• Tibet mega dam is China’s chance to build confidence with India
• US’ annual China human rights review shorter, remains sharply critical
• Paraguay eyes Chinese parts assembly plan amid US tariff war with China, Brazil
• Philippines slams ‘reckless’ Chinese ships over collision at Scarborough Shoal
• What’s next after US-China tariff truce, and why is it ‘far from a walk in the park’?
• China Evergrande to delist in Hong Kong, marking a watershed in country’s property crisis
• Philippines to push for binding South China Sea code in 2026 – will it succeed?
• Micron starts lay-offs in China as US memory chipmaker retreats from mobile NAND market
• Trump extends US-China tariff truce, Xi and Lula talk: SCMP daily highlights
• China launches anti-dumping investigation into Canadian pea starch imports
• Alibaba tops Meituan’s China on-demand delivery, fuelled by 1 million cups of tea daily
• Despite US-China tariff truce, the turning tide keeps reshaping shipping routes
• China’s chip investment falls in first half of 2025 while equipment funding surges: report
• What do we know about the collision between 2 ships in disputed South China Sea?
• Death of China influencer, 80, beloved for sharing moments with wife, sparks public mourning
• China rejects OpenAI’s GPT-5 trademark application in blow to US firm’s branding efforts
• Global investors pivot to China’s US$25 trillion bond market amid de-dollarisation trend
• Tech war: Huawei unveils algorithm that could cut China’s reliance on foreign memory chips
• China accuses US of using lies as ‘pretext for seeking control’ of Panama Canal
• China’s push to promote its currency accelerates with landmark Fortescue loan
• The lure of DSE for mainland China students
• Chinese children deliver food, help courier riders with orders, spark safety concerns
• China’s Xi and Brazil’s Lula hold phone call amid US trade rupture
• China urged to curb excessive cash burn, not competition, to fight ‘neijuan’
• Chinese man spends US$120,000 on 300-year gym membership, seeks refund; owner vanishes
• China’s Wing Loong-2: a multi-role UAV workhorse with an overseas advantage
• Trump confirms deal with Nvidia chief to let tech company sell lower-end chips to China
• Trump extends US tariff truce with China: reports
• Shaolin’s ‘CEO monk’ scandal may prompt overhaul of how temples are run in China
• China presses ahead with Southeast Asia port expansion as US tensions simmer

Tibet mega dam is China’s chance to build confidence with India

https://www.scmp.com/opinion/asia-opinion/article/3321493/tibet-mega-dam-chinas-chance-build-confidence-india?utm_source=rss_feed

China’s mega dam construction on the Yarlung Tsangpo (Brahmaputra) River uncovers the vulnerabilities of transboundary water mechanisms. With India suspending the Indus Waters Treaty with Pakistan and being in the process of reconsidering the Ganges Water Sharing Treaty with Bangladesh, water politics is getting more complicated day by day.

This turn of events has cast doubt on the future of regional cooperation in South Asia. Even though the mega dam is China’s most ambitious hydropower project and a symbol of clean energy and climate resilience, the project has stirred anxious discussions in downstream countries such as India and Bangladesh.

This dam has been hailed as the project of the century and also as a milestone for both technology and the environment. Reports estimate that the dam will produce more than 300 billion kilowatt-hours of power annually. Meanwhile, it seeks to help China achieve its long-term goal of becoming carbon neutral.

It would also add to China’s goal of developing its border areas because of its location on the remote Tibetan Plateau. Besides job creation and industrial migration, this project can bring considerable growth, leading to the expansion of the Chinese economy.

At the same time, downstream states such as Bangladesh and India are concerned about the massive project’s design and its possible effects. While the project is steered towards renewable energy and sustainable development, it will also have a geopolitical impact. This gives the dam the perception of dual influence as it is a stepping stone to development that also has strategic consequences, reflecting the complex narratives shaping South Asia’s water politics in the modern geopolitical landscape.

South Asia is already experiencing a crisis with its transboundary water-sharing architecture, so the timing of the dam’s construction is crucial.

India and Pakistan exchanged artillery, drone and air strikes in May after a deadly attack on Indian tourists in Kashmir, resulting in the suspension of the Indus Waters Treaty. Meanwhile, domestic water demands and ecological trends are leading to a reconsideration of the Ganges River treaty between India and Bangladesh.

These changes are indicative of a growing trend where transboundary rivers are seen as a source of political tension rather than as a shared natural resource. In this context, the absence of any multilateral framework for the Brahmaputra further complicates the issue.

India does not have a water-sharing treaty with China, only a memorandum of understanding that focuses on sharing water data. This is insufficient for meaningful dialogue. Strategic distrust is bound to thrive in this vacuum, with water infrastructure being a cause and consequence of geopolitical insecurity among the regional stakeholders.

Indian analysts point out that uneasiness over the dam partly stems from both its ecological and strategic implications. It is positioned on the Yarlung Tsangpo River just before it curves around the Great Bend and enters India as the Brahmaputra. Located at high altitudes in the Tibetan Plateau, the region is characterised by steep gradients, seismic activity and fragile Himalayan ecosystems, amplifying its engineering and environmental risks.

The dam’s proximity to the border of India and China makes it geopolitically sensitive. And if water became a source of tension in the region, there is always a fear for downstream agriculture and livelihoods. The management of flows can be troubling, which may lead to the disruption of the ecological balance of the Brahmaputra basin and risk millions of lives.

Pema Khandu, the chief minister of the Indian state of Arunachal Pradesh, has expressed concerns over the dam’s possible downstream effects and emphasised the need for more technical and environmental safeguards.

As Bangladesh is the lowest riparian state in the Brahmaputra basin, it has sought four key technical documents from Beijing. Following China’s official approval of the dam in December last year, it has requested an environmental impact assessment, a feasibility study, a climate impact analysis and a disaster risk assessment.

The Brahmaputra water flow can be affected by the structural design of the dam, according to available technical data. This will have an effect on sediment concentration and the lean water season. Any disturbance in this ecosystem will deplete groundwater and could cause riverbank erosion. While Bangladesh is not against upstream development, it is looking for more consultation to ensure regional cooperation on water governance.

Considering the contemporary South Asian water politics, the discourse that is emerging around China’s Yarlung Tsangpo dam revolves around a mix of institutional inadequacies, environmental uncertainty and strategic aspirations. It is imperative to negotiate an organised regional framework to limit the possibilities of unilateral action.

For downstream countries such as India and Bangladesh, the issues go beyond hydrological data. This reflects their need to be included in decision-making processes that influence ecological stability and water security.

The ongoing situation has created an opportunity for China and India to build confidence and open channels for cooperation. Regional interconnectedness mechanisms, such as joint research and early warning systems, would help in mitigating ecological risks. The project will bring long-term economic dividends such as clean energy production, job creation and the development of China’s border areas.

This interaction could boost the ties between China and India, given their current bilateral relations. It could also help in establishing a precedent for managing other transboundary rivers in South Asia. Water diplomacy has the potential to emerge as an avenue for renewed regional cooperation in the face of growing climate challenges.

US’ annual China human rights review shorter, remains sharply critical

https://www.scmp.com/news/china/diplomacy/article/3321642/us-annual-review-chinas-human-rights-record-shorter-remains-sharply-critical?utm_source=rss_feed

The US State Department’s annual review of China’s human rights record, released on Tuesday, was pared back as part of a broader restructuring of its country reports but still retained many of its most politically sensitive criticisms of Beijing’s conduct.

“Genocide and crimes against humanity occurred during the year in China against predominantly Muslim Uygurs and members of other ethnic and religious minority groups in Xinjiang,” the report said in its executive summary.

The China assessment, an extensive catalogue of Beijing’s alleged violations in the previous calendar year, is part of a package of department reports reviewing some 200 countries and territories based on standards enshrined in international human rights agreements.

Its release comes after a months-long delay amid controversy that the reports would substantially scale back long-standing critiques of certain forms of abuses or display bias against perceived US foes.

In recent years, the reports have been released in the spring, accompanied by a launch event led by the Secretary of State. This year – the first release under the second Donald Trump administration – no such event was held.

Intended to inform congressional decisions on foreign aid allocations and security assistance, the reports include some of the most comprehensive human rights reviews compiled by any single body in the world. They are also widely used in both US and international courts, particularly during asylum hearings.

This year, the individual country reports removed sections on disabilities, gender and political participation, among others. At 42 pages, the China report was in line with the leaner format applied to other countries – down from 91 pages last year and 87 pages in 2023.

Still, as in previous years, the report catalogued Beijing’s conduct regarding arbitrary or unlawful killings; disappearances; transnational repression against individuals outside China; and restrictions on freedom of expression.

As with last year, the report highlighted what it called genocide and crimes against humanity in China’s Xinjiang Uygur autonomous region, reflecting a 2021 State Department determination that Beijing’s treatment of Uygurs and other Muslim minorities met the legal definitions of those crimes.

In its 22-page addendum on Hong Kong, the report said that the human rights situation there had deteriorated in the previous calendar year as regional and central governments “further dismantled Hong Kong’s political freedoms and autonomy”.

State Department spokesperson Tammy Bruce said on Tuesday that the reports had been adjusted to make them more “readable” and “objective”, insisting that the adjustment “doesn’t reflect a change of any US policy when it comes to human rights”.

“Sometimes less is more,” Bruce continued, comparing the shorter reports to the Trump administration’s restructuring of foreign aid, adding that its human rights priorities would become clearer with next year’s report.

Still, some US Democratic lawmakers objected to the shortened reports.

“By deliberately watering down or cutting factual reporting on global human rights violations … the State Department under Secretary [Marco] Rubio has shamelessly turned a once-credible tool of US foreign policy mandated by Congress into yet another instrument to advance [Make America Great Again] political grievances and culture war obsessions,” said Representative Gregory Meeks of New York, the senior Democrat on the House Foreign Affairs Committee.

The previous Joe Biden administration had made advancing democracy a key theme, hosting an annual “summit for democracy” to gather government, business and civil society to “advance democracy, fight corruption and counter authoritarianism”.

The Trump administration, meanwhile, has slashed its human rights and humanitarian programming, a move that some have criticised as playing into the hands of the Chinese government.

In recent years, Beijing has issued its own report on US human rights violations, citing American racial discrimination, wealth polarisation and gun and police violence, among other issues.

“While a ruling minority holds political, economic, and social dominance, the majority of ordinary people are increasingly marginalised, with their basic rights and freedoms being disregarded,” China’s State Council Information Office wrote in May 2024.

The report’s Tuesday release comes a day after the US and China jointly announced that they would extend a tariff truce until November.

Paraguay eyes Chinese parts assembly plan amid US tariff war with China, Brazil

https://www.scmp.com/news/china/money-wealth/article/3321638/paraguay-eyes-chinese-parts-assembly-plan-amid-us-tariff-war-china-brazil?utm_source=rss_feed

Paraguayan lawmakers on Tuesday heard government ministers outline a proposed assembly law that would allow companies to manufacture electronic and digital goods locally using imported parts, many from China, as political debate grows over whether the country should end diplomatic ties with Taiwan in favour of Beijing.

Economy Minister Carlos Fernandez Valdovinos and Industry and Commerce Minister Javier Gimenez told a Senate hearing the measure would let businesses that currently import fully assembled products shift to bringing in components and putting them together in Paraguay, branding them “Made in Paraguay”.

Officials said the initiative could cut costs, create jobs and diversify the country’s production base without curbing existing imports.

The plan would cover goods ranging from televisions and refrigerators to microwave ovens and air conditioners, and would borrow from Paraguay’s automotive policy, which has already led to 90 per cent of motorcycles on the road being assembled locally.

Gimenez said current global trade tensions present a rare opportunity for Paraguay, saying that recent US tariffs on Chinese goods, initially set at 145 per cent before being reduced to 30 per cent, and a 50 per cent levy on Brazilian exports, could make the country “an attractive hub for assembly services”.

“If we grant this advantage, importers and entrepreneurs can open industries, import the parts and assemble them here,” he told senators.

The legislative push comes as pressure mounts for Paraguay to review its decades-long recognition of Taiwan.

Beijing sees Taiwan as part of China and has never renounced the use of force to reunite it with the mainland. It has increased military pressure on the island and cut off official talks since the independence-leaning Democratic Progressive Party came to power in 2016.

Most countries, including Taiwan’s main international backer, the United States, do not recognise the island as an independent state, but Washington opposes any attempt to seize it by force and is legally bound to supply it with defensive weapons.

In late July, Hugo Meza, vice-president of the Chamber of Deputies, the lower house of Paraguay’s Congress, and a member of the ruling Colorado Party, returned from a visit to mainland China urging a national debate on the matter. He argued Paraguay was “wasting time” with Taiwan and said even a fraction of China’s vast investment in Latin America could transform the country’s economy.

Paraguay is the only country in South America, and the most populous nation in the world, to maintain official diplomatic relations with Taipei instead of Beijing.

“We are one of the few countries that does not recognise China, and what we receive from Taiwan is very little compared to what Paraguay gives it,” Meza said. He insisted his aim was not to threaten or blackmail, but to encourage an open discussion about potential economic benefits.

Beijing welcomed Meza’s remarks. Foreign ministry spokesperson Guo Jiakun said the statements “reflect what many in Paraguay strongly want” and urged Asuncion to “make the right choice that truly serves the fundamental and long-term interests of Paraguay and its people”.

Despite such calls, President Santiago Pena has repeatedly reaffirmed his support for Taiwan, calling the 68-year relationship a strategic, values-based alliance that Paraguay is ready to defend “with all its strength and with a loud voice”.

