity to build market share. As per Reuters, Moore Threads told US restrictions on high-end GPU exports were “prompting Chinese companies to accelerate domestic substitution processes.” The company, blacklisted by the US Entity List in late 2023, is barred from working with TSMC. MetaX noted that “geopolitical pressures are forcing relevant domestic clients to use domestically-produced GPU products,” strengthening local ties with suppliers and customers. Heavy losses underline massive R&D costs Both firms remain loss-making, highlighting the steep costs of developing competitive GPUs. According to Reuters, Moore Threads reported revenue of 438 million yuan in 2024 with a net loss of 1.49 billion yuan. Losses in 2023 and 2022 were 1.67 billion yuan and 1.84 billion yuan respectively. MetaX generated 743 million yuan in 2024 revenue but lost 1.4 billion yuan, following 871 million yuan in 2023 losses and 777 million yuan in 2022. He Hui, semiconductor research director at Omdia, told Reuters that accessing China’s capital market is “crucial for them to continue their research and development.” Part of Beijing’s broader chip push The IPO bids come amid China’s intensifying push to reduce reliance on foreign technology and build a self-sufficient semiconductor ecosystem. Reuters notes that Beijing is channelling resources to help local firms achieve the scale necessary to lower costs and compete globally. Moore Threads and MetaX design GPUs to rival Nvidia’s products but face competition from domestic peers such as Huawei, Cambricon, Hygon, and other startups. Both firms were founded in 2020 by veterans of major US chip companies. MetaX was founded by former AMD executives, including Chairman Chen Weiliang, AMD’s former global head of GPU design. Moore Threads was founded by ex-Nvidia executives, including Chairman Zhang Jianzhong, Nvidia’s former China AI chip head. Sector sees surge in fundraising activity The new IPO plans follow Biren Technology, another Chinese AI chipmaker, which recently raised around 1.5 billion yuan and is preparing for a Hong Kong IPO, Reuters reports. As US export restrictions tighten, Chinese companies are racing to develop domestic alternatives, with China’s capital markets now underlining their strategic importance by providing much-needed funding. (With inputs from the agencies)

Chinese AI chipmakers Moore Threads and MetaX aim to raise $1.65 billion via Shanghai IPOs, leveraging US export curbs to boost demand for local GPU alternatives.

China’s AI chip firms eye $1.7 billion in IPOs amid US curbs

China has expanded the amount of money its approved institutional investors can deploy in foreign markets, marking the end of a 13-month freeze on new quotas. The move is seen as a signal that Beijing is gradually easing its tight grip on capital outflows as pressure on the yuan eases and domestic investment opportunities improve.<h2>Quota increase ends 13-month pause</h2>According to Bloomberg, the State Administration of Foreign Exchange (SAFE) raised the foreign-exchange quota for the Qualified Domestic Institutional Investor (QDII) scheme to US$170.9 billion at the end of June, up from US$167.8 billion previously.&nbsp;It is the first increase since May 2023, when authorities paused new quota allocations to stem capital flight during a period of severe downward pressure on the yuan and turmoil in China’s domestic markets.<h2>Easing currency pressures support the move</h2>Analysts suggest Beijing is more comfortable loosening controls now because depreciation pressure on the yuan has receded. The US dollar has weakened sharply in 2025, making outflows less of a threat to currency stability.&nbsp;Demand from Chinese investors for foreign assets, especially US stocks, has also cooled. The shift comes as Beijing’s stepped-up economic stimulus and a technology-driven rally in Hong Kong stocks have created fresh opportunities at home.<h2>More headroom for global investments</h2>The QDII programme allows qualified local institutional investors to buy overseas securities, bonds, and commodities within strict limits. The latest quota expansion gives Chinese firms greater flexibility to diversify portfolios and meet client demand for foreign assets.&nbsp;According to Bloomberg data, the increase breaks down as follows:<ul><li>US$2.1 billion in new quota for securities firms and fund houses</li><li>US$660 million for banks</li><li>US$300 million for insurance companies</li></ul><h2>ETF premiums cool as supply rises</h2>Demand for foreign assets has been so strong over the past two years that it pushed up prices of certain exchange-traded funds (ETFs) tracking international indices like the S&amp;P 500.&nbsp;Bloomberg reported that premiums on such ETFs averaged just 0.3 per cent on Monday, compared with a 52-week average of 1.6 per cent. Last year, premiums had spiked as high as 3 per cent, triggering trading halts and restrictions on new purchases.&nbsp;The added quota is expected to help smooth these market distortions by providing more supply to meet demand.<h2>Domestic markets show signs of revival</h2>Investor appetite for foreign assets has eased in part because of a turnaround in local markets. A rally driven by China’s Deepseek artificial-intelligence app, combined with stronger Hong Kong equities, has drawn money back onshore.&nbsp;Beijing’s economic stimulus measures have also boosted confidence in local equities, offering institutional investors more reasons to keep capital at home even as they gain new flexibility to look abroad.&nbsp;(With inputs from the agencies)

Beijing boosts outbound investment quotas under the QDII scheme to $170.9B, signaling looser capital controls amid a stabilising yuan and rising investor interest in domestic equities.

China has expanded the amount of money its approved institutional investors can deploy in foreign markets, marking the end of a 13-month freeze on new quotas. The move is seen as a signal that Beijing is gradually easing its tight grip on capital outflows as pressure on the yuan eases and domestic investment opportunities improve. Quota increase ends 13-month pause According to Bloomberg, the State Administration of Foreign Exchange (SAFE) raised the foreign-exchange quota for the Qualified Domestic Institutional Investor (QDII) scheme to US$170.9 billion at the end of June, up from US$167.8 billion previously. It is the first increase since May 2023, when authorities paused new quota allocations to stem capital flight during a period of severe downward pressure on the yuan and turmoil in China’s domestic markets. Easing currency pressures support the move Analysts suggest Beijing is more comfortable loosening controls now because depreciation pressure on the yuan has receded. The US dollar has weakened sharply in 2025, making outflows less of a threat to currency stability. Demand from Chinese investors for foreign assets, especially US stocks, has also cooled. The shift comes as Beijing’s stepped-up economic stimulus and a technology-driven rally in Hong Kong stocks have created fresh opportunities at home. More headroom for global investments The QDII programme allows qualified local institutional investors to buy overseas securities, bonds, and commodities within strict limits. The latest quota expansion gives Chinese firms greater flexibility to diversify portfolios and meet client demand for foreign assets. According to Bloomberg data, the increase breaks down as follows: US$2.1 billion in new quota for securities firms and fund houses US$660 million for banks US$300 million for insurance companies ETF premiums cool as supply rises Demand for foreign assets has been so strong over the past two years that it pushed up prices of certain exchange-traded funds (ETFs) tracking international indices like the S&P 500. Bloomberg reported that premiums on such ETFs averaged just 0.3 per cent on Monday, compared with a 52-week average of 1.6 per cent. Last year, premiums had spiked as high as 3 per cent, triggering trading halts and restrictions on new purchases. The added quota is expected to help smooth these market distortions by providing more supply to meet demand. Domestic markets show signs of revival Investor appetite for foreign assets has eased in part because of a turnaround in local markets. A rally driven by China’s Deepseek artificial-intelligence app, combined with stronger Hong Kong equities, has drawn money back onshore. Beijing’s economic stimulus measures have also boosted confidence in local equities, offering institutional investors more reasons to keep capital at home even as they gain new flexibility to look abroad. (With inputs from the agencies)

China has lifted its 13-month freeze on outbound investment quotas, expanding the QDII limit as yuan pressure eases and domestic markets recover.

China lifts foreign investment cap for first time since 2023

China’s imports of Iranian crude oil surged to record levels in June, as Tehran boosted shipments ahead of the recent conflict with Israel and Chinese independent refiners rushed to lock in discounted barrels amid tightening global supplies. According to data from ship-tracking firms Vortexa and Kpler, China imported an estimated 1.8 million barrels per day (bpd) of Iranian oil between June 1 and June 20. By June 27, the rolling average had eased slightly to 1.46 million bpd, still sharply higher than May’s 1 million bpd. The surge followed a spike in Iranian loadings in May, which rose to 1.83 million bpd, the highest level in several years.&nbsp;These volumes were driven by Iran’s effort to expedite exports in anticipation of further escalation in its conflict with Israel and possible disruptions in the Strait of Hormuz. Most of the crude was absorbed by China’s so-called “teapot” refineries, smaller independent operators with growing demand and declining inventories ahead of the peak summer consumption season.&nbsp;Iran’s exports peaked at 2.2 million bpd in mid-June but tapered off to 1.5 million bpd in the latter half of the month, following Israeli airstrikes on June 13. Analysts at Petro-Logistics confirmed a notable decline in loadings after the attacks, suggesting short-term supply volatility from OPEC’s third-largest producer could tighten global oil markets.&nbsp;<h2>Sanctions confusion and US signals shift in strategy</h2>&nbsp;The jump in Iranian shipments also coincides with mounting speculation over a potential easing of US sanctions. President Donald Trump, who had reinstated his “maximum pressure” policy earlier this year, said last week, “China can now continue to purchase oil from Iran. Hopefully, they will be purchasing plenty from the US, also.” The statement sparked confusion about whether Washington is softening enforcement.&nbsp;While the White House later clarified that sanctions remain in place, Trump’s comments were widely interpreted as an attempt to leverage China’s energy needs into broader trade concessions. Meanwhile, reports indicate the US is offering Iran a potential $30 billion package in nuclear energy development and sanctions relief in exchange for halting uranium enrichment, an offer Tehran has not accepted.&nbsp;<h2>Oil prices retreat as geopolitical premium fades</h2>&nbsp;Amid easing West Asian tensions, an increase in Iranian oil flows and ongoing OPEC+ production hikes, oil prices declined on June 30. Brent crude futures dropped 66 cents, or 0.97 per cent, to $67.11 per barrel ahead of the August contract expiry. The more active September contract slipped to $65.97. West Texas Intermediate (WTI) fell by 94 cents to $64.58 per barrel.&nbsp;Analysts attributed the dip to the market pricing out the geopolitical risk premium that had briefly pushed Brent above $80 during the 12-day Iran-Israel war. A ceasefire announced by Trump helped cool the market, while news that OPEC+ is preparing a fifth consecutive production increase—adding another 411,000 bpd in August—has further weighed on sentiment. Still, oil benchmarks are expected to post their second consecutive monthly gain of over 5 per cent, reflecting lingering tightness in global supply despite the short-term correction.

