• Which countries will pick sides in a US-China conflict over Taiwan?
• Trump administration issues plan to limit AI exports to China
• China-EU relations at 50
• ‘Rebalancing’ needed in China-Europe relationship, chamber president says
• Logistics rents extend slump in China as suppliers relocate to hedge against tariff war
• Chinese scientists break design ‘curse’ that killed US Navy’s X-47B drone programme
• China’s shipbuilding lead endures, but market share dips amid US port-fee threat
• China’s Starlink rival faces woes, new Chinese tailless drone: SCMP daily highlights
• China must ensure its green energy leadership is good for the world
• What does it mean for China if Japan’s Shigeru Ishiba stays or steps down?
• China names Zhejiang-born Ling Zhifeng to head the Special Service Bureau
• Chinese man works at coalface with father aged 12, goes on to earn mining engineering PhD
• China GLP-1 drug study suggests slim chance weight stays off after treatment
• Chinese passengers arrested for fighting on plane
• India to issue first tourist visas to Chinese nationals in 5 years
• 18 arrested over forged Hong Kong talent scheme documents, including 13 mainland Chinese
• Expansion of tariff-free access to China’s Hainan a big boost for trade, Beijing says
• Raw foods on mainland Chinese platforms still delivered to Hong Kong despite warnings
• China powers ahead in AI race as US struggles with energy constraints, Anthropic says
• Will more US missiles in the Philippines deter or provoke South China Sea conflict?
• Tesla’s bid to regain China market share, BYD outsells BMW in Hong Kong: 7 EV reads
• China student tricked into Myanmar scam released when gang realises he has ‘bright future’
• High stakes, low expectations as EU and China prepare for summit in Beijing
• Talisman Sabre: Australia, US push Pacific deterrence amid China’s security overtures
• Would you like a handbag with that latte? Luxury brands in China think so
• Video of new UAV hints at sleek future of China’s ‘loyal wingman’ military drones
• Chinese firms urged to deepen Asean roots as US cracks down on transshipments
• Chinese woman lives 2 months for free by exploiting shop return policies, scamming men
• China is building the world’s biggest hydropower dam. Why is India worried?
• Has the Qianfan satellite network – China’s Starlink rival – run into trouble?

Which countries will pick sides in a US-China conflict over Taiwan?

https://www.scmp.com/opinion/china-opinion/article/3319108/which-countries-will-pick-sides-us-china-conflict-over-taiwan?utm_source=rss_feed

There has been much speculation as to which third parties might get involved if war broke out between China and the United States in the Taiwan Strait. In June, The Economist published an article on this very question. More recently, the Financial Times reported that the US had been putting pressure on Japan and Australia to clarify what role they would play in such a situation.

It appears that there would be few countries on China’s side. China’s only treaty ally is North Korea. A 1961 treaty obliges the two sides to take “all necessary measures” to oppose any country or coalition of countries that attack either nation unprovoked. Although North Korea sending soldiers to fight for Russia in Ukraine could raise the same prospect one day, and Beijing certainly matters much more than Moscow to the survival of a country under extensive international sanctions, currently China’s ties with North Korea appear less warm than those between Russia and North Korea.

Pakistan has been described as an “iron brother” of China. Given its almost unsalvageable relationship with India, Pakistan might seriously consider following through if China asked it to help take on India in a worst-case scenario. However, Islamabad joining a war to assist China against the US – which is a major provider of aid to Pakistan – is highly unlikely.

China’s most useful strategic partner is unquestionably Russia. Their closeness is reflected in their regular air and sea exercises. But why would Russia choose to get involved in a conflict in the Taiwan Strait if China has not provided Russia with military assistance in the Ukraine war? Presumably Russia would continue to sell China oil and gas, just like China is still selling Russia non-military items, but that’s probably all.

On the American side, not more than a handful of countries would provide military assistance to the US in a conflict with China, and each would do so half-heartedly at best. The Economist article seems to share this view as it quotes a recent paper from the Centre for a New American Security (CNAS), though the paper’s analysis is not entirely convincing.

Its first conclusion is obvious: if the US stays out of the war, its allies will, too. The second is that if the US does step in, its most affected allies would be Japan and the Philippines. Japan’s participation would be unlikely to go much further than submarine patrols or missile strikes. The Philippines would be more cautious, the CNAS paper said, but if Chinese forces were bogged down, it might be tempted to advance its claims in the South China Sea.

that Japan and e Philippines would b be the countries most fected in t that they are both on the first chain of lands close t to the Chinese coast. However, I doubt Japan would go beyond providing the US with logistical support for missile attacks on China unless it is attacked by China first.

Meanwhile, it is absurd to suggest the Philippines would be tempted to grab territory in the South China Sea. If that is the case, why wouldn’t Vietnam and Malaysia – which have stronger militaries than the Philippines – do likewise? In the event of China and the US going to war, the challenge for all Southeast Asian countries would be avoiding a conflict that engulfs the entire region. If the conflict spills over into an all-out war, the disputed islands in the South China Sea might not even exist any more.

The CNAS paper is right to say a second group of close US allies and partners – South Korea, Australia and India – would be more insulated, though Washington would likely pressure them to help. South Korea’s primary concern is the Korean peninsula.

The best support Australia could provide the US would be to allow the use of Australian bases to launch attacks on Chinese ships and aircraft. Australian officials worrying that the Aukus submarine deal could be in jeopardy if Australia stays out of any conflict is understandable, but isn’t avoiding war with the country’s largest trading partner more significant to Canberra than buying a few submarines?

Some in China would argue that India might use a US-China conflict in the Taiwan Strait to claim more territory along the Line of Actual Control, but I doubt that would happen. I agree with the CNAS authors that India would focus on defending its land border with China.

In conclusion, few countries would wish to become involved in a conflict between China and the US. According to Lowy Institute analysis, 199 countries – 62 per cent of UN member states – have endorsed Beijing’s preferred wording, accepting its claim to sovereignty over Taiwan. Of them, 89 per cent support Beijing’s reunification efforts, without specifying that these efforts should be peaceful.

Washington will find it harder than it thinks to pressure its allies to pick sides, especially when its own involvement looks more questionable than ever. Elbridge Colby, a long-time China hawk, wrote in The Wall Street Journal last September that Taiwan “isn’t itself of existential importance to America”.

If the views of Colby, now US undersecretary of defence for policy, could have “softened considerably”, as Senator Roger Wicker said during his confirmation hearing, it gives a clue as to where things are moving. US President Donald Trump rarely misses a chance to express an opinion, but so far he has not said much on the Taiwan issue. Is he keeping quiet while waiting for a chance to make a deal? His silence could not be louder.

Trump administration issues plan to limit AI exports to China

https://www.scmp.com/news/us/economy-trade-business/article/3319347/trump-administration-issues-plan-limit-ai-exports-china?utm_source=rss_feed

The White House on Wednesday released proposals to restrict exports of American AI equipment and limit the spread of Chinese AI models as part of a sweeping plan to shape the rules governing the fast-moving technology.

The 28-page AI Action Plan marks US President Donald Trump’s administration’s first comprehensive strategy on the topic and comes as national security hawks have raised concerns that superior American chips may reach China – including through third countries – and advance its AI and military development.

Under the plan, the US Commerce Department will lead an effort to develop new export controls on chipmaking subsystems to close “loopholes” in current restrictions that now focus on major systems.

The department will also lead efforts to increase the monitoring of exported US chip end users and to explore using new chip location verification features to keep them out of “countries of concern” – a term often used to refer to China, Iran, North Korea and Russia, among others.

The plan also directs the Defence and Commerce departments to coordinate with allies on adopting US export controls and to prohibit American adversaries from being involved in their defence supply chains.

“Artificial intelligence is a revolutionary technology with the potential to transform the global economy and alter the balance of power in the world,” White House AI tsar David Sacks said in a written statement.

“To win the AI race, the US must lead in innovation, infrastructure, and global partnerships ... This Action Plan provides a road map for doing that,” he added.

The Trump administration decision last week to allow American chipmaker Nvidia to sell its H20 chips to China reinvigorated furious debate about how to extend the US technological lead without compromising national security. That came months after the administration revoked a rule put in place under former President Joe Biden that limited how much US AI computing capability certain countries could access through imported US chips.

Trump has previously warned of China’s potential to surpass the US in the race for AI dominance, advocating federal government tax incentives for AI companies and decreased focus on safety regulations that could hamper progress.

American AI companies face increased competition from such Chinese rivals as Hangzhou-based DeepSeek, which sent global shock waves earlier this year when it released powerful AI models built far more cheaply than many had thought possible.

The new administration blueprint makes several recommendations focused on countering the spread of Chinese models.

To ensure “that free speech flourishes in the era of AI”, the Commerce Department is to evaluate advanced Chinese AI models for alignment with Communist Party talking points and censorship practices.

Along with the US State Department, Commerce will lead a campaign to “vigorously advocate” for international AI governance approaches that “counter Chinese influence” at diplomatic and standard-setting bodies.

Too many existing efforts “have advocated for burdensome regulations, vague ‘codes of conduct’ that promote cultural agendas that do not align with American values, or have been influenced by Chinese companies attempting to shape standards for facial recognition and surveillance”, the plan said.

The two departments will also lead a new initiative to share technology protection measures, including measures in basic research and higher education, with allies and partners.

To promote the use of American AI technology rather than that of adversaries, the Commerce Department will gather industry proposals for “full-stack AI export packages” – bundled systems that include AI hardware, software, and related services intended for export.

In recent years, the US has pushed its European and Asian allies to stop exports of advanced chipmaking equipment to China. Wednesday’s document carries a thinly veiled threat to allies, warning that failure to align with US export controls could trigger punitive trade measures through secondary tariffs.

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China-EU relations at 50

https://www.scmp.com/news/china/politics/series/3319219/china-eu-relations-50?utm_source=rss_feed

‘Rebalancing’ needed in China-Europe relationship, chamber president says

https://www.scmp.com/economy/global-economy/article/3319268/rebalancing-needed-china-europe-relationship-chamber-president-says?utm_source=rss_feed

This year marks half a century of formal diplomatic relations between China and the European Union, as well as the 25th anniversary of the founding of the European Union Chamber of Commerce in China. In this entry of our series examining ties between the two powers, Ji Siqi speaks to the chamber’s president about business sentiment in a tense period for global trade.

The president of the European Union Chamber of Commerce in China – the chief non-profit organisation advocating on behalf of the continent’s businesses – has said the relationship between Beijing and Brussels has reached a tipping point, encouraging the two to realign their collaborative model and distribute benefits in a more equitable manner.

Jens Eskelund said there is a strong perception among the European population that China is taking most of the spoils from bilateral trade, as the EU’s manufacturing sector struggles to compete with a glut of cheaper goods.

“When we look back at the past 50 years of the bilateral relationship, it has created enormous value for both sides,” Eskelund told the Post on the eve of the chamber’s 25th anniversary. “Chinese exports have created jobs and wealth in China, and given the average European higher purchasing power.

“Now the question is, if we are in a situation where very intense pressure from China leads to losses for European companies … then, of course it becomes, ‘Hang on, why are we doing this?’”

The relationship between China and the EU has been fraught in recent years, despite continuous dialogue as both sides seek to avoid the sort of full-blown trade war being waged by US President Donald Trump.

Little has been seen in the way of improvement, even as leaders from both sides prepare for a summit in Beijing this week to commemorate the 50th anniversary of the establishment of diplomatic relations.

The EU has accused China of exporting its industrial overcapacity, deliberately flooding its markets with subsidised products – particularly in tentpole sectors like electric vehicles (EVs) – which it claims distort trade and threaten local businesses.

As a result, the two sides have chipped away at sensitive spots in bilateral trade, with the EU launching anti-subsidy investigations and placing provisional tariffs on Chinese EVs. In retaliation, Beijing announced investigations into European brandy, pork and dairy products.

Recently, the EU barred Chinese firms from bidding on public medical device contracts worth more than €5 million (US$5.82 million) for a five-year period. China responded by shutting out EU firms from government medical device contracts worth more than 45 million yuan (US$6.27 million).

The ongoing Russia-Ukraine war continues to be a major sticking point for Brussels, with Beijing perceived as too close to Moscow in European policymaking circles.

Last week, in a new package of measures designed to hobble Russia’s war machine, the EU announced sanctions on two small Chinese banks from cities close to the border with Russia: Suifenhe Rural Commercial Bank and Heihe Rural Commercial Bank.