Speaking at a Taiwan-Paraguay business forum in July ahead of a planned visit by Taiwanese leader Lai Ching-te, Pena said the partnership reflects the country’s sovereign foreign policy and commitment to democratic principles.

His stance follows a December incident in which Paraguay expelled a senior Chinese diplomat for allegedly interfering in domestic politics to sway recognition towards Beijing.

The bill remains under debate in Congress, with some business groups backing the idea but urging changes. The Paraguayan Importers Centre has proposed raising the national value-added requirement from 20 to 40 per cent and phasing in the law to give companies time to adapt.

Philippines slams ‘reckless’ Chinese ships over collision at Scarborough Shoal

https://www.scmp.com/week-asia/politics/article/3321628/philippines-slams-reckless-chinese-ships-over-collision-scarborough-shoal?utm_source=rss_feed

The Philippines on Tuesday criticised China’s “reckless behaviour” after two Chinese ships rammed into each other following their high-speed chase targeting a Philippine coastguard (PCG) vessel and urged Beijing to respect international maritime rules.

In a social media post, PCG spokesman for the West Philippine Sea Commodore Jay Tarriela said the Philippines had consistently called on the Chinese government to respect the Colregs. He was referring to the International Regulations for Preventing Collisions at Sea published by the International Maritime Organisation, under which the Philippines and China are signatories.

“We have also emphasised that such reckless behaviour at sea could ultimately lead to accidents,” Tarriela said.

During the incident in the South China Sea on Monday, a Chinese navy 052D/Luyang MoD III guided missile destroyer hit a vessel from its coastguard while they were chasing the PCG’s BRP Suluan.

Richard Thomas, a defence analyst, wrote on the Naval Technology news website that had the destroyer rammed either of the two smaller coastguard vessels midway between bow and stern, the outcome would have been “catastrophic” and the damage could potentially have led to “sinking and significant loss of life”.

Tarriela said: “Our thoughts are with the Chinese coastguard personnel who may have been injured in this incident.”

Raffy Tima, an anchor at GMA News, who was standing at the stern of the BRP Suluan when the high-speed chase happened, posted on X that after the ramming, “two floating objects can be seen near the damaged ship. No confirmation of a man overboard incident from the CCG but they were seen lowering a RHIB (Rigid Hull Inflatable Boat) right after the incident”.

“The PCG likewise offered to help,” Tima said.

Tima told This Week in Asia that he was too busy taking photos and videos at that time to be afraid for his life. It was only while editing video when he realised “we were this close to be being rammed. We just slipped through.”

A PCG official, who spoke on condition of anonymity, told This Week in Asia that the signatory nations under Colregs had an obligation to avoid any collision at sea.

In Monday’s incident, the two Chinese vessels were “shadowing and manoeuvring closely” to the BRP Suluan, the official said, when the Philippine vessel was about 30 nautical miles (55km) away from Scarborough Shoal, referred to in China as Huangyan Island.

BRP Suluan was following Colregs and trying to avoid a collision with both Chinese vessels, according to the official. As the Chinese vessels were trying “to sandwich” BRP Suluan, its captain had to “resort to evasive manoeuvres”, which took the Philippine vessel to within 10 nautical miles from Scarborough, where the collision happened, the official said.

During the incident, a third Chinese coastguard vessel not seen in social media videos was also trying to block the BRP Suluan, which “would have been trapped” by the three Chinese vessels had it not performed evasive manoeuvres, the official said.

The distance of 30 nautical miles to Scarborough, where the chase started, is way outside the baselines China drew and submitted to the UN last November to claim sovereignty over the shoal and its surrounding waters. Under the United Nations Convention on the Law of the Sea (Unclos), Scarborough, consisting of rock formations, is only entitled to a 12-nautical mile territorial sea.

When approached by This Week in Asia, the skipper of BRP Suluan, Captain Jomark Angue, declined to comment as he was not cleared by Manila to speak about the incident. The 43-year-old veteran, who assumed command of the BRP Suluan on August 5, has been in the coastguard for 23 years.

Broadcast journalist Tima also told This Week in Asia that the Philippine vessel was “going full speed” to evade the Chinese vessels.

Even after the collision, the Chinese destroyer “continued to chase us, with intent to ram us but it could not catch us. It looked like the PLA navy ship was determined to ram us.”

The PCG official agreed with Tima’s version of the events, saying the Chinese destroyer continued to pursue BRP Suluan “for over an hour”. As a result, the PCG crew could not distribute the relief packs intended for Filipino fishermen in the area, the official said.

On Tuesday, PCG’s chief, Admiral Ronnie Gil Gavan awarded medals and ribbons to Angue as well as 43 other men and women on board the BRP Suluan in recognition of their bravery and calm response during the incident.

“Bravo Zulu everyone … you should always remain calm, you should always remain professional yet unyielding in the face of whoever they are,” Gavan told them.

National Defence Secretary Gilberto Teodoro Jnr said in a statement that his ministry “stands in solidarity with the Philippine Coast Guard in the face of Chinese atrocious and inane behaviour in the West Philippine Sea. We will not be cowed.”

On Monday, the Chinese foreign affairs spokesman Lin Jian blamed the incident on the “Philippines’ moves”, which he said “seriously infringed upon China’s sovereignty and rights and interests, and seriously harmed peace and stability at sea”.

Calling the moves “malign”, Lin said: “It is legitimate and lawful for China to do what is necessary to safeguard our territorial sovereignty and maritime rights and interests in accordance with the law.”

Collin Koh, a senior fellow at the Institute of Defence and Strategic Studies at the S. Rajaratnam School of International Studies in Nanyang Technological University, disagreed with Beijing’s assessment, saying in a social media post that the Philippines had no reason to “intrude” into its exclusive economic zone in accordance with Unclos.

What’s next after US-China tariff truce, and why is it ‘far from a walk in the park’?

https://www.scmp.com/economy/global-economy/article/3321606/whats-next-after-us-china-tariff-truce-and-why-it-far-walk-park?utm_source=rss_feed

With the tariff truce between China and the United States extended for another 90 days, and in the lead-up to a potential meeting of their presidents later this year, room for “piecemeal agreements” exists for the two countries in terms of export controls and purchases of goods, according to analysts.

But the odds of significant breakthroughs – at least in the short term – are unlikely, as negotiations between the superpowers will continue to be difficult and serve as a long-term test of trade resilience, they added.

“It is in neither party’s interest to see tariffs re-escalate,” said Lynn Song, Greater China chief economist at Dutch bank ING. “But at the same time, it is also difficult to envision a grand bargain to resolve issues once and for all.

“It’s likely that we will continue to see these extensions and adjustments, moving forward.”

Pushing Beijing to buy more US goods is one of Washington’s priorities. Just ahead of the tariff truce deadline, US President Donald Trump urged China to quadruple its orders of American soybeans – a major US export to China.

Trump said last week that he and President Xi Jinping could meet “before the end of the year” if both sides can come to a trade deal.

Malaysian Prime Minister Anwar Ibrahim said on Friday that Xi was expected to attend an Asean summit to be held in Kuala Lumpur in October, potentially turning the annual talks into a stage for a high-stakes meeting between the leaders of the world’s two largest economies.

“Now negotiators can focus their attention on negotiating a trade deal, which would pave the way for a Trump-Xi summit this fall,” said Wendy Cutler, senior vice-president for the Asia Society Policy Institute and a former deputy US trade negotiator. “This will be far from a walk in the park.”

Compared with the “phase one” trade deal that the two countries reached during Trump’s first term – when China agreed to expand purchases of certain US goods and services by at least US$200 billion, compared with 2017 levels – Beijing will be a more demanding counterpart this time around, after having learned important lessons, she said.

Moreover, for soybeans and other agricultural products, the demand is far more inelastic than many assume, according to Zha Daojiong, a professor with the School of International Studies at Peking University.

“For China or any other buyer to commit to new purchasing arrangements from any seller, the usual set of issues is in place: change in consumption levels, contracts already entered into, costs in making a switch, et cetera,” Zha said.

Former US trade negotiator Stephen Olson, now a visiting senior fellow at the ISEAS – Yusof Ishak Institute in Singapore, said China feels it has considerable leverage and will refuse to go along with a one-sided deal as it did with the phase-one agreement.

“Additional relief from US technology restrictions on China could be part of the price China extracts for agreeing to a summit,” he said.

If Trump and Xi do meet this year, they may strike a deal that includes further tariff cuts and makes progress on export restrictions, but some deeper structural issues such as China’s industrial policies will remain mostly unaddressed, Olson predicted.

But Brian Wong, a fellow with the Centre on Contemporary China and the World at the University of Hong Kong, said further deals seemed unlikely.

“Beijing doesn’t appear to be in the mood to offer any more than obligatory reciprocal treatment on the extension of the tariff suspension,” Wong said. “If Beijing can meaningfully double down on a shift towards domestic consumption and push for the diversification of state capital deployments, revive the sentiments of private entrepreneurs, and shore up the confidence of middle-class households by reviving the property market, then China will have more than a fighting chance to outlast the erratic and mercurial, ironically self-destructive rule of Trump.”

Moving forward, the US could opt to penalise China for buying Russian oil – like Washington did to India – as a bargaining chip in negotiations with Beijing. On Sunday, US Vice-President J.D. Vance said Trump was thinking about slapping new tariffs on imports from China in response to its purchases of Russian oil.

From a geopolitical standpoint, Su Yue, principal economist for China at the Economist Intelligence Unit, said long-term competition between the US and China defies any straightforward conclusion.

“This rivalry is multifaceted, spanning economics, technology, security and influence over the global order – each area marked by its own set of uncertainties and evolving dynamics.”

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China Evergrande to delist in Hong Kong, marking a watershed in country’s property crisis

https://www.scmp.com/business/china-business/article/3321625/china-evergrande-delist-hong-kong-marking-watershed-countrys-property-crisis?utm_source=rss_feed

China Evergrande Group on Tuesday said that its Hong Kong shares will be removed on August 25 following the stock exchange’s delisting decision, which the company does not intend to have reviewed.

The world’s most indebted property developer was informed by the local bourse on Friday that its listing would be cancelled for failing “to fulfil any of the requirements” to resume trading, the company said in a filing.

Evergrande’s shares have been suspended from trading since January 29, 2024 – the same day a Hong Kong court ordered its liquidation after it failed to present a viable restructuring plan. Under the exchange’s rules, a company that remains suspended for 18 consecutive months is subject to delisting.

This would mark the end of Evergrande’s 16-year trading status in Hong Kong, which spanned an era when the company was the poster child of China’s property boom.

The Guangzhou-based developer fell from its perch in 2021 after Beijing rolled out the so-called three red lines policy, which reined in overleveraged developers to cool down the mainland’s housing market.

The company, which amassed more than US$300 billion in liabilities at its peak, defaulted on its offshore bonds in late 2021, sparking global concerns about spreading the contagion from China’s housing downturn.

In January 2024, the Hong Kong High Court ordered the cash-strapped developer’s liquidation, in which efforts to recover and manage the group’s onshore and offshore assets are ongoing. Eddie Middleton and Tiffany Wong Wing-sze of Alvarez & Marsal were appointed as liquidators.

Following the company’s delisting, the liquidators intend to give notice of developments in the firm’s liquidation, as appropriate, by publishing the same material on the liquidation information website, Evergrande said.

On Tuesday, the firm disclosed a report by the liquidators that set out a high-level overview of the liquidation’s progress in the past 18 months.

According to the liquidators, they had taken control of more than 100 Evergrande subsidiaries and recovered about HK$2 billion (US$255 million) – mainly from noncore assets. Still, complex ownership structures and onshore insolvencies might limit the sum that creditors can recover.

Investigations have led to substantial legal claims, while 187 proofs of debt totalling about HK$350 billion have been submitted, with formal claim adjudication to occur only when a dividend becomes possible. The figure was significantly higher than the US$27.5 billion of liabilities disclosed in Evergrande’s financial statement in December 2022.

The delisting decision came at the right time, according to Brock Silvers, chief investment officer at private equity investment firm Kaiyuan Capital in Hong Kong. Otherwise, it “would have been a serious blow to the exchange’s credibility”, he said.

“Shareholders are highly likely to be wiped out, but it has long been obvious that onshore and offshore creditors will crowd out any possible equity claims,” he added.

The delisting of other struggling Chinese property developers might follow, according to Silvers. “Evergrande started China’s real-estate crisis with its original default, and now it has signalled the next phase,” he said.

Evergrande’s shares last traded at HK$0.163 before the suspension, which gave it a market capitalisation of HK$2.12 billion. At its peak in 2017, the company had a market cap of more than HK$354.9 billion.

Philippines to push for binding South China Sea code in 2026 – will it succeed?

https://www.scmp.com/week-asia/politics/article/3321621/philippines-push-binding-south-china-sea-code-2026-will-it-succeed?utm_source=rss_feed

With the Philippines gearing up to succeed Malaysia as chair of the Association of Southeast Asian Nations (Asean) in 2026, President Ferdinand Marcos Jnr has confirmed that Manila will push for a finalised and binding code of conduct (COC) in the South China Sea amid a longstanding maritime row with China.

In an interview for his podcast last Friday, Marcos Jnr confirmed his side would “certainly try” for the outcome, stressing the urgency of a legally binding agreement to maintain stability in the region.

Four Asean states – Brunei, Malaysia, Vietnam and the Philippines – have competing claims against Beijing in the South China Sea, yet disputed areas in the Philippines have become prominent flashpoints for these tensions.

“We will certainly try, because a code of conduct is very, very important,” Marcos said, adding that his country’s maritime zones had become the most volatile parts of the waterway.