Teapot refineries in China drive the oil demand as Iran front-loads shipments in June as fear of war loom. Trump’s mixed signals on sanctions stir market confusion.

China’s imports of Iranian crude oil surged to record levels in June, as Tehran boosted shipments ahead of the recent conflict with Israel and Chinese independent refiners rushed to lock in discounted barrels amid tightening global supplies. According to data from ship-tracking firms Vortexa and Kpler, China imported an estimated 1.8 million barrels per day (bpd) of Iranian oil between June 1 and June 20. By June 27, the rolling average had eased slightly to 1.46 million bpd, still sharply higher than May’s 1 million bpd. The surge followed a spike in Iranian loadings in May, which rose to 1.83 million bpd, the highest level in several years. These volumes were driven by Iran’s effort to expedite exports in anticipation of further escalation in its conflict with Israel and possible disruptions in the Strait of Hormuz. Most of the crude was absorbed by China’s so-called “teapot” refineries, smaller independent operators with growing demand and declining inventories ahead of the peak summer consumption season. Iran’s exports peaked at 2.2 million bpd in mid-June but tapered off to 1.5 million bpd in the latter half of the month, following Israeli airstrikes on June 13. Analysts at Petro-Logistics confirmed a notable decline in loadings after the attacks, suggesting short-term supply volatility from OPEC’s third-largest producer could tighten global oil markets. Sanctions confusion and US signals shift in strategy The jump in Iranian shipments also coincides with mounting speculation over a potential easing of US sanctions. President Donald Trump, who had reinstated his “maximum pressure” policy earlier this year, said last week, “China can now continue to purchase oil from Iran. Hopefully, they will be purchasing plenty from the US, also.” The statement sparked confusion about whether Washington is softening enforcement. While the White House later clarified that sanctions remain in place, Trump’s comments were widely interpreted as an attempt to leverage China’s energy needs into broader trade concessions. Meanwhile, reports indicate the US is offering Iran a potential $30 billion package in nuclear energy development and sanctions relief in exchange for halting uranium enrichment, an offer Tehran has not accepted. Oil prices retreat as geopolitical premium fades Amid easing West Asian tensions, an increase in Iranian oil flows and ongoing OPEC+ production hikes, oil prices declined on June 30. Brent crude futures dropped 66 cents, or 0.97 per cent, to $67.11 per barrel ahead of the August contract expiry. The more active September contract slipped to $65.97. West Texas Intermediate (WTI) fell by 94 cents to $64.58 per barrel. Analysts attributed the dip to the market pricing out the geopolitical risk premium that had briefly pushed Brent above $80 during the 12-day Iran-Israel war. A ceasefire announced by Trump helped cool the market, while news that OPEC+ is preparing a fifth consecutive production increase—adding another 411,000 bpd in August—has further weighed on sentiment. Still, oil benchmarks are expected to post their second consecutive monthly gain of over 5 per cent, reflecting lingering tightness in global supply despite the short-term correction.

Teapot refineries in China drive the oil demand as Iran front-loads shipments in June as fear of war loom. Trump’s mixed signals on sanctions stir market confusion.

China's Iranian oil imports hit record high amid signs of sanctions shift

China’s manufacturing activity shrank for the third straight month in June, even as official data showed slight improvement from the previous month, highlighting the continued strain on the world’s second-largest economy amid fragile demand, persistent deflation, and the lingering effects of a trade war with the United States. The official manufacturing Purchasing Managers’ Index (PMI), released by the National Bureau of Statistics (NBS) on June 30, edged up to 49.7 in June from 49.5 in May. While this month’s reading exceeds that of May, it remained below the 50-point threshold that separates expansion from contraction.The sub-index for production improved to 51, signalling a modest pickup in factory output, and new orders rose to 50.2, indicating slight growth in domestic demand. However, employment and inventory levels continued to fall, both remaining firmly in contraction territory at 47.9 and 48, respectively.<h2>Trade ceasefire offers temporary relief</h2>The marginal rebound comes on the heels of a tentative trade truce reached between Beijing and Washington in May, following months of rising tariffs that hit Chinese exporters hard. Shipments to the US plunged 34.5 per cent year-on-year in May and over 21 per cent in April before the agreement eased some pressure. New export orders rose to 47.5 in June from 44.7 in May, suggesting that US demand may be gradually recovering. Still, the export index remains well below the neutral 50 mark, underscoring the fragility of external demand.A separate deal announced on June 27 between the US and China to advance details of their framework agreement was welcomed by markets, though economists warned the lack of specificity raises questions about implementation, especially in sensitive sectors like rare earth exports.Meanwhile, Premier Li Qiang reiterated last week that Beijing is pushing forward with a long-term transition from a manufacturing-led to a consumption-driven economy. But analysts say the transformation will take years and could dampen growth in the short term.<h2>Non-manufacturing sectors provide some lift</h2>China’s non-manufacturing PMI, which includes services and construction, rose to 50.5 in June from 50.3 in May, supported by a surge in construction activity (52.8) as infrastructure investment continued. Services, however, showed signs of stagnation, with that sub-index slipping to 50.1.Despite the modest uptick in activity, China’s economy continues to battle deflationary pressures. Consumer prices fell 0.1 per cent in May, while producer prices saw their sharpest decline since July 2023. Industrial profits plummeted 9.1 per cent year-on-year in May, the biggest drop in seven months.Economists are now calling for more targeted fiscal stimulus, including consumer vouchers and expanded trade-in schemes for appliances and automobiles, to support domestic demand.A private-sector survey by Caixin and S&amp;P Global, set to be released July 1, is expected to show a slight improvement in sentiment among smaller manufacturers, though still in contraction at 49.0.

Modest improvement in China’s PMI offers hope, but export weakness and deflation persist and Beijing faces growing pressure to bolster domestic demand and stabilise industrial sector.

China’s manufacturing activity shrank for the third straight month in June, even as official data showed slight improvement from the previous month, highlighting the continued strain on the world’s second-largest economy amid fragile demand, persistent deflation, and the lingering effects of a trade war with the United States. The official manufacturing Purchasing Managers’ Index (PMI), released by the National Bureau of Statistics (NBS) on June 30, edged up to 49.7 in June from 49.5 in May. While this month’s reading exceeds that of May, it remained below the 50-point threshold that separates expansion from contraction. The sub-index for production improved to 51, signalling a modest pickup in factory output, and new orders rose to 50.2, indicating slight growth in domestic demand. However, employment and inventory levels continued to fall, both remaining firmly in contraction territory at 47.9 and 48, respectively. Trade ceasefire offers temporary relief The marginal rebound comes on the heels of a tentative trade truce reached between Beijing and Washington in May, following months of rising tariffs that hit Chinese exporters hard. Shipments to the US plunged 34.5 per cent year-on-year in May and over 21 per cent in April before the agreement eased some pressure. New export orders rose to 47.5 in June from 44.7 in May, suggesting that US demand may be gradually recovering. Still, the export index remains well below the neutral 50 mark, underscoring the fragility of external demand. A separate deal announced on June 27 between the US and China to advance details of their framework agreement was welcomed by markets, though economists warned the lack of specificity raises questions about implementation, especially in sensitive sectors like rare earth exports. Meanwhile, Premier Li Qiang reiterated last week that Beijing is pushing forward with a long-term transition from a manufacturing-led to a consumption-driven economy. But analysts say the transformation will take years and could dampen growth in the short term. Non-manufacturing sectors provide some lift China’s non-manufacturing PMI, which includes services and construction, rose to 50.5 in June from 50.3 in May, supported by a surge in construction activity (52.8) as infrastructure investment continued. Services, however, showed signs of stagnation, with that sub-index slipping to 50.1. Despite the modest uptick in activity, China’s economy continues to battle deflationary pressures. Consumer prices fell 0.1 per cent in May, while producer prices saw their sharpest decline since July 2023. Industrial profits plummeted 9.1 per cent year-on-year in May, the biggest drop in seven months. Economists are now calling for more targeted fiscal stimulus, including consumer vouchers and expanded trade-in schemes for appliances and automobiles, to support domestic demand. A private-sector survey by Caixin and S&P Global, set to be released July 1, is expected to show a slight improvement in sentiment among smaller manufacturers, though still in contraction at 49.0.

Modest improvement in China’s PMI offers hope, but export weakness and deflation persist and Beijing faces growing pressure to bolster domestic demand and stabilise industrial sector.