The banks have been accused of facilitating the exchange of digital assets that are “significantly frustrating” EU sanctions. Beijing responded by calling on the bloc to “immediately cease its wrong practice”.

As Trump’s aggressive trade policies appear to be treating allies and adversaries alike, some analysts expected China and the EU would grow closer. But this is a difficult task with these fundamental conflicts unresolved, Eskelund said.

“It matters what happens in DC, but it’s important to keep in mind that Europe has its own issues with China, and those issues are not going away just because we have Trump in the White House,” Eskelund said.

In 2024, the EU exported goods worth €213.2 billion to China and imported goods worth €519 billion, according to the bloc’s official data. This represents a trade deficit of more than €300 billion, though Eskelund said this figure is not the main issue.

“The deficit is not [the problem] in itself. The problem is that you have European key industries now that are being priced out.”

Consequently, Europe has begun to consider its own industrial resilience and economic security more carefully, Eskelund said, which has manifested as the bloc’s “de-risking” strategy.

China’s heightened export controls on rare earth elements – a countermeasure employed against US trade restrictions that also disrupted European manufacturing – have vindicated such arguments, he said, and renewed EU efforts to diversify its supply chains.

As the yuan has depreciated by more than 10 per cent against the euro since January and China’s producer price index registers its 33rd consecutive month of year-on-year decline, cutthroat competition across all sectors of the Chinese economy has worried European firms further, Eskelund said.

“So there needs to be a rebalancing in the relationship which would enable continued Chinese access to the European internal market,” he said. “Which, of course, is also very attractive for China.”

At the root of these economic imbalances is China’s relatively restricted market access for European manufacturers, he said. While Chinese companies enjoy broad entry into EU markets, European firms often complain of regulatory barriers, technology transfer requirements and preferential treatment for domestic players.

“When you buy a car in China made by a European manufacturer, maybe 95 per cent of the value created stays in China. But if you buy a Chinese EV in Europe, how much of the value is created in Europe? Close to zero.”

A growing focus among Chinese officials on “dual circulation” – which prioritises self-sufficiency in addition to international trade – has led to more protectionist industrial policies rather than genuine liberalisation, Eskelund added.

Beijing has repeatedly pledged to “open its door wider and wider” for foreign businesses. But in practice, he said, this has been limited to sectors like cosmetics and food and drink. Sectors identified as relevant to national security concerns, he added, have become harder for foreign companies to enter.

“All of our members tell us that they have been losing business opportunities because they are a foreign-owned company, even if they manufacture in China.”

Trade tensions between China and other countries can be boiled down to fundamental imbalances in its economy, Eskelund said: a mismatch between manufacturing output and what its market can absorb.

Beijing is currently attempting to shift to a more consumption-driven growth model, and has pledged to rein in the excessive competition present within many sectors.

“There is a realisation [within the Chinese government] that it cannot continue to invest in more industrial capacity that would be eventually wasted. Instead, it can invest in areas that actually grow consumption,” he said.

Despite their concerns, the European business community remains committed to staying in China and seeking opportunities there, Eskelund said.

“The next few years are not going to be smooth sailing, it’s going to be choppy,” he said. “But we’ll get over that.”

Logistics rents extend slump in China as suppliers relocate to hedge against tariff war

https://www.scmp.com/business/article/3319323/logistics-rents-extend-slump-china-suppliers-relocate-hedge-against-tariff-war?utm_source=rss_feed

Rents on logistics properties in mainland China extended a slump into the first half of this year, with experts forecasting little relief in the coming months as more companies choose to relocate their operations outside the country to hedge against rising US-China trade tensions.

Rents declined 12.8 per cent in the first six months from a year earlier, property consultancy Knight Frank said in a report on Wednesday. The market weakened by 14.1 per cent in the July to December period last year.

Beijing and Shanghai, China’s main commercial centres, highlighted the shrinking demand as rents tumbled 17.2 per cent and 11.3 per cent, respectively, this year. The vacancy rate climbed to 28.9 per cent in Beijing and 26.8 per cent in Shanghai, and the worst may yet be ahead given US President Donald Trump’s tariff war.

“The prospect of rents bottoming out is unlikely within the next 12 months,” said Christine Li, Asia-Pacific head of research at Knight Frank, citing US-China trade tensions as a key driver of client relocation. “Beyond that, it’s a wait-and-see on how Trump’s policies will shift trade in the region.”

Logistics property owners are losing out to their rivals in India, Knight Frank’s data showed. The South Asian nation reported the strongest logistics rental growth in the Asia-Pacific region, driven by sustained demand from the manufacturing sector. Rents climbed 3.4 per cent, versus 2.1 per cent in the second half of 2024.

US Treasury Secretary Scott Bessent said on Tuesday that he was due to meet Chinese counterparts in Sweden next week to hold further talks on tariffs. Both parties agreed to a tentative truce in June, and are said to be working to extend the August 12 deadline for an agreement, Reuters reported on Wednesday.

Tensions between the world’s two largest economies escalated after Trump launched his “Liberation Day” tariff package against most trade partners in April. He raised tariffs on Chinese goods to as high as 145 per cent, before dropping them to 30 per cent in May.

Logistics firms were navigating geopolitical risks and exploring relocations or dual logistic strategies to mitigate cross-border tariff risks, Li said. India, with a more competitive tariff structure and lower costs, “is emerging as an important node” in that strategy, she added.

“Occupiers in the region can be expected to remain agile in adapting and evolving their supply chain strategies to weather the shifting geopolitical landscape,” she said. “While expansion plans will be put on hold, we expect selective demand to remain sustained in emerging Southeast Asian markets and India.”

Chinese scientists break design ‘curse’ that killed US Navy’s X-47B drone programme

https://www.scmp.com/news/china/science/article/3319249/chinese-scientists-break-design-curse-killed-us-navys-x-47b-drone-programme?utm_source=rss_feed

Chinese aerospace engineers have a revolutionary software design, which they say will allow them to overcome a major barrier to stealth aircraft development.

The new platform allows plane designers to have as many design variables as they want without increasing computing load – a feat long deemed impossible in aviation circles.

The researchers described their innovation as breaking the “dimensionality curse” and used the US Navy’s X-47B, a demonstration stealth drone, to illustrate how the system worked.

Once celebrated for its carrier landings and autonomous aerial refuelling, the X-47B project was cancelled in 2015 because of unresolved trade-offs between stealth, aerodynamics and propulsion.

However, the Chinese software design delivered dramatic improvements to the design with 740 variables, including measures to reduce flight drag and its radar signature, as well as improving engine thrust while maintaining airflow stability.

“Traditional global optimisation algorithms face the curse of dimensionality problem,” wrote the team led by Huang Jiangtao from the China Aerodynamics Research and Development Centre in a peer-reviewed paper published in Acta Aeronautica et Astronautica Sinica earlier this month.

The shape of components such as wing leading edges and engine inlet ducts affects two crucial things: how smoothly the plane flies and how easily it can be detected by enemy radars.

Balancing aerodynamic and stealth characteristics remained a critical challenge in modern aircraft design, according to Huang and his colleagues.

As the number of design variables increased, computational complexity grew exponentially.

To address this challenge, Huang’s team proposed a geometric sensitivity computation method based on impedance boundary conditions suitable for large-scale design variable optimisation.

“This approach completely decouples gradient computation costs from the number of design variables,” they wrote.

The method enables aerodynamic-stealth optimisation at scale – including configurations with radar-absorbent material coatings– “providing critical technical support for next-generation low-observable aircraft development,” they added.

The advance comes as sixth-generation fighter projects are struggling worldwide. While the US Next Generation Air Dominance initiative has been scrapped and the F-47 faces possible delays, China is thought to be developing two next generation planes – the J-36 and J-50 – along with new stealth drones.

Rather than relying on raw computing power, Huang’s team employed a DeepSeek-style methodology that stressed efficiency.

For instance, they used unified field modelling to integrate radar-absorbent materials directly into aerodynamic sensitivity equations; reused electromagnetic field solutions and converted trillion-level calculations into manageable matrix operations.

As defence budgets skyrocket globally, this new design software might help save China a huge amount of time and resources, “providing critical technical support for next-generation low-observable aircraft development”, Huang’s team said.

China’s shipbuilding lead endures, but market share dips amid US port-fee threat

https://www.scmp.com/economy/global-economy/article/3319284/chinas-shipbuilding-lead-endures-market-share-dips-amid-us-port-fee-threat?utm_source=rss_feed

China retained its leading position in the global shipbuilding market during the first half of the year, according to data from the industry association, despite a decline in market share caused by buyers’ concerns over the threat of US port fees on Chinese-built vessels.

It secured 68.3 per cent of new vessel orders in the global market in the first six months of the year, compared with 74.7 per cent in the same period last year, China’s shipbuilding industry association said on Monday. The order volume fell by 18.2 per cent, year on year, to 44.33 million deadweight tonnes.

Analysts have attributed the decline in market share to a decrease in orders for oil and LNG tankers, but still believe in China’s competitive advantages.

“Shipowners are cautious about choosing shipyards for their tanker orders, given the US’ prominent role in oil and LNG export,” said Wu Jialu, chief analyst at Citic Futures.

Considering that the US port fee targeting Chinese-built vessels is set to take effect on October 14, Wu said such concern could have a medium- to long-term impact on China’s shipbuilding industry.

The US, a major oil exporter, reached a record high in crude oil exports in 2024, exceeding an annual average of 4.1 million barrels per day, according to data from the US Energy Information Administration.

It also remained the world’s largest LNG exporter in 2024, exporting an average of 11.9 billion cubic feet per day, the data showed.

Unlike typical half-year data releases that detail the top-three players’ market shares and newbuilding orders by vessel category, the China Association of the National Shipbuilding Industry, which has maintained a low profile since the announcement of the US port fee targeting China-built or operated vessels, released only basic data on China’s market performance.

In terms of the three major shipbuilding indicators – ship completions, new orders, and outstanding orders – “China continues to maintain its global leadership”, the industry association said.

China’s ship completions accounted for 51.7 per cent of the global market in the first half of this year, while outstanding orders represented 64.9 per cent of the global market share as of June, its data showed.

The association did not disclose the market shares of major competitors South Korea and Japan. But earlier this month, data from maritime consultancy Clarksons Research showed that South Korea’s market share increased despite a slight decline in newbuilding volume, amid a global drop of more than 50 per cent in new orders, year on year, due to rising geopolitical tensions.

Chinese shipyards will be able to maintain a stable market share even as US port fees begin to take effect, thanks to their competitive advantages in cost efficiency, a resilient supply chain, and capacity scale, You Daozhu, an analyst at Huaxi Securities, said in a recent shipping-industry report.

The scale advantage is expected to be further strengthened as the China Securities Regulatory Commission just approved the merger of China State Shipbuilding Corporation and China Shipbuilding Industry Corporation on Friday. The merger creates the world’s largest shipbuilding conglomerate.

China’s Starlink rival faces woes, new Chinese tailless drone: SCMP daily highlights

https://www.scmp.com/news/china/article/3319295/chinas-starlink-rival-faces-woes-new-chinese-tailless-drone-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 Chinese mega-constellation of communications satellites is facing serious delays that could jeopardise its ambitions to compete with SpaceX’s Starlink for valuable orbital resources.

The return of Donald Trump was supposed to bring Europe and China together. Yet, EU leaders will touch down in Beijing late on Wednesday for a summit with the lowest expectations in recent memory.

US Treasury Secretary Scott Bessent said that he would meet his Chinese counterparts in Sweden next week to continue trade talks between the two countries, suggesting the current pause in sky-high tariffs aimed at each other could be extended.

A new video circulating online shows what appears to be a Chinese tailless drone flying in formation with a turboprop, offering a rare glimpse at the country’s progress in developing collaborative combat aircraft.

On the eastern rim of the Tibetan plateau, China envisions a future powered by the roaring waters of the Yarlung Tsangpo, also known as the Brahmaputra. The river will be the site of a mega dam – the world’s most ambitious to date – that promises to bring clean energy, jobs, infrastructure and prosperity to the region.

China’s tropical island province of Hainan will have an independent customs regime by the end of the year, the central government announced. Starting from December 18, a separate customs zone will be established in Hainan, which Beijing wants to transform into a free-trade port, as well as a centre for offshore financing and duty-free shopping that will lure tourists and businesses with an internationally competitive tax regime and relaxed visa requirements.