An international tribunal ruled in favour of the Philippines’ claims in 2016. Beijing has constantly rejected the decision and upheld its nine-dash-line claim, which it says is based on historical accounts.

According to Marcos, a COC would outline acceptable and appropriate behaviour while preventing actions that could further provoke tensions among claimant states, including ship collisions and the construction of artificial islands.

On Monday, the Philippine Coast Guard released footage of a Chinese navy vessel colliding with its coastguard ship while in hot pursuit of a Philippine patrol boat near the contested Scarborough Shoal, known in the Philippines as Bajo de Masinloc.

“It makes the rules very clear and what is expected of each signatory country,” Marcos explained, adding that the Philippines would remain firm in standing up for its territorial integrity and sovereign rights in the West Philippine Sea, Manila’s term for its exclusive economic zone within the South China Sea.

The president said the country’s stance was in line with its long-standing policy of peaceful engagement and stressed the importance of maintaining open diplomatic channels.

Marcos’ statements come amid earlier calls among its neighbours to speed up the finalisation of a COC, citing the threats to regional stability and economic growth such as rising geopolitical tensions and trade threats.

On Monday, as it hosted Asean-China negotiations on the South China Sea, Malaysia said it remained deeply committed to “ensuring the effective implementation” of the declaration of conduct signed in 2002. It reiterated the country’s commitment “to advancing a substantive and effective COC that constructively addresses key issues in the South China Sea, while safeguarding its sovereignty, sovereign rights and national interests”.

This year, five rounds of COC negotiations are being held across Southeast Asia and China – from Jakarta and Manila in February and April, to Kuching in August, Singapore in September, and China in November.

Analysts say Malaysia has done a “credible job” of ensuring that COC discussions continue to progress.

“Malaysia has managed to keep all parties – Asean and China – at the table without letting disagreements derail the process. That’s no small feat when every member state has its own sensitivities and national priorities,” Enrico Gloria, an assistant professor of political science at the University of the Philippines and a doctoral student at Tsinghua University in Beijing, told This Week in Asia.

Robin Michael Garcia, a political scientist and the president of Manila-based public affairs firm WR Advisory Group, said having two maritime countries chairing Asean consecutively was a positive development “because they have an interest in putting the COC on the agenda”.

“It’s good because we consistently pressure and make it part of the discourse, pressure countries to talk about it, at least in public discussion. So it keeps the issue and the concern alive compared with the other Asean issues such as Myanmar, pollution, and the Asean economic community,” Garcia told This Week in Asia.

However, while observers said Marcos’ quest for a binding COC was consistent with Manila’s stance to establish a rules-based international order, they expressed apprehension towards the Philippines’ ability to accomplish its goal and get China to the negotiation table.

Garcia noted a more tempered stance from Marcos regarding the Philippines’ tensions with China, noting similarities with his first state of the nation address in 2022 where he declared the Philippines’ “friend to all, enemy to none” policy.

“It seems like for this year and the next few months, this will underpin his foreign policy towards China. So I don’t expect a lot of very strong statements from him … And I think that will affect the way we will have to deal with the COC and becoming chairman of the Asean next year,” Garcia told This Week in Asia.

The success of the Philippines’ chairmanship under Marcos would hinge on how much the president “can manoeuvre and gain support from the other Asean states”, Garcia said, adding that Manila could have trouble persuading other member states not directly affected by maritime tensions to buy in on a binding COC, especially “those within China’s economic ambit”.

Gloria expressed scepticism that the Philippines “will get Asean’s full backing” for a binding COC.

“After more than two decades of talks, everyone wants the COC finalised – but pushing for a legally binding version is a political lightning rod,” he said

China had been “crystal clear in opposing [the COC]”, he noted, so making that central to Manila’s chairmanship “risks locking negotiations back into hardline positions rather than moving them forward”.

Even if the Philippines softened its stance, “Beijing’s position is fixed – it’s not going to sign one”, Gloria said.

“This reality gives Manila no incentive to pull back. If anything, it will point to new incidents in the West Philippine Sea as proof that a binding COC is more urgent than ever. Expect the Philippines to frame tensions not as a reason to compromise, but as ‘Exhibit A’ or evidence for why tougher rules are needed.”

Gloria warned against a hardline approach as negotiations on any COC worked effectively on consensus.

“Few will openly support a move that risks antagonising their most consequential neighbour. If Manila makes ‘binding or bust’ the only acceptable outcome, it could alienate not just Beijing but some Asean partners as well,” he said.

“The Philippines must understand that chairing Asean is different from being president of the Philippines. As chair, you’re not just defending your own backyard – you’re guiding the whole neighbourhood. The challenge for Manila will be to balance its national stance with the role of a consensus-builder, because as we have seen so far, these negotiations don’t reward leaders who only talk to their own corner.”

Micron starts lay-offs in China as US memory chipmaker retreats from mobile NAND market

https://www.scmp.com/tech/big-tech/article/3321613/micron-starts-lay-offs-china-us-memory-chipmaker-retreats-mobile-nand-market?utm_source=rss_feed

US chipmaker Micron Technology has started a new round of lay-offs that is expected to shed hundreds of jobs in mainland China, as part of the company’s global retreat from the lacklustre mobile NAND memory market.

Micron – with offices in Shanghai, Shenzhen and Xian, capital of northwestern Shaanxi province – said “continued weakness in the mobile NAND market” prompted it to halt global development in that area, the company told Chinese media on Tuesday.

Mobile NAND refers to flash memory used in devices such as smartphones and tablets for general storage and transfer of data.

Boise, Idaho-based Micron this week started cutting jobs at its mainland units, including research and development, testing and support facilities, according to Chinese media reports. The number of axed roles was not disclosed.

The lay-offs were expected to slash more than 300 jobs in China, according to a Micron employee who declined to be named because he was not authorised to speak to the media. Like other foreign technology companies that have downsized operations in the country over the past few years, Micron offered generous compensation to mainland staff who voluntarily left the firm, the employee said.

Micron did not immediately respond to a request for comment on Tuesday.

The company’s exit from the mobile NAND market reflects how it has been grappling with fluctuations in the global memory chip market, while dealing with heightened tensions between the US and China.

Micron, the largest US memory chipmaker, became the first foreign semiconductor company to be put under a cybersecurity review by China and slapped with a partial sales ban owing to “national security risk” in May 2023, months after the firm closed its dynamic random access memory (DRAM) design operations in Shanghai.

The US firm previously employed more than 3,000 people on the mainland, with around two-thirds based in Xian, according to another employee who declined to be identified.

The company said it will continue to develop and support other NAND memory solutions, such as solid-state drives and those for the automotive industry, as well as continue to operate in the mobile DRAM market.

In April, the company told US customers it planned to impose a surcharge on some products to account for US President Donald Trump’s new tariffs.

At present, Micron runs a chip packaging and testing plant in Xian, where it invested 4.3 billion yuan (US$598 million) in 2023. This site is expected to start production in the second half of this year.

Micron raised its revenue forecast from about US$10.7 billion to around US$11.2 billion in the quarter ended August 28. “This revised guidance reflects improved pricing, particularly in DRAM, and strong execution,” the company said on Monday.

In its financial year ended August 29, 2024, Micron’s revenue from China reached US$3.05 billion, representing 12 per cent of its total revenue. The firm’s other overseas manufacturing facilities are in Taiwan, Japan, Malaysia and Singapore.

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Trump extends US-China tariff truce, Xi and Lula talk: SCMP daily highlights

https://www.scmp.com/news/china/article/3321616/trump-extends-us-china-tariff-truce-xi-and-lula-talk-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 .

US President Donald Trump has signed an executive order extending by 90 days the US’s tariff truce with China, removing the risk of an immediate escalation hours before the ceasefire was set to expire, but leaving trade relations fragile.

Trump said on Monday that he had personally negotiated a deal with Nvidia chief executive Jensen Huang, letting the tech giant sell a lower-end chip in China in exchange for part of those sales revenues being paid to the US government.

Brazilian President Luiz Inácio Lula da Silva has spoken by phone with Chinese leader Xi Jinping for about an hour, in a high-level contact aimed at reinforcing ties with Brazil’s largest trading partner while confronting a sudden rupture in trade relations with the United States.

China is pushing forward with several projects designed to boost its trade ties with Southeast Asia – including a major port upgrade in Brunei – as the region emerges as a pivotal front in the US-China trade war.

Shi Yongxin is known as the “CEO monk” for transforming Shaolin into a multibillion-dollar global brand. But the announcement in late July that he was facing criminal investigation – and the fast appointment of a new head monk at Shaolin – has fuelled speculation about a possible turning point in how temples are run in China.

With e-commerce platforms locked in fierce competition for China’s instant retail market, a prominent Chinese economist has called for government guidance that balances regulatory oversight with innovation and a push for new growth drivers.

The accident happened during a confrontation with Philippine coastguard and fishing boats near the disputed Scarborough Shoal.

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China launches anti-dumping investigation into Canadian pea starch imports

https://www.scmp.com/economy/global-economy/article/3321610/china-launches-anti-dumping-investigation-canadian-pea-starch-imports?utm_source=rss_feed

China has launched an anti-dumping investigation into pea starch imported from Canada, marking Beijing’s latest retaliatory measure against Canada’s tariffs targeting Chinese steel.

The probe was initiated at the request of domestic industry insiders, with preliminary evidence showing a significant increase in dumped Canadian pea starch in recent years, according to the Ministry of Commerce.

“With import prices below domestic products, it has been causing losses and difficulties for China’s industry,” the ministry said on its website on Tuesday. “The anti-dumping probe complies with WTO rules to protect domestic industries and differs fundamentally from Canada’s recent WTO-violating discriminatory actions against China.”

In the 2023-24 agricultural season, Canada was China’s second-largest pea exporter, accounting for 44.6 per cent of China’s total pea imports, following Russia’s 49.1 per cent, the Russian Union of Grain Exporters and Producers said last month.

Pea starch is mainly used in the food industry as a stabiliser that adds consistency and improves mouthfeel.

Also on Tuesday, China’s commerce authorities said the ministry would begin collecting “deposits” from companies importing Canadian canola oil and halogenated butyl rubber - the latter mainly used for pharmaceutical stoppers and the inner lining of tyres - after anti-dumping investigations into the products were launched in September.

Both measures are set to take effect on Thursday.

The ministry’s latest moves came after Canada last month imposed a 25 per cent tariff on steel imports from all countries besides the US if the steel was originally melted and poured in China.

Meanwhile, Canada has tightened import quotas since August 1. For countries without a free-trade agreement with Canada, including China, import volumes were cut by half, based on 2024 levels. Imports exceeding these limits will face a 50 per cent tariff, according to Canada’s Department of Finance.

According to Canadian Prime Minister Mark Carney, the move aims to protect Canada’s domestic steel industry from the US’ 50 per cent steel tariffs, as China sought to increase steel exports to Canada following the hike in US tariffs.

“So far, Canada is the only country outside the US that has blatantly breached WTO rules by imposing discriminatory tariffs on China,” said Cui Fan, a professor of international trade at the University of International Business and Economics, in a social media post on Monday. “I believe that combating discrimination should be China’s top priority in managing its foreign trade relations.”

China and Canada have been engaged in a back-and-forth of tariffs and retaliations since Canada imposed a 100 per cent tariff on imports of Chinese electric vehicles in October.

In March, China imposed tariffs on various Canadian agricultural imports, including a 100 per cent levy on Canadian canola oil and peas.

“China has made it clear that it is willing to dial back these tariffs, which are hurting Canadian farmers, if Canada removes its surtax on EV imports from China,” said Rajiv Biswas, CEO of Asia-Pacific Economics, an international economic research group. “However, with the Canada-China trade war continuing, there could be further retaliatory trade measures by China against Canadian agricultural exports.”

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Alibaba tops Meituan’s China on-demand delivery, fuelled by 1 million cups of tea daily

https://www.scmp.com/tech/article/3321583/alibaba-tops-meituans-china-demand-delivery-fuelled-1-million-cups-tea-daily?utm_source=rss_feed

The daily delivery volume of Alibaba Group Holding briefly surpassed rival Meituan last week after it offered free drinks to customers who ordered through its on-demand service amid the industry’s cutthroat competition, according to a report by the technology media outlet LatePost.

Orders on Alibaba’s instant commerce channel Taobao Shangou topped 100 million on Thursday, 20 million fewer than Meituan. After Meituan stopped its promotion on Friday and Saturday, Taobao’s orders overtook Meituan’s, LatePost said on Tuesday without citing the source of its information.

Alibaba, which owns the South China Morning Post, did not respond to requests for comment. Meituan did not respond either.

The data showed that subsidies worked in China’s ultra-competitive market. The industry was shifting from Meituan’s “near-monopoly to near-duopoly” with Alibaba’s emergence, as the challenger lavished generous subsidies on customers, delivery riders and merchants to gain market share, Morgan Stanley said. The two companies are likely to have equal shares of China’s on-demand delivery market by 2030, the bank said.

In food delivery, Meituan is set to dominate the market with a 75 per cent share in terms of gross transaction value by 2030, but its share in the entire instant commerce industry may fall to 48 per cent, almost the same as the 47 per cent share taken by Alibaba, according to Morgan Stanley’s estimates.

Hangzhou-based Alibaba has been running aggressive marketing campaigns such as “1 million cups of free milk tea”, discounted sales on “Super Saturday”, and a new membership system to combine its on-demand delivery service Ele.me with its online travel agency Fliggy and grocery chain Freshippo.

