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Facing an ever-increasing trade deficit with China, Europe has limited options to balance the situation in the short term even though it still holds an edge in key sectors including pharmaceuticals, machinery and components, analysts said. China’s global trade surplus hit an all-time high of US$1.076 trillion in the first 11 months of this year, despite a decline in exports to the United States following US President Donald Trump’s imposition of steep tariffs. A lot of China’s redirected exports...

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China’s southern Hainan province implemented a separate customs regime on Thursday, as Beijing seeks to develop the island into an offshore financing and duty-free hub and position it as a strategic hedge against rising external trade barriers. The new customs regime creates two distinct customs boundaries for Hainan: one separating the island from overseas markets, and another dividing it from the rest of mainland China. Most overseas goods entering the island – which is roughly the size of...

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China is emerging as a rising powerhouse for scientific innovation at a time when scientific research in the United States faces growing funding instability, according to Belgian neurologist Steven Laureys. Laureys, a pioneer in detecting hidden awareness in patients with severe brain injuries, is expanding his global research network to China, working with Hangzhou Normal University. “There’s a wonderful opportunity for me to work with China. And I’m very happy that China is investing in...

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China’s youth-unemployment rate ticked lower in November, though competition remains fierce for university graduates trying to find work that matches their qualifications. The jobless rate for those aged 16 to 24, excluding students, fell to 16.9 per cent in November from 17.3 per cent in October, according to data released by the National Bureau of Statistics on Thursday. The rate has eased since August, when the graduation of a record 12.2 million university students over the summer pushed it...

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US President Donald Trump addressed the nation on Wednesday, highlighting what he described as his administration’s achievements in 2025 and promising to build on his “Make America Great Again” agenda in the next year. In a defiant 18-minute address from the White House, Trump awarded his administration straight A’s for what he hailed as a year of unprecedented American greatness. “We are making America great again tonight, after 11 months, our border is secure. Inflation has stopped. Wages are...

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The People’s Liberation Army has made a rare public appeal for tip-offs about procurement problems in its air force, as Beijing presses ahead with its anti-corruption campaign in the military. The announcement was posted on Monday on the PLA’s official procurement website – the main bid information platform for suppliers – seeking information about “irregular” procurement activities organised by air force units. It is the first time such a request has been made about a specific branch of the...

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It has been a turbulent year for the fraught US-China relationship. In the third part of a series looking back at the events of 2025, we examine China’s growing military might and how it’s narrowing the tech gap with the US. US defence chief Pete Hegseth told a conference in Washington this month that America would maintain a “clear-eyed appreciation” of China’s “rapid, formidable and holistic” military build-up. That build-up is being watched globally, with defence experts in recent years...

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Last month, Contemporary Amperex Technology Limited (CATL), the world’s largest battery company, started building a massive joint venture plant in Spain. It came weeks after Spain’s King Felipe visited Beijing, seeking a stronger EU-China relationship as US commitments wobble. Except Spain, electrified by the potential job creation, ran into a problem: CATL wants to bring 2,000 Chinese workers to build the plant. What’s happening in Spain is part of a complicated new showdown between the...

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Chinese carmaker BYD plans to build a new factory in Brazil within the next three years after rising demand for electric buses filled its existing production capacity and forced the company to redraw its manufacturing strategy in the country. The project would sharply expand output, create hundreds of jobs and support exports across South America, with Africa also being considered, as BYD strengthens a business segment that predates its move into passenger electric vehicles. BYD has assembled...

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The growth rate of Chinese tourists to Japan significantly slowed in November, according to official data released by Tokyo, as Beijing cut flights and issued travel warnings amid rising tensions with Japan over Taiwan. According to the latest report released by the Japan National Tourism Organization on Wednesday, although Chinese tourists continued to visit Japan in November and the numbers kept growing, it was at a much slower pace than before, both year on year and month on month. In...

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China, the world’s top soybean consumer, faces a complex balancing act when securing supplies. With 90 per cent of market demand met by imports, Brazil and the United States remain its top suppliers, but intensifying efforts to promote self-sufficiency are seeking to reduce reliance on imports. From price swings and quality traits to strategic roles in the market, soybeans from the three countries tell different stories about China’s quest for stability and security that can be broken down into...

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When US President Donald Trump first proposed his “gold card” programme earlier this year, offering permanent residency to the super rich, Beijing-based emigration consultant Jack Jing received unsolicited inquiries from seven high-net-worth families. But that initial enthusiasm quickly waned after the application details were released last week. None of his clients plan to apply in the near term, said Jing, general manager of the migration service provider WellTrend, who has decades of...

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The conviction of former media tycoon Jimmy Lai Chee-ying in a high-profile Hong Kong trial has drawn sharp reactions in London, casting uncertainty over thawing Sino-British ties before Keir Starmer visits China. Although the outcome of Lai’s 156-day national security trial was widely expected, observers say it poses a significant test for the Labour government’s balancing act on China, which could narrow the space for engagement even if its immediate impact on bilateral relations is...