China’s manufacturing contracts for third straight month despite trade truce and stimulus push

China today announced it had “confirmed details” of a trade deal with the United States, signalling a potential pause in months of spiralling tariffs, export controls and diplomatic recriminations.&nbsp;Beijing’s Commerce Ministry said on 27 June that both sides had agreed to lift certain “restrictive measures” while China would “review and approve” controlled export items. “It is hoped that the United States and China will meet each other halfway,” the ministry added, calling for “healthy, stable and sustainable development” of trade ties. This statement followed US President Donald Trump’s reveal at the White House on 26 June, where he declared the deal “done”—though neither side released full details, and the White House described negotiations as “ongoing but constructive.” Markets rose on hopes the worst escalation could be avoided.&nbsp;Below is a detailed timeline of the 2025 trade conflict, showing how the world’s two largest economies veered toward a damaging trade war before scrambling for a deal.<h2>February–March 2025: Trump revives tariff threats</h2>6 February 2025: At a rally speech, President Trump vowed “across-the-board” 60 per cent tariffs on all Chinese imports if talks failed. As per Reuters, he accused Beijing of “decades of cheating” and promised to restore US manufacturing.&nbsp;14 February 2025: The Office of the US Trade Representative (USTR) launched a formal review of Section 301 tariffs, aiming to hike rates on key consumer goods like electronics and toys by mid-year, as per Bloomberg.&nbsp;20 February 2025: China’s Ministry of Commerce warned of “strong countermeasures,” signalling it could target US agricultural exports or impose licensing restrictions on critical minerals.&nbsp;2 March 2025: Trump reiterated the tariff plan at CPAC, saying “China will pay” and promising final action by summer, as per Time Magazine.<h2>April 2025: Tech war and tariff escalation</h2>2 April 2025: Trump formally imposed a blanket 10 per cent tariff on all Chinese imports, scrapping the de minimis exemption for small parcels, arguing e-commerce routes were used to funnel fentanyl into the US, as per Reuters.&nbsp;4 April 2025: The US expanded export controls on Chinese AI chip firms, closing licensing “loopholes” for Nvidia’s advanced accelerators&nbsp;&nbsp;4 April 2025: China retaliated with 34 per cent duties and imposed export restrictions on rare earth minerals essential for electronics, EVs, and defence. As per Reuters, these moves threatened to choke US tech and defence supply chains.&nbsp;9 April 2025: Trump dramatically escalated tariffs to 145 per cent on Chinese imports, branding it “Liberation Day” in a proclamation meant to signal economic independence.&nbsp;10 April 2025: China filed a formal WTO complaint, accusing Washington of “economic coercion” and “unilateral bullying," as per Reuters.&nbsp;19 April 2025: Bloomberg reported the US prepared even tighter controls on lithography tools and chipmaking software.&nbsp;23 April 2025: China announced expanded export licensing rules on gallium and germanium products, slowing global supply chains, as per Reuters.<h2>May 2025: A fragile Geneva truce, then new clashes</h2>12 May 2025: At WTO-brokered talks in Geneva, both sides agreed to lower tariffs temporarily (US to 30 per cent, China to 10 per cent) in a fragile 90-day truce.But tensions soon resurfaced:&nbsp;29 May 2025: The US imposed new export curbs on AI chips, semiconductor design software, and specialty chemicals, citing national security risks.&nbsp;&nbsp;30 May 2025: Trump accused China of breaching the Geneva truce and threatened further escalation.<h2>June 2025: Threats, negotiations, and a partial deal</h2>2 June 2025: Beijing dismissed Trump’s claims as “groundless” and vowed “forceful countermeasures,” with Reuters reporting fears of a new tariff wave.&nbsp;3 June 2025: US Treasury Secretary met China’s Vice Premier in Singapore to “restart communication channels,” but talks ended with both sides restating hardline positions, as per Reuters.&nbsp;9–10 June 2025: High-level US and Chinese negotiators held marathon talks in London aiming to finalise the Geneva framework. According to Reuters, officials described the sessions as “putting meat on the bones” of the May truce, trying to lock in details on tariff reductions, tech restrictions, and rare earth shipments.&nbsp;10 June 2025: The US Commerce Department blacklisted two more Chinese AI firms for alleged military links. China condemned the move as “illegal sanctions," as per Bloomberg.&nbsp;11 June 2025: Following the London talks, Trump said that the US had secured concessions on rare earth exports and other sticking points. As quoted by CNBC, he told the audience: “We made a great deal with China. We’re very happy with it. And hopefully they are too.”&nbsp;17 June 2025: Chinese state media reported “progress” in backchannel discussions. The US refused to confirm any deal, underscoring deep mistrust.&nbsp;20 June 2025: Reuters reported Trump advisors were weighing delaying the 60 per cent tariff implementation by one month to allow “final deal talks.”<h2>26–27 June 2025: Two announcements, no full details</h2>26 June 2025: Trump declared at the White House that the deal was “done,” saying the US had secured partial tariff rollbacks, Chinese pledges to buy American farm goods, and promises to ease certain tech curbs. However, no full text was released, and the White House described negotiations as “ongoing but constructive", as per Reuters.&nbsp;27 June 2025: China’s Ministry of Commerce announced it had “confirmed details” of the deal, saying Washington would lift “restrictive measures” while Beijing would “review and approve” export-controlled items. The statement called for “healthy, stable and sustainable development” in China-US economic relations, as per Reuters.<h2>What lies ahead?</h2>Despite these announcements, analysts warn the underlying tensions are far from resolved. Issues such as technology transfer restrictions, intellectual property enforcement, and China’s industrial policy remain persistent sticking points.&nbsp;According to Bloomberg, US manufacturers are accelerating supply chain diversification away from China, while Beijing is pushing its self-reliance strategy. For now, the “confirmed details” of this deal may pause the immediate tariff threats, but the fundamental drivers of the trade war remain in place, promising further rounds of confrontation even if this fragile truce holds.&nbsp;(With inputs from the agencies)&nbsp;

This followed US President Trump declaration of the deal being, although full details were not disclosed, with negotiations described as ongoing. 

China today announced it had “confirmed details” of a trade deal with the United States, signalling a potential pause in months of spiralling tariffs, export controls and diplomatic recriminations. Beijing’s Commerce Ministry said on 27 June that both sides had agreed to lift certain “restrictive measures” while China would “review and approve” controlled export items. “It is hoped that the United States and China will meet each other halfway,” the ministry added, calling for “healthy, stable and sustainable development” of trade ties. This statement followed US President Donald Trump’s reveal at the White House on 26 June, where he declared the deal “done”—though neither side released full details, and the White House described negotiations as “ongoing but constructive.” Markets rose on hopes the worst escalation could be avoided. Below is a detailed timeline of the 2025 trade conflict, showing how the world’s two largest economies veered toward a damaging trade war before scrambling for a deal. February–March 2025: Trump revives tariff threats 6 February 2025: At a rally speech, President Trump vowed “across-the-board” 60 per cent tariffs on all Chinese imports if talks failed. As per Reuters, he accused Beijing of “decades of cheating” and promised to restore US manufacturing. 14 February 2025: The Office of the US Trade Representative (USTR) launched a formal review of Section 301 tariffs, aiming to hike rates on key consumer goods like electronics and toys by mid-year, as per Bloomberg. 20 February 2025: China’s Ministry of Commerce warned of “strong countermeasures,” signalling it could target US agricultural exports or impose licensing restrictions on critical minerals. 2 March 2025: Trump reiterated the tariff plan at CPAC, saying “China will pay” and promising final action by summer, as per Time Magazine. April 2025: Tech war and tariff escalation 2 April 2025: Trump formally imposed a blanket 10 per cent tariff on all Chinese imports, scrapping the de minimis exemption for small parcels, arguing e-commerce routes were used to funnel fentanyl into the US, as per Reuters. 4 April 2025: The US expanded export controls on Chinese AI chip firms, closing licensing “loopholes” for Nvidia’s advanced accelerators 4 April 2025: China retaliated with 34 per cent duties and imposed export restrictions on rare earth minerals essential for electronics, EVs, and defence. As per Reuters, these moves threatened to choke US tech and defence supply chains. 9 April 2025: Trump dramatically escalated tariffs to 145 per cent on Chinese imports, branding it “Liberation Day” in a proclamation meant to signal economic independence. 10 April 2025: China filed a formal WTO complaint, accusing Washington of “economic coercion” and “unilateral bullying," as per Reuters. 19 April 2025: Bloomberg reported the US prepared even tighter controls on lithography tools and chipmaking software. 23 April 2025: China announced expanded export licensing rules on gallium and germanium products, slowing global supply chains, as per Reuters. May 2025: A fragile Geneva truce, then new clashes 12 May 2025: At WTO-brokered talks in Geneva, both sides agreed to lower tariffs temporarily (US to 30 per cent, China to 10 per cent) in a fragile 90-day truce. But tensions soon resurfaced: 29 May 2025: The US imposed new export curbs on AI chips, semiconductor design software, and specialty chemicals, citing national security risks. 30 May 2025: Trump accused China of breaching the Geneva truce and threatened further escalation. June 2025: Threats, negotiations, and a partial deal 2 June 2025: Beijing dismissed Trump’s claims as “groundless” and vowed “forceful countermeasures,” with Reuters reporting fears of a new tariff wave. 3 June 2025: US Treasury Secretary met China’s Vice Premier in Singapore to “restart communication channels,” but talks ended with both sides restating hardline positions, as per Reuters. 9–10 June 2025: High-level US and Chinese negotiators held marathon talks in London aiming to finalise the Geneva framework. According to Reuters, officials described the sessions as “putting meat on the bones” of the May truce, trying to lock in details on tariff reductions, tech restrictions, and rare earth shipments. 10 June 2025: The US Commerce Department blacklisted two more Chinese AI firms for alleged military links. China condemned the move as “illegal sanctions," as per Bloomberg. 11 June 2025: Following the London talks, Trump said that the US had secured concessions on rare earth exports and other sticking points. As quoted by CNBC, he told the audience: “We made a great deal with China. We’re very happy with it. And hopefully they are too.” 17 June 2025: Chinese state media reported “progress” in backchannel discussions. The US refused to confirm any deal, underscoring deep mistrust. 20 June 2025: Reuters reported Trump advisors were weighing delaying the 60 per cent tariff implementation by one month to allow “final deal talks.” 26–27 June 2025: Two announcements, no full details 26 June 2025: Trump declared at the White House that the deal was “done,” saying the US had secured partial tariff rollbacks, Chinese pledges to buy American farm goods, and promises to ease certain tech curbs. However, no full text was released, and the White House described negotiations as “ongoing but constructive", as per Reuters. 27 June 2025: China’s Ministry of Commerce announced it had “confirmed details” of the deal, saying Washington would lift “restrictive measures” while Beijing would “review and approve” export-controlled items. The statement called for “healthy, stable and sustainable development” in China-US economic relations, as per Reuters. What lies ahead? Despite these announcements, analysts warn the underlying tensions are far from resolved. Issues such as technology transfer restrictions, intellectual property enforcement, and China’s industrial policy remain persistent sticking points. According to Bloomberg, US manufacturers are accelerating supply chain diversification away from China, while Beijing is pushing its self-reliance strategy. For now, the “confirmed details” of this deal may pause the immediate tariff threats, but the fundamental drivers of the trade war remain in place, promising further rounds of confrontation even if this fragile truce holds. (With inputs from the agencies)

China announced confirmation of a trade deal with the US, suggesting a potential pause in escalating tariffs and controls.