The latest marketing battle followed an earlier one initiated by JD.com, a latecomer in food delivery, in April. JD.com, Meituan and Alibaba ramped up subsidies for consumers and merchants, leading to a cycle of deep discounts and free lunch offers.

The surging orders have drawn the attention of China’s antitrust regulators, which are intervening to put a floor on the cutthroat prices. The State Administration for Market Regulation last month summoned the three companies to urge them to engage in “rational” competition.

All three pledged a “ceasefire” on August 1, but promotions went on. JD.com, which did not offer free drinks last week, invited consumers to grab drink discounts and super cheap fried chicken.

“We believe competition will remain intense”, even with the promise to stop “involution”, Morgan Stanley analysts said in a research note on Thursday. The term involution, or neijuan in Chinese, refers to a self-defeating cycle of excessive competition.

“Meituan faces share loss and margin pressure, though we think it remains a long-term winner” with its advantage over fulfilment efficiency, supply-side innovations and increasing rider welfare and merchant profitability, the analysts said.

Despite US-China tariff truce, the turning tide keeps reshaping shipping routes

https://www.scmp.com/economy/global-economy/article/3321608/despite-us-china-tariff-truce-turning-tide-keeps-reshaping-shipping-routes?utm_source=rss_feed

Even after securing another 90-day tariff truce with the US, China’s trade-diversification efforts are expected to continue reshaping shipping routes for the rest of the year, as transpacific routes remain under pressure following an initial front-loading phase.

“Despite ongoing negotiations between the two countries, we believe it is unlikely that tariffs will be completely eliminated, which will continue to weigh on US import volumes,” said Jarl Milford, a maritime analyst at Veson Nautical.

“We expect a full-year decline in volumes on this trade lane, which will apply further pressure on freight rates,” he told the Post.

The Shanghai Containerised Freight Index, which is updated every Friday and tracks spot freight rates for containerised cargo, specifically from Shanghai to major global destinations, has declined for nine consecutive weeks.

The latest rates from Shanghai to the US west coast and east coast have fallen by more than half from their peak in early June, when exporters rushed to front-load their products after the initial three-month tariff pause began.

Danish shipping giant Maersk also mentioned the significant impact on its container-liner services in its second-quarter earnings report, noting that its China-US box volumes during the April-June period declined by around 35 per cent, year on year.

However, it pointed out that the contraction in North American imports was more than offset by the strong import growth into Europe, Latin America, Africa, western Asia and Central Asia.

The resilient market outside the US has prompted Maersk to raise its outlook for global container volume growth in the second half of this year to between 2 and 4 per cent, up from a previous range of -1 to 4 per cent.

“China is gaining market share in world trade, and Chinese companies are becoming increasingly successful and taking market share from companies in other parts of the world,” Vincent Clerc, CEO of Maersk, said during an investors’ call on Thursday, noting how the rise of Chinese brands is providing a new driver in container-shipping demand.

And as global trade routes are being reshaped by tariff wars, shipping companies are adapting to the new landscape.

In July, Maersk opened a 20,000-square-metre logistics centre in Panama as “a gateway to Latin America”.

“With several weekly ocean services, direct routes from Asia, and cross-border trucking into Central America, the site is positioned to serve as a regional nerve centre for supply chains,” Maersk said in a press release.

The Mediterranean Shipping Company, which has the world’s largest container fleet in terms of container capacity, will launch a new weekly service in September to serve the trade between the Far East and the west coast of South America, linking ports in China and South Korea with those in Peru.

Another service by the Geneva-headquartered company, connecting China and Singapore to West African ports in Congo, Nigeria, Benin and Angola, will also commence in September.

In the first seven months of this year, China’s exports to Asean countries and the European Union respectively rose by 14.8 per cent and 8.2 per cent, year on year, while outbound shipments to Africa surged by 25.9 per cent, customs data showed.

China’s chip investment falls in first half of 2025 while equipment funding surges: report

https://www.scmp.com/tech/policy/article/3321579/chinas-chip-investment-falls-first-half-2025-while-equipment-funding-surges-report?utm_source=rss_feed

China’s semiconductor industry investment totalled 455 billion yuan (US$63.3 billion) in the first half of 2025, a decline of 9.8 per cent from a year earlier, according to a report from chip market research firm Cinno.

In contrast, investment in semiconductor equipment surged more than 53 per cent from the same period last year, highlighting the country’s efforts to establish a self-sufficient supply chain.

Wafer manufacturing accounted for the largest share of semiconductor investment at 51 per cent.

Wafers are thin discs of highly purified silicon that serve as the foundation for chip production, providing a smooth, clean surface where intricate electronic circuits are constructed through a series of precise processes. Once the circuits are completed, the wafers are diced into individual chips used in devices such as smartphones, computers and other electronics.

Of the remaining investment, nearly 19 per cent was directed towards chip design, while 9 per cent was allocated for packaging and testing. These categories experienced declines of about 24 per cent and 28 per cent, respectively, owing to weak consumer demand for electronics and disruptions in the international supply chain.

Other investments included encapsulation testing and materials.

Geographically, about 80 per cent of the investments were concentrated in five regions. Eastern Jiangsu province led with nearly 21 per cent, followed by Shanghai and eastern Zhejiang province at nearly 19 per cent and 14 per cent, respectively.

Beijing and central Hubei province, which is making strides in the memory chip industry, each drew 12.5 per cent of the funding.

The Yangtze River Delta – comprising parts of Shanghai, Jiangsu, Zhejiang and central Anhui province – is home to a robust industrial chain for wafer manufacturing and packaging testing. Talent attraction policies and an abundance of investments in Shanghai and Beijing also bolstered technological development, Cinno said.

Investment in semiconductor materials reached 16.2 billion yuan in the first six months of the year, making up more than 27 per cent of the total funding – indicating a shift from traditional silicon-based materials to high-performance alternatives, which are essential for electric vehicles, 5G technology and smart grids, according to Cinno.

China’s semiconductor industry is entering a new phase focused on “fine cultivation”, according to the report.

Amid rising geopolitical tensions and more restrictive trade policies in some markets, the growth of the chip sector would depend on three main factors: innovation breakthroughs, effective industrial policies and international cooperation, analysts said.

What do we know about the collision between 2 ships in disputed South China Sea?

https://www.scmp.com/news/china/military/article/3321600/what-do-we-know-about-collision-between-two-ships-disputed-south-china-sea?utm_source=rss_feed

Two Chinese ships were involved in a collision during a confrontation with Philippine ships near the disputed Scarborough Shoal on Monday.

The incident, in which Beijing claimed it had expelled a number of vessels from the area, was the latest in a series of confrontations between the two countries in the South China Sea.

Here is what we know about the incident so far.

Two Philippine coastguard vessels – the BRP Teresa Magbanua and BRP Suluan – were in the area escorting the government-owned fishing carrier MV Pamamalakaya and 35 local fishing vessels as part of a government initiative to support fishing communities.

The coastguard said its ships were also delivering fuel and other supplies to the fishing boats at the time.

The Philippine coastguard said its ships were confronted by the China Coast Guard (CCG)’s cutter 3104 and a PLA Navy Type 052D guided-missile destroyer, the Guilin.

It added that the two vessels collided around 10.5 nautical miles (19.5km) east of the Scarborough Shoal, a reef that has seen numerous confrontations between the two sides.

China has not released footage of the incident, but the Philippines released a video showing the accident.

The footage, apparently filmed on board the Suluan, showed the Chinese coastguard ship heading towards the Philippine vessels and firing its water cannons.

The camera then showed the destroyer at the rear of the Philippine vessel, where it was hit by the Chinese coastguard ship, which appeared to suffer extensive damage to its bow.

“The CCG 3104, which was chasing the BRP Suluan at high speed, performed a risky manoeuvre from the [Philippine] vessel’s starboard quarter, leading to the impact with the PLA Navy warship,” the Philippine coastguard said.

It also credited the crew’s “seamanship skills” for avoiding a direct hit from the water cannons.

China’s official statements have so far focused on its efforts to expel Philippine vessels from the waters around the Scarborough Shoal.

Gan Yu, a Chinese coastguard spokesman, said the Philippine ships had “disregarded repeated dissuasion and warnings from China” and “forcibly intruded” into the area.

Gan added the Chinese ships had taken “professional, standardised, legitimate and legal” methods to drive away the vessels.

It was unclear if anyone was hurt in the collision or the exact extent of the damage to either Chinese ship.

Ding Duo, an associate research fellow at the National Institute for South China Sea Studies, said that the “relatively small and fast” Philippine vessel had made a “risky” manoeuvre to cross directly in front of the destroyer.

“The Chinese coastguard vessel was pursuing from behind, could not stop in time, and did not give up the chase. The distance involved was actually normal, but the Philippine side chose a different tactic – one with a degree of recklessness and considerable danger,” he said.

The China Coast Guard and PLA Navy both carry out regular patrols in the South China Sea as part of Beijing’s efforts to assert its sovereignty.

But the accident has raised questions about how well they coordinate their operations in the disputed waters.

Other navies have suffered from similar accidents in the past, including the US Navy, which was involved in three separate collisions – two of them fatal – with commercial ships in the space of just four months in 2017.

Seven sailors died when the USS Fitzgerald collided with a Philippine cargo ship off the coast of Japan in June of that year. A further 10 died when the USS John McCain and an oil tanker crashed into each other two months later in waters east of Singapore.

Additional reporting by Carl Zhang and Zhao Ziwen

Death of China influencer, 80, beloved for sharing moments with wife, sparks public mourning

https://www.scmp.com/news/people-culture/china-personalities/article/3320961/death-china-influencer-80-beloved-sharing-moments-wife-sparks-public-mourning?utm_source=rss_feed

An 80-year-old Chinese grandpa, known for sharing heartwarming moments with his wife online, where he had 2.5 million followers, has died.

The octogenarian died peacefully at home on July 24, sparking widespread mourning on social media.

Liang Huaicheng from Henan province in northern China was affectionately known as “Grandpa Kaikai”.

Grandpa Kaikai and his wife captivated audiences by sharing heartwarming glimpses of their daily routines.

A significant part of their charm came from the grandmother’s “high emotional intelligence” and her constant heartfelt praise for her husband.

Whether he was cutting vegetables, cooking, or simply interacting with others, her compliments would make Grandpa Kaikai “smile widely”.

Fans said Grandpa Kaikai possessed the world’s most precious treasure, his wife’s lifelong praise.

Their most popular video, which attracted 930,000 likes, featured Grandpa making fermented soybeans.

When he said: “You can just buy them at the supermarket,” Grandma smiled and replied: “But they are not as tasty as yours. I can never get enough of the ones you make.”

The video shows them gathering firewood and cooking together in the kitchen, Grandpa at the stove, Grandma helping by his side. At one point, Grandpa even feeds Grandma watermelon with a spoon.

In March, Grandpa Kaikai celebrated his 80th birthday surrounded by the love and blessings of four generations of his family.

Fans flooded the comments section with best wishes; many even expressed envy.

One person said: “This is the kind of life we all dream of. A simple home, cooked meals, children laughing and playing around, and the deep affection shared between an elderly couple.”

In his final days, Grandpa Kaikai’s love and concern for Grandma remained deeply moving.

In one touching moment, when Grandma, as usual, praised him: “Look at you slicing that fish, so neat and shiny,” he did not respond with his typical cheerful banter.

Instead, he paused, then softly said, “How will you manage on your own after I am gone,” moving countless fans.

His death has prompted an outpouring of condolences and heartfelt messages.

One person said: “I just came across the news. I cannot believe it. It is so sudden.”

“Now that grandpa is gone, the one who will suffer the most must be grandma. The one who loved her the most is gone forever,” said another.

While a third added: “Grandpa left this world peacefully, but the warmth he shared remains. A life of kindness, a loving family, and sweet memories that will never fade.”

China rejects OpenAI’s GPT-5 trademark application in blow to US firm’s branding efforts

https://www.scmp.com/tech/big-tech/article/3321589/china-rejects-openais-gpt-5-trademark-application-blow-us-firms-branding-efforts?utm_source=rss_feed

Chinese authorities have rejected OpenAI’s attempt to register the name of its new flagship artificial intelligence model, GPT-5, as a trademark on the mainland, where the ChatGPT creator’s products and services are not officially available.

According to records on the website of the Trademark Office, under the China National Intellectual Property Administration, the US firm’s application through subsidiary OpenAI OpCo was denied and is pending appeal.

That was the latest rejection handed by the regulator to OpenAI. Last year, it denied a series of applications filed by the US start-up between March and November 2023 to register ChatGPT and GPT – covering AI models GPT-4, GPT-5, GPT-6 and GPT-7 – as trademarks on the mainland. These are still pending appeal.

The Trademark Office’s recent refusal dealt another blow to San Francisco-based OpenAI’s efforts to protect its brand in the fast-developing and highly competitive AI industry.

In February 2024, the United States Patent and Trademark Office denied OpenAI’s applications to trademark ChatGPT and GPT. “Registration is refused because the applied-for mark merely describes a feature, function, or characteristic of applicant’s goods and services,” the regulator’s ruling said.

OpenAI did not immediately respond to a request for comment on Tuesday.

A representative of East IP, the China-based intellectual property (IP) consultancy tapped by OpenAI to work on its trademark efforts, declined to comment.

The “descriptive, rather than distinctive nature” of the word GPT made it difficult to be approved as a trademark on the mainland, according to Wu Zheng, a corporate IP expert based in Beijing.

In AI, GPT stands for generative pre-trained transformer – a type of large language model developed with so-called deep learning architecture and pre-trained on massive amounts of data. It is widely used in training generative AI chatbots.

