• China, US ease export curbs but Trump’s Vietnam deal risks blowback: analysts
• China tells EU it cannot afford Russian loss in Ukraine war, sources say
• Veteran Chinese diplomat warns Trump’s policies risk ‘shared destruction’
• Climate action with China aligns with Australia’s security needs
• China’s first home-grown carrier, Trump’s shipbuilding plans: SCMP daily highlights
• From rocket ballet to space fireworks: China’s aerospace innovators push boundaries
• How are Chinese aircraft carriers pushing limits and testing boundaries in the Pacific?
• Apple’s China iPhone sales face headwinds in second half as Huawei remains a strong rival
• Meet China’s first home-grown carrier, the Shandong – a bridge to a blue-water future
• Cat-loving Chinese man, 82, plans to leave feline his inheritance, seeks dependable carer
• South Korea’s Lee Jae-myung caps first month in office with pledge to improve China, Russia ties
• Alibaba leads US$14 million funding round in Chinese corporate AI agent start-up
• ‘Marvellous achievement’: Hongkongers flock to see Chinese warship Shandong
• China’s power bank crackdown: 6 preflight answers for wary travellers
• ‘China is not the US’: Europe has challenges but none come from Beijing, Wang Yi tells EU
• China schools urge pupils to dance when studying to boost brains, morale, ease pressure
• Chinese team creates blockchain tech to resist attacks from quantum computers
• China flight safety in spotlight after pilot jumps to death over workplace dispute
• China’s Communist Party pays tribute to late premier Li Keqiang on 70th birth anniversary
• Chinese firms in Vietnam upbeat over US tariff deal: ‘better than expected’
• China rolls out record-setting turbine for Tibet hydropower plant
• Armenia looks to deepen ties with China while eyeing foreign relations beyond Russia
• Tech war: US lifts export control of chip design software to China
• Philippines joins Japan’s ‘one theatre’ plan against China sea threat
• LIVE: Chinese aircraft carrier Shandong enters Hong Kong waters for 5-day visit
• New memoir reveals Lee Kuan Yew’s approach to China diplomacy: ‘he wasn’t like the West’
• Chinese digital yuan partner signs deal with Hong Kong firm to develop stablecoin tech
• Trump wants US$30 billion for China shipbuilding race. Here’s why victory won’t come easy

China, US ease export curbs but Trump’s Vietnam deal risks blowback: analysts

https://www.scmp.com/economy/china-economy/article/3316840/china-us-ease-export-curbs-trumps-vietnam-deal-risks-blowback-analysts?utm_source=rss_feed

A week after announcing long-anticipated progress from high-level talks in London, China and the United States are taking concrete steps to clear export hurdles and issue licenses for strategic goods.

The easing of trade restrictions signals a tentative reset between the world’s two largest economies. But the thaw remains fragile, as analysts warned that Washington’s new trade deal with Vietnam could provoke a response from Beijing.

Still, for now, both sides have moved to restore access to critical technologies and high-priority exports.

Leading American chip design software firms Synopsys and Cadence Design Systems have received official notices about the rollback of export restrictions and were working to restore access to their products for customers in China, according to company statements on Thursday.

Siemens also confirmed it had made its software fully available again to Chinese clients.

On Wednesday, the US government sent letters to major ethane producers and exporters – Enterprise Products Partners and Energy Transfer – revoking a licensing requirement imposed in June and clearing the way for shipments to China to resume, according to Reuters.

Before the restrictions, China – reliant on the US for 98 per cent of its methane, according to Commerce Secretary Howard Lutnick – accounted for about half of all American ethane exports.

Meanwhile, China has resumed rare earth magnet exports to the US, Treasury Secretary Scott Bessent confirmed – although volumes have not yet returned to pre-April levels.

Beijing had previously imposed export controls on several rare earth materials and magnet-related products after US trade restrictions, underscoring its dominance in global supply chains crucial to the automotive, aerospace, semiconductor and defence sectors.

“We are hoping that they will flow at a faster rate,” Bessent told Fox News on Tuesday, when asked whether China had resumed the exports.

After weeks of silence following the London trade talks, Beijing confirmed progress last Friday. The Ministry of Commerce announced it would review and approve export applications for controlled items, while the US would also remove some of its restrictions.

Beijing and Washington have been in close communication since the two-day round of talks and are working to implement the framework agreed by both sides, the ministry added.

“We hope the US side will work with China, in line with the important consensus and requirements put forward during the June 5 talk between the two presidents.”

But the tentative reset between the world’s two largest economies remains precarious.

A new US trade deal with Vietnam, announced on Wednesday, threatens to provoke a backlash from Beijing as Washington targets transshipments of Chinese goods, analysts said.

US President Donald Trump announced the new trade deal with Vietnam, which includes a 20 per cent tariff on Vietnamese exports and a steep 40 per cent tariff on transshipped goods – measures that could hit companies reliant on supply chains linking Vietnam and China.

According to Su Yue, Principal China Economist at the Economist Intelligence Unit, the deal signals Washington’s intent to prevent Vietnam from becoming a conduit for Chinese goods. Beijing, she said, may view this as a strategy to isolate China from critical supply chains – prompting a diplomatic and economic response that could target both the US and Vietnam.

“While the exact criteria for defining transshipment remain unclear, it is evident that Vietnam’s role as a potential connector for Chinese exports to the US will diminish,” she said.

“Additionally, the move implies that the ultimate tariff imposed on China may also reach 40 per cent, as it would be illogical to penalise Vietnam more severely than China itself.”

On Thursday, Ministry of Commerce spokesperson He Yongqian told reporters that China was closely evaluating the US-Vietnam trade deal and reiterated Beijing’s strong opposition to what it called Washington’s “unilateral bullying”.

“We welcome all parties to resolve trade disputes with the US through equal consultation, but firmly oppose any deal that comes at the expense of China’s interests,” he said.

“If that happens, China will respond resolutely to safeguard its legitimate rights.”

Additional reporting by Ji Siqi

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China tells EU it cannot afford Russian loss in Ukraine war, sources say

https://www.scmp.com/news/china/diplomacy/article/3316875/china-tells-eu-it-cannot-afford-russian-loss-ukraine-war-sources-say?utm_source=rss_feed

Chinese Foreign Minister Wang Yi told the European Union’s top diplomat on Wednesday that Beijing cannot afford a Russian loss in Ukraine because it fears the United States would then shift its whole focus to Beijing, according to several people familiar with the exchange.

The comment, to the EU’s Kaja Kallas, would confirm what many in Brussels believe to be Beijing’s position but jar with China’s public utterances. The foreign minstry regularly says China is “not a party” to the war. Some EU officials involved were surprised by the frankness of Wang’s remarks.

Wang is said to have rejected, however, the accusation that China was materially supporting Russia’s war effort, financially or militarily, insisting that if it was doing so, the conflict would have ended long ago.

During a marathon four-hour debate on a wide range of geopolitical and commercial grievances, Wang was said to have given Kallas – the former Estonian prime minister who only late last year took up her role as the bloc’s de facto foreign affairs chief – several “history lessons and lectures”.

Some EU officials felt he was giving her a lesson in realpolitik, part of which focused on Beijing’s belief that Washington will soon turn its full attention eastward, two officials said.

One interpretation of Wang’s statement in Brussels is that while China did not ask for the war, its prolongation may suit Beijing’s strategic needs, so long as the US remains engaged in Ukraine.

US President Donald Trump has repeatedly threatened to abandon Kyiv and is seen in Europe, at times, to have taken a staunchly pro-Russian position on the conflict. On Monday, the Pentagon halted shipments of some air defence missiles and other precision munitions to Ukraine, Politico reported, over fears that the US’ stockpile was running low.

The three-year conflict remains one of the biggest sources of friction between China and the bloc, which has long criticised Beijing for supplying dual-use items to Russia. Beijing has denied the charge and positioned itself as a peacemaker that considers both Moscow and Kyiv to be partners.

Nonetheless, it has never criticised Russia’s invasion and has maintained close diplomatic and economic ties with Moscow, a constant frustration to the Europeans.

The tone of Wednesday’s dialogue was said to be respectful, if tense. Nonetheless, some insiders were surprised by the harshness of Wang’s message, just three weeks out from an important leaders’ summit in China. Any appearance of a charm offensive is seen to have evaporated.

The sources said Wang told Kallas the two-day summit itself could be truncated – in a hint that Beijing is not happy with how the EU is positioning itself ahead of the event.

The bloc is set to blacklist two small Chinese banks for flouting its sanctions on Russia, in its 18th package of measures against Moscow, which is awaiting final approval from its 27 member states. On this point, Wang repeatedly vowed to retaliate if the lenders are ultimately listed.

It continues to take Beijing to task on trade matters, with dozens of investigations into subsidies, dumping and other market-distorting practices under way or in the works.

More recently, the sides clashed on Chinese restrictions on the export of rare earth elements and magnets, which have caused some European companies to stop manufacturing lines.

The bloc relies almost entirely on Chinese supply, without which it cannot make anything from planes and advanced weapons to cars and refrigerators.

The Europeans got no reassurances from Wang that a structural end to the crisis was in the works. Instead, he said the Ministry of Commerce’s has reduced processing time for licenses from nearly six weeks to three, and that individual companies can always raise their complaints with the government.

On rare earths, the EU feels it has been unfairly caught in the crossfire of a US-China tech war and there is some surprise that Wang was not more forthcoming with a solution. One source described his position on the matter as “dismissive”.

The view in Brussels is that the gruelling encounter – interrupted by a dinner of stuffed chicken, sweet potato mousse and cheesecake – does not bode well for the summit on July 24 and 25 in Beijing and Anhui province. The main hope for concrete deliverables is on the climate front.

Wang earlier on Wednesday met European Council President Antonio Costa and European Commission President Ursula von der Leyen. EU sources said the two presidents were “on the same page” with each other and Kallas on all the major issues.

From Brussels, he travelled to Berlin for a first meeting with Germany’s new foreign minister, Johann Wadephul.

According to the German daily Handelsblatt, Chancellor Friedrich Merz was also planning to meet Wang briefly as a “protocol gesture”. Later in the week, he will meet French Foreign Minister Jean-Noel Barrot in Paris.

China’s own version of the meeting with Kallas, meanwhile, makes little reference to the many bones of contention.

“There is no fundamental conflict of interests between China and the EU, and they have broad common interests,” read an account published by the foreign ministry.

“Europe is currently facing various challenges, but none of them came from China in the past, present and future. The two sides should respect each other, learn from each other, develop and progress together, and make new contributions to human civilisation,” it continued.

Veteran Chinese diplomat warns Trump’s policies risk ‘shared destruction’

https://www.scmp.com/news/china/diplomacy/article/3316857/veteran-chinese-diplomat-warns-trumps-policies-risk-shared-destruction?utm_source=rss_feed

The Trump administration’s national security mindset could push humanity towards more conflicts and even “shared destruction”, the head of the Communist Party’s diplomatic arm has warned.

Liu Jianchao, who leads the International Department of the party’s Central Committee, pitched China’s vision of international relations – a rejection of the ethos reflected in American foreign policy language – as a viable path to lasting global peace on Thursday.

The veteran Chinese diplomat rejected statements made by US Defence Secretary Pete Hegseth at the Shangri-La Dialogue in May. At the annual security forum in Singapore, the Pentagon chief repeatedly stressed that Washington “is committed to achieving peace through strength” under US President Donald Trump.

“That rhetoric is a new embodiment of hegemonic thinking,” Liu said in a speech during the World Peace Forum in Beijing.

“What [Hegseth] truly seeks is force, not dialogue. What he stirs up is confrontation and conflict, not peace and harmony,” he added at the event co-organised by Tsinghua University and the Chinese People’s Institute of Foreign Affairs.

Liu warned that with this mindset, the “Thucydides Trap” – the idea that a rising power and an established hegemon are destined for war – would become an “inevitable fate” for great powers, leaving smaller nations to end up as casualties.

He cautioned about the dire consequences of clinging to “zero-sum games and absolute security” in an era of technological change, including artificial intelligence, that was fundamentally reshaping warfare.

Liu added that if that happened, “the predicament facing the world’s people may not be about who wins or loses, but rather a shared destruction, which will be an unbearable cost to human civilisation”.

The remarks came amid growing strife and uncertainty, from the recent US strikes on Iranian nuclear facilities and the Israel-Iran conflict to Russia’s invasion of Ukraine and the fierce rivalry between the US and China.

Beijing and Washington are seen as competing for leadership in international governance and rule-making.

In his speech, Liu referred to Beijing’s Global Security Initiative, China’s vision for global security order, and “a community with a shared future for mankind” – the central concept in China’s foreign policy and its vision for global governance. He said the underlying logic of China’s vision was “common security”.

“[It] is a rejection of absolute security and zero-sum games,” he added.

He said that the world faced a range of challenges, one of the biggest being global trade rules.

The US and China recently confirmed details on the framework for their Geneva trade talks consensus. China’s Ministry of Commerce said it would “review and approve export applications for controlled items in line with laws and regulations, while the US side will correspondingly lift a series of restrictive measures against China”.

The US said on Thursday it had lifted export controls on certain chip design software to China.

Liu said he was “optimistic” about the prospect of China-US relations.

“Both the Chinese people and the American people hope for a friendly and positive relationship between the two countries – and so do people around the world,” he said.

“We can compete, but…so-called achievements built on stepping on or suppressing others are hardly worth mentioning,” he said, referring to former US president Joe Biden’s farewell message in January that Washington had “pulled ahead of our competition with China”.

Cui Tiankai, China’s former ambassador to the US, said Beijing had never seen competition with the United States as its goal for development.

“It’s not about bringing anyone down or replacing anyone,” he said at the same forum on Thursday.

Cui also said China did not pin hopes on US elections as American presidential terms only last for four years.

“All opportunities and hopes lie within ourselves. No matter who other countries elect as their leaders, we can engage with them.”

“China’s goal was not to overpower others but to surpass itself. It’s not about knocking someone down or replacing anyone; China has never made that its objective,” he said.

“Therefore, if one believes that China-US competition is about China vying for global dominance with the US, I think that’s a misunderstanding. We do not seek hegemony with anyone, and we oppose anyone’s pursuit of hegemony – including the US.”