China ‘confirms details’ of trade deal with United States: A timeline of 2025 tensions and talks

American mathematician Joshua Zahl, who recently solved a 100-year-old math problem, has packed his bags and is set to leave Canada’s University of British Columbia (UBC). His breakthrough in the three-dimensional Kakeya conjecture attracted attention worldwide, and universities across the world started vying to get him on board. A Chinese university has won the race as Zahl is taking up a full-time position at Nankai University’s Chern Institute of Mathematics (CIM). He will be a chair professor at the university, according to the Chinese educational institution’s website.The note on the website further states that Zahl met Chen Yulu, president of Nankai University. There, he praised CIM’s intense academic atmosphere and excellent research team, and called it an ideal research platform, according to the website article. He is the third internationally renowned mathematician to be offered a full-time position at the university in recent months, according to SCMP. The CIM is named after its founder, renowned Chinese mathematician SS Chern, who established the institute in 1985.&nbsp;Also Read: <a href="https://www.wionews.com/world/iran-underground-nuclear-sites-high-strength-concrete-scientists-say-mother-of-all-bombs-cannot-break-it-1750843963153">Is Iran's concrete unbreakable? Scientists believe even 'mother of all bombs' cannot shatter it</a>&nbsp;Zahl worked with Wang Hong from New York University to solve the math problem, posting the solution in a 127-page preprint paper on the open-access repository arXiv in February. Mathematicians across the world have been working on the Kakeya problem. Zahl's doctoral mentor, &nbsp;UCLA mathematician Terence Tao, is one of them and immediately hailed Zahl's achievement. He confirmed in his blog the next day that Zahl and Wang had made "some spectacular progress in geometric measure theory" and had resolved “the three-dimensional case of the infamous Kakeya set conjecture”.“It’s like perfecting a perpetual-motion machine. It’s magical; they are getting more out of the output than they put in. Their approach proves the three-dimensional Kakeya conjecture,” Tao wrote. Notably, Tao published his ideas on the conjecture in 2014 on his blog, and this acted as a foundation for Zahl and Wang’s work.&nbsp;Also Read: <a href="https://www.wionews.com/science-tech/centuries-old-algebra-conundrum-solved-by-getting-rid-of-a-pesky-detail-9024852">Polynomials to the fifth degree? No problem! Mathematician presents simple solution</a>&nbsp;<h2>Zahl's work on the Kakeya conjecture</h2>&nbsp;Zahl and Wang's collaboration spans years and they decided to work on the Kakeya conjecture. The solution provided by them runs multiple pages. They have proved the Kakeya conjecture in three articles they call a trilogy, where the solution gradually unravels. The first paper, titled “Sticky Kakeya Sets and the Sticky Kakeya Conjecture”, was published in 2022. Zahl and Wang proved the absence of sticky counterexamples to the Kakeya conjecture, strongly supporting its validity.The second article was published online in 2024 and then in the April 29 print edition of the top mathematics journal Inventiones Mathematicae this year. Both Zahl and Wang are up for the Fields Medal in 2026, also known as the Nobel Prize of mathematics. It is given every four years to up to four mathematicians under the age of 40. Zahl would also give a 45-minute presentation here at the International Congress of Mathematicians (ICM) in Philadelphia.

Mathematician Joshua Zahl made headlines for solving the 100-year-old math problem Kakeya conjecture. He is now leaving Canada’s University of British Columbia and moving to China. Here is why.

American mathematician Joshua Zahl, who recently solved a 100-year-old math problem, has packed his bags and is set to leave Canada’s University of British Columbia (UBC). His breakthrough in the three-dimensional Kakeya conjecture attracted attention worldwide, and universities across the world started vying to get him on board. A Chinese university has won the race as Zahl is taking up a full-time position at Nankai University’s Chern Institute of Mathematics (CIM). He will be a chair professor at the university, according to the Chinese educational institution’s website. The note on the website further states that Zahl met Chen Yulu, president of Nankai University. There, he praised CIM’s intense academic atmosphere and excellent research team, and called it an ideal research platform, according to the website article. He is the third internationally renowned mathematician to be offered a full-time position at the university in recent months, according to SCMP. The CIM is named after its founder, renowned Chinese mathematician SS Chern, who established the institute in 1985. Also Read: Is Iran's concrete unbreakable? Scientists believe even 'mother of all bombs' cannot shatter it Zahl worked with Wang Hong from New York University to solve the math problem, posting the solution in a 127-page preprint paper on the open-access repository arXiv in February. Mathematicians across the world have been working on the Kakeya problem. Zahl's doctoral mentor, UCLA mathematician Terence Tao, is one of them and immediately hailed Zahl's achievement. He confirmed in his blog the next day that Zahl and Wang had made "some spectacular progress in geometric measure theory" and had resolved “the three-dimensional case of the infamous Kakeya set conjecture”. “It’s like perfecting a perpetual-motion machine. It’s magical; they are getting more out of the output than they put in. Their approach proves the three-dimensional Kakeya conjecture,” Tao wrote. Notably, Tao published his ideas on the conjecture in 2014 on his blog, and this acted as a foundation for Zahl and Wang’s work. Also Read: Polynomials to the fifth degree? No problem! Mathematician presents simple solution Zahl's work on the Kakeya conjecture Zahl and Wang's collaboration spans years and they decided to work on the Kakeya conjecture. The solution provided by them runs multiple pages. They have proved the Kakeya conjecture in three articles they call a trilogy, where the solution gradually unravels. The first paper, titled “Sticky Kakeya Sets and the Sticky Kakeya Conjecture”, was published in 2022. Zahl and Wang proved the absence of sticky counterexamples to the Kakeya conjecture, strongly supporting its validity. The second article was published online in 2024 and then in the April 29 print edition of the top mathematics journal Inventiones Mathematicae this year. Both Zahl and Wang are up for the Fields Medal in 2026, also known as the Nobel Prize of mathematics. It is given every four years to up to four mathematicians under the age of 40. Zahl would also give a 45-minute presentation here at the International Congress of Mathematicians (ICM) in Philadelphia.

Mathematician Joshua Zahl made headlines for solving the 100-year-old math problem Kakeya conjecture. He is now leaving Canada’s University of British Columbia and moving to China. Here is why.

Mathematician who solved the 100-year-old Kakeya conjecture is moving to China. Here's why