At its live-streamed launch last week, GPT-5 was touted by OpenAI as its “smartest, fastest, most useful model yet, and a major step towards placing intelligence at the centre of every business”.

The new system is “like a PhD-level expert in anything, any area”, OpenAI CEO Sam Altman said at the launch.

While Microsoft-backed OpenAI has rolled out its AI services in more than 160 countries, ChatGPT and its other products remain officially unavailable in mainland China and Hong Kong. Users there turn to virtual private networks or third-party apps to access ChatGPT, while developers need proxies and outbound servers to bypass restrictions.

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Global investors pivot to China’s US$25 trillion bond market amid de-dollarisation trend

https://www.scmp.com/business/markets/article/3321593/global-investors-pivot-chinas-us25-trillion-bond-market-amid-de-dollarisation-trend?utm_source=rss_feed

Global investors’ search for alternatives to US-dollar assets is driving more capital into China’s domestic bond market, according to UBS.

A new wave of increased allocations to the Chinese bond market had just begun and was expected to continue if the trend of de-dollarisation continued, said Raymond Gui, Asia head of fixed-income portfolio management in the Swiss bank’s asset-management arm. UBS launched its first yuan-denominated bond fund in 2018.

Foreign investors, mostly institutional investors including central banks, insurance companies and pension funds, held US$587 billion in yuan-denominated Chinese bonds as of the end of May, rebounding from a low of US$429 billion in March 2023. The holdings are down about 6 per cent from a peak in January 2022.

The Chinese bond market, at US$25 trillion, remains the world’s second largest after the US. Foreign holdings, accounting for about 2.3 per cent of the market, are mainly in Chinese government bonds, policy bank bonds and local government bonds.

Foreign investors can buy into the market through a few different channels, including the Bond Connect mechanism and China’s interbank bond market, as well as the Qualified Foreign Institutional Investor and Renminbi Qualified Foreign Institutional Investor schemes.

Beijing regulators have further simplified the procedures for foreign investments in China this year in an effort to attract more global investors.

Major bond indices including the Bloomberg Global Aggregate Index, the JP Morgan Government Bond Index, and the FTSE Russell World Government Bond Index began to incorporate Chinese bonds into their global benchmarks around 2019.

The Chinese onshore bond market has experienced two waves of foreign investment inflows, between 2010 and 2013 and between 2018 and 2020. The third wave could be on the horizon, according to the bank.

The Chinese bond market exhibited low correlation with global fixed-income markets due to different economic cycles, Gui said.

“Adding a new asset with low or even negative correlation to an existing investment portfolio can enhance the overall risk-return profile of the portfolio and help reduce its volatility,” he said. “This is why China’s bond market is a very attractive asset-allocation option for foreign investors, especially for medium- to long-term asset allocation.”

De-dollarisation could play a key role in a third wave of capital inflows, Gui added.

“Starting this year, many investors have begun to question the value of US-dollar assets,” he said. “As a result, they are looking to diversify their investments into non-dollar assets. In this context, yuan-denominated assets, including both stocks and bonds, have become a natural choice.”

The trend of de-dollarisation “will likely provide strong support” for China’s yuan-denominated bond market and the value of the yuan in the future, he added.

China has been lowering its borrowing cost in an effort to stimulate the economy, and institutional investors have been buying government bonds amid market volatility. Ten-year Chinese government bond yields fell to a record low of 1.64 per cent in June.

Tech war: Huawei unveils algorithm that could cut China’s reliance on foreign memory chips

https://www.scmp.com/tech/tech-war/article/3321578/tech-war-huawei-unveils-algorithm-could-cut-chinas-reliance-foreign-memory-chips?utm_source=rss_feed

Huawei Technologies has unveiled a software tool designed to accelerate inference in large artificial intelligence models, an advancement that could help China reduce its reliance on expensive high-bandwidth memory (HBM) chips.

Unified Cache Manager (UCM) is an algorithm that allocates data according to varying latency requirements across different types of memories – including ultra-fast HBM, standard dynamic random access memory and solid-state drive – thereby enhancing inference efficiency, according to Huawei executives at the Financial AI Reasoning Application Landing and Development Forum in Shanghai on Tuesday.

Zhou Yuefeng, vice-president and head of Huawei’s data storage product line, said UCM demonstrated its effectiveness during tests, reducing inference latency by up to 90 per cent and increasing system throughput as much as 22-fold.

The move exemplifies how Chinese tech firms are leveraging software improvements to compensate for limited access to advanced hardware. Earlier this year, Chinese start-up DeepSeek captured global attention by developing powerful AI models with constrained chip resources.

Huawei plans to open-source UCM in September, first in its online developer community and later to the broader industry. The initiative could help China lessen its dependence on foreign-made HBM chips, a market mostly controlled by South Korea’s SK Hynix and Samsung Electronics, as well as the US supplier Micron Technology.

HBM is a stacked, high-speed, low-latency memory that provides substantial data throughput to AI chips, enabling optimal performance. The global HBM market is projected to nearly double in revenue this year, reaching US$34 billion, and is expected to hit US$98 billion by 2030, largely driven by the AI boom, according to consulting firm Yole Group.

Since last year, the US government has restricted the export of advanced HBM products to China as part of a broader tech strategy under former president Joe Biden, aimed at curbing Chinese semiconductor advancements.

In response to these restrictions and as part of Beijing’s chip self-sufficiency push, China is rapidly developing its domestic memory industry. Key players include Yangtze Memory Technologies, Changxin Memory Technologies and Tongfu Microelectronics.

Despite efforts by domestic manufacturers to catch up, a significant gap remains. Most are still in the trial-production and infrastructure-expansion stages for second-generation HBM chips, called HBM2, while foreign leaders like SK Hynix are already shipping HBM4, the next-generation version offering higher speeds.

Chinese firms also face challenges in accessing advanced semiconductor manufacturing equipment because of export controls.

Chinese officials told Washington that Beijing wanted the US to ease export restrictions on HBM as part of a potential trade agreement, the Financial Times recently reported.

China’s push for chip self-reliance has been going on for years, with technology tensions between Washington and Beijing showing little sign of resolution.

Recently, attention has turned to US chipmaker Nvidia’s H20 chip, a downgraded version tailored for China. The product’s fate is caught in the policy tug of war between the two nations, creating uncertainty that has accelerated the adoption of domestic alternatives.

China has urged local firms to avoid using Nvidia’s H20 and products from US supplier Advanced Micro Devices, especially for government-related purposes, citing security concerns and the existence of domestic options, according to a Bloomberg report on Tuesday.

Shenzhen-based Huawei, which is under US sanctions, remains a key player in China’s semiconductor efforts with its Ascend AI chips. Earlier this year, it showcased the CloudMatrix 384, an AI computing system designed with a “supernode” architecture to compete with Nvidia’s GB200 NVL72.

Earlier this month, Huawei said it planned to open-source its Compute Architecture for Neural Networks, a software toolkit for application development on Ascend AI processors, directly challenging Nvidia’s Compute Unified Device Architecture ecosystem.

China accuses US of using lies as ‘pretext for seeking control’ of Panama Canal

https://www.scmp.com/news/china/diplomacy/article/3321555/china-accuses-us-using-lies-pretext-seeking-control-panama-canal?utm_source=rss_feed

China has clashed with the United States in a UN session over the Panama Canal, a flash point in bilateral ties under the Trump administration, while accusing Washington of being “the biggest disrupter of peace and stability” in the South China Sea.

“China has always respected the permanent neutrality of the canal and firmly supports Panama in safeguarding its sovereignty over the canal to ensure its openness and smooth operation,” Fu Cong, China’s ambassador to the United Nations, told the meeting, chaired by Panama’s President José Raúl Mulino, on Monday.

Acting US ambassador Dorothy Shea spoke afterwards about concerns regarding China’s “outsized influence” over the Panama Canal area, especially over critical infrastructure and port operations. She also called China’s influence a “risk to Panama and the US” and a “potential threat to global trade and security”.

“China’s expansive and unlawful maritime claims and aggressive actions demonstrate its threat to maritime security and commerce,” Shea said, alluding to the South China Sea.

In response to Shea’s remarks, Fu condemned what he called “unwarranted accusations” against China.

“The US fabrication of lies and groundless attacks against China are nothing but a pretext for seeking control of the canal,” he said.

“It has openly threatened the normal operation of the Panama Canal and the Suez Canal, and has wantonly challenged the sovereignty of other states … We urge the United States to do some serious soul searching and to assume in good faith responsibilities as a major country.”

US President Donald Trump has claimed without proof that China secretly controls the canal, and he has threatened to “take back” the important waterway that the US built in the 1900s but returned to Panama in 1999.

China’s foreign ministry has repeatedly stated its commitment to the neutrality of the Panama Canal and said China had never interfered in its management.

Last week, the US ambassador to Panama, Kevin Marino Cabrera, called for the removal of Chinese-linked operators from key Panama Canal ports, sharpening Washington’s campaign to curb Beijing’s alleged influence over the canal.

Cabrera’s criticism over Panama Ports Company – a subsidiary of Hong Kong-based CK Hutchison – has added new uncertainty to CK Hutchison’s US$22.8 billion port sale, a deal that has faced opposition from Beijing since its initial announcement in March. The deal stalled after Beijing signalled it would turn to its anti-monopoly law to review it.

Last month, CK Hutchison Holdings said it planned to invite a Chinese investor – reportedly shipping giant Cosco – to join the group in buying 43 global ports. A report by the Wall Street Journal last week said Beijing would block the deal if the Chinese shipping company Cosco did not get a stake.

During the UN meeting, Fu said the US was the “biggest disrupter of peace and stability in the South China Sea”.

“[The US] has sought to flex its military muscles and run amok at the very doorstep of other states, with a clear objective of creating instability in the region to advance its own geopolitical agenda,” he said.

He also accused the US of deploying offensive weaponry and sending large-scale naval and air forces to conduct reconnaissance and military exercises in the disputed waterway.

A report by Beijing-based think tank the South China Sea Strategic Situation Probing Initiative released in March said American armed forces had maintained a “high-intensity military presence” in the South China Sea and surrounding areas in 2024. The report noted the number and frequency of US military platforms, such as vessels and aircraft, operating in the South China Sea last year had “varying levels of increases”.

The contested area has been the scene of rising tensions recently, with the latest being a collision between two Chinese vessels during aggressive manoeuvres against Philippine vessels, according to video posted by the Philippine Coast Guard on Monday.

The Chinese side, without mentioning the collision in its statement, said it had taken “necessary” measures, including tracking, monitoring, intercepting and blocking, describing them as “professional, standardised, legitimate and legal”.

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China’s push to promote its currency accelerates with landmark Fortescue loan

https://www.scmp.com/economy/china-economy/article/3321546/chinas-push-promote-its-currency-accelerates-landmark-fortescue-loan?utm_source=rss_feed

China has passed another milestone in its efforts to promote the global use of its currency, with the Australian metals giant Fortescue agreeing to borrow a record 14.2 billion yuan (US$1.98 billion) in a syndicated loan agreement arranged by one of China’s biggest state-owned banks.

The deal is the first ever offshore yuan syndicated loan to an Australian company and the largest ever to a non-Chinese firm, lead arranger Bank of China said in a statement on Tuesday.

Fortescue – the world’s fourth-largest iron ore producer – will use the capital to purchase clean energy technology and other machinery from China and repay the loan using the yuan income it earns from selling iron ore to China, creating a “cross-border closed-loop yuan financing solution”, according to the bank.

“This syndicated loan will facilitate the expansion of the company’s business cooperation with Chinese suppliers, effectively control exchange rate risks and reduce overall financing costs, providing a strong demonstration effect,” the Bank of China said.

The loan agreement comes as China is ramping up its efforts to internationalise the yuan, as the country tries to hedge against potential US financial sanctions and investor confidence in the US dollar falters amid President Donald Trump’s aggressive tariff and spending policies.

The US dollar index has slumped by more than 9 per cent so far this year, while the offshore yuan has strengthened by around 2 per cent against the dollar.

At its midyear meeting earlier this month, China’s central bank announced that it would expedite the yuan’s use in trade settlement and cross-border financing, marking the first time in three years that the bank had included a dedicated section on yuan internationalisation in the meeting readout.

The central bank also pledged to strengthen the offshore market and accelerate the development of overseas clearing banks through the Cross-border Interbank Payment System (CIPS) – a yuan-based alternative to the Society for Worldwide Interbank Financial Telecommunication (Swift) system.

China has also started to make a concerted push to enhance the yuan’s role in global commodity markets, offering qualified foreign institutional investors access to 16 more futures and options contracts for items including natural rubber, lead and tin on its three major commodity futures exchanges in June.

Fortescue has long had deep business ties in China. The country is the world’s biggest consumer of iron ore, and around two-thirds of its imports of the resource come from Australia.

The company, which sells most of its iron ore to China, has said the Bank of China-arranged loan will be used to finance its decarbonisation push, as it aims to develop what the firm has described as a “green steel” industry.

“As the United States steps back from investing in what will be the world’s greatest industry, China and Fortescue are advancing the green technology needed to lead the global green industrial revolution,” Fortescue founder and chairman Andrew Forrest said in a company statement on Friday.

The lure of DSE for mainland China students

https://www.scmp.com/series/3321545/diploma-secondary-education-dse?utm_source=rss_feed

Chinese children deliver food, help courier riders with orders, spark safety concerns

https://www.scmp.com/news/people-culture/trending-china/article/3320947/chinese-children-deliver-food-help-courier-riders-orders-spark-safety-concerns?utm_source=rss_feed

A new trend of children helping food couriers deliver orders that had emerged in a well-known electronics market in southern China has been nipped in the bud by the authorities.