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Climate action with China aligns with Australia’s security needs

https://www.scmp.com/opinion/china-opinion/article/3316466/climate-action-china-aligns-australias-security-needs?utm_source=rss_feed

Australian Prime Minister Anthony Albanese’s coming visit to China later this summer presents a timely chance to reframe Australia–China relations through an increasingly vital lens: climate cooperation. With bilateral ties having largely stabilised since 2022 and a joint Australia–Pacific bid for the 2026 UN climate summit under way, climate action offers a promising platform for stronger engagement.

The rationale for cooperation is clear. Australia possesses vast reserves of critical minerals and significant renewable energy potential. China is the global leader in clean energy technologies – from solar panels and electric vehicles (EVs) to wind turbines and battery storage. By May, China’s total installed solar photovoltaic (PV) capacity exceeded 1,000 gigawatts (GW) – nearly half the global total.

To meet its carbon-reduction targets, Australia needs technology and engineering resources from overseas, including China. Leveraging each country’s strengths through closer climate collaboration could accelerate industrial decarbonisation and clean energy deployment.

Two priority areas stand out. The first is securing resilient supply chains for critical minerals and clean energy components. Australia is a key global supplier of lithium, bauxite, cobalt, nickel and rare earths minerals that are essential to battery and EV production. China is a major importer of Australian raw minerals and also dominates downstream processing and manufacturing.

Building on existing frameworks, such as an updated Sino-Australian memorandum of understanding on climate cooperation, the two countries could undertake joint ventures, research and development in refining, battery production or rare earth processing. Doing so would boost domestic value-added industries in Australia and help meet China’s rising demand.

Such cooperation aligns with the Albanese government’s ambitious “Future Made in Australia” agenda, which aims to position Australia as a renewable energy superpower and advanced manufacturing hub. It could also support innovation and create job opportunities across Australia.

Lessons can be drawn from Europe. Against the backdrop of the European Union’s Green Deal Industrial Plan, which aims to enhance the competitiveness of Europe’s net-zero industry and accelerate the transition to climate neutrality, a handful of the bloc’s firms have signed partnerships with Chinese EV manufacturers to establish battery plants.

The second major area for stronger Sino-Australian cooperation is clean technology and innovation. Collaborative R&D in areas such as solar power, hydrogen and green ammonia in Australia could help drive down costs. Australian companies are well-positioned to send related exports to China’s expanding clean energy markets. Meanwhile, Chinese firms bring scale, capital and technical know-how.

However, Chinese investment in Australia remains disproportionately low. In 2024, it was just US$862 million – the third-lowest level in Australia in nearly 20 years and down from US$1.42 billion in 2022. This is despite China’s backing of more than 180 global green energy projects worth over US$140 billion since 2023.

Still, there is growing momentum. Bilateral business councils and chambers of commerce are engaged in green investment dialogues, as shown by the inaugural Australia–China Green Economy Forum earlier this year.

Major hurdles remain. Australia–China relations are shaped by interconnected concerns – geopolitical tensions, mistrust and domestic political pressures.

Central among these is Aukus – the trilateral security pact between Australia, the United States and Britain – widely seen as a Western response to China’s growing Indo-Pacific presence. Canberra regards it as critical to regional security. Estimated at A$268–368 billion (US$175.8–241.5 billion), it is one of Australia’s biggest defence investments.

However, critics – including former prime ministers Paul Keating and Malcolm Turnbull – warn that it risks eroding sovereignty and binds Australia too closely to an increasingly unpredictable ally. From Beijing’s perspective, Aukus signals Australia’s lack of foreign policy independence.

Australians are also questioning Washington’s increasingly transactional nature. In April, the US imposed sweeping “Liberation Day” tariffs, including a 10 per cent levy on all Australian exports – despite a long-standing free trade agreement.

These actions, alongside the White House’s withdrawals from international accords like the Paris Agreement, raise doubts about Washington’s reliability as an economic partner and a climate leader. In contrast, China’s sustained engagement in multilateral climate efforts and trade partnerships may increasingly position it as the more dependable partner.

Meanwhile, anti-China sentiment in Australia could impede engagement. Calls to decouple supply chains, often framed through national security concerns, risk undermining integrated clean energy value chains essential to decarbonisation.

Regional security incidents like Chinese naval activity near Australian waters and live-fire drills in the Tasman Sea – conducted with warning but lacking in transparency – further exacerbate matters. These developments deepen mistrust and heighten political sensitivities around climate cooperation, even as mutual interests align.

Seeing China solely through a security lens undoubtedly distorts national interests by undermining Australia’s capacity to engage. Instead, Canberra must frame climate collaboration with Beijing as a technical and apolitical endeavour – one that shows Sino-Australian climate collaboration is a pragmatic response to shared challenges and that is compatible with Australian sovereignty and national security.

Economic nationalism and regulatory fragmentation further hinder bilateral cooperation. Australia’s tightening of foreign investment rules, particularly in sensitive sectors like critical minerals and energy infrastructure, has delayed or blocked some Chinese-linked acquisitions. Last year, Australia’s treasurer ordered investors with ties to China to divest their shares in an Australian rare earth mining project, after the country’s Foreign Investment Review Board advised it was against Australia’s national interest.

Canberra should clarify its investment framework to reduce uncertainty. Doing so could help Australia better align foreign investment with industrial policy objectives.

With shared climate goals and complementary strengths, the case for Sino-Australian cooperation is strong. But seizing this opportunity means Canberra must be willing to work more pragmatically with Beijing.

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China’s first home-grown carrier, Trump’s shipbuilding plans: SCMP daily highlights

https://www.scmp.com/news/china/article/3316856/chinas-first-home-grown-carrier-trumps-shipbuilding-plans-scmp-daily-highlights?utm_source=rss_feed

Catch up on some of SCMP’s biggest China stories of the day. If you would like to see more of our reporting, please consider .

A new book contending that Apple went too far in consolidating its operations in China is prompting debate among analysts of the country – some of whom say the company may have had no realistic alternatives.

The Armenian Foreign Minister Ararat Mirzoyan says his country’s Crossroads of Peace and China’s belt and road project are interdependent.

Observers say the US may struggle to match China’s fast-growing naval fleet and commercial shipbuilding, even with the support of Asian allies.

A People’s Daily article honours Li as an “outstanding revolutionary, exemplary leader” who died in October 2023, months after stepping down as premier.

With two of the turbines, Datang Zala Hydropower Station will generate as much power as burning 1.3 million tonnes of coal every year.

The Shandong – which arrived in Hong Kong on Thursday for its inaugural five-day port call to the city – is the PLA Navy’s second aircraft carrier and its first to be built in China.

Brics country leaders are meeting for the bloc’s annual summit in Rio de Janeiro this week, as questions loom about the group’s effectiveness as a voice of the Global South and counterweight to the Washington-led coalition of developed economies.

From rocket ballet to space fireworks: China’s aerospace innovators push boundaries

https://www.scmp.com/news/china/science/article/3316777/rocket-ballet-space-fireworks-chinas-aerospace-innovators-push-boundaries?utm_source=rss_feed

A start-up company in southwestern China has revealed its latest innovations in rocket technology, highlighting how the country’s cutting-edge aerospace capabilities are expanding into the civilian sector.

Lingkong Tianxing Technology unveiled its self-developed reusable liquid rocket with an animated video simulation posted to its official website on Tuesday. The clip showcased advanced flight control technologies, including mid-air flips and in-flight reignition.

The clip shows the VTVL (vertical take-off and vertical landing) rocket igniting and ascending to an altitude of nearly 2km (1.2 miles), where control surfaces on both sides of the nose shift angles, transitioning the rocket from vertical ascent to an upwards-slanting trajectory in a ballet-like motion.

After around 30 seconds, the engine shuts down upon reaching peak altitude and the rocket executes its first flip.

The rocket then begins to descend nose-first, slowing down at a high “angle of attack” – a term referring to the angle between the rocket’s “longitudinal axis” or nose direction and its direction of motion through the air. A high angle helps to generate aerodynamic drag for slowing down.

About 10 seconds later, the engine reignites as the wings adjust their angles, enabling the rocket to perform a second flip and return to a nose-up position.

It then descends steadily under engine control, landing vertically in a double-layered elastic net on the ground.

The rocket uses liquid fuel propulsion and features variable thrust, according to the company based in Chengdu, Sichuan province. Also, unlike traditional hard landings, a soft landing minimised structural damage, paving the way for reusability, the company said.

“An actual trial is expected to launch soon. The experiment will lay the technical groundwork for future suborbital tourism and reusable transport platforms,” it said.

Alongside the clip, the company posted an image of a rocket launched from a desert and streaking across the Milky Way alongside meteors. It appeared to tease something unprecedented that the company planned to do – create a “meteor shower” in the desert.

SpaceX’s Falcon 9 launches have seen the rocket’s exhaust plume leave jellyfish-like trails in the sky, shared by many social media users in the United States as a visual spectacle. Generating artificial meteor showers within the atmosphere with a rocket is expected to offer an even more striking show.

While natural meteor showers are unpredictable and often hard to observe, this kind of “rocket meteor shower” offered both controllability and spectacle, blending aerospace technology with artistic romance, the company said.

Reports suggest that Lingkong Tianxing aims to develop cost-effective next-generation supersonic passenger aircraft to revolutionise global air transport, potentially halving international flight times.

Last December, the company test-fired its JinDou-400 engine, which operated for 45 seconds at speeds of between Mach 3.3 and 4.1 at altitudes of 14km to 23km.

In January this year, the team unveiled an uncrewed supersonic aircraft prototype, named Cuantianhou or “Soaring Stone Monkey”. The prototype – which is seven metres (23 feet) long and weighs about 1.5 tonnes (3,307lbs) – is equipped with two engines and reached Mach 4 at 20km in test flight, twice the speed of the retired Concorde.

According to the company road map, the Cuantianhou is expected to complete its maiden flight in 2026, followed by its supersonic passenger plane Dasheng in 2030.

“China currently leads the world in hypersonic technology,” the company stated.

“Hypersonics serves as a foundational technology for both aerospace re-entry and high-speed transport, representing a critical intersection between aeronautics and astronautics. It also holds immense commercial value across scientific research and diverse civilian applications,” it noted.

“Beyond passenger jets, we are also exploring other commercial applications.”

How are Chinese aircraft carriers pushing limits and testing boundaries in the Pacific?

https://www.scmp.com/news/china/military/article/3316817/how-are-chinese-aircraft-carriers-pushing-limits-and-testing-boundaries-pacific?utm_source=rss_feed

New details emerging about a rare Chinese military drill involving two aircraft carriers in the Western Pacific last month reveal that the vessels are training with greater intensity and complexity, according to experts.

One analyst said that by testing themselves against each, the Liaoning and Shandong carriers could gain a level of experience that even the United States military could not gain in battle because it was usually engaged with far less powerful rivals.

Since Monday, state broadcaster CCTV has released several clips of drills focused on reconnaissance and early warning, defensive and counterstrike operations, anti-surface assaults, air defence and day-and-night tactical flights by carrier-based aircraft.

On Thursday, the Shandong arrived in Hong Kong for a five-day port call.

In the latest drills, in June, the two vessels operated beyond the second island chain in the Western Pacific together for the first time, reaching waters near Japan’s easternmost islands and as far as 965km (600 miles) northeast of Guam, the US’ westernmost territory.

The drills were different in operations and strategic messaging from China’s first dual carrier exercise conducted in October, which mainly took place in the South China Sea, with additional manoeuvres in the Yellow and East China seas.

Timothy Heath, a senior international defence researcher at the US-based Rand Corporation, said the key difference was “greater complexity and intensity”.

“By contrast, last year’s exercise was essentially a trial run as it was the first time two carriers operated together. They did not travel as far or for as long a time, and the drills were simpler,” Heath said.

Song Zhongping, a former People’s Liberation Army instructor, said the two carrier battle groups had acted as opposing red and blue teams for the first time, serving simultaneously as adversaries and support units.

“The unique carrier-centred training approach allows China to test its carrier strike groups realistically against potential adversaries,” Song said.

“They can practise high-intensity strike tactics, such as full-deck aircraft launches, use shipborne and airborne sensors to assess strike outcomes, and rehearse defensive measures or counter-attacks after sustaining hits. The critical data gathered provides valuable experience for refining tactics, techniques and weapons systems.”

Song said this kind of mutual offensive-defensive drills offered a training experience that was not available to the US Navy in battle because it usually targeted weaker opposition.

“While US carriers have combat experience, it mostly involves striking asymmetric opponents, lacking genuine large-scale, carrier-to-carrier attack-and-defence scenarios,” he said, noting that US carriers had struggled with saturation drone attacks from Houthi forces.

Song said it was also not an option for the US in training because of the investment and innovation required to simulate the complexities of modern peer conflict.

The CCTV report also indicated that other PLA service branches had taken part in the exercise, suggesting the drills included response to long-range, land-based anti-ship missiles.

“The ships that accompany the carriers are equipped for anti-submarine and anti-ship warfare, providing China a comprehensive combat capability that can be deployed as far as the second island chain,” Heath said. “This could give China greater ability to coerce and intimidate countries throughout the Indo-Pacific, and could motivate more Asian countries to increase their defensive preparations.”

The CCTV reports also mentioned foreign warships and aircraft closely tracking the Chinese carriers throughout the drills, prompting fighter scrambles “to respond professionally and effectively”.

According to Song: “These reports reflect China’s determination to reinforce combat realism, ensure carrier security through actual confrontations, and accumulate operational experience.”

Heath added: “The ability to operate dual carriers significantly expands the PLA’s ability to fight far from its shores. With two carriers, the PLA essentially has two floating airports that can carry out a high sortie rate.

Chinese carrier-based planes can also carry out diverse missions, including reconnaissance, strike, air defence, air superiority and more.”

Japan’s Ministry of Defence Joint Staff Office said that from May 25 to June 22 the two Chinese carriers conducted 1,120 carrier-based aircraft take-off and landing operations – 700 by the Liaoning and 420 by the Shandong – in waters between the first and second island chains near Japan’s southeastern islands.