The head of a German think tank sanctioned by Beijing four years ago has returned from a trip to China, suggesting that travel restrictions on the organisation may be easing. Mikko Huotari, the executive director of the Mercator Institute for China Studies was in Beijing from July 14 to 17, after being invited by a leading Chinese think tank.

China must ensure its green energy leadership is good for the world

https://www.scmp.com/opinion/china-opinion/article/3318245/china-must-ensure-its-green-energy-leadership-good-world?utm_source=rss_feed

New York Times columnist Thomas Friedman wrote in 2007 that “Green is the new red, white and blue”, arguing that the United States could cement its leadership through clean technology. The ensuing decades have seen US political dysfunction turn that on its head. Now in 2025, he argues that US President Donald Trump’s “big, beautiful bill” will only “make China great again”.

It’s not hard to see why he might think that. There is an intimate connection between generation capacity and national economic output. In a world driven by increasingly energy-hungry AI models, large digital infrastructure outlays and traditional industrial processes, abandoning the cheapest form of energy generation yet discovered to defend legacy interests in fossil fuels seems foolish.

It has been a truism since the beginning of the 2020s that, per dollar spent on capacity, renewables now beat fossil fuels on price, and renewables are not dependent on a continuous stream of outside fuel at fluctuating prices.

In that challenge lies opportunity. In a world plagued by climate instability, energy insecurity and economic uncertainty, the next global leader will be crowned not by war or wealth but by capability and capacity. Delivering on clean energy at scale will be the leading edge upon which these are determined, and China is positioning itself at the centre of this transformation. It is becoming the world’s largest producer of solar panels and electric vehicles and underwriting a green revolution that could redefine global governance.

As economic historian Adam Tooze recently pointed out during a dialogue at the Centre for China and Globalisation, China has effectively ignited a green energy revolution, forging capacity where there was once only framework and far-off dreams of substitution. In 2023 alone, China installed more solar capacity than the entire world did the previous year, and it’s driving down the prices of installations elsewhere.

The cost of solar has dropped to just 11 cents per watt of capacity in 2024. As Tooze said, “Because that dominance – and it is dominance – of so many areas of production, very high quality, very high flexibility, and integration across the entire supply chain and reasonable cost, means that it’s difficult for other people to imagine their economic future.”

Just as steam power helped usher in the British Empire and the transistor catalysed American technological leadership, today green power is laying the groundwork for China to contribute to the next phase of global leadership. Unlike earlier industrial revolutions, by its nature the green transition must be collaborative, inclusive and global in scope.

Climate change is, after all, a problem that threatens us all regardless of borders, especially in the world’s least-developed regions. In these places, new installations will build out capacity that previously never existed.

Global governance must evolve to reflect this shared future. If China can help lead the world to curb climate change, we will not only contribute to stabilising the planet but also help write a new chapter in the architecture of international cooperation.

The transition is already bearing domestic fruit. China is moving from a state-led, subsidy-heavy model to a more efficient, market-driven green economy. Photovoltaic subsidies were phased out as the industry matured, allowing technological improvements and economies of scale to drive solar adoption on merit alone. Electric vehicle (EV) subsidies are being phased out, pushing domestic carmakers towards a renewed focus on innovation, quality and global competitiveness.

Yet China’s competitiveness also poses a problem. To fight climate change, we must overcome a growing trust gap. China’s rise up the value chain has already begun to displace incumbents in developed economies in areas such as automotive manufacturing, but displacement need not be the logic of China’s rise.

To anchor itself and support the green transition, China must build trust through action and do so in a way that does not deprive local economies of opportunity. It will need to continually embrace a global “going out” strategy, one that is “in the world, for the world” by tangibly investing in foreign markets to expand the capability of Chinese business and spread the rewards of economic integration.

The world can benefit from endeavours such as Longi Green Energy’s joint venture in solar manufacturing in Ohio and BYD’s first EV plant in Thailand. Chinese-built transmission lines, for example, can bridge solar farms in North Africa to power grids in Europe.

Of course, there will be resistance from entrenched interests and legacy industries. But for ordinary people around the world and governments seeking affordable power, the sooner the world’s green transition, the better.

If the 19th century belonged to steam and the 20th to silicon, the 21st will belong to those who master the green transition. The question is not whether China is leading this revolution. The real question is whether China can sell the world on its climate leadership fast enough to build a better, more sustainable future for all.

What does it mean for China if Japan’s Shigeru Ishiba stays or steps down?

https://www.scmp.com/news/china/diplomacy/article/3319319/what-does-it-mean-china-if-japans-shigeru-ishiba-stays-or-steps-down?utm_source=rss_feed

Progress in relations between China and Japan could lose some steam if embattled Japanese Prime Minister Shigeru Ishiba steps down following a crushing electoral loss.

Ishiba, leader of the Liberal Democratic Party (LDP), has come under intense pressure since the ruling coalition’s defeat in upper house elections on Sunday.

It is the first time since 1955 that the ruling coalition does not have a majority in the upper and lower houses but LDP heavyweights have so far held off on calling publicly for his resignation.

The Mainichi Shimbun newspaper reported on Wednesday that Ishiba told close advisers that he planned to step down by late August. But later in the day Ishiba denied the report and told reporters that he had not discussed whether he would stay on or step down during the meeting.

While it is not clear which way he will go, his prospects may have improved with a reported trade deal between the United States and Japan.

If Ishiba does step down, it will trigger a leadership contest with behind-the-scenes manoeuvring among potential candidates anticipated. The new LDP leader could be elected around September.

Ishiba has consistently pushed for stable ties with China and, observers said, any further advances could be on hold with a new leader.

“If somebody like [Sanae] Takaichi, who is well known for her tough stance against China, becomes the next leader, the relationship would certainly cool down,” said Toru Horiuchi, a lecturer in Sino-Japanese relations at Chinese University of Hong Kong’s school of governance and policy science.

Takaichi is considered one of the most hawkish politicians on China within the LDP. She is part of an ultra-nationalist group with a revisionist view of history and has visited the Yasukuni Shrine a number of times.

The shrine in Tokyo commemorates 2.5 million Japanese war dead, including 14 Class A war criminals from the second world war. Visits to the shrine by politicians anger Chinese, because of Japan’s 1931 invasion and occupation of China and the atrocities its troops committed there.

Zhang Yun, a professor of international relations at Nanjing University, said Japanese politics was becoming fragmented, with the opposition parties unable to unite and no consensus within the LDP to remove Ishiba.

“Ishiba is likely to face a multitude of diverse and often conflicting voices within his party and among the opposition parties, making Sino-Japanese relations unpredictable. This uncertainty stems from the internal fragmentation and the difficulties of navigating such a complicated political landscape,” Zhang said.

The ruling LDP is broadly seen as a right-leaning establishment party, but its approach to China has varied over the decades as prime ministers have come and gone.

Ishiba has been more pragmatic on China ties than his predecessor, Fumio Kishida, helping to improve relations by holding several high-level dialogues between the two countries.

Ryo Sahashi, an associate professor of international politics at the University of Tokyo, said a more right-wing leader would sharpen the security focus on Beijing.

“From their perspective, economic decoupling from China is considered a security imperative. They’re likely to adopt extremely hardline positions on historical and territorial issues as well,” Sahashi said.

Wang Guangtao, an associate professor at the Centre for Japanese Studies at Fudan University, said that even if Ishiba stayed, ties were unlikely to improve dramatically – although there would be more predictability.

“At present, Ishiba’s low domestic approval ratings offer little help for advancing Sino-Japanese relations. Should his support remain persistently weak, he may ultimately have to resign,” he added.

Various polls put Ishiba’s approval rating in the low 20s, the lowest level since he took office in October.

Wang said Beijing would undoubtedly welcome a Japanese leader in favour of stable development.

“But both China and neighbouring countries should brace for potential headwinds if a more conservative or right-wing politician assumes power, especially given the sensitive timing of this year – the 80th anniversary of the end of World War II,” he said.

Sahashi said dramatic changes in relations were unlikely if other contenders – cabinet members Shinjiro Koizumi, Yoshimasa Hayashi, and Katsunobu Kato – became prime minister.

“They appear more inclined to balance Japanese economic interests with security concerns, and would likely seek subtle readjustments to Japan’s position within the international order currently being destabilised by the Trump administration,” he added.

“Just as the Trump administration negotiates with China, there’s a rational case for Japan to value Japan-China relations – a point that tends to be overlooked when more right-wing, conservative leadership emerges.”

China names Zhejiang-born Ling Zhifeng to head the Special Service Bureau

https://www.scmp.com/news/china/politics/article/3319266/china-names-zhejiang-born-ling-zhifeng-head-special-service-bureau?utm_source=rss_feed

In a reshuffle of China’s top police agency, a public security chief who has crossed career paths with some of the country’s senior leaders, will head a body responsible for the security of leading officials.

Ling Zhifeng, director of the Ministry of Public Security’s political department, has also been named a vice-minister and head of the Special Service Bureau, also known as the Eighth Bureau.

This bureau is one of two agencies responsible for the security of senior Chinese officials.

Its task is to ensure the safety of the vice-president, vice-premiers, and vice-chairmen of both the National People’s Congress, the country’s highest legislative body, and the Chinese People’s Political Consultative Conference, the highest political advisory body.

The bureau is also responsible for the security of some high-ranking foreign officials visiting China and has taken part in various United Nations peacekeeping missions.

Security for the most senior Chinese officials, including President Xi Jinping and the other six members of the Politburo Standing Committee – the country’s highest decision-making body – is handled by the Central Guard Bureau, known as the Ninth Bureau.

Ling, 56, takes over from Wang Zhizhong, who was transferred to lead the National Immigration Administration.

Ling was born in Fuyang, then a county administered by Hangzhou in the eastern province of Zhejiang.

After graduating from university in 1990, he worked in Fuyang and Chunan, another county under Hangzhou, until 2014.

For the last seven of those years, Ling’s superiors included Cai Qi, who is now the director of the Communist Party’s General Office and the country’s fifth-ranked official.

Between 2007 and 2014, Cai served as mayor of Hangzhou, head of the provincial organisation department responsible for official appointments, and deputy governor of Zhejiang.

In 2014, Ling became head of the public security department in Shaoxing, another major city in Zhejiang, and then its security chief until 2018.

That period overlapped with Premier Li Qiang’s tenure as Zhejiang’s governor.

Li was governor of Zhejiang from 2013 to 2016, before leaving the province for the first time to become Communist Party secretary of neighbouring Jiangsu province.

In 2022, Ling, who was then party chief of Jinhua, left Zhejiang for the first time to serve as vice-governor and head of public security of the Guangxi Zhuang autonomous region in southern China.

Just eight months later, in March 2023, he was transferred to Beijing to serve as director of the political department of the Ministry of Public Security, responsible for ideological work at China’s highest police agency, a position he retains.

There have been several personnel changes among the ministry’s leadership this year.

Two weeks ago, Yang Weilin, who replaced Ling in Guangxi in 2023, was appointed vice-minister. Two former vice-ministers, Chen Siyuan and Sun Maoli, were removed from their positions without explanation.

Both Chen and Sun are 60 years old, the official retirement age for vice-ministerial roles.

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Chinese man works at coalface with father aged 12, goes on to earn mining engineering PhD

https://www.scmp.com/news/people-culture/trending-china/article/3318597/chinese-man-works-coalface-father-aged-12-goes-earn-mining-engineering-phd?utm_source=rss_feed

A man in China who worked at the coalface with his father as a boy has gone on to earn a PhD in mining engineering, inspiring many people online.

The 30-something man, who is known online as “Coal Miner No 3”, recently shared the acknowledgements from his PhD thesis on social media.

He also recalled his childhood in a poor area and being sent to learn martial arts.

At the age of 12, he joined his father down the coal mines while his mother ran the household.

Driven to escape poverty, he studied hard and worked part-time as a construction worker, a waiter, a cook and a miner during secondary school.

At 19, after a second attempt at the gaokao, China’s national college entrance exam, he was admitted to a vocational college to study geological engineering.

During his postgraduate studies, he spent more than a year living and working on a mining engineering project at the Tashan Coal Mine in Shanxi province, northern China.

Later, as a PhD student, he spent another year doing fieldwork in the tough conditions of the Xinjiang autonomous region in the country’s northwest.