China’s increasing use of collateral to secure loans to emerging economies is eroding these countries’ ability to control their public finances, according to a new international study. By tying loans to revenues from commodities like oil and copper, and locking funds in offshore escrow accounts, Beijing has created what researchers call a “ring-fencing” mechanism, one that restricts debtor governments’ fiscal freedom for years.&nbsp;The study, published on Thursday by researchers from AidData, the Kiel Institute, and Georgetown University, reviewed over 900 publicly guaranteed loans extended by Chinese state-owned entities between 2000 and 2021. Of these, nearly half worth US $418 billion, were found to be collateralised, largely targeting low-income and resource-rich nations.<h2>How does collateralised lending work?</h2>Unlike typical sovereign loans, China’s collateralised lending structure uses commodity export revenues, such as oil, gas, or minerals, as guarantees. In many cases, borrower countries are required to deposit the proceeds from these exports into escrow accounts located in China, controlled directly by the lenders.&nbsp;“Some of these revenues remain offshore beyond the control of the borrowing government for many years,” the report noted, adding that the lack of access or transparency “compromises debtor governments’ ability to monitor and steer their fiscal affairs,” as quoted by Reuters.The practice is prevalent in China’s lending to countries across Africa, Asia, Latin America, and the Middle East, particularly in those facing economic distress or weak governance.<h2>The numbers behind the debt trap</h2>Between 2000 and 2021, China’s lending to the developing world surged dramatically, both in volume and in complexity. The bar graph below, sourced from AidData, shows how collateralised lending (orange bars) surged after the 2008 financial crisis and peaked again in 2014–2016, accounting for the majority of total lending in those years.<figure class="table"><table><tbody><tr><td>Year</td><td>Collateralised Loans (US$ bn)</td><td>Uncollateralised Loans (US$ bn)</td></tr><tr><td>2000</td><td>~1</td><td>~1</td></tr><tr><td>2005</td><td>~12</td><td>~9</td></tr><tr><td>2010</td><td>~70</td><td>~30</td></tr><tr><td>2014</td><td>~55</td><td>~25</td></tr><tr><td>2016</td><td>~50</td><td>~30</td></tr><tr><td>2020</td><td>~10</td><td>~15</td></tr></tbody></table></figure>Source: AidData / HCC; Graphic: Karin Strohecker via Reuters(All figures in constant 2021 US dollars) Notably, the average collateralised loan locks up over 20 per cent of a country’s annual external debt repayments, restricting budgetary resources and access to alternative credit, as per the study.<h2>Fiscal control versus Chinese leverage</h2>According to Brad Parks, Executive Director of AidData, the report highlights a “previously undocumented pattern of revenue ring-fencing,” in which Chinese lenders gain first claim on national income streams, often at the expense of domestic public spending or creditor negotiations.&nbsp;In countries that later required debt restructuring, such as Zambia and Sri Lanka, China’s collateralised terms further complicated multilateral relief efforts, as Chinese banks refused to write down secured portions of the debt, as noted in the IMF-World Bank joint paper in 2023.<h2>IMF, World Bank raise the red flag</h2>Global financial institutions have expressed growing alarm. A 2023 paper by the IMF and World Bank warned that China’s practice increases the risk of over-borrowing, crowds out other unsecured creditors, and makes debt distress more likely, especially during commodity price shocks or political instability.&nbsp;“The collateral mechanism may appear commercially rational from a lender’s perspective, but it severely constrains sovereign fiscal space,” said one IMF official, as quoted by Reuters.<h2>A broader pattern of financial dominance</h2>This lending strategy is part of China’s broader transformation into a global creditor. According to the Financial Times, Beijing extended over US $1.34 trillion in overseas credit during 2000–2021, with a growing share dedicated to critical mineral extraction, infrastructure-for-resources deals, and bailout-style rescue loans to countries facing economic collapse.&nbsp;In fact, China provided US $240 billion in rescue financing to 22 countries between 2008 and 2021, positioning itself as a parallel lender of last resort to the IMF, albeit on very different terms.For emerging economies desperate for infrastructure and liquidity, China’s cash may offer a lifeline, but at a cost. The use of commodity-backed, collateralised loans gives Beijing preferential repayment rights and direct control over a borrower’s key revenue streams, often outside the purview of national parliaments or the public.&nbsp;With nearly half of China’s overseas loans now collateralised, and the debt burdens of many developing nations mounting, the study paints a troubling picture: a global financial system in which fiscal sovereignty is being steadily traded for short-term liquidity on China’s terms.&nbsp;(With inputs from the agencies) &nbsp;

By tying loans to oil, copper and other exports, China is locking key revenues offshore and tightening financial grip on low income, resource rich economies.

China’s increasing use of collateral to secure loans to emerging economies is eroding these countries’ ability to control their public finances, according to a new international study. By tying loans to revenues from commodities like oil and copper, and locking funds in offshore escrow accounts, Beijing has created what researchers call a “ring-fencing” mechanism, one that restricts debtor governments’ fiscal freedom for years. The study, published on Thursday by researchers from AidData, the Kiel Institute, and Georgetown University, reviewed over 900 publicly guaranteed loans extended by Chinese state-owned entities between 2000 and 2021. Of these, nearly half worth US $418 billion, were found to be collateralised, largely targeting low-income and resource-rich nations. How does collateralised lending work? Unlike typical sovereign loans, China’s collateralised lending structure uses commodity export revenues, such as oil, gas, or minerals, as guarantees. In many cases, borrower countries are required to deposit the proceeds from these exports into escrow accounts located in China, controlled directly by the lenders. “Some of these revenues remain offshore beyond the control of the borrowing government for many years,” the report noted, adding that the lack of access or transparency “compromises debtor governments’ ability to monitor and steer their fiscal affairs,” as quoted by Reuters. The practice is prevalent in China’s lending to countries across Africa, Asia, Latin America, and the Middle East, particularly in those facing economic distress or weak governance. The numbers behind the debt trap Between 2000 and 2021, China’s lending to the developing world surged dramatically, both in volume and in complexity. The bar graph below, sourced from AidData, shows how collateralised lending (orange bars) surged after the 2008 financial crisis and peaked again in 2014–2016, accounting for the majority of total lending in those years. Year Collateralised Loans (US$ bn) Uncollateralised Loans (US$ bn) 2000 ~1 ~1 2005 ~12 ~9 2010 ~70 ~30 2014 ~55 ~25 2016 ~50 ~30 2020 ~10 ~15 Source: AidData / HCC; Graphic: Karin Strohecker via Reuters (All figures in constant 2021 US dollars) Notably, the average collateralised loan locks up over 20 per cent of a country’s annual external debt repayments, restricting budgetary resources and access to alternative credit, as per the study. Fiscal control versus Chinese leverage According to Brad Parks, Executive Director of AidData, the report highlights a “previously undocumented pattern of revenue ring-fencing,” in which Chinese lenders gain first claim on national income streams, often at the expense of domestic public spending or creditor negotiations. In countries that later required debt restructuring, such as Zambia and Sri Lanka, China’s collateralised terms further complicated multilateral relief efforts, as Chinese banks refused to write down secured portions of the debt, as noted in the IMF-World Bank joint paper in 2023. IMF, World Bank raise the red flag Global financial institutions have expressed growing alarm. A 2023 paper by the IMF and World Bank warned that China’s practice increases the risk of over-borrowing, crowds out other unsecured creditors, and makes debt distress more likely, especially during commodity price shocks or political instability. “The collateral mechanism may appear commercially rational from a lender’s perspective, but it severely constrains sovereign fiscal space,” said one IMF official, as quoted by Reuters. A broader pattern of financial dominance This lending strategy is part of China’s broader transformation into a global creditor. According to the Financial Times, Beijing extended over US $1.34 trillion in overseas credit during 2000–2021, with a growing share dedicated to critical mineral extraction, infrastructure-for-resources deals, and bailout-style rescue loans to countries facing economic collapse. In fact, China provided US $240 billion in rescue financing to 22 countries between 2008 and 2021, positioning itself as a parallel lender of last resort to the IMF, albeit on very different terms. For emerging economies desperate for infrastructure and liquidity, China’s cash may offer a lifeline, but at a cost. The use of commodity-backed, collateralised loans gives Beijing preferential repayment rights and direct control over a borrower’s key revenue streams, often outside the purview of national parliaments or the public. With nearly half of China’s overseas loans now collateralised, and the debt burdens of many developing nations mounting, the study paints a troubling picture: a global financial system in which fiscal sovereignty is being steadily traded for short-term liquidity on China’s terms. (With inputs from the agencies)

China’s collateralised loans are eroding fiscal control in developing nations, warns major international study.

China’s collateralised lending traps emerging economies in debt control crisis, says study

At the World Economic Forum’s Summer Davos in Tianjin, Chinese Premier Li Qiang made a bold pitch to global leaders and investors: China will not just remain a manufacturing behemoth—it is on course to become a “mega-sized consumption powerhouse”. His message comes at a time when China’s economy is battling soft consumer sentiment, deflationary trends, and intensifying global trade tensions.As countries shift focus inward and trade frictions multiply, particularly with the US and parts of Europe, Li projected confidence in China’s ability to adapt. “China is positioned to cross cycles, move forward steadily, and inject stability into the world economy,” he said, without directly referencing tariffs or US tech curbs. Instead, he called for economic issues to be kept free from politicisation and reaffirmed China’s openness to global business.Li’s remarks align with Beijing’s broader pivot this year toward stimulating domestic demand as a long-term growth driver. That shift has gained urgency with falling exports, growing protectionism abroad, and weak post-pandemic household spending.<h2>Beijing unleashes financial tools to spur spending</h2>In parallel to Li’s speech, six of China’s top government agencies released a sweeping set of guidelines aimed at using financial tools to unlock consumer demand. The policies focus on improving access to credit, raising incomes, and building confidence across the consumption chain—from manufacturing to services.As part of a broader effort to boost domestic demand, Chinese government agencies jointly announced 19 targeted measures to strengthen financial support for consumption. Some of these measures are that banks will be encouraged to innovate credit products and expand loan access to households and consumer-focused businesses, while financial institutions will be urged to improve their internal systems to deliver more efficient consumer financing. The People’s Bank of China (PBOC) will utilise tools such as relending, rediscounting, and open market operations to lower overall financing costs. Additionally, eligible companies in the consumption sector will be supported in raising capital through initial public offerings (IPOs), bond issuance, exchange-traded funds (ETFs), and real estate investment trusts (REITs).The central bank also unveiled a 500 billion yuan ($69.7 billion) relending facility to support elderly care and services consumption, underscoring efforts to target both demographic and sectoral trends.Meanwhile, a government-subsidised trade-in programme for home appliances and electronics is enjoying robust uptake, with some provinces already exhausting allocated funds. The remaining 138 billion yuan (around $19.2 billion) is now being redistributed to ensure nationwide coverage.<h2>Challenges persist: deflation, caution, and global scepticism</h2>Despite strong retail numbers in May and the government spending hitting a three-year high in the first five months, the road to consumption-led growth won’t be easy. China’s consumer price index has declined year-on-year for four straight months, reflecting persistent deflationary pressure and subdued sentiment. Households remain cautious, particularly in light of a sluggish property market and employment concerns. To counter these issues, the government is allowing local governments to borrow more, while the PBOC has trimmed benchmark interest rates and mortgage rates to ease financial pressure.Trade tensions remain another risk factor. While China and the US reached a fragile tariff truce in May, friction continues over rare earths, semiconductors, and tech access. In Europe, calls for tougher stances on China are growing ahead of a critical July summit.Still, Li expressed optimism that the global economic centre of gravity is shifting toward the Global South, citing rising trade momentum in developing nations. He also highlighted China’s multilateral diplomacy push, pointing to the recent establishment of the International Organization for Mediation in Hong Kong with 32 other countries.China is making a concerted effort to reposition its economy from an export-driven model to one that leans heavily on domestic consumption. While the transformation is far from complete, recent policy moves suggest a high-level commitment to this structural pivot.