The Japan Times said the Liaoning carried out a record-breaking 90 aircraft take-offs and landings on two separate days in June, comparing it to the average 120 daily sorties on a US Nimitz-class carrier, which employs a Catobar – or catapult-assisted take-off but arrested recovery – system to launch a greater number of aircraft in a period.

“The Liaoning’s high sortie rate, despite its smaller tonnage, fewer aircraft and ski-jump launch system, shows the Chinese navy has truly pushed its operational capabilities to the limit,” Song said.

Apple’s China iPhone sales face headwinds in second half as Huawei remains a strong rival

https://www.scmp.com/tech/big-tech/article/3316846/apples-china-iphone-sales-face-headwinds-second-half-huawei-remains-strong-rival?utm_source=rss_feed

Demand for Apple’s iPhone in mainland China is expected to encounter headwinds in the second half of 2025, after sales of the device received a strong boost in recent months on the back of promotions in the world’s biggest smartphone market.

In the second half, “iPhone sales in China will stumble amid weak consumer spending and an ageing iPhone 16 cycle, while tepid iPhone 17 upgrades won’t spark demand”, Counterpoint Research senior analyst Ivan Lam said on Thursday.

He added that efforts by domestic rivals, especially Huawei Technologies, to “aggressively” target the market’s high-end smartphone segment would also affect iPhone sales on the mainland.

That assessment reflects the challenges that the iPhone continues to face in the domestic market even after Apple recently joined the national subsidy programme.

Select models of the iPhone, iPad and Apple Watch that cost below 6,000 yuan (US$837) are eligible for a subsidy of up to 500 yuan, while as much as 2,000 yuan in discounts cover certain MacBook and Mac computer models, according to Apple’s statement last month.

In the second quarter, Apple saw an 8 per cent year-on-year increase in iPhone 16 sales in China, thanks to “well-timed and well-received” promotions introduced a week ahead of the midyear 618 shopping festival, according to a Counterpoint research note on Thursday.

The US consumer electronics giant in May slashed iPhone prices by as much as one-third on major Chinese e-commerce platforms, which had also made certain models eligible for the government’s consumption subsidy programme.

Huawei, meanwhile, remained the country’s top smartphone brand in the second quarter, according to Counterpoint. Domestic smartphone sales of Huawei saw a 12 per cent year-on-year jump during this period.

The Shenzhen-based company was “still riding high on core user loyalty, as they replaced their old phones with new Huawei releases”, Counterpoint’s Lam said.

In the first three months of the year, Huawei ranked as China’s biggest smartphone vendor by sales with a 19.4 per cent market share, according to Counterpoint data in April.

Huawei and Apple together led China’s smartphone market growth in the June quarter, which was “slightly” up year on year, according to Counterpoint.

Apart from the economic slowdown and heightened competition from Chinese handset vendors, Apple continues to navigate certain regulatory hurdles.

Chinese rivals have already introduced artificial intelligence features in their smartphones, while Apple is still awaiting regulatory approval to launch its own service, Apple Intelligence.

Apple’s smartphone shipments in China were forecast to fall 1.9 per cent in 2025, research firm IDC said last month.

Meet China’s first home-grown carrier, the Shandong – a bridge to a blue-water future

https://www.scmp.com/news/china/military/article/3316800/meet-chinas-first-home-grown-carrier-shandong-bridge-blue-water-future?utm_source=rss_feed

Almost a decade has passed since the People’s Liberation Army pulled the trigger on President Xi Jinping’s plans for a massive overhaul of the world’s biggest military. In the latest of on Chinese weapon systems, Seong Hyeon Choi looks at what China’s second aircraft carrier tells us about the PLA Navy’s blue water ambitions.

The Shandong – which arrived in Hong Kong on Thursday for its inaugural five-day port call to the city – is the PLA Navy’s second aircraft carrier and its first to be built in China.

The carrier is escorted by the missile destroyers Yanan and Zhanjiang, along with the missile frigate Yuncheng, and will host a series of tours and cultural exchanges during its visit.

The Shandong’s homeport is in Hainan, southern China, where the carrier is in service with the navy’s Southern Theatre Command, which mainly operates near the South China Sea.

With a full-load displacement of 70,000 tonnes, the Shandong has become an instrument of Beijing’s long-range naval power projection across the island chains that have for decades marked the defensive boundaries of the United States and its allies in the Western Pacific.

The Shandong, commissioned in December 2019 and officially designated Type 002, kick-started China’s dual-carrier era. Its fellow carrier, the Liaoning, was reconstructed from a Soviet Kuznetsov-class vessel and delivered to the PLA Navy in 2012.

Because its design was derived from the Soviet-era vessel, the Shandong shares some characteristics with the Liaoning, including their conventional ski-jump ramps to launch aircraft.

They also have a similar length and beam of around 305 metres (1,000 feet) and 75 metres (246 feet), respectively. However, the Shandong has a heavier full-load displacement than the Liaoning’s 60,900 tonnes and a slightly slower speed at 31 knots, compared to 32 knots.

The Shandong has an expanded hangar and sponson, allowing it to host around 36 aircraft, including J-15 fighter jets, Z-18 transport helicopters and Z-9 medium multipurpose utility helicopters.

Similar armaments to the Liaoning have also been integrated into the Shandong, which is equipped with three Type 1130 close-in weapon systems and three HQ-10 short-range surface-to-air missiles.

The Shandong was first seen in the South China Sea – the waterway subject to multiple competing claims by other Southeast Asian nations, including the Philippines, Vietnam, Malaysia and Brunei – during its nine sea trials over 19 months.

Since then, the carrier has mainly operated near the mainland coast, but lately has been more frequently seen further from home – in the blue waters of the Philippine Sea or the Western Pacific Ocean, which includes the strategically critical eastern side of Taiwan.

Beijing regards Taiwan as part of its territory and has not ruled out using force to bring it under mainland control. Like most countries, the US does not recognise Taiwan as independent but is its biggest arms supplier and opposes any attack.

In April, the Shandong and its strike group took part in Strait Thunder 2025A – the PLA’s multi-service military exercise near the Taiwan Strait, a massive drill that included joint manoeuvres with naval and aerial units east of the island.

The purpose of the exercise was said to be to assess the military’s ability to “integrate inner and outer perimeter forces in a multi-axis blockade scenario”.

Such missions show Beijing’s intention to advance beyond the first island chain – a series of islands and archipelagos from Japan’s Kyushu Island down to the South China Sea and controlled by US allies – and building its blue-water capabilities.

Later that month, the Shandong and its escorts made two rare transits towards the Western Pacific within a week.

The first transit was reported by the Japanese Defence Ministry, which said it was spotted sailing about 789km (490 miles) south of Japan’s Miyako Island in the Philippine Sea. Over two days, the carrier’s aircraft conducted roughly 130 take-off and landing drills.

Next, the Shandong was seen near US-Philippine joint exercises that were taking place around the north of Luzon Island.

The carrier was accompanied by six destroyers and frigates, as well as two support vessels, and was crossing a part of the Bashi Channel that could be a major choke point in any conflict in the Taiwan Strait.

In June, both the Shandong and the Liaoning crossed the second island chain – stretching from Japan through Guam to Papua New Guinea – for manoeuvres that marked the first and furthest records for two Chinese aircraft carriers operating in the Western Pacific.

While the Shandong represents a steady evolution in scale and complexity, it still relies on the ski-jump launch system that takes up space with ramps that could be used to carry more aircraft.

China’s next aircraft carrier, the Type 003 Fujian – launched in June 2022 and undergoing sea trials – features three electromagnetic catapults, allowing more room for planes, fuel and munitions.

The cutting-edge technology enables planes to achieve a more uniform acceleration rate compared with conventional steam catapult systems, increasing safety and reducing maintenance costs.

The Fujian’s electromagnetic catapults also allow for more efficient and diverse aircraft launches and are expected to significantly increase operational flexibility and sortie rates.

According to media reports in November, satellite data suggests that Beijing is developing nuclear-powered propulsion for its next aircraft carrier, which could significantly improve Chinese naval endurance in blue waters.

The PLA plans to have six carriers by 2035, a fleet that would make it the world’s second-biggest blue-water navy after the United States.

The Shandong stands as a critical bridge – from coastal experiment to fleet-level integration. It also establishes China’s capacity for domestic production of aircraft carriers and sustained carrier group operations beyond its littorals.

Its recent activities in the blue water area of the Western Pacific suggest that the Shandong is a stepping stone for China’s future carrier operations with more advanced propulsion and operational capabilities as it attempts to match US carrier strike groups.

Cat-loving Chinese man, 82, plans to leave feline his inheritance, seeks dependable carer

https://www.scmp.com/news/people-culture/trending-china/article/3315961/cat-loving-chinese-man-82-plans-leave-feline-his-inheritance-seeks-dependable-carer?utm_source=rss_feed

A cat-loving elderly man in China wants to leave his inheritance to strangers on the condition that they provide unconditional care for his beloved feline.

The wish of the 82-year-old, surnamed Long, from southern China’s Guangdong province has sparked a heated discussion on mainland social media.

Long is still searching for someone to look after his pet, Xianba, after he dies.

Mainland media outlets report that Long has no children and lived alone after his wife died a decade ago. He adopted four stray cats on a rainy day: Xianba and her three kittens.

Only Xianba remains with him, prompting Long to begin looking for carers in case he dies before her.

According to Guangdong Radio and Television, Long said he was willing to give all his inheritance, including his flat and savings, to anyone who is willing to “take good care” of his cat.

However, so far, he has not found the right person.

Many people online have expressed disbelief about the situation.

“If no one is willing to take the offer, it is either because they do not truly love cats or the old man’s conditions are too strict,” one person said.

The terms of the cat-caring contract have not been revealed.

“The old man might be willing to give away his property, but the person who accepts the offer might face lawsuits from the man’s relatives who might claim they have the right to inherit it,” another online observer said.

China’s Civil Code, which took effect in 2021, allows people to make a will to gift their inheritance to the country, an institution or an individual.

Others online expressed a willingness to adopt Long’s cat without taking his money.

“I would like to adopt the cat, and I do not need his money,” one person said.

“I am willing to adopt it,” said another, adding that she understood Long’s wish.

“I also once considered the same question. I do not know anyone who I can trust with my cat, so the best way is to give money to the adopter because I do not want my cat to be their burden,” she said.

Some people also warned that bad people might adopt the cat to abuse her. Many such cases have been exposed online.

At present, China does not have a law that prohibits the mistreatment of pets.

The country’s pet market has boomed in recent years.

According to the 2025 China Pet Industry White Paper, the number of dogs and cats in China reached 124 million last year, a 2.1 per cent increase on 2023.

The size of the dog and cat consumer market also grew by 7.5 per cent to 300 billion yuan (US$42 billion) last year.

South Korea’s Lee Jae-myung caps first month in office with pledge to improve China, Russia ties

https://www.scmp.com/news/china/diplomacy/article/3316801/south-koreas-lee-jae-myung-caps-first-month-office-pledge-improve-china-russia-ties?utm_source=rss_feed

Seoul will move “swiftly” to improve ties with Beijing and Moscow to “protect peace and people’s lives”, according to South Korea’s president.

Marking his first month in office on Thursday, Lee Jae-myung said that one of his government’s priorities was to ensure the “safety and peaceful” lives of the South Korean people, stressing that “peace is the minimum prerequisite for national stability and happiness”.

Lee said he believed in a “virtuous cycle of peace”, pledging to maintain a “firm” alliance with the United States, as well as to improve ties with China and Russia. This was reflected in Pyongyang’s favourable response to his government’s decision to suspend Seoul’s loudspeaker propaganda efforts near the demilitarised zone between the two Koreas, he said.

China has also reportedly invited the South Korean president to attend a military parade in Beijing in September to commemorate the 80th anniversary of the end of World War II.

According to the South Korean Presidential Office, Lee is reviewing the possibility of taking part in the event, and Seoul and Beijing are communicating about the issue.

In 2015, then-South Korean president Park Geun-hye attended the parade, a decision that caused friction between Seoul and Washington.

Lee, of the ruling liberal Democratic Party of Korea, is widely seen as friendlier towards Beijing than his conservative predecessors, who put greater emphasis on South Korea’s alliance with the US and trilateral ties with Washington and Tokyo.

He was criticised on the election trail last year when he accused then-South Korean president Yoon Suk-yeol of jeopardising trade relations with Beijing through unnecessary provocation. He also said he opposed “bothering” Beijing by interfering in the Taiwan Strait.

On Thursday, Lee vowed that South Korea was ready to deal with provocation from the North.

“South Korea boasts the world’s fifth-largest military power. It is also one of the global military powers, spending 1.4 times more on defence than North Korea’s annual GDP,” Lee said.

“Based on its strong defence power, we will thoroughly prepare for provocations, while resuming the severed communication between the South and the North, and open the way to peace and coexistence on the Korean peninsula through dialogue and cooperation.

“Based on the strong ROK [Republic of Korea]-US alliance, close ROK-US-Japan cooperation, while also swiftly improving relations with China and Russia, we will protect peace and the lives of our people through pragmatic diplomacy centred on national interests.”

Lee also said he would meet as many world leaders as he could during his term, stressing that South Korea’s economic growth and development depended on international trade.

On the question of security cooperation with Japan, Lee said there were “many sensitive issues” in relations with Tokyo. He described the two countries as “close but distant” neighbours with an “inseparable relationship” and a shared front yard.

South Korea and Japan were also both part of the liberal democratic camp and exposed to North Korea’s nuclear and missile threats, he said.

“There are many common interests in strategic and military terms, and there is also much room for economic cooperation, and we must cooperate,” Lee said.

However, Lee also cited disputes over Japan’s past and a group of islets, known as the Dokdo or Takeshima, in waters between the two countries as potential obstacles in their relationship.

“I don’t think we need to mix these two things [cooperation and obstacles] up. I think we need to have a flexible and rational attitude … to leave the issue as it is. That is, even in times of war, we do diplomacy, we talk, we cooperate. Even when we fight with our right hands, we hold each other’s left hands,” Lee said.

He said Japanese Prime Minister Shigeru Ishiba seemed wary of him during a meeting at the G7 Summit last month, but there was “no necessity” to feel that way and that South Korea and Japan had many areas for cooperation.