Huaqiangbei market in the city of Shenzhen is one of the world’s biggest electronics markets. It is full of children during the summer holidays.

The children operated as gig workers who helped delivery riders carry orders and locate customers.

They wore a payment QR code around their necks and fought for orders whenever a rider wearing blue and yellow, the uniforms of China’s two biggest food delivery platforms, Meituan and Alibaba Group Holding’s Ele.me, came along.

Alibaba is the owner of the South China Morning Post.

The riders paid them two yuan (US 30 cents) per order.

The trend arose because Huaqiangbei has a complicated structure.

Thousands of electronics stores are squeezed into buildings there, and deliveries can be speeded up by using people who know the place well.

Waiting for lifts during rush hours also takes time.

As a result, some riders outsourced the last leg of their work to others.

They deliver riders only earned about three yuan (US 40 cents) per order after paying the children, but many said the time saved was worth it.

According to the Shenzhen Evening News, the last-stop service in Huaqiangbei has existed for years.

It had been mostly carried out by cleaners and full-time deliverers. One woman said she could get up to 500 orders from riders.

As children joined the business, some deliverers became brokers, outsourcing the orders at one yuan per order.

The children used were mostly 10 to 12 years old, the youngest being only eight.

Some were the children of shop owners in Huaqiangbei, while others were brought in by their parents to “experience life and learn willpower”.

One parent said he brought his children to work as deliverers because “they only played with their phones at home”.

Another parent who works as a teacher let his 10-year-old daughter try the job to teach her how difficult it was to make money.

“I used to be timid, but now I can solicit business,” said one child who did the job.

However, business in the market raised safety concerns.

Some worried that children were more likely to encounter danger, while others were concerned about the safety of their food.

“It is a good way to train children, but if there are any accidents it is hard to determine responsibility,” one businessman said.

“I do not think these kids are supervised by the delivery platforms. I am worried about the food not being delivered or being spilled,” said another.

On August 4, the local government issued a notice to end the service.

They also said they had spoken to food delivery platforms and told them to discipline their riders for outsourcing to children.

The government has also prepared extracurricular classes and extended the community library’s opening hours to encourage children to partake in better pastimes.

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China’s Xi and Brazil’s Lula hold phone call amid US trade rupture

https://www.scmp.com/news/china/diplomacy/article/3321521/chinas-xi-and-brazils-lula-hold-phone-call-amid-us-trade-rupture?utm_source=rss_feed

Brazilian President Luiz Inácio Lula da Silva has spoken by phone with Chinese leader Xi Jinping for about an hour, in a high-level contact aimed at reinforcing ties with Brazil’s largest trading partner while confronting a sudden rupture in trade relations with the United States.

The call on Tuesday morning Beijing time, requested by Lula, had been in preparation for several days, according to Brazilian officials. Advisers at the Planalto Palace and the foreign ministry had been in contact with Beijing since last week to arrange the timing, which had to accommodate the 11-hour time difference with the Chinese capital.

Sources told the South China Morning Post that the decision to press ahead came after Lula consulted senior ministers about the potential impact of new US trade measures and the diplomatic message he wanted to send.

The conversation took place four days after US President Donald Trump’s administration imposed a 50 per cent tariff on a broad range of Brazilian exports, measures that threaten billions of dollars in annual trade.

Hours earlier, Washington extended a 90-day pause on similar duties for Chinese goods, highlighting a stark difference in treatment between Beijing and Brasilia.

According to a statement from the presidential palace, Lula and Xi discussed the war in Ukraine, the role of Brics and the G20 in defending multilateralism, and preparations for COP30, the United Nations climate summit to be hosted by Brazil in November.

Xi confirmed “China will send a senior delegation to Belem”, the city hosting the summit, and the leaders agreed to deepen cooperation in health, energy, the digital economy and satellite technology.

“President Lula reiterated China’s importance to the success of COP30 and the fight against climate change. President Xi indicated that China will work with Brazil to ensure the conference’s success,” according to the readout released by the Brazilian government.

Brazilian officials say Lula also wanted to use the call to ensure that trade between the two countries remains stable despite broader tensions in global markets.

The phone call was part of a broader diplomatic push by Lula in recent days to align positions among Brics members in response to US trade actions. He spoke last week with Indian Prime Minister Narendra Modi, whose country faces the same tariff rate, and with Russian President Vladimir Putin, whose economy has been hit by separate sanctions.

China has already signalled public support for Brazil in the dispute. On Wednesday, Chinese Foreign Minister Wang Yi told Celso Amorim, Lula’s chief foreign policy adviser, that Beijing opposed “unjustified external interference” in Brazilian affairs and criticised the “use of tariffs for political leverage”.

In late July, the Chinese foreign ministry offered to strengthen economic cooperation with Brasilia, citing interest in aviation, a key industry for Brazil’s Embraer.

Brazil counts China as its largest export market, with soybeans, iron ore and oil dominating sales. The United States remains a smaller but strategic buyer, particularly for higher-value manufactured goods such as aircraft. The sudden tariff increase threatens to disrupt trade flows and inject new volatility into Brazil’s economy at a time of sluggish growth.

Trump has frequently accused the Brics bloc of acting against US interests. Lula has sought to position the grouping as a counterweight to what he calls protectionist and unilateral measures by Washington. Talks among Brics leaders on trade coordination are expected to continue in the coming weeks, according to Brazilian officials.

China urged to curb excessive cash burn, not competition, to fight ‘neijuan’

https://www.scmp.com/economy/china-economy/article/3321478/china-urged-curb-excessive-cash-burn-not-competition-fight-neijuan?utm_source=rss_feed

With e-commerce platforms locked in fierce competition for China’s instant retail market, a prominent Chinese economist has called for government guidance that balances regulatory oversight with innovation and a push for new growth drivers.

Wang Yiming, a central bank adviser, said “quick commerce” – involving the rapid delivery of food and essential goods, often within 30 minutes – creates new opportunities for consumption, which could be vital for long-term growth.

He urged officials to guide the sector’s high-quality development through targeted policy measures.

“Anti ‘involution’-style competition is not against competition itself, but against behaviours that undermine fair competition,” said Wang, who also serves as vice-chairman of the China Centre for International Economic Exchanges, a Beijing-based governmental think tank.

“Instead, the goal is to raise competition to a higher level – moving away from a zero-sum mindset towards a win-win approach through innovation, quality upgrades and a better industrial ecosystem.”

Beijing has increasingly warned about – cutthroat competition that drives prices down and suppresses domestic demand. E-commerce giants, including JD.com, Alibaba and Meituan, have been at the centre of the controversy as they fight to lure customers through aggressive subsidies.

After warnings from China’s market regulator in late July, the three firms pledged to embrace “rational” competition and stop incentives such as free giveaways. However, they continue to offer substantial discount coupons.

Alibaba owns the South China Morning Post.

At a closed-door meeting in late July organised by the Beijing-based think tank New Economist, Wang said the current cycle of competition reflects shifting market dynamics as platforms prioritise speed, efficiency and deeper customer engagement over sheer size and geographic reach.

“On the surface, competition among e-commerce platforms appears to be a battle for market share, but beneath this lies a deeper transformation driven by the technology revolution, reshaping e-commerce service models,” Wang said.

Instant retail holds strong potential to boost domestic demand, he added, as China’s service sector still has ample room for growth while household spending on services continues to rise.

In a research note released last week, Morgan Stanley analysts said instant retail can help merchants expand their customer reach, especially to lower-income consumers in smaller cities, while subsidies from platforms boost consumption, rider incomes and employment.

“Quick commerce is unlocking new spending and replacing offline consumption, with limited cannibalisation of the current e-commerce pie,” the note’s authors said, estimating that market demand could reach 2.5 trillion yuan by 2030.

Despite Beijing’s pressure on the industry, which is limiting giveaways and other incentives, competition would likely remain intense because it has proven effective in attracting new users and boosting demand, according to the analysts.

“China’s ‘anti-involution’ guideline should curb ‘free milk tea’-style cash burn. It’s not aimed at stopping competition, but rather guiding it towards efficiency, innovation and ecosystem sustainability, including rider welfare and merchant profitability,” they added.

Meanwhile, Wang urged the government to develop policies that help companies upgrade technology – such as by adopting large AI models – while stimulating consumption.

He called for a full-chain regulatory framework to adapt to the new economic model, combining advanced guidance, active prevention and oversight.

Stronger collaboration between government, businesses and industry groups is needed to set standards and refine anti-monopoly rules, balancing efforts to curb unfair practices with the need to protect innovation, he said.

Chinese man spends US$120,000 on 300-year gym membership, seeks refund; owner vanishes

https://www.scmp.com/news/people-culture/trending-china/article/3320939/chinese-man-spends-us120000-300-year-gym-membership-seeks-refund-owner-vanishes?utm_source=rss_feed

A man in eastern China has sued a gym after he paid it more than 870,000 yuan (US$120,000) for memberships lasting 300 years before the management fled with his cash.

The man, known as Jin, has also sought the help of a television station to expose the Ranyan Gym in Hangzhou, Zhejiang province.

Jin showed the station 26 contracts he signed with the gym for buying memberships and coaching sessions.

“From May 10 to July 9, I bought about 1,200 lessons and membership cards with an accumulative validity period of 300 years, at a total cost of 871,273 yuan,” Jin was quoted as saying.

Jin, who has worked out at this gym for three years, said that on May 9, a sales worker told him that there was a promotion for existing customers.

After the customers bought a one-year membership card for 8,888 yuan (US$1,200), the gym could sell it to new customers for 16,666 yuan (US$2,300), an ad for the gym read.

Ten per cent of the mark-up would be kept by the gym while the rest goes to the customer, the sales worker said.

At first, Jin was sceptical, but the sales worker guaranteed it would work out to his benefit.

“He said if they did not sell it within two months, they would return all the money to me,” said Jin.

Lured by the high returns, Jin bought two such membership cards for more than 17,000 yuan (US$2,400).

In the following weeks, he was persuaded by sales staff to buy more membership cards and private tutoring lessons. On one occasion, he spent more than 300,000 yuan (US$42,000).

On July 15, when the gym was supposed to return some of the principal to Jin, he did not receive any money.

When he checked with a sales worker, he was told that the finance department of the gym was still reviewing the transaction.

But at the end of July, Jin discovered that the gym’s management and all its sales staff had disappeared.

The gym, in the Binjiang District of Hangzhou, is still open to customers, although only receptionists and administration staff are at work, Zhejiang TV found.

Jin said he later found out that all the contracts he had signed with the gym did not mention the returns promised by the sales worker.

Also, the contracts stipulated that the membership could not be transferred to others.

“I admit that I have been brainwashed by them, because I believed I was only one small step away from getting back all my money,” he told the media.

Jin said he loved working out and regarded buying the memberships and lessons as a “health investment”.

“I actually do not count on using it for 300 years. In my eyes, it was a kind of commitment to health,” said Jin.

His story shocked and delighted millions of people on mainland social media.

“He bought the gym card for the grandsons of his grandsons, ha,” said one online observer.

Another person quipped: “When a person’s wealth and his intelligence quotient do not match, the redundant wealth will flow back to society in some form.”

China’s Wing Loong-2: a multi-role UAV workhorse with an overseas advantage

https://www.scmp.com/news/china/military/article/3321451/chinas-wing-loong-2-multi-role-uav-workhorse-overseas-advantage?utm_source=rss_feed

From Nigerian raids on Boko Haram’s hideouts to Saudi strikes at Houthi positions along the shores of the Red Sea; from Pakistani sorties across the Iranian frontier to Libyan missiles in the civil war, one constant presence emerges – China’s Wing Loong-2 (WL-2), showcasing the reach of Chinese drone technology across multiple conflict zones.

At the same time, a variant of the same platform – the GJ-2 or “Attack 2” – is conducting live-fire exercises around Taiwan and patrolling the South China Sea, serving as the backbone of the People’s Liberation Army’s (PLA) uncrewed reconnaissance and combat capabilities.

This medium-altitude, long-endurance reconnaissance and strike unmanned aerial vehicle (UAV) was developed by Chengdu Aircraft Corporation, a subsidiary of China’s state-owned Aviation Industry Corporation of China. It was first unveiled at the 2016 Zhuhai air show, with its maiden flight the following year.

The WL-2 has been bought by buyers in the Middle East, Africa and Asia and deployed in multiple combat theatres, establishing itself as one of China’s most commercially successful military drone exports.

Domestically, the system went into service in the PLA in 2018, designated as the GJ-2. The weapon, minus the winglets from the WL-2 prototype, made its debut at China’s 2019 National Day military parade. Aside from military applications, the platform is also used for surveillance and communications in civilian disaster rescue operations.

The WL-2/GJ-2 is China’s answer to the General Atomics MQ-9 drones from the United States. Its conventional aerodynamic design bears many similarities to the American MQ-9 Reaper drone, including its dimensions: 11 metres (36 feet) long and 20.5 metres wide.

The aircraft’s maximum take-off weight is 4,200kg (9,260 pounds) – almost 500kg lighter than the Reaper – but its external weapons payload capacity is much smaller at 480kg compared to the Reaper’s 1,400kg.

The Chinese drone’s maximum speed of 370km/h (230mph), a service ceiling of 9,000 metres, and 1,500km combat range are also all notably lower than the Reaper’s, which are 480km/h, 15,000 metres and 1,900km, respectively.