“Coal Miner No 3” said China’s poverty relief programmes and the support of his academic mentors helped keep his research dreams on track.

He also thanked his roommate, Zhang Yan, who supported him during tough financial times.

“My first phone was a gift from Zhang. Of the two pairs of pants I own, one used to be his,” he said.

He also expressed gratitude for meeting his girlfriend at the age of 27 and thanked her parents for their support.

“She is like a ray of light in my life. We have both grown so much through the years of supporting each other,” he wrote.

He added that he was proud of his humble yet remarkable parents, crediting his father’s fighting spirit and his mother’s strength and kindness as lifelong inspirations.

According to mainland reports, his doctoral research focused on Tunnel Boring Machines, which are used in the construction of underground tunnels, water projects and power engineering.

“Coal Miner No 3” chose not to reveal his name because of the sensitivity of his work, but he hopes his experience will inspire other students.

Last month, he earned his PhD from Beijing University of Technology, closing his thesis with his life’s philosophy: “A man’s heart stays firm as iron to his last day.”

His story has attracted more than 10 million views on mainland social media.

One online observer said: “Congratulations! You changed your fate with your own hands. May your research help make mining safer for thousands.”

“He thanked his parents, mentors, roommate and girlfriend, but maybe he should thank himself for never giving up,” said another.

China GLP-1 drug study suggests slim chance weight stays off after treatment

https://www.scmp.com/news/china/science/article/3319174/china-glp-1-drug-study-suggests-slim-chance-weight-stays-after-treatment?utm_source=rss_feed

A Chinese analysis of prescription anti-obesity medications has added to evidence that people who use popular GLP-1 drugs such as Ozempic to shed pounds face the prospect of “significant” weight rebound once they stop using them – challenges similar to those presented by more traditional slimming strategies.

Patients saw “significant weight” return eight weeks after anti-obesity medications (AOMs) were stopped, which continued after 20 weeks, the team from Peking University People’s Hospital wrote in an article published in the peer-reviewed journal BMC Medicine on Tuesday.

“Weight regain is common in various weight-loss strategies and it is necessary to establish long-term anti-obesity treatment in clinical practice,” the researchers said.

Worldwide, 2½ billion adults were overweight in 2022 and 890 million of them were obese, according to the World Health Organization.

Obesity can increase the risk of type 2 diabetes, heart disease and certain cancers. It can also negatively impact bone health and reproduction.

The US Food and Drug Administration has approved six weight-loss medications, including Ozempic, Wegovy and Orlistat, to treat obesity in adults.

The new study analysed data from 11 randomised trials from around the world that examined weight changes in patients after they stopped taking weight-loss medications.

The research included six studies on GLP-1 RA, or glucagon-like peptide-1 receptor agonists, a class of medications that are used to treat type 2 diabetes and obesity. They work by mimicking the naturally occurring hormone GLP-1, released by the intestines in response to food intake.

GLP-1 regulates blood sugar levels by stimulating insulin and suppressing glucagon secretion, which raises blood sugar levels and thereby slows the rate at which the stomach empties, leading to a sense of fullness and less appetite.

The team found that using weight-loss medications led to more weight rebound compared to control groups who used placebos and other weight-loss treatments, with the amount regained depending largely on how long treatment had been stopped before the follow-up was conducted.

“At week four, compared with control groups, AOM treatment still resulted in a 0.32kg (0.71 pound) weight loss, while at weeks 8, 12, 20, 26 and 52, AOMs were associated with significant weight regain when compared with controls,” the researchers said.

The researchers found that the amount of weight regained varied according to factors such as the type of medication used.

They cited a 2024 study on tirzepatide, a once-weekly injection of GLP-1 RA approved by authorities in China, Japan, the European Union and the US. The study found that patients regained almost half the weight they had previously lost within a year after switching to a placebo, following 36 weeks of treatment.

“The patients included in the GLP-1 related subgroup all significantly lost weight during treatment, and therefore had a greater likelihood of weight regain,” the team wrote.

First author of the study, Yang Wenjia, chief attending doctor in endocrinology at Peking University People’s Hospital, said study participants both with and without diabetes showed a “significant rebound” in weight.

Yang said patients should adjust their expectations of weight management and “understand the patterns of weight rebound after stopping medication” to reduce the likelihood of giving up on weight management due to rebound.

Medical professionals should “inform patients about the risk of weight rebound post-medication … and stress the need for both medication and long-term lifestyle changes”, Yang added.

The team would continue to study weight changes following other weight-loss methods such as metabolic surgery and lifestyle adjustments and monitor changes in more health metrics, she said.

“Weight rebound may come together with blood sugar and lipid fluctuations, requiring strengthened comprehensive metabolic management,” she said.

The researchers also said studies with longer follow-ups were needed to better understand the factors associated with weight change after ending treatments.

Chinese passengers arrested for fighting on plane

https://www.scmp.com/news/china/article/3319271/chinese-passengers-arrested-fighting-plane?utm_source=rss_feed

Five Chinese passengers were involved in a dispute over noise on a flight from Kuala Lumpur, Malaysia, to Chengdu on Monday. Three ended up arrested and the remaining two fined, airport police said.

India to issue first tourist visas to Chinese nationals in 5 years

https://www.scmp.com/news/china/diplomacy/article/3319281/india-issue-first-tourist-visas-chinese-nationals-5-years?utm_source=rss_feed

India will allow Chinese citizens to apply for tourist visas for the first time in five years amid ongoing efforts by the world’s two most populous countries to improve relations following years of tension.

The Indian embassy in Beijing said applications for tourist visas would resume on Thursday.

It said applicants must complete an online form then book an in-person appointment to submit the required documents at centres in Beijing, Shanghai or Guangzhou.

China’s foreign ministry described the announcement as a “positive move” that served the “common interest” of all sides.

“China stands ready to maintain communication and coordination with India to keep facilitating people-to-people exchanges between the two countries,” Guo Jiakun, a spokesman for the ministry, said on Wednesday.

India suspended all tourist visas and e-visas for Chinese nationals in 2020 following the start of the Covid-19 pandemic and a deadly clash between troops from the two countries along their disputed border in the Himalayas.

In May Indian business media reported that the country was considering tighter visa curbs on Chinese citizens – particularly those working in the commercial and technical sectors – because of concerns that Beijing would start dumping goods in the country to get round US tariffs.

However, the two countries have been steadily working to improve relations in recent months. India’s Prime Minister Narendra Modi is expected to attend the Shanghai Cooperation Organisation summit in the northern Chinese city of Tianjin next month – which would be his first visit to the country since 2018.

The two sides have also agreed to restore direct flights, with India’s Ministry of External Affairs saying after a ministerial meeting earlier this month: “The two sides agreed to take additional practical steps … for facilitating people-to-people exchanges.”

In another sign of thawing relations, China has allowed Indian pilgrims to return to the Tibet autonomous region for the first time in the past five years.

Last month, the first group of Indian pilgrims crossed the Himalayas into Tibet to visit Mount Kailash and Lake Mansarovar, two sites that are sacred to many Hindus, Buddhists and other religions.

18 arrested over forged Hong Kong talent scheme documents, including 13 mainland Chinese

https://www.scmp.com/news/hong-kong/law-and-crime/article/3319286/18-arrested-over-forged-hong-kong-talent-scheme-documents-including-13-mainland-chinese?utm_source=rss_feed

Hong Kong immigration authorities have arrested 18 people, including 13 talent scheme applicants from mainland China who are each suspected of paying a middleman HK$2.5 million (US$318,470) for fake documents such as academic qualifications to gain residency.

Hui Chi-kin, an assistant principal immigration officer, said on Wednesday that the case was the first time the Immigration Department had uncovered a criminal syndicate in its investigations.

The syndicate was believed to have been operating for 1½ years, targeting applicants to the government’s Top Talent Pass Scheme.

The department estimated that the group had worked on at least 22 applications, with each case potentially costing clients up to HK$2.5 million, earning the criminals HK$55 million in proceeds.

Hui said the cross-border syndicate was identified by an intelligence-led investigation. Officers launched an enforcement operation in April and arrested five alleged core members of the syndicate, including the mastermind.

All five, aged 42 to 56, are Hong Kong residents.

The mastermind and core syndicate members were each provisionally charged with one count of aiding, abetting, counselling or procuring another for making a false representation for the purpose of obtaining an entry permit.

The 13 arrested applicants, aged 27 to 47, were each charged with one count of causing a false statement to be made for the purpose of obtaining an entry permit.

Hui said the syndicate used mainland social media platforms to find people interested in relocating to Hong Kong and sent them direct messages to promote its “one-stop service”.

“In their promotions, the criminal syndicate even touted that applicants could successfully obtain Hong Kong resident status without having to live in Hong Kong for an extended period,” Hui said.

He said the group charged an initial intermediate fee of about HK$1 million to HK$1.5 million per application, which covered obtaining fake overseas university degrees, student visas, overseas immigration stamps and providing false employment proof to assist in the application submission.

If the application was approved, the group would then charge an additional HK$600,000 to HK$1 million for “aftercare” services.

“These services included accompanying them and their dependants to Hong Kong to process their Hong Kong identity cards, arranging rental housing, fabricating local employment and salary records and using these false documents to handle future applications for an extension of stay until they secured permanent residency,” Hui said.

“Syndicate members are also suspected of money laundering through suspicious transactions involving multiple company and personal accounts.”

Investigators searched the homes and vehicles of the syndicate’s alleged mastermind and core members, seizing multiple laptops, mobile phones, suspected fake employment contracts, ledgers, bank cards, checkbooks and a number of ATM deposit slips.

The department reminded talent scheme applicants that they should not use an intermediary.

“Individuals interested in moving to Hong Kong should not blindly trust claims from agents who guarantee a successful application. Providing false information to the Immigration Department is a serious offence that can lead to criminal liability,” Hui warned.

Expansion of tariff-free access to China’s Hainan a big boost for trade, Beijing says

https://www.scmp.com/economy/china-economy/article/3319273/expansion-tariff-free-access-chinas-hainan-big-boost-trade-beijing-says?utm_source=rss_feed

China’s tropical island province of Hainan will have an independent customs regime by the end of the year, the central government announced on Wednesday.

Starting from December 18, a separate customs zone will be established in Hainan, which Beijing wants to transform into a free-trade port, as well as a centre for offshore financing and duty-free shopping that will lure tourists and businesses with an internationally competitive tax regime and relaxed visa requirements.

A key part of the country’s “dual circulation” economic strategy that aims to boost domestic consumption, the island’s much lower tariffs on imports could also see it serve as a buffer zone in the ongoing trade war between China and the United States.

The new customs regime will allow around 6,600 types of goods into Hainan with zero tariffs, with the exceptions being those listed in an official catalogue of taxable items, officials said at a news conference in Beijing. The tariff-free items cover 74 per cent of all taxable imports, up from the current level of 21 per cent.

The island will adopt more relaxed trade regulations, with certain goods that are prohibited or restricted from being imported in the rest of the country to be granted exemptions in Hainan, said Wang Changlin, a vice-chairman of the National Development and Reform Commission.

Imported goods will be able to circulate tax-free within the island, and those with value-added processing exceeding 30 per cent will be able to be sold tariff-free in the rest of mainland China, Wang said.

“Hainan’s connectivity with the international market will become more efficient, which holds significant importance for … pioneering new pathways for China’s reform and opening up,” he said.

These policies will help further reduce production costs for market entities, stimulate market vitality, and significantly improve the liberalisation and facilitation of goods trade in the Hainan Free Trade Port, Vice-Minister of Finance Liao Min told the same news conference.

“It will help extend local industrial chains, enhance competitiveness, and foster industrial clustering effects,” Liao said.

Thanks to preferential policies implemented in Hainan since President Xi Jinping announced his master plan to transform it into an international free-trade port seven years ago, the island’s actual utilised foreign investment from 2020 to 2024 exceeded the total of the previous 32 years combined – dating back to the province’s establishment – according to official data.

The island’s total import and export volume of goods also maintained an average annual growth rate of over 30 per cent in the past four years, according to Yuan Xiaoming, an assistant minister of commerce.

“As unilateralism and protectionism intensify worldwide and economic globalisation faces headwinds … we are committed to building Hainan into a crucial gateway for China’s new era of opening up, which will not only contribute to China’s sustained economic recovery but also inject stability and certainty into the world economy,” Yuan said.