“There are of course things we can cooperate on in terms of security issues in response to North Korea’s nuclear missiles. We need to find ways to help each other,” Lee said.

“There are also many things we can cooperate on economically, in ways that are helpful to each other. It’s not a relationship where ‘the other side suffers a loss and I benefit from that loss’, but rather something where the other side benefits and we benefit.”

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Alibaba leads US$14 million funding round in Chinese corporate AI agent start-up

https://www.scmp.com/tech/big-tech/article/3316819/alibaba-leads-us14-million-funding-round-chinese-corporate-ai-agent-start?utm_source=rss_feed

A Hangzhou-based artificial intelligence (AI) start-up specialising in enterprise AI agents has secured over 100 million yuan (US$14 million) from investors led by Alibaba Group Holding’s cloud unit, as Chinese companies strive to leverage the technology to raise business efficiency.

BetterYeah AI, a prominent player in China’s enterprise AI sector founded by former Alibaba executives, said on Wednesday it had completed its latest financing round with contributions from Alibaba Cloud and venture firms Maintrend Capital and Foresight Capital. Alibaba owns the South China Morning Post.

It marked the “largest single investment deal” in the AI agent market, the start-up said.

AI agents are programs that are capable of autonomously performing tasks on behalf of a user or another system. Essentially, these agents create a plan of specific tasks and subtasks to complete a goal using available resources.

These AI applications are increasingly seen as the future of business automation. While many start-ups focus on consumer AI agents, BetterYeah AI develops enterprise AI agents that help streamline office operations and management, such as in online client services.

Alibaba is striving to become a leading provider of enterprise AI services in China, particularly for small businesses. It has pledged to invest US$53 billion in AI computing infrastructure over the next three years.

BetterYeah AI said it had served nearly 100,000 enterprise teams, with notable clients including personal computer giant Lenovo Group and home appliance maker Supor. The company plans to unveil a “new-generation corporate AI agent platform” in the third quarter, aimed at creating “better digital colleagues”.

BetterYeah’s founder Zhang Yi was formerly a vice-president at Alibaba’s DingTalk enterprise communications platform. He was recognised for his contributions to the development of various “smart human resources” enterprise products during his tenure at DingTalk.

His co-founders – chief operating officer Huang Wen and chief technology officer Huang Zhongkun – also have backgrounds in DingTalk, according to the company’s profile.

Chinese companies are making rapid advances in the AI agent market. Major tech firms such as ByteDance and Baidu have introduced their own products, Coze and AgentBuilder, respectively.

In March, Chinese firm Butterfly Effect’s AI agent, Manus, drew global attention for its ability to execute complex tasks, making it one of the most promising AI start-ups to emerge from the country since DeepSeek.

The global AI agent market was valued at US$5.43 billion in 2024. It is projected to grow to about US$236 billion by 2034, from around US$8 billion in 2025, according to consulting firm Precedence Research.

‘Marvellous achievement’: Hongkongers flock to see Chinese warship Shandong

https://www.scmp.com/news/hong-kong/society/article/3316829/marvellous-achievement-hongkongers-flock-see-chinese-warship-shandong?utm_source=rss_feed

Hundreds of residents and tourists lined Hong Kong's waterfronts on Thursday morning to catch a glimpse of the Chinese aircraft carrier Shandong and its accompanying strike group entering local waters.

Crowds packed the esplanade at the South Horizons private residential estate in Hong Kong Island’s Southern district, with many setting up cameras to get pictures of the passing warships.

The Shandong was spotted near Lamma Island at 7.17am and is the first Chinese carrier to call at Hong Kong since the Liaoning visited in July 2017 to mark the 20th anniversary of the city’s return to Chinese sovereignty.

The 70,000-tonne warship was escorted by missile destroyers Yanan and Zhanjiang, and the missile frigate Yuncheng on Thursday, with the carrier hosting a series of tours and cultural exchange activities in the city until Monday next week.

The five-day trip also marks the first time one of the country’s fully domestically built carriers has visited the city.

Military hardware fan Hui Muk-ling, an optometrist in his thirties, said he took the first MTR train from Kowloon Tong at 5.45am to travel to South Horizons just to take pictures of the vessels.

“I asked DeepSeek about the vessel’s route as it entered Hong Kong waters, and [the platform] told me this is the best viewing spot. So here I am,” he said, referring to China’s home-made generative artificial intelligence tool.

“I am looking forward to it as it is China’s first domestically made aircraft carrier.”

Cao Hui, a retired People’s Liberation Army soldier living in South Horizons, brought his grandson to the harbourfront to see the ships at around 7.40am.

“I am very proud,” the 70-year-old said. “China used to lag behind in military strength. The achievement we have today is marvellous.”

More than 20 people also waited for the fleet at the Kennedy Town waterfront at around 7.30am.

Some sightseers brought along cameras and long lenses to capture the moment, while others used their phones.

Among the fans was a 71-year-old retiree surnamed Wan, who said he was unable to secure a ticket for the vessel.

“I woke up especially early and came here without having breakfast,” said Wan, who lives in Eastern district and arrived at the waterfront at around 6.30am.

“I am hoping to see some vessels from the fleet, even though I wanted to see the carrier Shandong the most.”

Ferry services for nine of Hong Kong’s outlying islands were suspended between 7.20am and 9.50am on Thursday to make way for the fleet’s entry into Hong Kong waters.

The affected routes include those between Central and Cheung Chau, Mui Wo, Peng Chau, Yung Shue Wan, Sok Kwu Wan and Discovery Bay.

At Tsuen Wan pier, more than 100 pupils from the Hong Kong Management Association David Li Kwok Po College had to wake up earlier to catch a ferry to Cheung Chau for a two-day field trip rather than from Central.

Chu Hon-yin, 16, said he had to wake up half an hour earlier.

Another commuter at the pier, an office worker surnamed Chan, said the change was “super annoying”.

“I have a driving lesson at Ap Lei Chau. If the ferry went to Central, I would only need to transfer once, but now I have to make three transfers,” Chan, who is in her thirties, said. “I also had to wake up half an hour earlier.”

To get to her destination, Chan needed to take the ferry from Cheung Chau to get another boat to Tsuen Wan before reaching Ap Lei Chau by MTR.

Chan said she only learned about the ferry service suspension when she saw a friend’s Instagram post about it, adding that she found the alternative arrangements confusing.

“I don’t know why they have to block the whole passage for the fleet,” she said.

Discovery Bay resident Roberto Giannetta said the free ferry service to Tsuen Wan pier had “worked out quite well” for him.

“I usually work in Central, but I have a meeting in Tsuen Wan today. I even got breakfast,” he said, explaining that staff on board had dished out cupcakes to passengers.

China’s power bank crackdown: 6 preflight answers for wary travellers

https://www.scmp.com/economy/china-economy/article/3316836/chinas-power-bank-crackdown-6-preflight-answers-wary-travellers?utm_source=rss_feed

China’s aviation authorities have imposed an emergency ban on air passengers’ carrying substandard power banks, catching many travellers off guard.

The safety precaution, which went into effect on June 28, two days after being announced by the Civil Aviation Administration of China (CAAC), has triggered questions and concerns.

Here are six points that people travelling to and within China need to know – from which power banks are still allowed, to what can be done with ineligible ones at the airport.

China Compulsory Certification (CCC), also known as “3C certification”, is a mandatory safety and quality-assurance standard for many products sold in China, ensuring they meet specific safety, health and environmental impact standards.

Managed by China’s State Administration for Market Regulation, the system legally requires products listed in the 3C catalogue to obtain certification before they can be manufactured, sold, imported or used.

Any power bank without 3C certification – denoted by a mark that can be seen on the surface – is deemed substandard.

Airports will establish areas for passengers to discard or temporarily store non-compliant power banks, and provide mailing services as required by the CAAC. Passengers can also choose to handle their intercepted power banks during security checks, based on their needs.

The CAAC requires proper documentation at all stages of handling non-compliant power banks to ensure traceability of their disposal and to prevent unauthorised handling or re-entry into the market. Power banks that exceed the storage period will be considered voluntarily discarded by passengers.

In August, authorities banned the sale of power banks without 3C certification, out of concerns over safety hazards of substandard products, but pre-existing, unsold stock continues to circulate in the Chinese market.

Some substandard products still make their way into consumer hands by being falsely labelled as having obtained the 3C certification, such as from Shenzhen’s Huaqiangbei, a market known for selling various electronics. On Monday, its merchants were ordered by the city’s market-supervision authorities to prohibit the sale of any uncertified power banks.

China’s state broadcaster, CCTV, reported at the weekend that a common cause of power bank fires is a short circuit due to internal wiring faults, as the pressure in an aircraft cabin changes, and the temperature of the battery can surge to 400 degrees Celsius (752 degrees Fahrenheit) in a matter of seconds and continue to rise. Most fire extinguishers are unable to cool overheated power banks, leaving them prone to reignition.

People’s Daily reported on Wednesday that 15 incidents of power banks catching fire or emitting smoke have occurred on domestic flights so far this year.

In June, three incidents involving power bank fires – including one in which a flight from Hangzhou to Shenzhen returned and made an emergency landing due to a smoking power bank – raised alarms about the potential dangers.

Look for the encircled “CCC” marking. It should not be a sticker applied directly to the power bank. See here:

Recently, major Chinese power bank companies such as Romoss and Anker started recalling non-compliant products, and their 3C certifications have been suspended.

Compliant power banks can generally be purchased from large electronics retailers and appliance stores.

The power bank ban currently applies to domestic flights only, according to the CAAC’s June 26 announcement.

For international flights, as there is no updated requirement for carrying power banks, the standard for passing through security checks remains unchanged for a rated energy not exceeding 100Wh, authorities said. Power banks exceeding 100Wh, but not exceeding 160Wh, may be carried with airline approval, but each passenger is limited to no more than two. More than 160Wh is not allowed.

The labels should be clear enough to read. Without a marked rated energy, or if it cannot be calculated from other clearly marked parameters, the power bank cannot be brought on an international flight.

For international passengers departing from airports without direct flights to their destinations, the latest regulations still apply during transit within China, meaning power banks without 3C certification cannot be brought on board.

Passengers travelling by rail do not need 3C certification for power banks, as long as the rated energy does not exceed 100Wh, and the labels must be legible to board the train.

Power banks and lithium batteries with clear markings and a compliant rated energy are exempt and not included in the “restricted carry-on items” issued by the National Railway Administration and the Ministry of Public Security.

Subway security standards are independently set by local authorities. In Fuzhou and Hefei, the rated energy of a single power bank should not exceed 100Wh, and each passenger may carry up to two compliant power banks. Guangzhou Metro regulations state that passengers may carry no more than five power banks, with each having a rated capacity not exceeding 74Wh.

Regulations on passengers carrying power banks in different countries around the world on flights are generally consistent, based on the International Civil Aviation Organisation standards. The United States, United Kingdom and South Korea permit power banks with a rated energy of up to 100Wh, while those between 100Wh and 160Wh require airline approval.

Since May, Southwest Airlines in the US has required passengers using power banks during flights to keep them in a location visible to the crew, not in carry-on luggage nor overhead compartments.

China and the European Aviation Safety Agency prohibit the use of power banks during flights. Malaysia Airlines prohibits the use of power banks during flights and requires that they not be placed in overhead compartments.

Following an aviation incident in Busan in March, South Korea adjusted its regulations, with several airlines banning the use of power banks on board and requiring that those carried on board be kept with the passenger or placed in the seat pocket in front, not in overhead compartments.

Singapore Airlines has banned the use of power banks during flights and prohibited charging power banks using on-board outlets since April.

‘China is not the US’: Europe has challenges but none come from Beijing, Wang Yi tells EU

https://www.scmp.com/news/china/diplomacy/article/3316767/china-not-us-europe-has-challenges-none-come-beijing-wang-yi-tells-eu?utm_source=rss_feed

China has presented itself as a “peaceful, inclusive and cooperative” partner for the European Union and pledged it will not follow the path taken by the US.

In a meeting with EU representatives in Brussels on Wednesday, China’s top diplomat Wang Yi urged the bloc to “truly foster a rational understanding” of China and not seek confrontation despite their division.

“China and Europe have different histories, cultures and values. We should not regard each other as opponents just because of differences, nor should we seek confrontation just because of disagreements,” Wang told the EU delegation led by the bloc’s top diplomat, Kaja Kallas.

“Europe is currently facing various challenges, but none of them came from China in the past, present or future,” he said.

“China’s diplomacy upholds the harmonious gene of Chinese civilisation and advocates peace, tolerance and cooperation. On issues of peace and security, China has the best track record among the world’s major powers. China is not the United States, and the path taken by the United States should not be used as a mirror for China.”

Wang is visiting Brussels for the 13th high-level strategic dialogue between China and the EU, and to lay the groundwork for a leaders’ summit in China this month.

Earlier, he met EU Commission President Ursula von der Leyen and EU Council President Antonio Costa, who are expected to meet China’s President Xi Jinping and Premier Li Qiang in Beijing and Hefei on July 24 and 25.

The high-level meeting came amid ongoing trade tensions between China and the bloc over electric vehicle tariffs and rare earth export controls, while the EU is also recalibrating its relations with Beijing in the wake of policy rifts with Washington, particularly over US President Donald Trump’s tariffs and his position on the Ukraine war.

The bloc’s China policy has been increasingly aligned with Washington in recent years, viewing Beijing as a national security risk and an increasingly assertive power aiming to reshape global order. It has also adopted active measures to “de-risk” its economic ties with China to address the trade imbalance between the two, including imposing tariffs on Chinese EVs.

Amid tensions with the West, China has also tightened its global controls over rare earth exports that are essential for the EU’s energy and semiconductor supply chains. China currently accounts for around 69 per cent of global rare earth production and nearly 90 per cent of processing.

Since Trump’s return to the White House, the US has launched a global tariff war, even targeting its allies. Its re-engagement with Russia amid its ambition to broker an end to the Ukraine war has also unsettled Europe.

As cracks have been revealed in transatlantic relations, China has launched a diplomatic charm offensive for the EU. Electric vehicle trade negotiations remain active, with Beijing also agreeing to open a “green channel” for the bloc to expedite rare earth exports.