As countries shift focus inward and trade frictions multiply, particularly with the US and parts of Europe, Chinese Premier Li Qiang projected confidence in China’s ability to adapt.

At the World Economic Forum’s Summer Davos in Tianjin, Chinese Premier Li Qiang made a bold pitch to global leaders and investors: China will not just remain a manufacturing behemoth—it is on course to become a “mega-sized consumption powerhouse”. His message comes at a time when China’s economy is battling soft consumer sentiment, deflationary trends, and intensifying global trade tensions. As countries shift focus inward and trade frictions multiply, particularly with the US and parts of Europe, Li projected confidence in China’s ability to adapt. “China is positioned to cross cycles, move forward steadily, and inject stability into the world economy,” he said, without directly referencing tariffs or US tech curbs. Instead, he called for economic issues to be kept free from politicisation and reaffirmed China’s openness to global business. Li’s remarks align with Beijing’s broader pivot this year toward stimulating domestic demand as a long-term growth driver. That shift has gained urgency with falling exports, growing protectionism abroad, and weak post-pandemic household spending. Beijing unleashes financial tools to spur spending In parallel to Li’s speech, six of China’s top government agencies released a sweeping set of guidelines aimed at using financial tools to unlock consumer demand. The policies focus on improving access to credit, raising incomes, and building confidence across the consumption chain—from manufacturing to services. As part of a broader effort to boost domestic demand, Chinese government agencies jointly announced 19 targeted measures to strengthen financial support for consumption. Some of these measures are that banks will be encouraged to innovate credit products and expand loan access to households and consumer-focused businesses, while financial institutions will be urged to improve their internal systems to deliver more efficient consumer financing. The People’s Bank of China (PBOC) will utilise tools such as relending, rediscounting, and open market operations to lower overall financing costs. Additionally, eligible companies in the consumption sector will be supported in raising capital through initial public offerings (IPOs), bond issuance, exchange-traded funds (ETFs), and real estate investment trusts (REITs). The central bank also unveiled a 500 billion yuan ($69.7 billion) relending facility to support elderly care and services consumption, underscoring efforts to target both demographic and sectoral trends. Meanwhile, a government-subsidised trade-in programme for home appliances and electronics is enjoying robust uptake, with some provinces already exhausting allocated funds. The remaining 138 billion yuan (around $19.2 billion) is now being redistributed to ensure nationwide coverage. Challenges persist: deflation, caution, and global scepticism Despite strong retail numbers in May and the government spending hitting a three-year high in the first five months, the road to consumption-led growth won’t be easy. China’s consumer price index has declined year-on-year for four straight months, reflecting persistent deflationary pressure and subdued sentiment. Households remain cautious, particularly in light of a sluggish property market and employment concerns. To counter these issues, the government is allowing local governments to borrow more, while the PBOC has trimmed benchmark interest rates and mortgage rates to ease financial pressure. Trade tensions remain another risk factor. While China and the US reached a fragile tariff truce in May, friction continues over rare earths, semiconductors, and tech access. In Europe, calls for tougher stances on China are growing ahead of a critical July summit. Still, Li expressed optimism that the global economic centre of gravity is shifting toward the Global South, citing rising trade momentum in developing nations. He also highlighted China’s multilateral diplomacy push, pointing to the recent establishment of the International Organization for Mediation in Hong Kong with 32 other countries. China is making a concerted effort to reposition its economy from an export-driven model to one that leans heavily on domestic consumption. While the transformation is far from complete, recent policy moves suggest a high-level commitment to this structural pivot.

As countries shift focus inward and trade frictions multiply, particularly with the US and parts of Europe, Chinese Premier Li Qiang projected confidence in China’s ability to adapt.

China doubles down on domestic demand to power economic growth

As global uncertainty surrounding the US dollar rises, China is ramping up efforts to promote the yuan (RMB) as a viable alternative in global trade, investment, and reserves. The latest policy moves are part of Beijing’s long-term push for “yuan internationalisation” and come at a moment when central banks, investors, and governments are actively rethinking their exposure to the greenback. With the dollar facing multiple headwinds, ranging from erratic US policy under President Donald Trump to mounting geopolitical tensions and market volatility, China’s leadership is eyeing the opportunity to position its currency more centrally in the global financial system.<h2>A multi-pronged strategy to globalise the yuan</h2>In recent months, China has launched a series of targeted measures aimed at increasing the use of the yuan internationally. These include expanding foreign access to domestic financial markets, allowing qualified institutional investors to trade more futures and options contracts, and launching initiatives to facilitate cross-border yuan transactions.Three major Chinese commodity exchanges—Shanghai, Dalian, and Zhengzhou—recently added 16 new derivatives contracts for foreign institutional investors, covering key commodities like rubber, lead, and tin. Meanwhile, the Shanghai Futures Exchange is working on a proposal to allow foreign currencies as collateral for yuan-settled trades.China’s central bank, the People’s Bank of China (PBOC), also plans to set up an international centre for digital yuan operations in Shanghai. This would support broader usage of China’s digital currency, which has been gradually introduced as an alternative to physical cash.Further steps include easing restrictions on foreign participation in ETF options trading and waiving certain fees for global institutions accessing Chinese bond markets. In parallel, China’s Cross-Border Interbank Payment System (CIPS)—its alternative to SWIFT (Society for Worldwide Interbank Financial Telecommunications)—has been expanding its reach, with more offshore yuan clearing centres and growing acceptance in emerging markets.<h2>Yuan gains appeal, but obstacles remain</h2>Despite growing enthusiasm, structural hurdles continue to limit the yuan’s global appeal. China maintains capital controls that restrict the free flow of money in and out of the country, and its financial markets are not as deep or transparent as those in the US. As of May, the yuan accounted for just 2.89 per cent of global payments, down from the previous month, according to SWIFT. It ranks sixth in international currency usage, far behind the US dollar’s 48.46 per cent and the euro’s 23.56 per cent.Moreover, in terms of foreign exchange reserves, the yuan currently accounts for only 2.2 per cent of global holdings. That said, its use in China’s own cross-border transactions has overtaken the dollar, with yuan settlement in goods trade reaching 26 per cent in May and forecasted to hit 40 per cent by year-end, according to analysts.<h2>Global reserve managers shift away from the dollar</h2>According to a new report by the Official Monetary and Financial Institutions Forum (OMFIF), global central banks are increasingly diversifying away from the dollar. The survey of 75 central banks managing $5 trillion showed that one-third plan to increase gold holdings over the next two years, while interest in the dollar has dropped sharply. The dollar fell to seventh place in the ranking of preferred reserve assets, with 70 per cent of central banks citing the US political climate as a deterrent.The euro and yuan are seen as the biggest beneficiaries. A net 16 per cent of respondents said they plan to increase euro holdings in the near term, while 30 per cent expect to increase yuan reserves over the next decade, potentially tripling its share to around 6 per cent.<h2>Europe’s rising role and yuan’s long-term potential</h2>While the euro is gaining short-term favour, the yuan is emerging as a longer-term contender. Several central banks and sovereign wealth funds are now revisiting their reserve compositions, considering diversification not just for yield but for geopolitical risk mitigation.China’s push for de-dollarisation aligns with a broader trend in Asia, where countries are reducing their reliance on the US dollar amid shifting trade alliances and regional economic integration. China has promoted bilateral trade settlements in yuan, especially in energy and commodities, and subsidised loans in offshore yuan to encourage adoption.Despite economic headwinds such as slower growth and deflationary pressures, analysts say continued reform and financial market liberalisation could gradually enhance the yuan’s credibility. While it may not dethrone the dollar any time soon, the Chinese currency is steadily carving out a more prominent place in the evolving global monetary system.

China has launched a series of targeted measures aimed at increasing the use of the yuan internationally including expansion of foreign access to domestic financial markets, allowing qualified institutional investors to trade more futures, and facilitating cross-border yuan transactions.