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Tencent Holdings has initiated a major restructuring at its artificial intelligence group with the promotion of recent high-profile recruit Vinces Yao Shunyu, a former researcher at OpenAI. Without mentioning his Chinese name, Shenzhen-based Tencent’s announcement on Wednesday came with a photo of Yao. He was tasked to lead the company’s new AI infrastructure efforts, including the development of large language models (LLMs). Yao’s official position is chief AI scientist under the CEO’s office...

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China’s top science academy is among three parties suing Missouri for roughly US$50 billion for alleged damage to reputation and economic losses from the US state’s legal action over the Covid-19 pandemic. Missouri Attorney General Catherine Hanaway said on Tuesday that her office was notified last week of the civil lawsuit filed in the Wuhan Intermediate People’s Court. According to court documents, the case was brought by the municipal government of Wuhan, where Covid-19 was first detected,...

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1. PLA division overseeing Taiwan sees newcomers in charge The Chinese military’s Eastern Theatre Command, the division that oversees Taiwan and that has been hit hard in Beijing’s anti-graft campaign, appears to be presided over by two officers who joined the division only recently.
2. Senior US and Chinese defence officials continue ‘military-to-military’...

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The Fujian, mainland China’s newest and most advanced aircraft carrier, has made its first transit of the Taiwan Strait since its commissioning, with Taipei keeping a close eye on its movements. Taiwan’s defence ministry said on Wednesday that while the carrier, Beijing’s third, passed through the waterway, it appeared to be heading back to a Shanghai shipyard for repairs. The ministry also released a surveillance photograph of the Fujian, reportedly captured by F-16 fighter jets, showing no...

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China’s newest transport aircraft has conducted its maiden flight, images circulating on social media suggested, as the People’s Liberation Army moves to update its tactical transport fleet. Photographs and videos circulating online on Tuesday showed a four-engine turboprop aircraft. The most detailed images showed it had six-blade propellers, a T-tail, a blended winglet configuration and possibly an aerial refuelling probe positioned above the cockpit – a structure found on the Airbus A400M. A...

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China’s market regulator has warned that internet platforms demanding merchants offer the “lowest price across the internet” may face antitrust action, as Beijing steps up efforts to curb malpractice. The State Administration for Market Regulation (SAMR) explained some details of its draft – Antitrust Compliance Guidelines for Internet Platforms – at a press conference on Wednesday, according to Xinhua. The “lowest-price” requirement, where platforms bar merchants from selling cheaper elsewhere,...

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China is accelerating efforts to secure its copper supply chain, designating the metal as critical across strategic industries such as electric vehicles, artificial intelligence and defence amid rising geopolitical tensions. Provincial governments are leading the charge. On Monday, Jiangxi – already a hub for heavy rare earth mines – pledged in its 15th five-year plan to develop a world-leading hub for advanced copper-based new materials. That follows a similar move in Shandong, where provincial...

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McDonald’s China arm has raised prices on most menu items, igniting a social media backlash as consumers grapple with job uncertainty and stagnant wages. Patrons discovered this week that prices for burgers, snacks and combos rose by up to 1 yuan (US$0.14). While modest, the increase drew attention because the chain’s budget combo has long been dubbed the “poor man’s meal” by frugal young adults. Some quipped online that “McDonald’s prices are rising, but my salary isn’t”, or that the popular...

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The Chinese military’s Eastern Theatre Command, the division that oversees Taiwan and that has been hit hard in Beijing’s anti-graft campaign, appears to be presided over by two officers who joined the division only recently. According to an analyst, the appointments mean the division maintained continuity of operation despite corruption cases being found in its leadership. Air Force Lieutenant General Yang Zhibin, 62, and Lieutenant General Zhang Jichun, 57, stood alongside other senior...

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

1. China desalination tech makes fresh water cheaper than tap water – plus hydrogen China has launched a revolutionary facility in the eastern province of Shandong that produces fresh water from seawater for just two yuan (US$0.28) per cubic metre, generating green hydrogen as a by-product in a breakthrough that...

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China’s top economic policy coordinator has urged the country to confront unavoidable challenges, while expressing confidence that investment and consumption growth will recover next year as efforts to boost domestic demand intensify. An unnamed official from the Office of the Central Financial and Economic Affairs Commission said the current challenges were “issues arising in the course of development and transition”. “[They] cannot be avoided or sidestepped, but with effort they can be...

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Chinese scientists have turned allergy into a powerful weapon against cancer to deliver drugs and turbocharge the body’s own immune attack on cancer. The team loaded mast cells – which cause allergic symptoms when they encounter antigens such as seafood and pollen – with anticancer drugs to deliver them into tumours. The researchers said they were working on clinical applications, including exploring its potential combination with existing cancer immunotherapies. The scientists from Zhejiang...

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