In a readout from the EU, Kallas emphasised the importance of concrete solutions to rebalance bilateral economic ties while calling on China to end its restrictions on rare earth exports.

Kallas also expressed the EU's commitment to “engage constructively” with China to address global challenges, including calling on China to “cease all material support that sustains Russia’s military industrial complex” amid the Ukraine war.

The three-year conflict remains one of the biggest friction points between China and the bloc, which has long criticised Beijing for supplying dual-use items to Russia. Beijing has denied the charge and positioned itself as a peacemaker.

Kallas also reaffirmed the EU’s commitment to its one-China policy while expressing opposition to any unilateral attempts to alter the status quo, including by force or coercion.

On Taiwan, Wang said China hoped the EU could respect China’s core interests through “practical actions”.

The meeting also touched on the EU’s concerns over human rights in China as well as conflicts in the Middle East, according to the EU readout.

China schools urge pupils to dance when studying to boost brains, morale, ease pressure

https://www.scmp.com/news/people-culture/trending-china/article/3315921/china-schools-urge-pupils-dance-when-studying-boost-brains-morale-ease-pressure?utm_source=rss_feed

Secondary schools in China have urged pupils to dance while studying in a bid to activate their brains, boost morale and relieve heavy academic pressure.

Several schools across the nation have applied the “passionate morning reading” method with their pupils.

In video clips posted online, teenagers can be seen wiggling their bodies and waving their arms wildly while reading textbooks.

In some schools, pupils stand still while studying but are encouraged to chant the text loudly.

The activity lasts the whole morning study session, which usually lasts half an hour.

In some schools known for their military-style management, such as Hengshui High School in northern China’s Hebei province, the morning study session can start as early as 6am.

Another school in southwestern China’s Guizhou province said its passionate morning reading session lasts from day.

According to the school, the activity is effective in “boosting the students’ morale and activating their youthful power.”

Another school in eastern China’s Shandong province asked its pupils to read English and Chinese textbooks passionately in the morning to cultivate their reading skills, improve their memory capacity and confidence.

It is unknown when and where the trend started, but the earliest reports of this activity can be traced to 2021 on mainland social media.

The secondary school from the reports, located in northwestern China’s Shaanxi province, said its graduating pupils started the trend voluntarily.

Chinese pupils, especially those in senior secondary school, face heavy academic pressure due to the competitiveness of the national college entrance examination.

A total of 13.35 million students took the test in June this year.

The number of candidates had been on the rise since it exceeded 10 million in 2019, and only registered a slight drop this year from 13.42 million in 2024.

Many in China believed the exam, also known as “gaokao”, to be their only chance to succeed in life.

This belief has boosted the strict education style known as “Hengshui mode”.

Developed by the Hengshui High School, it boasts military-style management that urges pupils to study for 16 hours a day.

A student in Hengshui No.2 High School said their lunchtime lasted just 15 minutes.

A graduate from Hebei province said their school only allowed them to take a shower twice a week, as it was considered a waste of time.

The passionate morning reading activity has received a mixed reaction online.

“Moving your body while reading is actually quite helpful in memorising difficult text,” said one person.

“This activity is at least better than playing with their phones and pads all day long,” another online observer said.

“Can they even read while moving wildly like this?” another asked.

A graduate who had experienced passionate morning reading said she was forced: “The teacher made us read out loud and ruined my voice.”

Chinese team creates blockchain tech to resist attacks from quantum computers

https://www.scmp.com/news/china/science/article/3316608/chinese-team-creates-blockchain-tech-resist-attacks-quantum-computers?utm_source=rss_feed

Chinese scientists have developed a new blockchain storage technology that they say can resist attacks from quantum computers.

Blockchain technology – which provides a shared, decentralised digital ledger that stores tamper-proof records – has shown revolutionary potential in areas like financial services and supply chain management.

Usually, blockchains use specialised encryption algorithms to verify each transaction, ensure the ledger’s security, and provide transparent access to data.

“However, the rise of quantum computers threatens to break today’s blockchain security systems,” said Wu Tong, an associate professor with the University of Science and Technology Beijing.

“Even the most advanced methods struggle against quantum attacks.”

Wu worked with a team from the Beijing Institute of Technology and Guilin University of Electronic Technology to find a solution to the problem.

They came up with EQAS – or efficient quantum-resistant authentication storage – which the team outlined in the Chinese-language Journal of Software in early June.

Current mainstream security methods rely on complex mathematical problems like large-number factorisation, but quantum computers can easily solve those problems using algorithms.

“Specifically, existing signature-based security becomes vulnerable under quantum attacks,” Wu said. “Attackers could forge data or insert malicious records without detection, compromising the blockchain’s integrity and consistency.”

She said many of the existing blockchain security technologies still relied on maths problems that were vulnerable to quantum computers.

“To ensure long-term security, we must upgrade these methods,” Wu said.

The EQAS system replaces vulnerable maths-based encryption with a signature tool known as SPHINCS, which was unveiled in 2015 at an international cryptography conference. It uses quantum-resistant hash functions – or simpler maths checks – instead of complex problems.

This also simplifies device key management, avoiding synchronisation headaches – a big advantage for blockchain networks where nodes independently verify transactions.

Data storage is also separated from verification in the EQAS system. It generates proofs using a “dynamic tree” structure and then validates them using an efficient “supertree” framework.

The researchers said this approach boosted scalability and improved performance while reducing the strain on servers.

For the study, the team also put the security and efficiency of EQAS to the test. By optimising parameters it produced smaller signatures and faster verification while maintaining security.

In simulations, EQAS took about 40 seconds to complete authentication and storage tasks – much faster than the Ethereum blockchain’s current confirmation time of about 180 seconds, with 12 blocks taking 15 seconds each.

Wang Chao, a professor at Shanghai University who specialises in quantum attacks and was not involved in the study, noted that quantum attacks on blockchains were still a rarity.

“It’s like a wooden gate being vulnerable to fire. But if you replace the gate with stone, the fire becomes useless,” he said. “We need to prepare, but there is no need to panic.”

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China flight safety in spotlight after pilot jumps to death over workplace dispute

https://www.scmp.com/news/china/article/3316783/china-flight-safety-spotlight-after-pilot-jumps-death-over-workplace-dispute?utm_source=rss_feed

A failed pilot evaluation that ended with a China Southern Airlines captain stabbing two of his colleagues before jumping to his death in Changchun in the northeast Chinese province of Jilin on Tuesday has renewed public worries about flight safety.

The pilot, surnamed Li, 31, died after jumping out of a window, according to a report released on Wednesday by the Erdao district branch of the Changchun Public Security Bureau. His colleagues were taken to hospital with non-life-threatening injuries, the report said, adding that an investigation was continuing.

Citing a person with knowledge of the incident, Guizhou Radio and TV Station (GZTV) reported that Li, a pilot with the company’s Jilin branch, had recently failed an evaluation and was not qualified to fly.

During a conversation with his superiors about the appraisal, Li attacked the flight department’s party committee secretary and a department manager, the insider said. He then smashed a window on the 15th floor of the building and jumped to his death.

The company evaluation determined that Li had a “lack of understanding of rules and procedures” such as communication failure procedures and the cockpit door electronic lock password, GZTV reported, citing an internal report provided by another insider.

The source said the internal report had recommended Li undergo “systematic and comprehensive training” of the flight crew operating manual followed by a comprehensive “theoretical verification” conducted by the airline’s Jilin branch before Li could have his flight qualifications restored.

On social media, the incident has sparked worry and debate about China’s civil aviation safety. Some people commented that they had doubts about the airlines’ employee management and assessment system. But others argued that the company’s cautious approach was reasonable since any deviations from details and procedures in the aviation industry could lead to disaster.

“If civil aviation personnel bring their emotions from work disputes into flight missions, the consequences will be disastrous,” wrote one Weibo user.

If you have suicidal thoughts or know someone who is experiencing them, help is available. In Hong Kong, you can dial 18111 for the government-run Mental Health Support Hotline. You can also call +852 2896 0000 for The Samaritans or +852 2382 0000 for Suicide Prevention Services. In the US, call or text 988 or chat at 988lifeline.org for the 988 Suicide & Crisis Lifeline. For a list of other nations’ helplines, .

China’s Communist Party pays tribute to late premier Li Keqiang on 70th birth anniversary

https://www.scmp.com/news/china/politics/article/3316796/chinas-communist-party-pays-tribute-late-premier-li-keqiang-70th-birth-anniversary?utm_source=rss_feed

China’s Communist Party mouthpiece People’s Daily hailed the late former premier Li Keqiang for his steadfast dedication to the party and loyalty to its leadership, in an article published on Thursday to mark what would have been his 70th birthday.

The article, attributed to the Institute of Party History and Literature, said Li had “dedicated all his energy to the cause of the party and the state, and made significant contributions to it”.

Li was an “outstanding member of the party, time-tested loyal communist fighter, outstanding revolutionary and politician, and exemplary leader”, the article said.

Li died in Shanghai in October 2023, after suffering a heart attack while swimming at a state guest house. The 68-year-old had stepped down as premier just months earlier.

An official obituary published by state broadcaster CCTV at that time described Li’s death as “a huge loss” for the party and the state.

It is customary for Chinese authorities to publish commemorative articles for senior officials on every 10th anniversary of their birth. The 100th birth anniversary is usually marked by a memorial symposium attended by top leaders.

The People’s Daily article offered a retrospective of Li’s life, describing him as an avid learner who “loved the party, his country and the people”.

In listing his early achievements, it recounted how, from 1993 to 1998, a young Li had led the Central Committee of the Communist Youth League, the primary decision-making body of the party youth organisation seen to offer a pathway to senior leadership. He organised several research projects on Chinese youth during this time, the article noted.

Li became governor of central Henan province in 1998 and party secretary of northeastern Liaoning province six years later, pushing for the industrialisation and urbanisation of both regions. He had also contributed to high-quality economic development, the article added.

Since becoming premier in 2013, Li promoted the optimisation and upgrade of the economic structure, guided financial institutions to serve the real economy and focused on innovation-driven development, it said. It also hailed the late leader for having soldiered on through the Covid-19 pandemic and the challenges of the subsequent economic downturn.

Li’s sudden passing came as a shock to the public, who fondly remembered him as the “people’s premier”. He had a reputation for public empathy, and media outlets would often publish images of the premier on the frontline of natural disasters and visiting people’s homes.

The article stressed how Li was “deeply devoted to the people”.

“He frequently visited enterprises, factories, mines, farmlands and grass roots communities, listening attentively to the people’s voices and gaining first-hand understanding of their well-being, with a strong focus on alleviating their hardships,” it said, adding that Li always emphasised tackling pressing public challenges, including jobs, education, housing, healthcare and elderly care.

Since stepping down in March 2023, Li had firmly supported the party and President Xi Jinping, and “resolutely endorsed the efforts to improve party conduct, uphold integrity and combat corruption”, the article said.

He had “maintained the political character and noble moral integrity of a communist”, it concluded, emphasising that Li had been consistent in thought, politics and action with the party’s decision-making central committee and had upheld Xi’s core position and authority.

Chinese firms in Vietnam upbeat over US tariff deal: ‘better than expected’

https://www.scmp.com/economy/china-economy/article/3316746/chinese-firms-vietnam-upbeat-over-us-tariff-deal-better-expected?utm_source=rss_feed

Chinese manufacturers in Vietnam breathed a sigh of relief on Wednesday, after Washington and Hanoi agreed a “better than expected” trade deal that will reduce US tariffs to 20 per cent and bring an end to three months of uncertainty.

Most Chinese exporters are likely to continue operating in the Southeast Asian nation in the wake of the agreement, with firms viewing the final tariff rate as manageable, analysts and businesspeople in the country told the Post.

US President Donald Trump announced on Wednesday via a social post that the United States would impose a 20 per cent tariff on imports from Vietnam – plus a 40 per cent duty on goods deemed to be transshipped – under a new trade agreement, calling it “a great deal of cooperation between our two countries”.

The new rate is significantly lower than the 46 per cent so-called “reciprocal” tariff on Vietnamese goods that Trump announced in early April, before subsequently pausing for 90 days.

Hanoi and Washington reportedly held three rounds of negotiations to reach the deal, which also slashes Vietnamese duties on US goods to zero, eventually confirming an agreement just days before the “reciprocal” tariff pause was due to expire on July 9.

The US is still locked in trade negotiations with a slew of countries including Canada, Japan and India, after agreeing an early deal with the United Kingdom. It has also reached agreements with China over export controls and to roll back tariffs for 90 days, though the two sides have yet to confirm a permanent deal.

The latest deal with Hanoi not only has wide-ranging implications for Vietnam, but also for the large number of Chinese manufacturers that have set up production in the country in recent years – often to avoid earlier rounds of US tariffs targeting China.

Peng, a Chinese national who runs a cardboard box printing factory in northern Vietnam, said the tariff outcome was better than he had expected and should allow his business to continue functioning.

He originally moved his factory from Guangdong province in southern China to the Vietnamese city of Haiphong in 2018, when many of his clients also began relocating to the region to avoid US tariffs on Chinese goods introduced by Trump during his first term in office.

After investing 20 million yuan (US$2.8 million) to set up the new facility, Peng said his company finally started generating good returns last year. Orders surged over the past three months as anxious US clients rushed to front-load shipments ahead of the potential 46 per cent tariff roll-out.

“I’ve already made a significant investment to relocate to Vietnam thanks to Trump, and even if he plans to raise tariffs to 46 per cent, I won’t relocate again,” said Peng, who declined to give his full name for privacy reasons. “I’ll simply split the tariff costs with my American clients.”

Liu Jie, a business consultant at Vietnam-based consulting firm Seamakes, said that most Chinese companies already operating in Vietnam had decided to stay after the US announced its reciprocal tariff plan in April.

“Many of the exporters leaving Vietnam are those engaged in simple transshipment of goods, and they are now the primary targets of Vietnamese authorities,” Liu said.

The Vietnamese government has rolled out stricter rules for Chinese manufacturers in line with commitments made to the US, according to Liu. These include requirements that core production must occur in Vietnam and that local value-added content for products must exceed 31 per cent.