The province currently allows passport holders from 85 countries to enter without a visa, making it much easier for foreigners to enter than other mainland provinces.

Raw foods on mainland Chinese platforms still delivered to Hong Kong despite warnings

https://www.scmp.com/news/hong-kong/health-environment/article/3319247/perishable-foods-chinese-platforms-still-delivered-hong-kong-despite-warnings?utm_source=rss_feed

Raw oysters, frozen poultry and fresh eggs sold on mainland Chinese e-commerce platforms can still be delivered to Hong Kong, the Post has found, despite a joint warning issued by consumer watchdogs in the city, Macau and Guangdong province.

According to checks by the Post on Wednesday, five pounds of fresh raw shucked oysters from Chaozhou in eastern Guangdong were being sold on Pinduoduo for as low as 79 yuan (US$11), with free shipping to Hong Kong included.

According to shopper reviews, the oysters were delivered in a vacuum-sealed container and packed in a styrofoam box with a few ice packs.

Frozen beef short ribs cost as little as 7 yuan per steak, while a tray of 50 fresh eggs costs 27 yuan.

Other listings include frozen chicken breast, raw marinated seafood and frozen whole fish and frozen herring sashimi fillet.

However, once a Hong Kong address was added, some sellers of fresh sashimi and freshly sliced beef noted that they did not deliver to the city.

Since last year, Hongkongers have been crossing the border to shop for groceries in Shenzhen despite warnings telling them not to bring back food products without proper hygiene certificates, including partially cooked meat that bleeds when cut.

Anyone importing “game, meat, poultry and eggs” into Hong Kong must have a health certificate from the place of origin or written consent from the Food and Environmental Hygiene Department, while selling sashimi and raw oysters requires a food permit.

The department also “strongly encourages” importers of seafood, considered high-risk products for being more liable to contamination in the harvesting or handling process, to obtain health certificates from the countries of origin, as they might be subjected to inspection or sampling.

Those who do not have these permits face a fine of up to HK$50,000 (US$6,369) and up to six months in jail.

On Tuesday, the consumer councils in Guangdong province, Macau and Hong Kong issued a joint statement to help shoppers understand laws and regulations, and protect their rights when doing cross-border e-commerce.

The statement said many Hong Kong and Macau consumers found themselves disputing with sellers over faulty items and returns or exchanges, and had difficulty in lodging complaints, reminding shoppers to carefully review product details before purchasing, as product standards and regulations differ in each jurisdiction.

The statement also advised shoppers to check the condition of their products through the multiple shipment stages and choose products which include free returns to protect their rights.

In the past year, e-commerce platforms, such as Taobao, Pinduoduo and JD.com, have strongly competed for the Hong Kong market, with Alibaba’s Taobao offering free shipping to the city with a minimum purchase of 99 yuan starting in October last year.

Pinduoduo then announced free shipping to Hong Kong with no minimum spend, while JD.com, which entered the market in April, offered to refund the price differences.

But lawmakers have pointed out potential risks when shopping online, especially for food items, which could turn bad during delivery.

Leung Man-kwong, who sits on the Legco’s Panel on Food Safety and Environmental Hygiene, said they have been concerned about cross-border online shopping for food items due to the long transport process, increasing consumption risk.

“In mainland China, sellers could promise next-day delivery, or even same-day delivery,” he said.

“But deliveries to Hong Kong go through a consolidation warehouse before shipping and through customs checks, reducing the food’s shelf life and causing food safety problems,” he told a radio show.

Apart from major players in the e-commerce market, Hongkongers were also starting to shop on smaller non-traditional platforms, such as live-streamers, Leung said.

Shoppers might use a third-party consolidation service to buy restricted food, plants or even pets, by delivering their packages to a mainland address before consolidating, bypassing export checks.

But these smaller logistics companies, which are not official partners of major e-commerce platforms, were loosely regulated and “largely ignore” the need to apply for permits or customs duties when shipping these packages to Hong Kong, he said.

“Even individual dangerous goods that might not be able to enter Hong Kong, like toys containing gunpowder components, can enter the city through these unofficial consolidation services.

“The management of these consolidation or cross-border transport companies should be strengthened and they need to be reminded that if they transport these prohibited or high-risk items to Hong Kong, they might also bear some criminal liability.”

Peter Shiu Ka-fai, lawmaker for the retail and wholesale sector, said that Hongkongers should be careful when shopping online as certain items like fresh meat, eggs and orchids were prohibited from entering the city.

“Online platforms should be capable of checking consumers’ IP locations and then using systems to filter and block the selection of goods that do not comply with Hong Kong laws,” he said.

Last Friday, Hong Kong police arrested a 13-year-old boy and seized three suspected smoke grenades believed to have been bought on Chinese e-commerce platform Pinduoduo after he allegedly removed the safety pin from one of them inside his flat, leading to his building being evacuated.

China powers ahead in AI race as US struggles with energy constraints, Anthropic says

https://www.scmp.com/tech/tech-war/article/3319241/china-powers-ahead-ai-race-us-struggles-energy-constraints-anthropic-says?utm_source=rss_feed

The US is falling behind China in energy generation, according to Silicon Valley start-up Anthropic, as the artificial intelligence company urges Washington to “slash red tape” surrounding power infrastructure development amid escalating competition with China.

Last year, China added 400 gigawatts of power capacity, while the US added only “several dozen” – amounting to just one-tenth of China’s total, Anthropic said in a report published on Tuesday, citing numbers from a report in February by Australian think tank Climate Energy Finance.

Anthropic, the San Francisco-based firm behind the Claude large language models, noted that the AI sector in the US would require at least 50 gigawatts of power capacity by 2028, and the disparity in power capacity with China was “concerning”.

Energy has emerged as a critical battleground in the intensifying US-China AI race, where the world’s two largest economies are engaged in fierce competition in fields ranging from AI algorithms to advanced semiconductor technology.

While US capital expenditure on AI was heavily focused on hardware like semiconductors, a significant portion of China’s AI investment this year would go towards building data centres and the energy infrastructure needed to support them, said Matty Zhao, co-head of China equity research at Bank of America Securities, in an interview with the Post last month.

Elon Musk, founder of electric vehicle maker Tesla and start-up xAI, warned in May that the US could face power capacity issues related to AI development by mid-2026, according to a CNBC report.

The US was experiencing a power “capacity crisis” amid the AI race against China, said Caroline Golin, Google’s global head of energy markets development and innovation, in February.

China announced last week the launch of a mega dam project in Tibet, with an estimated investment of about 1.2 trillion yuan (US$167 billion) and an expected annual electricity generation capacity of 300,000 gigawatt-hours, making it the world’s largest hydropower facility.

In 2024, China accounted for 71 per cent of the global increase in hydro power generation and added more solar and wind power than the rest of the world combined, according to a report from British energy think tank Ember in April.

In contrast, the US “is not on track to meet the energy needs of AI training or inference by 2028”, partly due to regulatory barriers, such as the construction permits and approvals required to build transmission lines and interconnection facilities, according to the Anthropic report.

“China – also vying for AI leadership – does not face the same set of regulatory constraints that we do,” Anthropic said. While China’s infrastructure projects also required permits, regulators processed them “far more quickly”, it added.

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Will more US missiles in the Philippines deter or provoke South China Sea conflict?

https://www.scmp.com/week-asia/politics/article/3319250/will-more-us-missiles-philippines-deter-or-provoke-south-china-sea-conflict?utm_source=rss_feed

The South China Sea is about to become more militarised as the United States commits to deploying cutting-edge missile and drone systems in the Philippines.

US Defence Secretary Pete Hegseth confirmed the move during high-level talks with Philippine President Ferdinand Marcos Jnr on Monday US time, signalling Washington’s push to create a “strong shield of real deterrence” against growing Chinese influence and prepare for potential crisis scenarios.

The new weapons would form part of a broader strategic effort to reinforce Manila’s role in regional security, Hegseth said at a meeting with Marcos at the Pentagon, ahead of the Philippine leader’s meeting with President Donald Trump at the White House.

“We’re deploying new cutting-edge missiles and unmanned systems, and revitalising our defence industrial bases. Together, we must forge a strong shield of real deterrence for peace, ensuring the long-term security and prosperity for our nations,” Hegseth told Marcos.

While the Pentagon did not specify which missile or drone platforms were involved, Hegseth stressed the moves were not intended to provoke confrontation. “But we are and will be ready and resolute. We’re proud to support our mutual economic vitality, including your efforts to modernise your armed forces and collective defence.”

Hegseth also reaffirmed US commitment to its decades-old treaty with Manila. The 1951 Mutual Defence Treaty, he said, covered attacks on “our armed forces, aircraft or public vessels, including our coastguards, anywhere in the Pacific, including the South China Sea”.

In response, Marcos emphasised the vital role of the alliance in keeping the peace amid rising geopolitical tensions. “I believe that our alliance, the United States and the Philippines, has formed a great part in preserving peace, in terms of preserving the stability of the South China Sea … I would even go as far as to say in the entire Indo-Pacific region,” he said.

Security analysts believe the unspecified “cutting-edge” systems could include the Terminal High Altitude Area Defence system, a US-built platform capable of intercepting ballistic missiles at ranges up to 200km (124 miles) and altitudes of 150km (93 miles). Beijing has strongly opposed its deployment in other countries, citing its radar capabilities as a threat to China’s strategic deterrent.

“The deployment of various missile systems could signal the Americans, along with the Philippines, are preparing for any eventuality regarding Taiwan,” Abdul Rahman Yaacob, a research fellow with the Lowy Institute’s Southeast Asia Programme, told This Week in Asia.

Manila’s defence planners were concerned that the Chinese military might occupy Philippine islands in the Luzon Strait in the event of a conflict in the Taiwan Strait, he said.

Taiwan is home to around 150,000 Filipino migrant workers, many of whom are employed as domestic helpers or factory workers.

Beijing sees Taiwan as part of China to be reunited by force if necessary. While the US does not recognise Taiwan as an independent state, it is opposed to any attempt to take the self-governed island by force and is committed to supplying it with weapons.

Sarang Shidore, director of the Global South Programme at the Quincy Institute, a Washington-based think tank, said that since last year, the US had been deploying more advanced armaments to the Philippines in the belief that these could deter Chinese intrusions into the South China Sea.

From the US perspective, Shidore said, such deterrence would reduce the chances of a major war by limiting Chinese maritime assertiveness. “There’s also a second, less visible, dimension to these deployments – which is their utility in case of a conflict over Taiwan,” he told This Week in Asia.

Last year, the US Army deployed a Typhon launcher in Northern Luzon in the Philippines as part of a joint training exercise. The land-based, ground-launched system is capable of firing the Standard Missile 6 and the Tomahawk Land Attack Missile, whose ranges of more than 240km (150 miles) and 2,500km (1,550 miles), respectively, put the South China Sea and the Taiwan Strait within its radius.

In April, the US also deployed their Navy-Marine Expeditionary Ship Interdiction System (NMESIS) missile system in Batanes, a small province at the northernmost tip of the Philippines facing Taiwan. The NMESIS fires the Naval Strike Missile, a precision-guided, sea-skimming missile with advanced target discrimination and a range of around 185km (115 miles).

While these deployments have focused on northern areas, experts say Washington could eventually expand its footprint to western and southern regions of the archipelago.

“In the future, Palawan or even Zamboanga [in Mindanao] might be considered, especially if attention shifts toward the Spratly Islands or the broader maritime domain of Southeast Asia,” said Arnaud Leveau, an assistant professor of geopolitics at Paris Dauphine University.

“However, such moves would probably face greater political sensitivity within the Philippines. Current deployments strike a balance between operational relevance and diplomatic caution.”

Sylwia Monika Gorska, a political analyst with a doctorate in international relations from the University of Central Lancashire, agreed. She noted that while future deployments might expand to other Enhanced Defense Cooperation Agreement (EDCA) sites, positioning forces in northeastern Luzon’s Cagayan and Isabela would enhance layered coverage of the Luzon and Bashi Channels – key routes in any Taiwan-related contingency – and provide strike redundancy across the north.

In 2023, Manila gave the US access to four new military sites, on top of an existing five under the EDCA, which allows Washington to rotate troops and preposition defence material, equipment and supplies in specific locations in the country.

One of them, Palawan, an island facing the South China Sea, offered direct access to contested maritime space, extending the reach of maritime interdiction without requiring a permanent basing footprint, Gorska said.