These weaknesses were largely due to an inferior engine. The WL-2 is the first Chinese drone to be powered by a turboprop aircraft engine – the domestically developed WJ-9, which has a maximum output of 500 to 600 shaft horsepower. In comparison, the Reaper’s Honeywell TPE331-10 turboprop engine delivers up to 900 shaft horsepower, offering significantly greater power and performance potential.

In terms of endurance, the WL-2 can operate for 20 hours with standard payload configurations and up to 32 hours with reduced weapon loads. The Reaper’s operational endurance is 27 hours.

Despite its unremarkable specifications, the WL-2 boasts unique features that make it a key asset at home and a top seller abroad.

To navigate, the drone employs China’s own BeiDou satellite navigation network, a design that provides redundancy against potential signal denial by the US-operated GPS system in contested environments.

The truck-mounted ground station can operate multiple drones with a control radius of 200-300km beyond visual line-of-sight mode, and the satcom mode enables remote control via satellite link from up to 3,000km away – though reportedly few foreign users have the satcom configuration.

For reconnaissance missions, the UAV is equipped with a stabilised electro-optical/infrared sensor pod under the fuselage for day and night vision, as well as a synthetic aperture radar for all-weather operation. An airborne data link can share real-time battlefield information obtained by its radar, camera and sensors directly with distance combat units via system terminals.

As for combat, its six underwing hardpoints support a range of munitions, such as the YJ-9E anti-ship cruise missile, the LS-6 satellite-guided bomb, TJ-90 guided rockets, AG-300M laser-guided air-to-ground missiles, and the FT series of satellite-guided bombs weighing between 15 and 130kg.

In “beast” mode, the drone can carry up to 12 missiles or bombs, and as many as 18 16kg-grade TL-2 lightweight air-to-ground missiles mounted on triple-ejector racks. The drone’s inventory also includes the laser-guided Blue Arrow-7 (BA-7) air-to-ground missile, which is benchmarked to the Reaper’s AGM-114 Hellfire in weight, size and range.

Besides reconnaissance and strike capabilities, the developers have equipped the WL-2 with an electronic warfare (EW) module, transforming it into an unmanned electronic reconnaissance, active jamming and communication countermeasures platform. The EW configuration is distinguished by a disc-shaped antenna fairing with multiple extended antennas.

The modular design also allows the WL-2 platform to be reconfigured for more extensive applications, such as weather detection and telecommunication relays. The civilian model – the WL-2H – has often been deployed to fly into typhoons and earthquake zones in China to inspect disaster damage while establishing emergency mobile connections for residents.

The WL-2 is also capable of autonomous take-offs and landings, along with simplified manoeuvres for detection, tracking and target engagement – all of which can be controlled through easy “point-and-click” commands by a single operator.

Additionally, the UAV is equipped with artificial intelligence (AI) algorithms that enable it to check its own status and identify friends or foes, while autonomously assessing the threat level and taking action accordingly.

“If the WL-2 found itself having a problem during flight or was attacked and damaged but still able to fly, it would return and land autonomously,” the UAV’s chief designer, Li Yidong, said. “To ensure a safe return, the aircraft also uses airport optimisation algorithms, space shuttle glide control and other technologies.”

The smart designs not only significantly improve the drone’s survivability and mission effectiveness, but they are also especially attractive for nations that lack a complete UAV combat training system or experienced drone operators, making advanced unmanned warfare more accessible.

These distinct operational advantages have made the WL-2 a capable alternative to advanced Western platforms like the Reaper. While some specifications are not as strong, the drone’s abilities are more than adequate for most low- to medium-intensity conflicts, including regional counter-insurgency and anti-terrorism operations.

Its real competitive edge, however, is cost-effectiveness. The price of the MQ-9 system for the US military starts at about US$30 million and could be much higher for foreign buyers. India’s 2024 contract for 31 MQ-9B packages, along with munitions including Hellfire and GBU-39B precision-guided bombs, totalled US$3.5 billion, and Qatar’s 2025 deal for eight Reapers was valued at nearly US$2 billion for a full system, services and support.

In contrast, Pakistan ordered 48 WL-2 drones in 2018. The price was not disclosed but it was estimated to be somewhere between US$4 million and US$6 million each, including ground control stations, Chinese precision munitions and after-sales service. China even offered to allow the Pakistan Aeronautical Complex to jointly manufacture the drones.

Aside from more flexible payment options, China also attaches few political strings to its drone sales, making the WL-2 and other Chinese-made UAVs an accessible alternative for countries shut out of the US systems due to export restrictions.

Although newer and more advanced drones, such as the stealth GJ-11 and CH-7, are going into service for the PLA and being sold globally, the mass-produced WL-2 and GJ-2 have proven themselves in various battlefields and scenarios. The platform remains a mid-tier workhorse UAV at home and a sophisticated yet affordable choice in the international arms market.

Trump confirms deal with Nvidia chief to let tech company sell lower-end chips to China

https://www.scmp.com/news/china/diplomacy/article/3321498/trump-confirms-he-made-deal-nvidia-chief-let-tech-company-sell-chips-china?utm_source=rss_feed

US President Donald Trump said on Monday that he had personally negotiated a deal with Nvidia chief executive Jensen Huang, letting the tech giant sell a lower-end chip in China in exchange for part of those sales revenues being paid to the US government.

Trump did not rule out similar deals involving less-advanced versions of the company’s most hi-tech chips, describing Huang as a “brilliant guy”.

The highly unusual deal was first reported on Sunday by the Financial Times.

The arrangement comes amid Washington’s years-long push to restrict Beijing’s access to cutting-edge semiconductors, a policy rooted in concerns that advanced AI processors could bolster China’s military capabilities.

Since 2022, Washington has imposed export controls on such chips, hitting US chipmakers hard – particularly Nvidia, the Santa Clara, California, company that is the dominant player in the industry.

Speaking at a White House news conference, Trump said that the agreement centred around Nvidia’s H20 chip, which he called “obsolete” but still commercially viable.

“H20 is obsolete but it still has a market,” Trump said. “So I said, listen, I want 20 per cent if I am going to approve this for you, for our country ... I don’t want it myself.”

According to Trump, Huang pushed back slightly. “He said, will you make 15? So we negotiated a little deal,” Trump added.

He characterised the chip as “essentially old”, and claimed that Huawei Technologies, the Chinese tech giant, already has a similar product.

“And I said if I’m going to do that I want you to pay us as a country something, because I’m giving you a release,” Trump said.

He emphasised that the approval was limited. “I only allowed that for H20 ... He’s coming to see me again,” he added, referring to Nvidia’s advanced Blackwell chip.

“We may do this for Blackwell, but it would be a lesser version of the most powerful Blackwell chip,” he said.

Trump did not mention whether Advanced Micro Devices had reached a similar deal as well, though the Financial Times, The Wall Street Journal and The New York Times all reported that it had, citing people familiar with the matter.

AMD did not respond to a request for comment.

In a statement to the South China Morning Post, Nvidia said that “we follow rules the US government sets for our participation in worldwide markets”.

“The demand for accelerated computing is global, we’ll continue to serve as many customers as we can within the rules,” it added.

Christopher Padilla, a Commerce Department undersecretary for international trade from 2002 to 2008, called the deal “completely unprecedented”.

“Export controls are imposed to protect US national security, not to raise revenue for the government,” Padilla, now a senior adviser with the Brunswick Group consultancy in Washington, said.

He added that in “the 80 years since US export controls became widely used during the Cold War, there has never been a case of a company paying the government for a licence to export a national-security controlled item”.

Kelsey Quinn, an emerging technologies specialist at the Washington-based New Lines Institute, said that the fundamental concern is where does “this administration draw the line between legitimate national security concerns and enabling US companies to profit from China’s market”.

“Now it seems there are discussions about approving yet another chip,” she added, referring to the Blackwell chip, which is reported to be cheaper than the H20 chip.

According to Quinn, “each new carve out weakens our overall export control regime and sends a clear message to Beijing about this administration’s priorities” while it is guaranteed that China will continue to pursue technological self-sufficiency as a long-term strategic goal and build its home-grown chip capacities.

In April, as the trade war between the US and China escalated, Trump banned the sale of the H20 chip, a less-advanced semiconductor which had been designed to avoid export control restrictions on hi-tech chips imposed by the Joe Biden administration.

But Trump rescinded that decision after he met with Huang in July before the Nvidia chief headed to China on a business trip. Huang met with Trump again at the White House last week and made the deal confirmed on Monday in exchange for licences.

In July, Representative John Moolenaar, the Michigan Republican who chairs the House Select Committee on China, wrote to Commerce Secretary Howard Lutnick seeking a briefing on how Commerce would handle potential export licence applications for the H20 chip.

“If the US is serious about leading in AI, we need to protect our advantage – not hand it over,” Moolenaar warned.

On Monday, Representative Raja Krishnamoorthi of Illinois, the committee’s senior Democrat, criticised the deal, saying that chip sales revenues in exchange for export for export licences represented a “dangerous misuse of export controls that undermines our national security”.

In a statement, he added that “by putting a price on our security concerns, we signal to China and our allies that American national security principles are negotiable for the right fee”.

“Chip export controls aren’t bargaining chips, and they’re not casino chips either,” he said.

Earlier in the day, Trump also met with Intel CEO Lip-Bu Tan. Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent also attended the meeting.

Last week, Trump called on Tan to resign, labelling him “conflicted” after Senator Tom Cotton, Republican of Arkansas, raised concerns about Tan’s investments in Chinese chip companies and their alleged links to China’s government and military.

But Trump called Monday’s meeting a “very interesting one”. He added that Tan and cabinet members will “spend some time together” and bring some suggestions to him during next week.

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Trump extends US tariff truce with China: reports

https://www.scmp.com/economy/global-economy/article/3321502/trump-extends-us-tariff-truce-china-cnbc-reports?utm_source=rss_feed

US President Donald Trump has signed an executive order extending by 90 days the tariff truce with China, several media outlets reported on Monday, removing the risk of an immediate escalation hours before the ceasefire was set to expire, but leaving trade relations fragile.

If the Tuesday deadline was not extended, US duties on Chinese imports would have climbed back to their levels in April, at the height of the tariff war between the world’s two largest trading nations.

The decision, which CNBC and Reuters said was confirmed by a White House official, follows two weeks of speculation and mixed signals from Washington, after negotiators from China and the US concluded trade talks in Stockholm, Sweden, last month.

After the talks, Chinese negotiators declared a consensus for an extension of the pause on tariff increases, while the American side insisted that no deal would be final without Trump’s explicit approval.

Just ahead of the tariff truce deadline, Trump urged China to quadruple its purchases of American soybeans – a major export to China.

“China is worried about its shortage of soybeans. Our great farmers produce the most robust soybeans,” he said in a social media post late on Sunday.

“I hope China will quickly quadruple its soybean orders. This is also a way of substantially reducing China’s Trade Deficit with the USA. Rapid service will be provided. Thank you President XI,” Trump added.

China’s soybean imports from the US plunged by 27.8 per cent to US$2.08 billion in the second quarter as the US-China trade war intensified, from US$2.89 billion a year prior, according to Chinese customs data.

In terms of volume, China’s soybean imports from the US dropped by 8.7 per cent from 5.02 million metric tonnes in the same period last year to 4.58 million metric tonnes.

Malaysian Prime Minister Anwar Ibrahim said on Friday that President Xi Jinping was expected to attend an Asean summit to be held in Kuala Lumpur in October, potentially turning the annual talks into a stage for a high-stakes meeting between the leaders of the world’s two largest superpowers.

Trump said last week that the two leaders could have a meeting “before the end of the year” if both sides can come to a trade deal.

Since April, the US has gradually increased tariffs on Chinese imports to as much as 145 per cent. In retaliation, Beijing imposed tariffs of up to 125 per cent and introduced export controls on strategic raw materials. In May, both sides agreed in Geneva to a 90-day suspension of new tariffs.

No breakthroughs or details of the duration of a potential extension were revealed after the Stockholm discussions. Both sides were expected to extend the tariff truce by another three months following the talks, sources told the Post before discussions began.

The two nations would commit, during the extension, not to impose any additional tariffs on each other, nor escalate the trade war by other means, one source said.

After a similar meeting in London in June, Beijing approved exports of rare earth minerals to the US, while Washington resumed reviewing licence applications for shipments of Nvidia’s H20 artificial intelligence (AI) chips to China.

Still, several hurdles continue to hinder prospects of improved China-US trade ties, including Washington’s deal with Vietnam aimed at curbing Chinese transshipments, along with the US’ new AI action plan that keeps tight technology restrictions on China in place.

Meanwhile, Washington is expected to press Beijing for “large purchases” of US goods to narrow the trade deficit, even as customs data show Chinese imports of many American commodities have plunged – or in some cases, stopped entirely – in recent months.

Some analysts say that Beijing sees itself as having the upper hand in negotiations, despite Trump’s delayed approval following the Stockholm meetings and push for more soybean orders.

“China believes that its control over rare earth mineral export remains a strong leverage against the US in the ongoing trade negotiations,” said William Yang, a senior analyst for northeast Asia at the International Crisis Group, adding that Beijing would continue to use its pull to secure further extensions or pressure the US to make concessions without making any of its own.

Wendy Cutler, a vice president at the Asia Society Policy Institute, said that compared to the last major trade negotiation between the two countries – which culminated in a phase-one trade deal in 2020 – Beijing comes to the table with “much more negotiating leverage” and will “undoubtedly” use it to ask the US to relax its export controls on chips and chip equipment.

David Meale, who leads the China practice at the Eurasia Group, stressed that both sides have significant leverage.