“This is good news for local Chinese manufacturers with registered factories, as they have made real contributions to Vietnam’s economy and industry,” Liu added. “A 20 per cent tariff is also the best outcome expected by them.”

Vietnam was one of the early winners of the US-China trade war that erupted during Trump’s first term in office, attracting a wave of Chinese manufacturers in the apparel, electronics and appliances sectors seeking to avoid US tariffs.

That shift helped to accelerate Vietnam’s economic growth and turn the country into an export powerhouse. But it also made the country a target of US pressure, with officials complaining about Vietnam’s large trade surplus with America and accusing the nation of allowing large-scale transshipment of Chinese-made goods.

The latest US-Vietnam deal includes a 40 per cent tariff on goods deemed to be transshipped via Vietnam to the US, though it is unclear at this stage how this provision will be implemented in practice.

Trump said Vietnam would also open its market to US exports, describing American SUVs and large-engine vehicles as “a wonderful addition to the various product lines within Vietnam”. All American goods will be subject to zero tariffs on entering Vietnam under the agreement.

Mary Lovely, a senior fellow at the Peterson Institute for International Economics, said the final outcome may disappoint US buyers and was unlikely to place significant pressure on Vietnamese exporters.

“Many US exports are not well suited to the Vietnamese market, given the large gap in gross domestic products (GDP) per capita, and I doubt that the Vietnamese are overly concerned about export surges from the US impacting their domestic factories,” she said.

“This may explain why they accepted US demands for zero tariffs on US exports into their country.”

Lovely added that concerns over transshipment from Vietnam were likely overstated. “Exports from China to Vietnam have grown, but much of it supports Vietnamese manufacturing and is not ‘transshipments’ in the sense of simple tariff evasion,” she said.

The main challenge for Vietnam will be identifying and enforcing transshipment rules, according to Lovely, though enforcement may be more straightforward than it appears because research shows that most re-routing is done by Chinese-owned firms.

Vietnam’s trade surplus with the US rose to US$12.2 billion in May, up nearly 42 per cent year on year, according to Vietnamese government data.

Last year, the US imported US$136.6 billion of goods from Vietnam, accounting for nearly one-third of the Southeast Asian country’s total exports.

China rolls out record-setting turbine for Tibet hydropower plant

https://www.scmp.com/news/china/science/article/3316685/china-rolls-out-record-setting-turbine-tibet-hydropower-plant?utm_source=rss_feed

China is ready to install a large impulse turbine at the Datang Zala Hydropower Station in Tibet autonomous region, according to the official Science and Technology Daily.

The home-grown turbine, with a maximum capacity of 500 megawatts, has the world’s largest single-unit capacity, according to the report on Wednesday. Two turbines will be installed at the station.

The 80-tonne turbine left its developer plant at Harbin Electric Machinery Company in northeast China on Wednesday after four years of design and testing.

The Datang Zala Hydropower Station is located on the Yuqu River, a tributary of the Nu River, which flows from southwest China through Yunnan province to eastern Myanmar and empties into the Andaman Sea.

The turbine is made of martensitic steel, a type of stainless steel known for its durability, strength and corrosion resistance. It has 21 water buckets and an outer diameter measuring 6.23 metres (20 feet).

Science and Technology Daily called the turbine the “heart” of the hydropower unit.

“The bucket-type wheel of the turbine is the core component of the unit. It plays a key role in converting the kinetic energy of the water flow into mechanical energy,” it said.

In January, the newspaper reported that the new turbine could improve power generation efficiency at the hydropower station, which features a vertical distance of 671 metres between the water level in the reservoir and the turbine.

“An impulse water turbine is a hydraulic machine that guides water flow through a pressure pipeline to strike a bucket-type wheel for energy conversion,” it said.

“The wheel is one of the most critical load-bearing and flow components ... During operation, the turbine constantly endures high-frequency dynamic pressure, playing a vital role in the safe and stable operation of the unit.”

Tao Xingming, chief technology officer at Harbin Electric Machinery Company, told the newspaper that the technological breakthrough would raise power generation efficiency from 91 to 92.6 per cent.

“For a 500-megawatt unit operating 24 hours a day, a 1.6 per cent increase in efficiency would mean generating an additional 190,000 kilowatt-hours of electricity each day,” Tao said.

The power station will have a total installed capacity of 1 million kilowatts and is designed to generate nearly 4 billion kilowatt-hours annually, according to China Datang Corporation, which is building the station.

The power generated would be equivalent to burning 1.3 million tonnes of standard coal every year, reducing carbon dioxide emissions by 3.4 million tonnes, the state-owned power generation firm said on social media last year.

The hydropower station is on track “for on-schedule commissioning”, according to an April report from the State-owned Assets Supervision and Administration Commission of the State Council, a government agency that manages and oversees state-owned enterprises.

When construction of the main section began in 2023, state news agency Xinhua reported the station was expected to begin operations in 2028.

China has intensified its dam-building efforts since 2020, following Beijing’s goal of achieving carbon neutrality by 2060.

China continued to dominate hydropower development globally last year, accounting for the vast majority of Asia’s newly added capacity as it invests heavily in energy storage solutions, according to the International Hydropower Association.

“With more than 200 gigawatts of [pumped storage hydropower] under construction or approved, China is on track to exceed its 2030 target of 120GW, potentially reaching 130GW by the end of the decade,” it said in a report released last month.

Pumped storage hydropower is an energy storage system that transfers water between two reservoirs at higher and lower elevations. When there is surplus power in the grid, water is pumped to the higher reservoir. As demand rises, the water is released to generate electricity.

Armenia looks to deepen ties with China while eyeing foreign relations beyond Russia

https://www.scmp.com/news/china/diplomacy/article/3316682/armenia-looks-deepen-ties-china-while-eyeing-foreign-relations-beyond-russia?utm_source=rss_feed

Armenia is looking to deepen ties with China with no limits, its foreign minister said, as the South Caucasus republic intensifies efforts to diversify its foreign policy away from Russia following the Nagorno-Karabakh war five years ago.

“Not only is there no impediment and any obstacle on the way of deepening our relations, but also there is openness and readiness to deepen these relations without any limitations,” Armenia’s top diplomat Ararat Mirzoyan told the South China Morning Post in an exclusive interview in Beijing.

Unlike Georgia and Azerbaijan, Armenia is the only one of the three South Caucasus countries yet to establish a strategic partnership with China, but Mirzoyan said both sides were ready to elevate bilateral ties to a higher level.

“I already mentioned that with our Chinese colleagues. We see the need for levelling up our relations to this and we noted the strategic nature of our relations, and we see the mutual interest in levelling up these relations officially as well,” he said.

Mirzoyan made the comments on the sidelines of his visit to the Chinese capital last week, when he was hosted by Chinese Foreign Minister Wang Yi.

The trip was Mirzoyan’s first official visit to China since becoming foreign minister in 2021. It comes as Armenia is actively diversifying its foreign policy following the Nagorno-Karabakh war in 2020, when it lost much of the region to Azerbaijan before Russia brokered a truce.

The 44-day conflict in 2020 resulted in the deaths of more than 3,800 Armenian soldiers and more than 2,700 Azerbaijani forces. After Azerbaijan breached the ceasefire and launched a large-scale military offensive against the self-declared breakaway state of Artsakh in September 2023, more than 100,000 ethnic Armenians fled the disputed Nagorno-Karabakh region.

Upset with Russia’s failure to intervene, Armenia announced in June last year that it would withdraw from the Collective Security Treaty Organisation, a Moscow-led military alliance of several post-Soviet states.

Meanwhile, Armenia has embarked on what are seen as major shifts in its foreign policy.

In January, it signed a strategic partnership agreement with the United States to expand cooperation in security, nuclear energy and other areas. A month later, Armenia’s parliament passed a bill officially endorsing the country’s bid to join the European Union.

Armenia has also expressed interest in joining Brics – an expanding bloc of emerging economies – as well as the Shanghai Cooperation Organisation, a Eurasian political, economic and security grouping with China as its rotating chair this year.

Talking to the Post at the Armenian embassy on Friday, Mirzoyan said political dialogue between Yerevan and Beijing was “intense and active”, adding that Armenia sought to push for stronger bonds with China, not just in trade and infrastructure but also in culture and people-to-people exchange.

When Armenia and Azerbaijan concluded negotiations over the text of the peace agreement, China was among the countries that welcomed the achievement, he said.

“Also, China expressed readiness to support the Armenia-Azerbaijan normalisation,” Mirzoyan said.

Clashes between Azerbaijan and Armenia since 2020 have highlighted the shifting dynamics in the South Caucasus, a critical transit hub linking Europe, Asia and the Middle East. The region holds significant strategic value for global powers competing for influence over trade routes, especially as Russia – dragged down by its war in Ukraine – is losing sway in the area.

Mirzoyan said there was an increased urgency for Armenia to normalise ties with its neighbours.

“There is always a risk for escalation, especially for Armenia. That’s why we are putting a lot of emphasis on institutionalisation of our normalisation process,” Mirzoyan said, referring to the push to sign a peace agreement with Azerbaijan and open the borders with Azerbaijan and Turkey.

Turkey and Armenia have yet to establish formal diplomatic ties because of historical disputes over the 1915 Armenian genocide – in which more than a million people died after Ottoman forces expelled or killed ethnic Armenians – and Turkey’s support for Azerbaijan in the Nagorno-Karabakh war.

But during a rare visit to Istanbul last month, Armenian Prime Minister Nikol Pashinyan, he and Turkish President Recep Tayyip Erdogan agreed to take steps to normalise bilateral ties.

Such normalisation would be crucial to Armenia’s Crossroads of Peace plan, which was unveiled in 2023 with the aim of improving connectivity between Armenia and its neighbours as well as the regions beyond, including Europe, Central Asia and China.

This could also open a door to connect Armenia’s Crossroads of Peace with the Belt and Road Initiative – Beijing’s transcontinental infrastructure and investment programme – and the Global Gateway, the EU’s €300 billion investment strategy, Mirzoyan added.

“Imagine, Armenian Crossroads of Peace wouldn’t have that huge impact without the belt and road project of China; and vice versa, probably belt and road wouldn’t run that smoothly if bypassing Armenia.”

Tech war: US lifts export control of chip design software to China

https://www.scmp.com/tech/policy/article/3316742/tech-war-us-lifts-export-control-chip-design-software-china?utm_source=rss_feed

The US said on Thursday it had lifted export controls on certain chip design software to China, according to statements from Siemens, Synopsys and Cadence Design Systems.

Three of the world’s largest electronic design automation (EDA) software developers have been informed by the US government that sales of their products to China would no longer require special approval, signalling a further easing of bilateral tensions.

San Jose, California-based Cadence said in an email that the US Bureau of Industry and Security, under the Department of Commerce, “has rescinded the export restrictions” that were imposed late in May.

Synopsys, headquartered in Sunnyvale, California, referenced a letter from the Commerce Department, confirming that the recently imposed curbs on sales to China “have now been rescinded, effective immediately”, in a statement on the company’s website.

Siemens Digital Industries Software, located in Plano, Texas, also received notification regarding the end of the export control, state broadcaster China Central Television (CCTV) reported on Thursday.

Both Cadence and Synopsys have said that they were working to restore access to their software and technology for China-based clients. Siemens has already reinstated access, according to the CCTV report.

Philippines joins Japan’s ‘one theatre’ plan against China sea threat

https://www.scmp.com/week-asia/politics/article/3316668/philippines-joins-japans-one-theatre-plan-against-china-sea-threat?utm_source=rss_feed

The Philippines is adopting a Japan-led strategy to treat the East and South China seas as a unified theatre of operations – a shift analysts say reflects growing alignment among regional allies in the face of China’s expanding maritime footprint.

Defence Secretary Gilberto Teodoro said the “one-theatre” concept would promote operational synergy, intelligence-sharing and mutual reinforcement among members of the minilateral “Squad” – comprising the Philippines, Japan, the United States, South Korea and Australia.

“Since the threats to Japan, the Philippines, and other like-minded countries are principally maritime, even in geography Japan being an archipelagic nation and us, and in the aerial domain, it is reasonable since there is no land border involved to treat the area as one theatre,” Teodoro told local media at a press conference on Monday.

He was referring to Tokyo’s proposed security strategy concept to the US by Japanese Defence Minister Gen Nakatani to consider the East China Sea, the South China Sea, and the Korean peninsula as a single theatre, as reported by the Asahi newspaper.

Nakatani reportedly proposed a “one-theatre” approach to Defence Secretary Pete Hegseth when the US official was in Tokyo on March 30, which the Pentagon chief welcomed.

“Japan plans to deepen partnerships by viewing Japan, the United States, Australia, the Philippines, South Korea and others as a single theatre,” Nakatani was quoted telling Hegseth.

This would mean that Japan, the US and like-minded countries such as the Philippines would be called on to strengthen defence cooperation to prepare for emergencies in this theatre.

However, Teodoro said this area should exclude the Korean peninsula.

Japan and the Philippines have both been embroiled in tensions with China over disputed features in their respective seas.

Japan lodged a protest against China in June for erecting a new structure in a natural gas field in the East China Sea. Relations between the countries have also been strained due to tensions over the Diaoyu Islands, also known as the Senkaku Islands in Japan.

Meanwhile, Manila and Beijing have figured in intensifying clashes over disputed shoals and atolls in the West Philippine Sea, the Philippines’ term for its exclusive economic zone within the South China Sea.

Manila won an arbitral award in 2016 with an international tribunal ruling in its favour, though China has rejected this decision, asserting its nine-dash-line claim.

Teodoro said Japan’s Joint Operations Command, a new unit under its Self-Defence Force, was operationalising the single-theatre concept.

General Romeo Brawner Jnr, chief of the Armed Forces of the Philippines, is reportedly supervising the plan.

Meanwhile, the defence ministers of Australia, Japan, the Philippines and the US would establish a coordinating centre in December to enforce the concept, Teodoro said.

“So it is already an operating concept. It does not need any other agreement,” he said.