As global uncertainty surrounding the US dollar rises, China is ramping up efforts to promote the yuan (RMB) as a viable alternative in global trade, investment, and reserves. The latest policy moves are part of Beijing’s long-term push for “yuan internationalisation” and come at a moment when central banks, investors, and governments are actively rethinking their exposure to the greenback. With the dollar facing multiple headwinds, ranging from erratic US policy under President Donald Trump to mounting geopolitical tensions and market volatility, China’s leadership is eyeing the opportunity to position its currency more centrally in the global financial system. A multi-pronged strategy to globalise the yuan In recent months, China has launched a series of targeted measures aimed at increasing the use of the yuan internationally. These include expanding foreign access to domestic financial markets, allowing qualified institutional investors to trade more futures and options contracts, and launching initiatives to facilitate cross-border yuan transactions. Three major Chinese commodity exchanges—Shanghai, Dalian, and Zhengzhou—recently added 16 new derivatives contracts for foreign institutional investors, covering key commodities like rubber, lead, and tin. Meanwhile, the Shanghai Futures Exchange is working on a proposal to allow foreign currencies as collateral for yuan-settled trades. China’s central bank, the People’s Bank of China (PBOC), also plans to set up an international centre for digital yuan operations in Shanghai. This would support broader usage of China’s digital currency, which has been gradually introduced as an alternative to physical cash. Further steps include easing restrictions on foreign participation in ETF options trading and waiving certain fees for global institutions accessing Chinese bond markets. In parallel, China’s Cross-Border Interbank Payment System (CIPS)—its alternative to SWIFT (Society for Worldwide Interbank Financial Telecommunications)—has been expanding its reach, with more offshore yuan clearing centres and growing acceptance in emerging markets. Yuan gains appeal, but obstacles remain Despite growing enthusiasm, structural hurdles continue to limit the yuan’s global appeal. China maintains capital controls that restrict the free flow of money in and out of the country, and its financial markets are not as deep or transparent as those in the US. As of May, the yuan accounted for just 2.89 per cent of global payments, down from the previous month, according to SWIFT. It ranks sixth in international currency usage, far behind the US dollar’s 48.46 per cent and the euro’s 23.56 per cent. Moreover, in terms of foreign exchange reserves, the yuan currently accounts for only 2.2 per cent of global holdings. That said, its use in China’s own cross-border transactions has overtaken the dollar, with yuan settlement in goods trade reaching 26 per cent in May and forecasted to hit 40 per cent by year-end, according to analysts. Global reserve managers shift away from the dollar According to a new report by the Official Monetary and Financial Institutions Forum (OMFIF), global central banks are increasingly diversifying away from the dollar. The survey of 75 central banks managing $5 trillion showed that one-third plan to increase gold holdings over the next two years, while interest in the dollar has dropped sharply. The dollar fell to seventh place in the ranking of preferred reserve assets, with 70 per cent of central banks citing the US political climate as a deterrent. The euro and yuan are seen as the biggest beneficiaries. A net 16 per cent of respondents said they plan to increase euro holdings in the near term, while 30 per cent expect to increase yuan reserves over the next decade, potentially tripling its share to around 6 per cent. Europe’s rising role and yuan’s long-term potential While the euro is gaining short-term favour, the yuan is emerging as a longer-term contender. Several central banks and sovereign wealth funds are now revisiting their reserve compositions, considering diversification not just for yield but for geopolitical risk mitigation. China’s push for de-dollarisation aligns with a broader trend in Asia, where countries are reducing their reliance on the US dollar amid shifting trade alliances and regional economic integration. China has promoted bilateral trade settlements in yuan, especially in energy and commodities, and subsidised loans in offshore yuan to encourage adoption. Despite economic headwinds such as slower growth and deflationary pressures, analysts say continued reform and financial market liberalisation could gradually enhance the yuan’s credibility. While it may not dethrone the dollar any time soon, the Chinese currency is steadily carving out a more prominent place in the evolving global monetary system.

China has launched a series of targeted measures aimed at increasing the use of the yuan internationally including expansion of foreign access to domestic financial markets, allowing qualified institutional investors to trade more futures, and facilitating cross-border yuan transactions.

China accelerates yuan push as US dollar dominance faces growing challenges

Doctors in China were shocked to find a toothbrush in the intestine of a 64-year-old man who had swallowed it when he was just 12. It stayed there for 52 years without causing any health issues. However, Yang finally felt some discomfort in the stomach and went to the doctor. They carried out multiple tests and discovered a 17cm toothbrush. Yang told them that he had swallowed it at the age of 12. But he didn't tell his parents because he got scared. Yang assumed it would dissolve on its own. He lived this way for 52 years and had forgotten about it.The doctors noticed that the toothbrush was stuck in his small intestine. They performed an endoscopic surgery and removed it after an 80-minute procedure. The hospital said that it was the longest equipment it had taken out of the human body in the past three years. What's surprising is that the toothbrush remained lodged in one section of the intestines all these years. This is why Yang did not face any health issues.A doctor told SCMP that a toothbrush could rotate, press, and puncture the inner tissue of the intestines. It could cause intestinal perforation and lead to death. However, thankfully, for Yang, it remained lodged in a crook of the intestine and barely moved for decades. This helped him avoid any trouble for 52 years.&nbsp;Also Read: <a href="https://www.wionews.com/trending/man-tricks-cartier-tiffany-staff-pockets-600-000-worth-of-jewellery-in-new-york-and-korea-1750758323715">Man tricks Cartier, Tiffany staff, pockets $600,000 worth of jewellery in New York and Korea</a>&nbsp;<h2>Social media reacts to toothbrush in intestine</h2>&nbsp;Yang's story has shocked people who can't help but wonder how lucky he is. People are recalling those times they accidentally swallowed things as kids, triggering fear. A user wrote, "It is a miracle that he did not even feel a thing for five decades." Another wondered, "How could he possibly think that the toothbrush will dissolve on its own? adding, "How did he manage to swallow that toothbrush?”Another person added that as a child, he thought he would die when he swallowed a watermelon seed. This is not the first time news of a human swallowing strange things has been reported. In 2024, an Indian man swallowed a bunch of keys, two nail cutters and a knife because his family did not let him play the online game Battlegrounds Mobile India. The items were removed from his stomach in a one and a half hours operation.Last year, a massive hairball, about the size of a cricket ball, was removed from the stomach of an 8-year-old girl in Bengaluru. The hospital said on Wednesday. It was a rare case of trichophagia -- the compulsive habit of eating hair, also known as the Rapunzel syndrome.

For 52 years, Yang faced no health issues because of the toothbrush that he swallowed as a 12 year old. It finally started to wriggle, and that is when he noticed that it was still there. 

Doctors in China were shocked to find a toothbrush in the intestine of a 64-year-old man who had swallowed it when he was just 12. It stayed there for 52 years without causing any health issues. However, Yang finally felt some discomfort in the stomach and went to the doctor. They carried out multiple tests and discovered a 17cm toothbrush. Yang told them that he had swallowed it at the age of 12. But he didn't tell his parents because he got scared. Yang assumed it would dissolve on its own. He lived this way for 52 years and had forgotten about it. The doctors noticed that the toothbrush was stuck in his small intestine. They performed an endoscopic surgery and removed it after an 80-minute procedure. The hospital said that it was the longest equipment it had taken out of the human body in the past three years. What's surprising is that the toothbrush remained lodged in one section of the intestines all these years. This is why Yang did not face any health issues. A doctor told SCMP that a toothbrush could rotate, press, and puncture the inner tissue of the intestines. It could cause intestinal perforation and lead to death. However, thankfully, for Yang, it remained lodged in a crook of the intestine and barely moved for decades. This helped him avoid any trouble for 52 years. Also Read: Man tricks Cartier, Tiffany staff, pockets $600,000 worth of jewellery in New York and Korea Social media reacts to toothbrush in intestine Yang's story has shocked people who can't help but wonder how lucky he is. People are recalling those times they accidentally swallowed things as kids, triggering fear. A user wrote, "It is a miracle that he did not even feel a thing for five decades." Another wondered, "How could he possibly think that the toothbrush will dissolve on its own? adding, "How did he manage to swallow that toothbrush?” Another person added that as a child, he thought he would die when he swallowed a watermelon seed. This is not the first time news of a human swallowing strange things has been reported. In 2024, an Indian man swallowed a bunch of keys, two nail cutters and a knife because his family did not let him play the online game Battlegrounds Mobile India. The items were removed from his stomach in a one and a half hours operation. Last year, a massive hairball, about the size of a cricket ball, was removed from the stomach of an 8-year-old girl in Bengaluru. The hospital said on Wednesday. It was a rare case of trichophagia -- the compulsive habit of eating hair, also known as the Rapunzel syndrome.

For 52 years, Yang faced no health issues because of the toothbrush that he swallowed as a 12-year-old. It finally started to wriggle, and that's when he noticed that it was still there.&nbsp;

Man spends 52 years with toothbrush he swallowed as a kid stuck in intestine

US coffee giant Starbucks has denied reports that it is planning a full exit from its China business, following a story by Chinese financial publication Caixin that claimed the company had begun a formal sale process and was in talks with dozens of potential buyers. In a statement on June 23, a Starbucks spokesperson said, “I can confirm Starbucks is not currently considering a full sale of its China operations.” However, the company acknowledged ongoing discussions with investors, confirming earlier reports that it had launched a process to evaluate strategic options for its business in China.According to a report by Reuters, Starbucks, advised by Goldman Sachs, initiated the process in May, inviting interested parties to submit detailed responses regarding their corporate culture, business strategy, sustainability credentials, and treatment of employees. While over 20 institutions, including private equity (PE) firms like KKR &amp; Co., FountainVest Partners, and PAG, have shown interest, the Seattle-based coffee giant has not yet decided whether to sell a controlling or minority stake or retain key parts like the supply chain.<h2>Rising competition forces strategic shift</h2>Starbucks’ reconsideration of its China strategy comes amid rising pressure from local competitors, notably Luckin Coffee and Cotti, which have gained ground by offering significantly lower prices. These homegrown brands, bolstered by subsidies and e-commerce-led delivery models, have pushed the price of a cup of coffee in China to below 5 yuan (about $0.70), compared to Starbucks’ typical 30 yuan ($4.20) pricing.The company’s market share in China—once a dominant 34 per cent in 2019—has shrunk down to just 14 per cent in 2024, according to Euromonitor International. Despite opening hundreds of stores, revenue from China dropped from $3.7 billion in 2021 to $3 billion in 2023.Earlier this month, Starbucks announced its first-ever price cut in the Chinese market, lowering prices on select non-coffee iced drinks by an average of 5 yuan to regain competitiveness.<h2>Long-term commitment, but tactical realignment</h2>Starbucks emphasised its long-term commitment to China, stating it is exploring “the best ways to capture future growth opportunities” in the world’s second-largest economy. CEO Brian Niccol, who took the reins in late 2024, has confirmed that investors had shown “a lot of interest” in acquiring a stake in the China business.The potential stake sale appears to be part of a broader strategic overhaul, which includes store redesigns, technology integration for faster service, and headcount reductions—over 1,000 jobs have already been cut globally as part of this restructuring.While shares of Starbucks rose slightly in extended trading following the Caixin report, investor sentiment remains cautious, with retail sentiment on Stocktwits still flagged as “bearish”. Starbucks stock is up 1.2 per cent year-to-date.