“The US has many cards to play as well, evident in how it imposed export controls on advanced chips and other goods after China retaliated with higher tariffs after the US levies announced” in April, he said.

Meale, a former US diplomat, added that Trump’s delay in confirming the extension and his last-minute messaging about soybean imports suggest “a desire to wring all possible leverage out of the process”.

Shaolin’s ‘CEO monk’ scandal may prompt overhaul of how temples are run in China

https://www.scmp.com/news/china/politics/article/3321438/shaolins-ceo-monk-scandal-may-prompt-overhaul-how-temples-are-run-china?utm_source=rss_feed

China’s fabled Shaolin Temple, nestled in forest at the foot of a holy mountain in Henan province, is known as the cradle of kung fu and Zen buddhism.

The 1,500-year-old monastery is also at the centre of scandal as its long-time celebrity abbot Shi Yongxin is investigated over alleged financial offences and sexual misconduct.

Tourists and disciples continue to stream through the temple gates in Dengfeng, taking photos, lighting incense, bowing reverently in prayer and watching energetic kung fu performances.

It looks like business as usual, but there are subtle changes afoot.

Most noticeable is the swift removal of any trace of Shi within the temple complex, while its more aggressive commercialism has also been pared back.

Shi is known as the “CEO monk” for transforming Shaolin into a multibillion-dollar global brand. But the announcement in late July that he was facing criminal investigation – and the fast appointment of a new head monk at Shaolin – has fuelled speculation about a possible turning point in how temples are run in China.

That could see the state potentially re-evaluating and reforming how temples are governed, operated and commercialised, particularly regarding non-profit models and regulation, in response to decades of debate around the growing entanglement of spirituality and commerce in China.

Shi, now 60, joined Shaolin Temple in 1981. He became its abbot in 1999 at the age of 34 and went on to become one of China’s most well-known monks by turning the crumbling monastery into a “commercial empire” and promoting Shaolin culture to a global audience.

The Shaolin brand has broad interests – from tourism and investment to cultural merchandise, martial arts exchanges and performances, film production, traditional medicine, property and dining. Run by a network of companies whose operations extend beyond China, its diversified commercial chain has been compared to the Disney entertainment conglomerate.

At its peak, Shi reportedly had control or significant influence over at least 18 companies.

Critics have long accused Shi of going too far with commercialisation but he has defended the approach as a necessary way to protect the temple’s legacy.

He argued in his autobiography that it was Shaolin’s cultural heritage – not its religious faith – being commercialised, and that also meant it could put a stop to the copyright infringement being driven by the brand’s appeal. Shaolin Temple has registered hundreds of trademarks since Shi became abbot.

“If we do nothing and the thousand-year-old Shaolin culture fails to thrive in our generation – worse, if it withers – wouldn’t we be condemned by history?” he wrote.

Shi described a major “life crisis” in 2009, when there was nationwide outrage over a reported plan to launch an initial public offering for the temple and other tourism resources via a Hong Kong joint venture. Shi denied any involvement and said he opposed the move, which he claimed was being driven by the local government-backed joint venture. The IPO was eventually halted but the episode deepened concerns about Shaolin’s commercialisation.

Controversy has also extended to Shi’s personal life, with allegations surfacing from time to time over the years. In 2015 he was accused of embezzlement and fathering several children – Buddhist monks take a vow of celibacy – but was later cleared of the charges.

The temple’s management committee announced the latest allegations against Shi in a brief statement on July 27 that said he was under investigation for criminal offences. It said Shi was accused of misappropriation and embezzlement of project funds and temple assets, as well as “seriously violating” Buddhist principles – maintaining “improper relations” with multiple women over a long period and fathering at least one child.

His Buddhist credentials were revoked by the Buddhist Association of China, which accused him of “seriously undermining the reputation of the Buddhist community and the image of monks”. Companies linked to Shi were also deregistered.

Financial magazine Caixin, citing an anonymous source close to Shaolin Temple, reported that Shi was “taken away” late at night on July 25. The report said Shi had been barred from leaving the country earlier in the year when he was also summoned for questioning by authorities after returning from an overseas trip. The source said Shi still had freedom of movement within China at the time and was “calm” when speaking about the incident.

When the South China Morning Post visited Shaolin Temple on July 29, the abbot’s courtyard in the heart of the complex was sealed off, with a sign stating that this was for “cultural relic preservation”.

On a nearby stele, an inscription recognising Shi for his leadership had been covered up.

Some of the most criticised aspects of commercialisation at the temple – such as monks trying to sell visitors expensive incense and bracelets or encouraging them to make large donations in return for blessings – were conspicuously absent.

While there appeared to be plenty of tourists at the temple, locals said there were fewer visitors than usual during the peak summer tourism season and there had been a noticeable drop in numbers since the investigation into Shi was made public.

But a former monk at the temple – who left some time ago because it was “too messy” – said the latest allegations against Shi were unlikely to have much of an impact.

“This whole thing with Yongxin – whether he was actually involved in those wrongdoings – it won’t affect business at all,” the monk said. “Tourists will still come to Shaolin Temple as usual.”

In recent decades, a “temple economy” has developed in Dengfeng around the Shaolin culture – from martial arts schools to businesses selling kung fu gear and souvenirs. Tens of thousands of students attend the schools and summer kung fu camps regularly attract both Chinese and foreign enthusiasts.

But Shaolin is not the only temple that has seen commercial success in recent years as increasing interest in spirituality – particularly among younger Chinese – inspires more trips to places of worship and fuels a crossover with consumer culture.

Visitors flock to Buddhist temples, Taoist shrines, their associated vegetarian restaurants and gift shops, where blessed prayer beads and prayer pouches fly off the shelves. There has also been a surge of interest in fortune-telling and meditation experiences.

China’s temple economy was worth 80 billion to 90 billion yuan (US$11.1 billion to US$12.5 billion) in 2023, according to consulting agency Meritco Group. It estimated market value could exceed 100 billion yuan by the end of this year.

The consultancy said 25 million people visited the popular sites of Shaolin, Lingyin Temple in Hangzhou, Zhejiang province and Yonghe Temple – also known as Lama Temple – in Beijing in 2023. They generated some 1.1 billion yuan in annual revenue for the three temples that year.

Debates over the commercialisation of temples have simmered for years in China. Some argue that they are sacred spaces for spiritual practice and should not be treated as marketplaces. Others say commercial activities are acceptable to help make temples self-sufficient, as long as they do not cross certain lines, to preserve culture, and that they are a response to shifting economic realities.

Meng Liang, chair of the Mencius Foundation, said the investigation into Shi could prompt the government to overhaul how religious institutions were managed.

He said reforms could include temples being banned from having direct involvement in property auctions, limits placed on their use of trademarks, and for them to have to contribute income from monastic performances to public welfare funds.

That would build on state guidelines issued in 2017 aimed at strengthening regulation and preventing corruption. Those guidelines required temples to “maintain a non-profit nature”, improve financial oversight and to prevent commercial capital from interfering with the practice of Buddhism and Taoism – two of China’s five state-sanctioned religions, along with Islam, Catholicism and Protestantism.

In 2018, Shi Xuecheng, then head of the Buddhist Association of China, said the religion did not inherently reject commercial activity and that its survival and development needed a certain economic foundation. He was stripped of his titles later that year after an investigation found he had sexually harassed female disciples, one of the most prominent cases of China’s #MeToo movement.

The new abbot at Shaolin, Shi Yinle, has a more positive public image than his predecessor and is seen as more restrained on commercialisation. In his previous role as abbot of the White Horse Temple in Luoyang, also in Henan, Shi Yinle pushed for a balance between Buddhist practice and farming and was often seen out in the fields working with other monks.

Many believe he could steer Shaolin towards a less commercial path.

It has divided opinion in Dengfeng. For some, Shi Yongixin made a positive contribution to the county, where economic development had been slow before Shaolin shot to fame.

“Under his leadership, Shaolin became a global brand, bringing tourism, schools and new economic opportunities here,” one taxi driver said.

Others were less positive. A teacher at a martial arts school said locals had been “unhappy with Shi Yongxin for years”. “But just because he’s gone doesn’t mean things will get better,” the teacher said.

Marina Mamysheva, a 26-year-old Russian who spent two months in Dengfeng training in kung fu, said she was not surprised by the investigation into Shi Yongxin but that it had not tarnished her experience.

“I was not really connecting kung fu to religion. I was thinking about balance, discipline, self-development, strength, rather than religious belief,” said Mamysheva, whose interest in kung fu goes back to her childhood.

“You can’t say someone is perfect just because they belong to a religion,” she said. “In every single sector in this world, in each single religion, there are good people and bad people. I just pay attention to the experience I’ve had here – and it’s been amazing. It did help me a lot and I want to come back.”

The 2009 Shaolin IPO controversy offered a glimpse into the competing interests between the government, companies and the monastic community over how temples are run.

As Shaolin expanded commercially, tensions grew between the temple and local authorities over its control and profits, as well as ownership of its lucrative trademarks.

Some aspects of commercialism that have drawn criticism – such as overpriced tickets and unauthorised rituals and donation boxes – are things Shi Yongxin publicly opposed. In proposals submitted to China’s top legislature over the years he pushed to lower or even get rid of entry fees and condemned fake monks and unauthorised practices for obtaining donations.

Yujie Zhu, an associate professor at Australian National University, wrote in a paper published in the journal Tourism Geographies in May that heritage tourism was not just a way to preserve culture or for economic gain but was a “deeply political process”.

His study of Famen Temple, a Buddhist site in Shaanxi, found that its transformation since the 1980s had been shaped by competing forces: “national and local authorities seeking to integrate it into heritage and tourism frameworks, entrepreneurs leveraging its commercial potential, and religious practitioners striving to continue its sacred functions”.

Meng from the Mencius Foundation said the Shi Yongxin case suggested there were “systemic flaws”.

“Shi’s alleged misappropriation of funds went unpunished for a decade,” he said. “Oversight thoroughly collapsed: temple finances fall outside corporate law, devotees lack scrutiny channels, and religious authorities have guidance power but no audit authority.”

Meng said temples in China were not regarded as enterprises or public institutions, leaving them in a regulatory grey zone.

That makes ownership and management of their assets unclear – a situation that can easily lead to disputes and mismanagement, especially as commercial interests grow.

According to Meng, the Shi Yongxin case could spur reform to make legal registration and financial disclosure mandatory and to set up an oversight committee made up of representatives from the government, devotees and the Buddhist Association.

Additional reporting by Sylvie Zhuang

China presses ahead with Southeast Asia port expansion as US tensions simmer

https://www.scmp.com/economy/china-economy/article/3321453/china-presses-ahead-southeast-asia-port-expansion-us-tensions-simmer?utm_source=rss_feed

China is pushing forward with several projects designed to boost its trade ties with Southeast Asia – including a major port upgrade in Brunei – as the region emerges as a pivotal front in the US-China trade war.

Work has already begun on a major expansion of the port in Muara – Brunei’s largest port, which is jointly operated by a state-owned Chinese company – that will see the facility’s capacity more than double to 500,000 20-foot equivalent units (TEU), according to the Brunei Economic Development Board.

The project, which has a total investment of 2 billion yuan (US$278 million), is on track to be completed by the end of 2027, the state-run news agency Xinhua reported over the weekend.

Southeast Asia’s strategic importance to China has grown amid the trade war, as the world’s second-largest economy relies on soaring exports to the region to offset the impact of US tariffs.

China’s outbound shipments to the Association of Southeast Asian Nations (Asean) were up 16.6 per cent year on year last month, while its exports to the United States fell by more than 20 per cent year on year, Chinese customs data showed.

The boom in Chinese exports to Southeast Asia has become a source of concern in the US, with Washington pressuring governments across the region to clamp down on the transshipment of Chinese-made goods in recent months.

But Beijing appears to be doubling down on infrastructure construction in the region, as it pushes forward with a range of rail and shipping connection projects.

The work at Muara includes the construction of a new container terminal capable of accommodating large boxships of up to 50,000 deadweight tonnes, as well as the addition of new berths and upgrades to existing terminals. The site will also have a designated 3.6-hectare (36,000 square metre) free-trade zone.

The project “will significantly enhance Muara Port’s container throughput capacity, better supporting Brunei’s economic and trade development and cooperation under the Belt and Road Initiative”, the port operator was quoted as saying by Xinhua.

China and Brunei have cooperated on the port since 2017, when Brunei’s Darussalam Assets and China’s Guangxi Beibu Gulf Port Group launched a joint venture – Muara Port Co – to operate the port, which handles more than 90 per cent of Brunei’s non-oil and gas trade.

When the Sultan of Brunei, Hassanal Bolkiah, made a state visit to China in February, the two sides released a joint statement in which the Chinese government described the port joint venture as a “success” and said it expected the partnership to bolster Brunei’s position as a regional hub for logistics, shipping and aviation.

The first direct container shipping route connecting Muara with Qinzhou in China’s southwestern Guangxi province began operating in July 2023, helping to facilitate trade flows between western China and remote, less-developed regions in eastern Southeast Asia.

“This route has enhanced connectivity between Brunei and China, easing streamlined cargo transport and opening avenues for seamless connectivity to China’s new land-sea corridor,” Fazilah Yassin, Chief Operating Officer of Muara Port Co, told the Brunei Economic Development Board.

China’s New International Land-Sea Trade Corridor is a trade and logistics network that links landlocked cities in western China with hundreds of global ports via a series of rail, road and shipping connections.

By the first quarter of this year, the corridor’s cargo services had connected facilities in 73 Chinese cities with 556 ports in 127 countries and regions, according to data from Xinhua.

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