The strategy comes on the back of a reciprocal access agreement that Japan and the Philippines signed last year, allowing each country’s troops on each other’s soil for military exercises – seen as a step towards strengthening both countries’ ties amid geopolitical tensions with China.

The pact went into force after the Japan Diet ratified the agreement in June, six months after the Philippine Senate had done so.

Rommel Jude Ong, a retired rear admiral of the Philippine Navy and a professor at the Ateneo School of Government, said the single-theatre operation treated the East and South China seas as a single front and accepted the fact that China enjoyed interior lines of communication, or short routes that easily allowed its forces to manoeuvre and shift forces across both waters.

The one-theatre concept sets to formalise the various security arrangements in the Indo-Pacific region, according to Sherwin Ona, an international fellow at the Institute for National Defence and Security Research in Taiwan.

“These are steps to strengthen and broaden the Squad security arrangement,” Ona said.

Analysts said the single-theatre concept would take both seas into account.

“Questions of interoperability, jointness, and collaboration will come into force,” said Julio Amador, the interim president of the Foundation for the National Interest and founder and trustee of the non-profit policy advisory firm FACTS Asia.

Amador added that the development “further concretises the strategic partnership between Japan and the Philippines” and connected them both to their common ally in the US, while recognising China as a source of tension for all countries in the first island chain.

Ona said the concept was beneficial as it allowed these countries to “recognise a common source of threats” and “encourages allies and partners to adjust their operational doctrines and improve their capabilities”.

The Philippines would benefit from collective defence actions and agreements related to the concept could help bolster local defence industries, Ona noted.

“An example of this is enhancing maritime domain awareness. [This concept] underscores the importance of interoperability and sharing of information based on certain threat parameters,” he said.

In that vein, the Philippines would need to synchronise its archipelagic defence strategy with other states to allow mutual support of unilateral operations in the region, analysts noted.

“This would allow for a holistic approach on sea control of the Bashi Channel,” Ong said, referring to the strategic waterway between the Philippines and Taiwan that serves as a critical chokepoint for mainland China’s military operations.

The strategy would also enable sea denial against adversaries in areas of the Philippine Sea, he added.

The single-theatre concept set the stage for maritime activities among the Squad’s defence forces such as combined surface action group activities, maritime air surveillance, anti-submarine patrols, exercises, integrated sea denial activities along sea lines of communications, Ong said.

Observers also noted that the planned coordinating centre for the Squad was an important step towards institutionalisation.

Ong said the centre would enable a single command and control mechanism, as well as an integrated intelligence fusion centre, even for an informal minilateral grouping.

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LIVE: Chinese aircraft carrier Shandong enters Hong Kong waters for 5-day visit

https://www.scmp.com/news/hong-kong/society/article/3316718/chinese-aircraft-carrier-shandong-enters-hong-kong-waters-5-day-visit?utm_source=rss_feed

The Chinese aircraft carrier Shandong and its accompanying strike group entered Hong Kong waters on Thursday morning as part of a five-day trip, marking the first time one of the country’s fully domestically built carriers has visited the city.

The 70,000-tonne warship is being escorted by missile destroyers Yan’an and Zhanjiang, and the missile frigate Yuncheng, with the carrier to host a series of open tours and cultural exchange activities in the city until Monday next week.

The Shandong, spotted near Lamma Island at 7.17am, is the first carrier to call at Hong Kong since the Liaoning visited in July 2017 to mark the 20th anniversary of the city’s return to Chinese sovereignty.

The Post tracks the much-awaited arrival of the Shandong and its fleet.

Reporting by Enoch Wong, Denise Tsang, Leopold Chen, Joshua Kwok, Vivian Au, Jess Ma, Wynna Wong and Lorraine Chiang.

Following the fleet entering the city from the southeast at around 7am, it is now approaching the west through the East Lamma Channel.

PLA helicopters are circling above the ships. A Hong Kong fireboat sprays water to welcome the fleet.

The Shandong, designated hull number 17, is a Type 002 conventionally powered ski-jump carrier homeported at Yulin Naval Base on Hainan Island.

While the vessel’s design is based on the Liaoning, a refurbished Soviet ship, the newer ship has a larger hangar, more flight deck capacity and enjoys greater operational capabilities.

The Shandong also serves as China’s second operational aircraft carrier and the first to be entirely constructed by the country’s shipyards.

The vessel has been central to the People’s Liberation Army Navy’s expansion of its blue-water capabilities since entering service in December 2019, designed to project naval power across the Indo-Pacific region.

It can accommodate up to 44 aircraft, including J-15 fighter jets, Z-18 helicopters and various support aircraft.

The historic port call follows closely on the heels of the Shandong’s recent completion of extensive far-sea combat training exercises alongside the Liaoning in the South China Sea, East China Sea, Yellow Sea and Western Pacific.

State broadcaster CCTV announced on Monday that the dual-carrier operation had recently ended, representing the second joint exercise to be completed by China’s two aircraft carriers.

The broadcaster said the exercise highlighted the PLA Navy’s improved capacity for sustained long-range naval missions.

The port call also overlaps with celebrations marking the 28th anniversary of Hong Kong’s handover, suggesting the carrier’s arrival has symbolic political importance.

The Shandong will be open to the public on Saturday and Sunday while anchored outside Victoria Harbour to the west, with visitors able to explore designated areas, view fighter jets and helicopters, and observe training displays.

The guided-missile destroyer Zhanjiang and guided-missile frigate Yuncheng will also be open for public visits at Stonecutters Island Naval Base over the weekend.

Last year, the destroyer Changsha and assault ship Hainan made a stop in Hong Kong.

The Hainan’s visit is the first time an amphibious assault ship has made a port call in Hong Kong, with the vessel being the largest of its kind in the PLA Navy and capable of carrying up to 30 aircraft.

Vessels from the same fleet led by the Liaoning carrier last visited Hong Kong in 2017.

Ferry services for nine of Hong Kong’s outlying islands will be suspended to make way for the fleet’s entry and departure from Hong Kong waters.

The service suspensions will take place between 7.20am and 9.50am on Thursday and from about 10am to 12pm on Monday of next week.

The affected routes include those between Central and Cheung Chau, Mui Wo, Peng Chau, Yung Shue Wan, Sok Kwu Wan and Discovery Bay.

Services between Aberdeen and Pak Kok Tsuen and Yung Shue Wan, Aberdeen and Sok Kwu Wan via Mo Tat and Ma Wan and Central will also be affected.

Commuters will be offered free alternative ferry services, including travel to Tsuen Wan Ferry Pier, with operators promising to strengthen their services before 7.30am on Thursday for individual routes.

But Discovery Bay district councillor Jonathan Chow Yuen-kuk says his constituents are prepared to leave home a little earlier to forgo the ferry or consider alternatives such as buses, where available.

“A lot of people think this is a rare opportunity, so they don’t mind at all,” he says, adding he is satisfied with transport authorities’ special arrangements.

All free tickets to board the Shandong aircraft carrier have been snapped up in less than a minute across three reservation sessions on Monday, the Post has learned.

A total of 10,000 tickets, with 2,000 designated for the aircraft carrier and 8,000 for the Zhanjiang missile destroyer and the Yuncheng frigate, were up for grabs, with real-name registration beginning at 10am, 3pm and 8pm on Monday.

New memoir reveals Lee Kuan Yew’s approach to China diplomacy: ‘he wasn’t like the West’

https://www.scmp.com/week-asia/people/article/3316709/how-singapores-lee-kuan-yew-treated-china-respect-he-wasnt-west?utm_source=rss_feed

Singapore’s founding prime minister Lee Kuan Yew recognised early on that China demanded respect and equality in diplomacy – a posture that earned him Beijing’s enduring trust, according to veteran newspaper editor Cheong Yip Seng.

In his newly released memoir Ink and Influence: An OB Markers Sequel, Cheong reflects on Lee’s deft handling of China relations, drawn from personal experience covering his landmark 1976 visit to Beijing and later working closely with him as editor-in-chief of Singapore newspaper The Straits Times from 1987 to 2006.

Ink and Influence outlines Cheong’s four-decade-long career in journalism and his interactions with political leaders while at The Straits Times before he served as Singapore’s non-resident ambassador to Chile. Cheong then offers his thoughts on the way forward for the Singaporean media outlet.

Speaking to This Week in Asia during the book’s launch on Wednesday, Cheong said that although Singapore was more developed than China in those days, Lee held the Chinese in high regard.

“He wasn’t like the West, for example, who would demonise. He could see where are the strengths of the Chinese, where are the weaknesses, and be honest. But more importantly, [there was] a lot of mutual respect,” Cheong said.

Cheong, 82, recounted an anecdote published by the Chinese in 2018 when China honoured 10 foreigners with the China Reform Friendship medal to mark the 40th anniversary of the country’s opening up. The write-up for Lee, who was one of 10, recalled a 1978 visit by Deng Xiaoping to Singapore when Lee asked to have a spittoon and ashtray placed in the Istana next to Deng, after Lee recalled Deng smoked and he had seen a spittoon in the Great Hall of the People on his previous visit to China.

But throughout the evening Deng did not smoke or use the spittoon because he knew from news reports that Lee was sensitive to the smell of cigarettes.

“If you don’t have mutual respect, you can hardly have a proper constructive dialogue because one party is trying to be superior to the other. Equality is very important to the Chinese, for them that’s the better basis for negotiating, rather than having one party trying to overpower the other party, you won’t [get] win-win,” Cheong said.

Yet, Lee made sure the Chinese knew that Singapore had its own identity. In Ink and Influence, Cheong writes about the fanfare the Singaporean delegation received from the Chinese when they arrived in 1976 and how word got out that they were being greeted as “kinsmen”. Lee told the Chinese that Singaporeans were not kinsmen and ensured that the Singapore press corps never forgot this, said Cheong, who also served as editorial adviser to the Post from 2012 to 2020.

Cheong also recalled that Singapore’s former president S R Nathan, who was in the delegation, told him that their Chinese hosts gave Lee a copy of India’s China War by Neville Maxwell, a pro-China version of the war between India and China. According to Nathan, Lee put the book aside and said something to the effect of: “This is your version. There is another version of the war.”

While Lee’s diplomatic deftness was outlined in much of the book, Cheong said the purpose of OB Markers and the sequel was to explain the unique media model that Lee developed in Singapore.

Lee knew that to control the media, he needed to give the newsroom space so it could build its own credibility, and if it lost its credibility the media would be of no use to him, Cheong said.

“It’s a difficult balancing act that he performed, but I think he did it with great skill. He gave me a lot of space. I published many articles which are very critical of the government. He would get upset, but then it would pass,” Cheong said.

The 307-page Ink and Influence: An OB Markers Sequel comes over a decade after its prequel, which was met with controversy that ultimately resulted in Lee’s endorsement being removed in a subsequent print of the book.

Cheong addresses this in Ink and Influence, recalling that the chief of government communications demanded the removal of Lee’s endorsement after worrying that the insider account of Cheong’s interactions with the government would be used by the opposition to attack them.

“I was surprised by the reaction, because I knew that what I wrote in the book is not some state secret,” he said, stressing that his goal was to describe the Singapore media model for journalists to understand the industry they were in and the challenges it faced.

Cheong wrote that Lee’s daughter, Lee Wei Ling, called him after hearing about the controversy to tell him she read the book and found nothing wrong with it. She also reported the unhappiness to her father, who just shrugged his shoulders, she told Cheong.

With The Straits Times turning 180 this year, Cheong expressed concern that the paper was not serving Singapore’s interests and urged it to remodel itself as a global product that specialised in geopolitical coverage. In 2022, the paper began receiving government funding.

He noted in his book that Western media outlets could not fill the gap in the market for such a product, as many had political leanings.

“The biggest story in the world today is geopolitics, and it’s a field that will really engage enterprising journalists and if you have got an enterprising journalist who is able to make sense of what is happening around them and tell the story in a compelling way, they will always have an audience,” he said.

“We are a global city. We must have a product that will match the status that we have.”

Chinese digital yuan partner signs deal with Hong Kong firm to develop stablecoin tech

https://www.scmp.com/tech/blockchain/article/3316683/chinese-digital-yuan-partner-signs-deal-hong-kong-firm-develop-stablecoin-tech?utm_source=rss_feed

A Beijing-based fintech services provider, which has provided billing systems for China’s digital yuan, has signed a strategic partnership with a Hong Kong firm to tap stablecoin and virtual asset business opportunities, in the latest sign of mainland interest in the city’s recent moves to license cryptocurrency issuers.

Shenzhen-listed North King Information Technology said on Wednesday that it had struck a deal with Hong Kong-listed GoFintech Quantum Innovation to develop infrastructure to support the ecosystem for stablecoins and other cryptocurrencies, as well as tokenised real-world assets (RWAs).

The mainland company said in a statement on Wednesday that it would leverage its information technology capabilities and products to fit into the stablecoin ecosystem by collaborating with stakeholders such as regulators, stablecoin issuers, crypto exchanges and asset custodians. North King said it planned to use Hong Kong as a springboard to expand into the global fintech market.

The plans, according to North King, included developing both hard and soft wallets for stablecoins. GoFintech Quantum is already involved in making hardware wallets. In February, the company formed a joint venture with Quakey Tech, another mainland firm, to develop and sell hardware wallets resistant to quantum computing attacks.

North King and GoFintech did not immediately respond to requests for comment on Wednesday.

Hardware wallets are used for storing cryptocurrency offline, often built with special chips to enforce security. Stablecoins are a type of cryptocurrency pegged to a reference asset, typically backed one-to-one with a fiat currency such as the US dollar.

North King’s ambition south of the mainland border is the latest example of how Chinese fintech firms are eager to profit from recent developments in Hong Kong. In May, the city passed a law requiring stablecoin issuers to be licensed in the city, which takes effect next month.

Beijing’s tacit support for the city’s effort to develop a cryptocurrency hub has raised hopes that a sizeable stablecoin market could develop in Hong Kong, offering a legal channel for Chinese businesses to tap the market. Beijing has maintained a strict ban on cryptocurrency trading on the mainland.

Markets have reacted with excitement at any hint that a mainland company might be able to tap the Hong Kong crypto market.