“This forward dispersal reflects a broader US strategy already seen in southern Japan and northern Australia – deploying mobile systems across multiple sites to increase operational resilience, complicate adversary targeting, and ensure sustained strike capability even under pressure,” she explained.

“Yet the Philippine case remains distinct: it hosts without owning, shaping deterrence posture while remaining outside the decision loop. Strategically, this amplifies Manila’s visibility in crisis scenarios – embedding it in the architecture of escalation, even as its political agency over those deployments remains limited.”

China claims nearly the entire South China Sea, including areas also claimed by the Philippines, Brunei, Malaysia and Vietnam. An international tribunal dismissed China’s claims in 2016, declaring them without legal basis – a verdict that Beijing has consistently rejected.

Observers say the US move to expand its military footprint in the Philippines reflects a shift towards “distributed deterrence” – dispersing forces and weapons across multiple locations to complicate Chinese strategic planning.

“With the revival of the EDCA, the Philippines is no longer seen merely as a logistical partner but as a forward-operating platform for deterrence,” Leveau said. “It is a form of calibrated entrenchment demonstrating long-term commitment that avoids provocations that could be associated with permanent bases.”

Gorska said Washington was “rehearsing escalation scenarios in advance”, aligning geography, logistics and legal frameworks to allow rapid response.

She described the Marcos government’s expanded cooperation under EDCA as enabling “scalable deterrence” – a flexible posture that maximised military presence without triggering domestic backlash or requiring treaty revisions.

But not all experts believe the strategy is foolproof.

“Relying on a deterrence-heavy or deterrence-only strategy can easily provoke more than defend,” Shidore said. “Pulling the Philippines into a Taiwan scenario can be risky, as there is a mismatch of core interests between Washington and Manila on Taiwan.”

Tesla’s bid to regain China market share, BYD outsells BMW in Hong Kong: 7 EV reads

https://www.scmp.com/news/china-future-tech/evs/article/3319093/teslas-bid-regain-china-market-share-byd-outsells-bmw-hong-kong-7-ev-reads?utm_source=rss_feed

We have put together stories from our coverage on electric and new energy vehicles from the past two weeks to help you stay informed. If you would like to see more of our reporting, please consider .

Tesla will introduce a longer, six-seat version of its popular Model Y SUV in China, a strategic move aimed at reclaiming market share in the world’s largest electric vehicle (EV) market amid increasing competition from domestic rivals.

Global sales of electric and plug-in hybrid vehicles surged 24 per cent in June from a year earlier, driven by strong demand in China and Europe, while the US fell behind, according to the market research firm Rho Motion.

Driverless cabs in China could account for 6 per cent of the country’s total taxi market, aided by advanced digital infrastructure and consumer willingness to embrace new technologies, according to HSBC.

BYD scored the most new electric vehicle (EV) registrations in Hong Kong in the first half of 2025, beating Tesla and BMW, as mainland Chinese carmakers increased their focus on the city to serve as a launch pad for their global ambitions.

Contemporary Amperex Technology (CATL) and BYD have signed initial agreements with Australian mining giant BHP to collaborate on battery technology and electrification of mining operations, as both mainland firms explore new growth avenues amid a weakening outlook for EVs.

China’s latest export restrictions on eight key EV battery technologies officially took effect this week, about half a year after it announced its intention to implement them.

Chinese wind-power developer Envision Energy has commissioned the world’s largest green hydrogen and ammonia plant, as Beijing seeks to decarbonise its hard-to-abate industries and dominate the growing clean-fuel market.

China student tricked into Myanmar scam released when gang realises he has ‘bright future’

https://www.scmp.com/news/people-culture/trending-china/article/3319114/china-student-tricked-myanmar-scam-released-when-gang-realises-he-has-bright-future?utm_source=rss_feed

A student from northwestern China who was tricked into a scam in Myanmar was unexpectedly released after the gang learned he had a “bright future”.

Peng Yuxuan, 19, from Hanzhong City in Shaanxi province, had just retaken China’s national college entrance exam known as the gaokao in June. His scores and intended university have not been disclosed.

The Beijing News reported that Peng hoped to make some money over the summer holiday and went to Xi’an City with 800 yuan (US$110) from his family.

He met a woman on a job-hunting app who claimed she was recruiting live-stream hosts.

After telling Peng he was good-looking and could earn a lot, she offered to cover his travel expenses and flew him to Yunnan province in southwestern China.

On July 1, Peng told his friend, Xiaojia, that he had arrived in Kunming, the capital city of Yunnan, and that the woman who recruited him had booked his hotel.

He stayed in touch over the next few days, insisting he was “safe and free” and could “make big money”. He avoided explaining what the job was and asked Xiaojia not to tell his parents.

Xiaojia said Peng was constantly on the move, sharing photos of meals and live locations.

On July 4, Peng shared a final location from Meng’a Port, a major border crossing in Pu’er city in southwestern Yunnan near the Myanmar border, and then went silent.

Days later, Peng’s mother called him, but a stranger claiming to be from Myanmar picked up. Fearing her son had been trafficked, she alerted the police.

The case attracted national attention in China and sparked a police investigation in coordination with the Myanmar authorities.

According to Hongxing News, after arriving in Yunnan, Peng was transferred more than 10 times before ending up in a scam compound in Myanmar.

Though Peng was not forced to carry out any scams, his head was shaved.

Eventually, the ringleader approached him, noting that he was young and had just taken the gaokao. The boss said he had a “bright future” and did not belong there.

Peng said: “He told me they make money with ‘conscience’, so they let me go. He also told me to study hard and be good to my parents.”

It is unclear how the gang knew Peng had recently completed the national college entrance exam.

Myanmar soldiers drove Peng out of the compound and told him to find help from the United Wa State Army (UWSA).

After getting out of the car, he met a man who gave him food, and medicine, then took him to the UWSA Judicial Committee and contacted the Chinese authorities.

“When I realised I was rescued, I was so happy. I was finally going home,” said Peng.

On July 20, the UWSA in Myanmar handed over 20 Chinese scam suspects and 29 rescued individuals to Chinese authorities at Meng’a Port. Peng was among them.

The story has attracted more than 100 million views on social media.

One online observer said: “Peng was lucky in an unlucky situation. That fraud boss was not acting out of kindness. They were simply trying to make their crimes look less serious.”

“Young people need to stay alert, especially students with little social experience. There is no such thing as getting rich overnight,” said another.

Northern Myanmar has become a hub for telecoms fraud, with the United Nations estimating in 2023 that around 120,000 people were trafficked to work in scam call centres.

Crime rings lure young people from China and nearby countries with fake offers of well-paid jobs, then trap them using threats and violence.

High stakes, low expectations as EU and China prepare for summit in Beijing

https://www.scmp.com/news/china/diplomacy/article/3319218/high-stakes-low-expectations-eu-and-china-prepare-summit-beijing?utm_source=rss_feed

The return of Donald Trump was supposed to bring Europe and China together. Yet, EU leaders will touch down in Beijing late on Wednesday for a summit with the lowest expectations in recent memory.

The murmurs of a détente that grew in the first quarter have given way to fresh tensions, with the problems between the two sides multiplying and widening to a surprising degree before Thursday’s showdown in the Chinese capital.

In recent months, trade friction and China’s support for Russia have resurfaced as flashpoints, dashing any prospect for a feel-good summit.

In a sign of its frustration at how poorly things are going, China cancelled the summit’s second day in Hefei, an industrial city in Anhui province where European Commission chief Ursula von der Leyen has family links.

The only deliverable is a joint statement on climate issues, negotiations for which were fraught, but finally concluded overnight on Tuesday, with the text sent to Brussels for the approval of EU ambassadors on Wednesday. Otherwise, the pickings are slim.

“The European deliverable is a substantive, open, direct, good, constructive conversation between the two of us on every aspect of this relationship,” said one official, reflecting just how low the bar has fallen.

In some ways, the European Union and China have headed in the opposite direction to the one many expected early in the year, when von der Leyen talked of “deepening trade and investment ties”, and Chinese Foreign Minister Wang Yi backed a European role in Ukraine peace talks.

Since April, China’s export controls on rare earth elements have cast a dark shadow over proceedings, adding to European gripes over market access, subsidies and industrial overcapacity.

Brussels is frustrated at Beijing’s failure to offer a structural resolution, such as longer-term licences for EU firms, which have to be renewed every six months.

Another option is a reprieve from licensing requirements for non-military-linked firms, given that these restrictions were intended to punish the United States. Officials say that while Europe may not have been the main target of such rules, Beijing found utility in the extra leverage.

This sense deepened as China linked the loosening of rare earth restrictions to progress on other files, such as the removal of EU tariffs on Chinese-made electric vehicles.

No deal on either front is expected on Thursday.

While abstaining from big ticket investigations, the EU spent the weeks before the summit quietly girding its approach to China. Few in Brussels now expect change from Beijing so, the thinking goes, the only alternative is for Europe to change itself.

“China likes the status quo,” said one official involved in the planning. “If nothing changes, they keep gaining.”

The first shoots of this change are visible in two dense policy documents published this month.

In a report laying out her foreign and security policy priorities for the year ahead, top diplomat Kaja Kallas watered down the language of cooperation with China from “partnership” to “engagement”, in a shift that reflects a more sober read on Beijing from the EU External Action Service, which she leads.

“The EU continued to pursue its multifaceted approach towards China, which comprises elements of engagement, competition and rivalry,” read the report published on July 9, but which has not yet been reported by the media.

Last week, meanwhile, the European Commission proposed a new long-term budget, which seeks to give the EU €2 trillion (US$2.33 trillion) – a two-thirds increase on the previous budget – to spend on everything from infrastructure and economic development to climate action and defence, in the seven years to 2034.

The text is peppered with references to “high-risk suppliers” – shorthand for Chinese companies – showing that Brussels’ efforts to weed Beijing out of its programmes and supply chains will continue well into the future.

Beijing is unlikely to take this lying down. It has vowed to retaliate over the EU’s decision last week to sanction two small Chinese banks for allegedly “providing crypto assets services that support Russia’s war of aggression against Ukraine”.

China has already hit back at an EU move to block Chinese medical device companies from its lucrative procurement market and will be further angered by a meeting between the head of the EU Parliament’s China delegation, Engin Eroglu, and Taiwanese leader William Lai Ching-te on Tuesday, just days after Beijing dropped the last of its sanctions on MEPs.

The mounting discord does little for Thursday’s mood music.

“We are seen as a weak economic bloc by China at the moment,” said Abigaël Vasselier, head of foreign relations at the Mercator Institute for China Studies, a German think tank.

“The spirit and the mood is very different, and it means that this is not going to be a moment of concession. There will be no concession from China at this summit,” she said, adding that Beijing had been “emboldened” by its relative success in handling Trump.

Andrew Small, a senior fellow at the German Marshall Fund of the United States, said that “barring a late twist, the summit itself will be purely an exercise in message delivery and positioning rather than deliverables”.

“Delivering that message, holding its nerve, and learning the right political lessons for what comes next was the best the EU could do in the circumstances.”

Beijing’s close ties with Moscow, meanwhile, have been a poison pill for its relations with much of Europe for three years and have come to the surface again, no more so than during a fiery clash between Kallas and Wang in Brussels earlier this month.

Wang told Kallas that China did not want Russia to lose the war, remarks he repeated in at least one of his two other European stops on that trip, Berlin and Paris, according to people familiar with the situation.

The veteran diplomat insisted that Beijing wanted peace and that the West has a history of warmongering, the observers said.

To emphasise his point, Wang told Kallas that when he goes to museums with both Chinese and Western exhibitions, the Chinese always display silk and porcelain, while the Western section is often stocked with guns and weapons. The moral was that China has a peaceful history while the West’s is violent, he said.

In Brussels, the news of Wang’s comments on Russia caused a stir. Chinese diplomats in the Belgian capital were furious that the information became public and protested strongly to the EU. European Council President Antonio Costa was reportedly displeased at the media frenzy, although not necessarily with Kallas’ tough line on Russia, sources said.

That anger does not appear, however, to have been shared by Wang himself, who found himself sat close to Kallas and greeted her with a polite smile during the Asean ministerial meeting in Kuala Lumpur a week later.

The pair will meet for a third time this month on Thursday in Beijing, where Ukraine will be top of the Europeans’ agenda once again.