Price wars, swiftly falling market share and investor interests are set to reshape Starbucks strategy in China.

US coffee giant Starbucks has denied reports that it is planning a full exit from its China business, following a story by Chinese financial publication Caixin that claimed the company had begun a formal sale process and was in talks with dozens of potential buyers. In a statement on June 23, a Starbucks spokesperson said, “I can confirm Starbucks is not currently considering a full sale of its China operations.” However, the company acknowledged ongoing discussions with investors, confirming earlier reports that it had launched a process to evaluate strategic options for its business in China. According to a report by Reuters, Starbucks, advised by Goldman Sachs, initiated the process in May, inviting interested parties to submit detailed responses regarding their corporate culture, business strategy, sustainability credentials, and treatment of employees. While over 20 institutions, including private equity (PE) firms like KKR & Co., FountainVest Partners, and PAG, have shown interest, the Seattle-based coffee giant has not yet decided whether to sell a controlling or minority stake or retain key parts like the supply chain. Rising competition forces strategic shift Starbucks’ reconsideration of its China strategy comes amid rising pressure from local competitors, notably Luckin Coffee and Cotti, which have gained ground by offering significantly lower prices. These homegrown brands, bolstered by subsidies and e-commerce-led delivery models, have pushed the price of a cup of coffee in China to below 5 yuan (about $0.70), compared to Starbucks’ typical 30 yuan ($4.20) pricing. The company’s market share in China—once a dominant 34 per cent in 2019—has shrunk down to just 14 per cent in 2024, according to Euromonitor International. Despite opening hundreds of stores, revenue from China dropped from $3.7 billion in 2021 to $3 billion in 2023. Earlier this month, Starbucks announced its first-ever price cut in the Chinese market, lowering prices on select non-coffee iced drinks by an average of 5 yuan to regain competitiveness. Long-term commitment, but tactical realignment Starbucks emphasised its long-term commitment to China, stating it is exploring “the best ways to capture future growth opportunities” in the world’s second-largest economy. CEO Brian Niccol, who took the reins in late 2024, has confirmed that investors had shown “a lot of interest” in acquiring a stake in the China business. The potential stake sale appears to be part of a broader strategic overhaul, which includes store redesigns, technology integration for faster service, and headcount reductions—over 1,000 jobs have already been cut globally as part of this restructuring. While shares of Starbucks rose slightly in extended trading following the Caixin report, investor sentiment remains cautious, with retail sentiment on Stocktwits still flagged as “bearish”. Starbucks stock is up 1.2 per cent year-to-date.

Price competition, swiftly falling market share and investor interests are set to reshape Starbucks strategy in China.

Starbucks denies full China exit but confirms stake sale talks

China’s real estate sector, once the backbone of the nation’s economic growth, continues to struggle through a prolonged downturn since late 2020. Even as first-tier cities show signs of stabilisation, much of the country remains mired in oversupply, falling prices, and sagging demand compounded by a shrinking population and shifting investor sentiment.New government data released this week revealed that average new home prices across 70 cities fell 0.2 per cent in May, while second-hand home prices dropped by 0.5 per cent. These are the sharpest monthly declines in seven and eight months, respectively.&nbsp;Investment in real estate was down 10.7 per cent in the first five months of 2025, extending a four-year slump that began with developer defaults and escalating debt crises in late 2020.Premier Li Qiang recently called for “greater efforts” to halt the decline, but the data makes clear why Beijing is still struggling to restore confidence in the housing sector.<h2>Demographic drag deepens</h2>A more worrying headwind now confronting the market is demographic. Goldman Sachs estimates that China’s urban housing demand will remain below 5 million units per year in the coming years, a quarter of the 2017 peak of 20 million. Population decline, ageing, and continued urbanisation slowdown are behind the projection.China’s population has fallen for three consecutive years, dropping by 1.39 million in 2024 alone, according to government figures. Birth rates continue to slide despite incentives introduced since the end of the one-child policy in 2016.&nbsp;“Pronatalist policies are unlikely to succeed,” Tianchen Xu, senior economist at the Economist Intelligence Unit, told&nbsp;CNBC. “They fail to address deeper issues like economic insecurity, costly childrearing, and cultural shifts.”The result: school closures and crumbling demand in areas previously buoyed by education-linked housing premiums. Nearly 36,000 kindergartens shut down over the past two years, and student enrolment in preschools fell by more than 10 million.&nbsp;A mother living in Beijing told&nbsp;CNBC&nbsp;that her apartment, purchased at double the city’s average to secure access to a top elementary school, has lost 20 per cent of its value in just two years.<h2>A tale of two markets</h2>While tier-I cities such as Beijing, Shanghai, and Shenzhen are showing flickers of recovery, smaller, lower-tier cities are in freefall. Sales in Shanghai have risen year-on-year, and developers are seeing some projects sell out on launch day.&nbsp;Greentown China Holdings, for example, sold all 120 units of a luxury project in Shanghai within hours, generating nearly $1 billion. In contrast, places like Wenzhou face a bleak outlook. Developers continue to slash prices by as much as 50 per cent to entice scarce demand.According to analysts at S&amp;P Global Ratings, property prices in top-tier cities will remain flat in 2025, with modest gains in 2026. Meanwhile, homes in smaller cities are expected to drop another 4 per cent this year and 2 per cent next year.&nbsp;<h2>Global capital shifts to Japan</h2>As China’s property market languishes, global investors are looking elsewhere. Japan’s real estate sector has emerged as a major beneficiary. Foreign investors, including those from mainland China and Hong Kong, poured $11.2 billion into Japanese real estate in Q1 2025—6 per cent above the five-year average.The weakening yen and Japan’s strong rental returns, averaging over 5 per cent annually since 2012, have further boosted investor appeal.Major deals include co-living operator Weave Living and KKR’s acquisition of six high-end properties in Tokyo and MindWorks Properties’ purchase of a multifamily building in Minato Ward.Despite targeted policies like mortgage rate cuts and subsidies for unfinished projects, analysts warn that any broad recovery remains elusive. Goldman Sachs predicts stabilisation may not arrive until the second half of 2026. The bifurcation of China’s housing market highlights the need for more nuanced, region-specific interventions.

Shrinking population, regional disparities, and investor flight define an uneven property landscape in China.

China’s real estate sector, once the backbone of the nation’s economic growth, continues to struggle through a prolonged downturn since late 2020. Even as first-tier cities show signs of stabilisation, much of the country remains mired in oversupply, falling prices, and sagging demand compounded by a shrinking population and shifting investor sentiment. New government data released this week revealed that average new home prices across 70 cities fell 0.2 per cent in May, while second-hand home prices dropped by 0.5 per cent. These are the sharpest monthly declines in seven and eight months, respectively. Investment in real estate was down 10.7 per cent in the first five months of 2025, extending a four-year slump that began with developer defaults and escalating debt crises in late 2020. Premier Li Qiang recently called for “greater efforts” to halt the decline, but the data makes clear why Beijing is still struggling to restore confidence in the housing sector. Demographic drag deepens A more worrying headwind now confronting the market is demographic. Goldman Sachs estimates that China’s urban housing demand will remain below 5 million units per year in the coming years, a quarter of the 2017 peak of 20 million. Population decline, ageing, and continued urbanisation slowdown are behind the projection. China’s population has fallen for three consecutive years, dropping by 1.39 million in 2024 alone, according to government figures. Birth rates continue to slide despite incentives introduced since the end of the one-child policy in 2016. “Pronatalist policies are unlikely to succeed,” Tianchen Xu, senior economist at the Economist Intelligence Unit, told CNBC. “They fail to address deeper issues like economic insecurity, costly childrearing, and cultural shifts.” The result: school closures and crumbling demand in areas previously buoyed by education-linked housing premiums. Nearly 36,000 kindergartens shut down over the past two years, and student enrolment in preschools fell by more than 10 million. A mother living in Beijing told CNBC that her apartment, purchased at double the city’s average to secure access to a top elementary school, has lost 20 per cent of its value in just two years. A tale of two markets While tier-I cities such as Beijing, Shanghai, and Shenzhen are showing flickers of recovery, smaller, lower-tier cities are in freefall. Sales in Shanghai have risen year-on-year, and developers are seeing some projects sell out on launch day. Greentown China Holdings, for example, sold all 120 units of a luxury project in Shanghai within hours, generating nearly $1 billion. In contrast, places like Wenzhou face a bleak outlook. Developers continue to slash prices by as much as 50 per cent to entice scarce demand. According to analysts at S&P Global Ratings, property prices in top-tier cities will remain flat in 2025, with modest gains in 2026. Meanwhile, homes in smaller cities are expected to drop another 4 per cent this year and 2 per cent next year. Global capital shifts to Japan As China’s property market languishes, global investors are looking elsewhere. Japan’s real estate sector has emerged as a major beneficiary. Foreign investors, including those from mainland China and Hong Kong, poured $11.2 billion into Japanese real estate in Q1 2025—6 per cent above the five-year average. The weakening yen and Japan’s strong rental returns, averaging over 5 per cent annually since 2012, have further boosted investor appeal. Major deals include co-living operator Weave Living and KKR’s acquisition of six high-end properties in Tokyo and MindWorks Properties’ purchase of a multifamily building in Minato Ward. Despite targeted policies like mortgage rate cuts and subsidies for unfinished projects, analysts warn that any broad recovery remains elusive. Goldman Sachs predicts stabilisation may not arrive until the second half of 2026. The bifurcation of China’s housing market highlights the need for more nuanced, region-specific interventions.

Shrinking population, regional disparities, and investor flight define an uneven property landscape in China.

China’s housing market: A crisis deepened by demographics, but who is it benefitting?

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