Last week, shares of Guotai Junan International Holdings nearly tripled a couple of days after the broker said in a post on WeChat that it had received approval from the Securities and Futures Commission for a Type 1 licence, allowing it to sell securities and access to cryptocurrencies through a licensed virtual asset trading platform.

Hong Kong’s stablecoin law is regarded in the industry as the first comprehensive legislation regulating the issuance and usage of such assets. Once in effect on August 1, issuers must be licensed by the Hong Kong Monetary Authority.

The law could potentially open the floodgates to stablecoins backed by assets denominated in Hong Kong dollars and offshore yuan.

Chinese internet giants are accelerating the layout of stablecoins in the city. Beijing-based e-commerce giant JD.com announced its entry into the stablecoin space in June through its subsidiary Jingdong Coinlink Technology. The same month, fintech firm Ant Group, an affiliate of Alibaba Group Holding, also announced plans to submit an application for a stablecoin issuance license. Alibaba owns the Post.

The total market capitalisation of stablecoins was estimated to top US$255 billion on Wednesday, according to CoinMarketCap, a crypto market tracking platform. Two US dollar-backed stablecoins, Tether and USDC, had a combined market cap of nearly US$220 billion, making up roughly 85 per cent of the market, according to the site.

Trump wants US$30 billion for China shipbuilding race. Here’s why victory won’t come easy

https://www.scmp.com/news/china/military/article/3316622/trump-wants-us30-billion-china-shipbuilding-race-heres-why-victory-wont-come-easy?utm_source=rss_feed

America’s view of China as a “pacing threat” has shaped its defence priorities as the military seeks to maintain an edge over a rapidly modernising PLA. In the last of a three-part series on how US budget tensions will affect efforts to deter China, we look at Trump’s massive funding request aimed at turbocharging naval construction. Read the rest of the series .

US President Donald Trump aims to invest tens of billions of dollars to revitalise American shipbuilding, as China’s rapidly expanding naval fleet and commercial shipbuilding industry challenge US maritime dominance, especially in the Indo-Pacific.

As part of the strategy, the Trump administration is considering setting aside a major portion of its US$150 billion defence reconciliation bill – under a special legislative process that allows Congress to fast-track funding – for naval shipbuilding.

The US has also been seeking to increase shipbuilding cooperation with Indo-Pacific treaty allies South Korea and Japan, in an attempt to match Beijing’s naval fleet in case war breaks out around Taiwan.

However, despite Washington’s resolve, the US might find it very difficult to match China’s shipbuilding capacity within Trump’s term analysts warned.

Potential solutions such as involving regional allies would also face challenges, they said, citing factors including Washington’s political priority to keep jobs within the country.

The Trump administration’s reconciliation bill proposes US$150 billion in defence spending for the 2026 fiscal year, around US$30 billion of which would be spent on naval shipbuilding. The bill was passed by the House of Representatives on May 22.

On Tuesday, the bill was narrowly passed in the Republican-majority Senate after more than 24 hours of debate, meeting the Trump-imposed deadline of July 4. Any changes made in the Senate’s proposed version will now need the House’s approval before heading to the president for signature.

The House reconciliation bill sought US$33.7 billion in mandatory funding for naval shipbuilding, to “improve infrastructure and expand capacity at private shipyards and throughout the maritime industrial base supply chain, to construct new battle force ships, and to develop and procure autonomous unmanned surface and subsurface vessels”.

While the Senate version of the bill reduced the shipbuilding budget to around US$28 billion, it is still the largest single allocation of all planned defence spending under the bill. Another US$3.5 billion is expected to be spent on shipyard modernisation, as part of the US$16 billion proposed for improving military readiness.

However, the Senate bill has removed procurement plans for larger naval vessels included in the House bill, such as the US$4.8 billion allocated for a San Antonio-class amphibious transport dock and America-class amphibious assault ship. Instead, it has added US$300 million for medium unmanned surface vessels, indicating a shift in procurement priorities

But a top Republican lawmaker has questioned perceived over-reliance on the reconciliation bill, given the significant cut in the Trump administration’s shipbuilding funding request in the 2026 base budget.

The White House has requested US$20.8 billion for Navy shipbuilding in its base budget – a significant decline from the Biden administration’s US$37.1 billion for the 2025 fiscal year. Republican Senator Roger Wicker, who chairs the Senate Armed Services Committee, called the drop “deeply” disappointing, saying the congressional reconciliation funds were meant to supplement the base budget, not be a substitute.

Collin Koh, a senior fellow at the S. Rajaratnam School of International Studies in Singapore, said US shipyards had been “slowly depleting” and becoming “ossified” over the decades.

“It has been underinvested, and somehow they allowed domestic politics to actually run amok with the naval ship building priorities. All these need to have changed in the beginning,” Koh said.

“So honestly, if you ask me, this [reconciliation] budget, I don’t think that’s a panacea, and I don’t think that’s going to become sort of a key solution to a long running problem that has long existed within the US naval policy making circle.”

According to John Bradford, executive director of the Yokosuka Council on Asia-Pacific Studies and a retired US Navy officer, Washington’s goal should be to ensure US and allied shipyards are “operating at full capacity building the commercial vessels that generate revenue and the military ships needed to deter Chinese aggression”.

“Making the shipyards busy and profitable will provide the demand and investment resources to drive the expansion of shipbuilding capacity,” he said.

However, building ships and expanding shipyard capacity took time, “no matter how large the investment”, Bradford noted.

“It is simply too late for today’s [US] shipyard investments to produce the sort of fleet expansion that would change Chinese calculations regarding the likelihood [Beijing] it can successfully confront Taiwan through naval force in the next few years.”

Trump has vowed to “resurrect the American shipbuilding industry, including commercial shipbuilding and military shipbuilding”.

“We used to make so many ships. We don’t make them anymore very much, but we’re going to make them very fast, very soon. It will have a huge impact,” Trump said during his joint address to Congress on March 4.

On April 9, Trump signed an executive order titled “Restoring America’s Maritime Dominance”, aimed at revitalising and rebuilding the US maritime industrial base and workforce, and countering Beijing’s global shipbuilding edge.

Rebuilding the US military is one of Washington’s priorities, Trump’s Secretary of Defence Pete Hegseth told the Shangri-La Dialogue in May. Washington was focusing on reviving the defence industrial base and investing in its shipyards, he added, in a speech where he also talked about “deterring aggression” by China.

“We’re rapidly fielding emerging technologies that will help us remain the world leader for generations to come. We are stronger – yet more agile – than ever before,” Hegseth said at the security summit in Singapore.

“We’ll also use our allies’ world-class ship repair capabilities to enhance the US Navy’s operational effectiveness to save taxpayers money. These moves will strengthen regional resiliency by increasing access to repair capabilities in theater and reducing dependency on far away supply chains.”

Washington’s drive to revamp its shipbuilding is especially significant as concerns grow over Beijing’s military action plans across the Taiwan Strait, highlighting the need to strengthen America’s sea-based deterrence in the Indo-Pacific.

The People’s Liberation Army has been carrying out regular large-scale joint combat drills around Taiwan in recent years. The exercises have increased in scope and intensity, with the PLA Navy deploying its fleets, including its carrier strike group, to the strategically important waters off eastern Taiwan.

Beijing sees Taiwan as part of China to be reunited by force if necessary. The United States, like most countries, does not recognise the self-governed island as an independent state. However, Washington is opposed to any unilateral or forcible change to the status quo and remains Taiwan’s main international backer and arms supplier.

According to data from the Centre for Strategic and International Studies (CSIS), a Washington-based think tank, American shipyards only built five large ocean-going merchant vessels in 2024, with a total volume of 76,000 gross tonnes.

In contrast, China State Shipbuilding Corporation (CSSC) alone delivered more than 250 ships the same year, totalling 14 million gross tonnes. That is more vessels by tonnage than produced by the entire US shipbuilding industry since World War II ended, according to CSIS.

China’s market share in global commercial shipbuilding surged from 5 per cent in 2000 to more than 53 per cent in 2024. South Korea and Japan, at No 2 and No 3, respectively, are the only other prominent players in the industry but they have seen their combined share slip from 74 per cent to 42 per cent over the same period.

China’s strong shipyard capacity has also rapidly boosted its naval fleet. A Pentagon report in December described the PLA Navy fleet as the largest in the world, “with a battle force of over 370 ships and submarines, including more than 140 major surface combatants”.

The US Navy is known to have fewer than 300 vessels as of late 2024, and the gap is expected to widen in the coming years.

Given the limitations in America’s shipyard capacity and persistent workforce challenges, analysts believe that defence budget increases alone will be insufficient for Washington to rapidly close the naval gap with China or to significantly boost maritime deterrence near the Taiwan Strait.

According to Koh, the US naval shipbuilding gap has been evident for a while, so the “question isn’t so much about what should be done” but why these actions were not taken “in the first place”.

US naval shipyards were “very different” from their Chinese counterparts in terms of operations, he said, as China remained the “go-to country” for its ability to mobilise the technological elements and assemble vessels on a large scale at a competitive price.

US shipyards are not yet ready to match this scale of output, Koh said. “[This] isn’t just about Trump, but about the very nature of the US naval shipyard itself.”

Brian Hart, deputy director of the China Power Project at CSIS, offered a different perspective. He said that while China’s industrial base could “churn out an impressive number of naval vessels quickly, naval power isn’t purely about hull counts”, and the US “[does not] have to match China quantitatively in all areas”.

He said the US navy still retained an edge in the power system of its larger fleet of aircraft carriers, with significant advantages in undersea warfare capabilities.

“As the war in Ukraine has shown, technologies are changing the way we fight. Targeted investments in smaller uncrewed vessels can be an important way of fielding assets in a cost-effective way,” Hart noted.

After his re-election in November, Trump told then-Korean president Yoon Suk-yeol during a phone call that he recognised South Korea’s “world-class ability” in naval and commercial shipbuilding and emphasised that Washington needed Seoul’s support to strengthen US shipbuilding.

On December 18, the Congress introduced the SHIPS for America Act, aimed at strengthening shipbuilding and fostering a competitive fleet. The act, which remains under consideration, also urges the US to “seek mutually beneficial relationships with treaty allies and strategic partners”.

The aim would be to grow the US shipbuilding and shipping sectors and “share the burden of providing freedom of navigation on the high seas, while de-risking the US maritime domain from the People’s Republic of China, foreign countries of concern, and asymmetric or emerging maritime threats”.

A day after the act was introduced, Korean shipbuilding giant Hanwha Ocean reached a US$100 million deal to acquire Philly Shipyard in the northeastern US city of Philadelphia.

Hanwha completed its overhaul of the USNS Wally Schirra, a US Navy sealift command supply ship, at its shipyard in southeastern Korea in March, seven months after receiving what was its first-ever maintenance, repair and overhaul (MRO) order from the US military.

US Secretary of the Navy John C. Phelan, who completed his first official visit to South Korea and Japan in early May, has expressed his service’s willingness to collaborate with the two treaty allies on shipbuilding and MRO services.

Shaun McDougall, a US defence budget analyst with Forecast International, said that while Trump had long emphasised burden-sharing by allies and pressured them to increase their own defence budgets, he would need to “reconcile” this stance with the reality that revitalising US shipbuilding might depend in part on industrial support from South Korea and Japan, with their more robust shipbuilding sectors.

“The administration may work to streamline regulations or offer other incentives to facilitate foreign direct investment, which could accelerate efforts to improve domestic infrastructure and rebuild the shipbuilding workforce, while also benefiting from allied technical expertise,” McDougall said.

According to Hart, Washington could scale up joint MRO of US Navy ships with Japanese and Korean shipyards, “or court investments into US shipyards and technology transfers from allies”.

“Washington could also pursue joint construction or even buy warships directly from allies, but this would be a major, politically challenging shift.”

Koh said that shipbuilding collaboration with allies could potentially allow the US Navy to sustain itself better in the Pacific theatre, with industrial links with shipyards in Japan and South Korea able to provide MRO services.

Hence China’s wartime calculation would have to target not only the US but also Korean and Japanese shipyards supporting the US Navy, complicating Beijing’s planning and the potential conflict region in any flashpoint within the first island chain.

“When it comes to wartime planning, you do need to consider the MRO services that are available. It also means that US Navy ships do not have to go all the way across the Pacific Ocean back to their home ports and shipbuilders or shipyards in the continental US,” Koh said.

“That also means more availability of US assets in the [Pacific] theatre, and theoretically it should translate into a more convincing deterrent.”

However, the question was whether these countries would be able to secure contracts, given that the US naval construction industry might be “more than keen to lobby against” awarding them to foreign rivals, Koh said.

“There could be concern within the US naval shipbuilding industry that the transfer of know-how and other technologies to Japanese or South Korean shipbuilders could further undercut their competitiveness.

“There could also be clear technological and industrial concerns about how this collaboration could actually move forward.”

Macau-based military expert Antony Wong Dong said there were still many uncertainties around the US aims to improve shipbuilding, repairing and maintenance through domestic revitalisation and cooperation with Indo-Pacific allies.

“Theoretically, the US, together with South Korea and Japan, could form a superior shipbuilding league,” Wong said, adding that the two allies had long ago adopted the American integrated naval weapons system, or Aegis, in military shipbuilding.

“But they have never helped the US to produce main combat vessels like aircraft carriers and submarines, so a period of adaptation would be needed for the Korean and Japanese shipbuilders to increase manpower and equipment … and make sure the standards meet the US requirements.”

The initial process would take at least three to five years, if everything goes smoothly, according to Wong. However, “the question is that, as the US is worried about a conflict with China around 2027, [production readiness] might not make it in time”.

US officials have repeatedly referenced 2027 as a critical year, claiming President Xi Jinping set that as the timeline for the People’s Liberation Army to be ready to seize Taiwan militarily. Xi has denied that such a deadline exists.

Wong said the US would find it difficult to keep up with China in the short term as its vessel production had been on a “war footing” for the past 10 years, while regulatory restrictions and labour protection in the US could slow down productivity.

Another uncertainty stemmed from the increasing reliance on unmanned surface and underwater vehicles in modern warfare, he said.

While the US increases productivity in traditional naval systems, “whether it can smoothly transition to unmanned systems production to offset China’s numerical advantage [in both manned and unmanned systems] is the question”.