“China talks to us often about core issues,” a senior official said. “Well, this is a core issue for Europe.”

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Talisman Sabre: Australia, US push Pacific deterrence amid China’s security overtures

https://www.scmp.com/week-asia/politics/article/3319230/talisman-sabre-australia-us-push-pacific-deterrence-amid-chinas-security-overtures?utm_source=rss_feed

For the first time in its history, Australia’s flagship military exercise has moved beyond its own shores, drawing in Pacific island nations as Canberra and Washington push to “regionalise” strategic deterrence across the Indo-Pacific.

Neighbouring Papua New Guinea (PNG) is hosting parts of this year’s Talisman Sabre exercise, which began on July 13 and runs until August 4, with activities involving Australian and US troops.

“This is an important demonstration of the deepening integration between Australia and Papua New Guinea’s Defence Forces”, senior Australian naval officer Vice-Admiral Justin Jones said in a statement, referring to the two countries’ militaries.

This year’s iteration of Talisman Sabre, featuring more than 30,000 personnel from 19 nations, is the largest in the exercise’s history.

Military contingents from Fiji, Tonga and a host of other partners – including Canada, France, Germany, India, Indonesia, Japan, New Zealand, the Philippines, Singapore, South Korea, Thailand and Britain – are taking part in a series of complex drills encompassing live-fire exercises, air combat and maritime operations such as amphibious landings.

The 130 or so members of Fiji’s military who travelled to Australia for five months to support exercises including Talisman Sabre represent the first such contingent to be deployed to the drills.

Described as the “Olympics of war games”, Talisman Sabre has grown in both scale and scope since its inception in 2005 as a biennial bilateral drill between Australia and the United States.

The expanded participation of Pacific nations serves as a strategic signal, according to security analyst Kathryn Paik, deputy director and senior fellow with the Australia Chair at the Centre for Strategic and International Studies think tank.

PNG, Fiji and Tonga’s involvement in this year’s Talisman Sabre showed how the US and Australia were increasingly trying to “regionalise strategic deterrence across the Indo-Pacific”, she said.

While all three Pacific nations maintain strong economic and diplomatic ties to China – Beijing has provided extensive infrastructure support, including roads and hospitals, to Port Moresby, for example – their decision to join an exercise led by Washington and Canberra “shows that for security and defence development, these countries still primarily look to traditional partners”, Paik told This Week in Asia.

China’s engagement with the region has expanded beyond the economic in recent years, deepening security cooperation, offering police training and seeking security pacts. Beijing signed a security pact with the Solomon Islands in 2022, has sent police advisers to both Vanuatu and Kiribati, and is seeking similar deals elsewhere in the Pacific.

For PNG, Fiji and Tonga – nations with limited defence capabilities – taking part in Talisman Sabre would help them build their capacities and improve interoperability, said Moses Sakai, a research fellow at the National Research Institute in Port Moresby.

Canberra’s decision to involve PNG in hosting a part of this year’s Talisman Sabre reflected ongoing efforts to cement a bilateral defence cooperation treaty, Sakai said.

The agreement, expected to be formalised in September to mark 50 years of diplomatic relations, “will consolidate Australia’s security influence and presence in PNG on policing and defence, an effort that Canberra has wanted to achieve since 2022”, he added.

It would build on a 2023 bilateral security agreement and was advanced in February during talks in Brisbane between Australian Defence Minister Richard Marles and his PNG counterpart Billy Joseph. The aim is to deepen cooperation and counter Beijing’s growing influence in the region, analysts say.

International agreements of this kind had faced domestic protest in the past when questions arose around sovereignty, said Alan Tidwell, director at Georgetown University’s Centre for Australian, New Zealand and Pacific Studies.

“This agreement will be no different,” he said, though he noted that the two countries’ bilateral defence relationship had deepened over the past six months.

PNG’s defence minister, Joseph, has been unequivocal. “When it comes to security, we choose our traditional partners, which is Australia [and the] US,” he told a defence conference last month.

For Australia and the US, the involvement of Pacific nations in Talisman Sabre sent a message to Beijing about the region’s commitment to collective security, Tidwell said.

“PNG, Fiji and Tonga see regional defence cooperation as a good thing as well,” he added, highlighting Canberra’s extensive experience training Pacific defence personnel.

Washington also maintains close defence relations with the region, especially Fiji and Tonga, through the National Guard State Partnership Programme.

Chinese surveillance of Talisman Sabre has become almost routine at this point, according to Australia’s Defence Industry Minister Pat Conroy.

“The Chinese military have observed these exercises since 2017. It’d be very unusual for them not to observe it,” he told the Australian Broadcasting Corporation earlier this month.

For Washington, Talisman Sabre represented the “pinnacle” of regional military cooperation, Tidwell said, while “from Canberra’s perspective, Talisman Sabre underscores Australia’s pivotal role in regional defence.”

Amid anxieties over the future of the US-Australia alliance “unleashed by the Donald Trump administration, Talisman Sabre may well seem like a soothing balm,” Tidwell added.

Still, the alliance faces challenges, not least the heavy financial and political commitments surrounding Australia’s planned acquisition of Virginia-class nuclear-powered submarines under the Aukus pact.

Would you like a handbag with that latte? Luxury brands in China think so

https://www.scmp.com/business/china-business/article/3319233/would-you-handbag-latte-luxury-brands-china-think-so?utm_source=rss_feed

International fashion and luxury groups are opening coffee shops in major Chinese cities, entering an intensely competitive space in a bid to draw in customers amid a slowdown in luxury spending.

In Shanghai, French luxury conglomerate LVMH added a cafe and dining space to The Louis, a massive three-storey, boat-shaped concept store that opened in the bustling HKRI Taikoo Hui shopping centre in late June. That followed French fashion house Celine’s debut of a garden-themed coffee shop nearby in April.

In Nanjing, capital of China’s eastern Jiangsu province, Spanish retailer Zara unveiled Zacaffè, its first coffee shop in Asia, inside its 2,500 square metre (26,910 sq ft) flagship store. In Beijing, Italian luxury fashion house Giorgio Armani launched its first cafe in the city at China World Mall, taking up more than 350 square metres, or about a third of the store’s footprint.

“The foray by foreign fashion brands into the coffee sector is not really about developing a new product line, but rather about creating a novel shopping environment and socially-driven experience to boost customer loyalty,” said Celia Chen, research director for JLL North China.

Brands would continue to explore this model, given high margins on fancy coffee drinks and low operating costs for cafes relative to other strategies for attracting consumers, such as celebrity endorsements, she added.

The tactic also represented a cost-efficient way for international companies to market themselves at a time when consumer spending was showing little sign of picking up, said Chester Zhang, research director at Savills in Shanghai.

“Brands are increasingly emphasising the incorporation of lifestyle elements and creating immersive settings to build closer connections with their audience,” he said. “Whether it’s branching into new sectors, launching exhibitions or opening pop-up stores, these are strategies brands must adopt to stay visible, especially in the current environment.”

International luxury brands are grappling with declining sales in mainland China, as consumers turn more value-conscious amid slow economic growth and a prolonged property crisis that weighs on household wealth.

LVMH in May warned about softer demand in the China market as people travel and spend less. The group reported an 11 per cent year-on-year decline in first-quarter sales in the Asia-Pacific region excluding Japan – a market that includes China and represents 30 per cent of the company’s total sales.

In July, British fashion house Burberry posted a 1 per cent decline in first-quarter sales, dragged down by results in China and across Asia. Swiss luxury group Richemont recorded a 7 per cent decline in mainland China, Hong Kong and Macau in July, despite improving momentum in the region.

Selling coffee represented “part of a broader strategy of turning luxury into an experience, not just a product”, said Falk Fuhrmann, founder of Shanghai-based brand consulting firm HuiLue.

As luxury consumption in China matured – and big-ticket spending slowed – brands were seeking ways to stay emotionally and culturally relevant, he said.

“A luxury handbag may be a once-a-year purchase,” he added. “But a beautifully designed cafe, a dessert that looks like a jewel or a co-branded latte? That’s something fans can experience weekly.”

Video of new UAV hints at sleek future of China’s ‘loyal wingman’ military drones

https://www.scmp.com/news/china/military/article/3319177/video-new-uav-hints-sleek-future-chinas-loyal-wingman-military-drones?utm_source=rss_feed

A new video circulating online shows what appears to be a Chinese tailless drone flying in formation with a turboprop, offering a rare glimpse at the country’s progress in developing collaborative combat aircraft.

The footage, first circulated at the weekend on China’s social media platform Weibo, reveals the tailless aircraft with a distinctive diamond-shaped delta wing configuration. Accompanying the drone is a Y-8 or Y-9 turboprop-powered transport aircraft, with another similar aircraft trailing separately.

An additional still image, apparently a frame from a separate video featuring the same drone, emerged simultaneously on the social media platform X.

While bearing a similar tailless shape to China’s next-generation fighter prototypes – namely the Chengdu J-36 or Shenyang J-50 – the drone’s design differs from and appears smaller than those aircraft.

Based on its size relative to the turboprop, the drone appears longer – at about 15 metres (50 feet) – than known “loyal wingman” drones, which typically measure between 9 and 12 metres.

The People’s Liberation Army (PLA) has been actively developing multiple loyal wingman drones and teaming crewed-uncrewed abilities.

While the stealthy GJ-11 combat drone remains central to these efforts, China has unveiled other lower-tier uncrewed designs intended to closely coordinate with crewed aircraft.

Notably, the FH-97A by China Aerospace Science and Technology Corporation was showcased at the Zhuhai air show last year and promoted as a loyal wingman capable of “leading swarms of smaller drones”.

The drone was described at the time as having a more autonomous, networked strike role beyond simply supporting platforms such as the J-20.

A commenter on X suggested the Y-8/9 aircraft was likely chosen to accompany the tailless drone because it could fly at slower speeds that were suited to observation and because its spacious cabin could accommodate engineers, monitoring equipment and potential radio systems for remotely controlling prototype drones. Certain variants of this aircraft could also deploy target drones for testing purposes.

In 2022, China’s state broadcaster CCTV showed a related concept, highlighting the use of H-6 missile carriers as airborne launch platforms for tactical drones.

China’s drive towards advanced autonomous aviation has accelerated with big leaps in artificial intelligence and machine learning.

In early June, a PLA Daily article emphasised the importance of “massed drone deployments” within China’s military modernisation. It called for “innovative approaches” to unmanned systems, describing them as potentially “decisive and dominant” in future conflicts.

The same report urged military planners to move beyond viewing drones as auxiliary forces, advocating for new operational doctrines centred on the mass and coordinated deployment of unmanned systems. It argued “the next phase of global military competition will hinge on rapidly concentrating essential systems and personnel”.

While the exact date and location of the newly emerged drone video remain unclear, its design closely aligns with images from a June 11 satellite photo, showing around 500 military vehicles – including self-propelled artillery and ballistic missile launchers – lined up at a PLA facility on the outskirts of the capital.

Of special interest in that satellite image are drones and unmanned surface vessels concealed under cover on trailers. Similar displays have previously unveiled new drone designs during military parades.

The facility features a mock avenue layout, closely resembling Beijing’s Changan Avenue, indicating large-scale military rehearsals ahead of a planned parade to commemorate the end of World War II in September.

Chinese firms urged to deepen Asean roots as US cracks down on transshipments

https://www.scmp.com/economy/china-economy/article/3319213/chinese-firms-urged-deepen-asean-roots-us-cracks-down-transshipments?utm_source=rss_feed

Beijing should encourage its firms to deepen integration with Southeast Asian economies instead of using the region as a transshipment route to the US, according to a senior regional economist – as Washington threatens the export-reliant region with high tariffs.

Transshipments drew attention earlier this month after the US announced tariffs on imports from Vietnam and 23 other trading partners. US President Donald Trump warned that imports diverted through Vietnam would face a 40 per cent tariff – double the 20 per cent levy on goods made in the Southeast Asian nation.

“Of course, [Southeast Asian authorities] would check the country of origin for products,” said Dong He, chief economist at the Singapore-based Asean+3 Macroeconomic Research Office (AMRO), on Tuesday, adding that some already have agreements with the US to do so.

Chinese officials should also “encourage their firms to become more deeply ingrained or integrated with local economies” in the Association of Southeast Asian Nations (Asean), He said.

While the Chinese government seeks to protect its exports, businesses should have the autonomy to make long-term decisions about their role in local economies, which would also protect them from unpredictable tariff rates, he added.

Imports from China face an average tariff rate of 42 per cent, according to Morgan Stanley estimates, while other Asian countries face rates of 25 to 40 per cent starting August 1.

Since the US launched a trade war against China in 2018, Beijing has stepped up trade and investment with Asean countries. The goods trade between China and the bloc reached US$982.34 billion last year, up 7.8 per cent from 2023, customs data showed – consolidating the bloc as China’s top trade partner.

Vietnam, in particular, has drawn attention due to an influx of Chinese investment in its factories since Trump’s first term – though it remains unclear exactly how Trump’s transshipment clause will work in practice.

Before Trump took office in January, officials in Malaysia and Thailand said they would not permit transshipments to the US.

On Tuesday, the White House announced it had agreed a trade deal with Indonesia that would see the US reduce its proposed tariff rate to 19 per cent in return for Indonesia eliminating tariff barriers on a “full range” of US industrial and food products. A similar deal has also been struck with the Philippines.

Meanwhile, Trump said on his Truth Social account that his government had reached a separate deal with Japan to cut US tariffs to 15 per cent in exchange for Japan opening its market to more American products and investing US$550 billion in the US.

Some Asian countries are also eyeing China’s yuan currency as a partial “backup” to the US dollar in case the dollar underperforms or becomes unreliable, as “low” yuan interest rates could enhance its role as an “important funding currency”, He said.

China has made progress in addressing “legacy issues” in its economy this year, including property market woes and local government debt, the economist said. That headway gives it more space to develop sectors such as “advanced services”, he added.

On Wednesday, AMRO’s Regional Economic Outlook forecast China’s growth at 4.5 per cent for this year and 4.1 per cent for 2026 – lower than April predictions of 4.8 per cent and 4.7 per cent, respectively.

The Asian Development Bank, however, on Wednesday held China’s 2025 growth forecast at 4.7 per cent and its forecast for next year at 4.3 per cent, unchanged from April projections.

AMRO said the Asean+3 region – Southeast Asia plus China, Japan and South Korea – was projected to grow by 3.8 per cent in 2025 and 3.6 per cent in 2026, down from earlier forecasts of 4.2 per cent and 4.1 per cent, partly due to “evolving US tariff measures”.

Chinese woman lives 2 months for free by exploiting shop return policies, scamming men

https://www.scmp.com/news/people-culture/trending-china/article/3316779/chinese-woman-lives-2-months-free-exploiting-shop-return-policies-scamming-men?utm_source=rss_feed

A woman in China who took advantage of an array of businesses and managed to live in Shanghai for two months without spending a penny has been arrested by the police.

The woman in her 20s, surnamed Huang, was arrested by officers in the city in April and is facing charges of picking quarrels and stirring up trouble.

According to the police, Huang had been scamming hotels, restaurants and taxis in Shanghai and successfully escaped paying for anything for two months.

Huang stayed at different hotels and bathing centres in the city, and each time at the end of her stay, she complained about hygiene conditions in exchange for payment waivers.

She also deliberately rubbed and grazed her skin to claim refunds from bathing centres on numerous occasions.

Investigators also found a box of dead crickets in Huang’s luggage, which she used to frame the hotels.

The hospitality venues usually charged about 200 yuan (US$28) a night.

She only paid three times for her stay; on each occasion, the bill was paid by men she met online.

One man said he paid for her stay at a bathing centre and she completely ignored him afterwards.

When the woman could not find anyone to pay for her meals, she would order delivery food, then find fault with the restaurants to get a refund.

Huang also travelled by taxi all the time and complained about the drivers on the ride-hailing platforms escaping payment.

She downloaded all kinds of ride-hailing apps on her two phones, so as to take advantage in turns.

Huang also bought new clothes online and took advantage of e-commerce platforms’ seven-day return policy to look nice and shiny for free.

She even went to a beauty parlour to have her nails and eyelashes done, then asked for a fee waiver, saying she did not feel well after the session.

The shop did not charge her but instead removed the eyelash extensions they had fitted her with.

“Nice try, thinking of getting beautiful for free,” the shop’s manager told Shanghai Television.

Huang said her alleged living-for-nothing crime spree was inspired after she actually encountered insects at a hotel and was granted a free stay.

She even called the police to settle her arguments with the shops she targeted. If the police did not support her claim, she would file a complaint against the officers.

She was finally arrested after two months of freeloading.

Huang showed little regret, blaming the police for arresting her and “ruining her life”.

She also tried to avoid punishment by saying she would “never come back to Shanghai”.

“She can now live for free in prison,” one online observer said.

“Her behaviour seems to be utilising shopping platforms’ policies legally, but in the long run it is ruining trust between sellers and customers,” said another.

China is building the world’s biggest hydropower dam. Why is India worried?

https://www.scmp.com/news/china/science/article/3319175/china-building-worlds-biggest-hydropower-dam-why-india-worried?utm_source=rss_feed

On the eastern rim of the Tibetan plateau, China envisions a future powered by the roaring waters of the Yarlung Tsangpo (Brahmaputra). The river will be the site of a mega dam – the world’s most ambitious to date – that promises to bring clean energy, jobs, infrastructure and prosperity to the region.

Construction on the world’s largest hydropower dam began on Saturday, according to Premier Li Qiang, who called it the “project of the century”.

But the project is not just about electricity and economic benefits – the stakes are far higher. Regional security, ecological stability and the future of one of Asia’s great rivers all hang in the balance.

How big is the mega dam?

The dam will be situated in the lower reaches of the Yarlung Tsangpo, where a section drops 2,000 metres (6,562 feet) over a 50km (31 miles) stretch, creating immense hydropower potential. The dam is reportedly located in Medog, a remote county in Nyingchi city in the Tibet autonomous region.

When completed, the project will overtake the Three Gorges Dam as the world’s largest hydropower dam. It could generate three times more energy with five cascade hydropower stations – an estimated annual capacity of 300 billion kilowatt-hours (kWh) of electricity, more than Britain’s total annual power output.

It is estimated to cost around 1.2 trillion yuan (US$167 billion), dwarfing many of the biggest infrastructure undertakings in modern history at around five times the cost of the Three Gorges Dam and even more expensive than the International Space Station.

Why is it important?

The project was first announced in 2020 under China’s five-year plan as part of a broader strategy to exploit the hydropower potential of the Tibetan plateau, with feasibility studies dating back to the 1980s. Beijing authorised the dam’s construction in December 2024.

China is the world’s top hydropower producer, but it “is fast running out of rivers to dam”, which makes the Yarlung Tsangpo “the final frontier” for large-scale expansion, according to Trivium China, a China-focused research firm.

The Chinese government sees the project as a national strategy with major significance for Tibet’s development and China’s clean energy targets.

By tapping into the river’s vast hydropower potential and integrating surrounding solar and wind resources, China aims to establish a clean energy hub in the region, stabilising the grid while reducing reliance on coal. This aligns with Beijing’s green energy goals and 2060 carbon neutrality targets, according to state media.

The project is also expected to boost local employment, infrastructure and livelihood in Tibet while prioritising ecological protection through rigorous geological surveys and environmental monitoring, according to official media.

“Beyond energy security, policymakers likely also have state-building on the mind. The mega dam will anchor an unprecedented wave of industrial and infrastructure investment in Tibet – deepening Beijing’s control over the politically sensitive region,” Trivium China said on its website on Monday.

What is at stake, and why is India anxious?

The Yarlung Tsangpo flows south into India, where it becomes the Brahmaputra River, then flows into Bangladesh. Both South Asian nations have raised concerns about downstream implications of a water conflict, which could potentially affect millions of people who depend on the river for agriculture, fisheries and daily consumption.

The river flows through Arunachal Pradesh, known in China as Zangnan – a territory claimed by both China and India. New Delhi views the project as a possible means for Beijing to project power and exert control over water resources for strategic and economic advantage. India fears the potential weaponisation of water by China, which could use the dam to cause floods or induce droughts.

Earlier this month, Arunachal Pradesh Chief Minister Pema Khandu described the mega dam project as a ticking “water bomb” and said downstream Indian waters could “dry up considerably” once the dam was completed.

Observers have also raised concerns about population displacement and major ecological disruption, warning of risks to one of the richest and most diverse environments on the plateau. Chinese authorities did not disclose how many people are likely to be displaced.

Tibetan groups have reportedly noted the presence of sacred sites along the river.

China asserts that the project has undergone rigorous scientific evaluation and will not adversely affect the environment, geological stability, or water resource rights of downstream countries. Beijing has also emphasised that it will not try to benefit at the “expense of its neighbours”.

The area where the dam is being built sits atop the Indian-Eurasian tectonic boundary, a seismically active zone, making it prone to earthquakes and leaving little margin for engineering error. Experts said it could take at least a decade to build the dam because of the technical challenges. The dam is expected to begin operations in the 2030s.

Has the Qianfan satellite network – China’s Starlink rival – run into trouble?

https://www.scmp.com/news/china/science/article/3319163/has-qianfan-satellite-network-chinas-starlink-rival-run-trouble?utm_source=rss_feed

A Chinese mega-constellation of communications satellites is facing serious delays that could jeopardise its ambitions to compete with SpaceX’s Starlink for valuable orbital resources.

Only 90 satellites have been launched into low Earth orbit for the Qianfan broadband network – also known as the Thousand Sails Constellation or G60 Starlink – well short of the project’s goal of 648 by the end of this year.

Under international regulations to prevent spectrum hoarding, satellite operators must deploy a certain proportion of their constellation within set times after securing orbits and radio frequencies.

Shanghai Yuanxin Satellite Technology, the company leading the project, plans to deploy more than 15,000 satellites by 2030 to deliver direct-to-phone internet services worldwide.

To stay on track, Yuanxin – which is backed by the Shanghai municipal government – would have to launch more than 30 satellites a month to achieve its milestones of 648 by the end of 2025 for regional coverage and 1,296 two years later for global connectivity.

At the heart of the delay is a severe shortage of rockets, as China’s manufacturing and launch capacity struggle to keep pace with the explosive demand for satellite deployment, according to a rocket engineer based in Beijing.

The engineer, who declined to be named because he was not authorised to speak to the media, said China did not yet have an equivalent to SpaceX’s reusable Falcon 9 rocket.

The Falcon 9 launches Starlink satellites at a rate of about 24 per mission, flying as often as twice a week, and serves as the backbone of SpaceX’s rapid roll-out.

In contrast, Chinese satellites are typically launched in batches of 18. Meeting the Qianfan target would require the use of nearly half of China’s total annual rocket launches – an effort that appears virtually impossible.

“Personally, I expect this shortage to last for at least another decade,” the rocket engineer said.

While five batches of Qianfan satellites lifted off from the Taiyuan and Wenchang launch centres between August 2024 and March this year, the company reportedly missed out on two of its bids for rocket contracts.

In February, the company sought to deploy 162 satellites in nine launches, a task that required a mature rocket – one with a proven flight record – that was also capable of sending 4.5 tonnes into an 800km (497-mile) orbit.

But with fewer than three bids submitted, both tenders were automatically cancelled – an outcome that did not surprise the Beijing-based rocket engineer.

“That looks like a demanding requirement to me. Only a few Long March variants produced by state-owned manufacturers can do the job. None of the main commercial rockets that technically qualify have flown successfully yet,” he said.

Adding to the challenge, these limited Long March models – such as the LM-6A, LM-8, and LM-8A – along with their launch pads, must be shared with Guowang, another 13,000-satellite broadband constellation under construction.

As a state-led project, Guowang would typically be considered a national priority, meaning that launch resources may be diverted to ensure its schedule. “In a rocket-starved environment like this, Qianfan could end up taking a back seat,” the engineer said.

In addition to the rocket shortage, a number of Qianfan satellites have had technical issues and failed to reach their intended orbit.

Like their Starlink counterparts, satellites for the Qianfan constellation are deployed at a lower altitude and rely on electric propulsion to climb to their final orbit, a strategy designed to save rocket fuel.

However, according to the latest US Air Force tracking data, 17 of the 90 deployed Qianfan satellites have yet to reach their target altitude of around 1,070km, with some lingering near 800km where they were initially released.

With 90 operational satellites, Qianfan ranks as the third-largest broadband constellation in low Earth orbit, behind Starlink and OneWeb.