China News

China’s crackdown on borrowing by local governments is forcing state-run entities in even some of the wealthiest provinces to tap costly credit from non-bank lenders, a stopgap that is increasing risk in an opaque corner of the financial system. The borrowing marks a return of China’s shadow-banking market, which is more loosely regulated than traditional lenders and had been reined in over the past few years in a bid to reduce risk. Since September, industrial investment arms and financing...

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Beijing has condemned Japanese Prime Minister Sanae Takaichi’s remarks on Taiwan, not only as a violation of the one-China principle but also as a challenge to the post-war international order. Takaichi suggested on November 7 that Tokyo could respond militarily to a potential attack on the island, making her the first sitting Japanese leader since World War II to publicly link a Taiwan contingency with the possible deployment of Japan’s Self-Defence Forces. Beijing regards Taiwan’s restoration...

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China’s unmanned reconnaissance and strike helicopter tailored for deployment in plateau areas is ready for critical combat testing. The new multipurpose medium-sized helicopter was displayed on November 27 at an air show in Zhuhai, in southern China, where the next stage of testing was announced by its developer. The Moyujian was exhibited at the second Asia General Aviation Exhibition (Aero Asia), held from November 27 to 30. Aero Asia, jointly organised by the German General Aviation...

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Global investors should consider reducing their US equities exposure as emerging market stocks are on track to outperform those in developed nations for the first time in five years amid a weakening US dollar, according to global investment firm Cambridge Associates. The recommendation comes as the dollar has experienced significant weakness this year, falling by 10 per cent at one point after a decade-long bull run that started in 2011. However, the greenback still remains 29 per cent above its...

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Japanese imaging technology giant Canon has shut down one of its major printer production facilities in mainland China, underscoring the growing clout of domestic brands in the country’s printing market. A visit on Thursday by the Post to Canon Zhongshan Business Machines, in Zhongshan city in the southern Guangdong province, revealed little activity. The car park was nearly empty, while a dozen employees strolled outside the office building. A worker said production had halted late last month,...

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With their domestic profits narrowing and production capacity expanding, China’s firms are continuing to widen their overseas footprints in search of new, more lucrative markets. In this series, we examine China Inc.’s next phase of “going global” and the complex, challenging international environment its companies have chosen to enter. In early November, the chairman of one of China’s top construction machinery makers was spotted touring potential factory sites in Piracicaba, a city in...

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Much has been written about China’s alleged role in the US opioid crisis. Chemicals from Chinese suppliers have supposedly been used by Mexican cartels to produce fentanyl, which is then trafficked into the United States where it has fuelled a deadly overdose crisis. Successive US administrations have pressured Beijing to crack down on its chemical industry. China has taken repeated steps to regulate precursors, including most recently last month when it restricted 13 new chemicals at US...

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China said on Wednesday that it is working “with all parties” to prevent a military escalation in the Caribbean as the United States intensifies operations near Venezuela, the latest sign of Beijing’s growing diplomatic and symbolic support for President Nicolas Maduro. Asked to comment on the Venezuelan crisis, Chinese foreign ministry spokesman Lin Jian told reporters that Beijing “opposes any action that violates the purposes and principles of the United Nations Charter or undermines the...

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A bipartisan group of US senators, including prominent Republican China hawk Tom Cotton, on Thursday unveiled a bill that would block the Trump administration from loosening rules that restrict Beijing’s access to artificial intelligence chips for two-and-a-half years. The bill, known as the SAFE CHIPS Act, was filed by Republican Senator Pete Ricketts and Democrat Chris Coons. It would require the Commerce Department, which oversees export controls, to deny any license requests for buyers in...

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For the first time, scientists in China have faithfully recreated a thought experiment proposed by Albert Einstein nearly a century ago, showing that the quantum world behaves in ways the iconic physicist never fully accepted. Pan Jianwei – known as the country’s “father of quantum” – and his team at the University of Science and Technology of China built a device sensitive enough to register the tiny push of a single photon. Einstein laid out a modified version of the famous double-slit...

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British Prime Minister Keir Starmer called China a security threat this week, but analysts said the statement was motivated by domestic politics and did not negate London’s goal of deepening economic ties with Beijing. Meanwhile, disputes around a new Chinese embassy will continue to test this desire for stronger relations as the British leader plans a state visit. Starmer said on Monday that his government would focus on the relationship with China, which would help protect national interests,...

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China’s designs on supremacy in artificial intelligence could be hindered by a funding gap in the sector, according to former Google CEO Eric Schmidt, who gave a grim assessment of the country’s AI prospects as China and the US lock horns for dominance. However, analysts said that funding would not be a concern for China’s AI development given the deep pockets of the country’s private and state investors – particularly as Beijing, Big Tech firms and investors were united in their determination...

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French President Emmanuel Macron has called on Chinese companies to invest in France and transfer know-how in emerging sectors like batteries, electric vehicles (EVs) and solar panels – highlighting growing concerns over the widening technological gap between the two countries. “We want to welcome more Chinese investment through projects and re-industrialisation strategies, and this is what will allow us to break the cycle we’re currently in,” he said on Thursday in Beijing, where he attended a...

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Central bank governor Pan Gongsheng has stressed the importance of China maintaining a sound monetary system that remains resilient to external shocks and systemic risks, signalling a focus on stability ahead of a key policy meeting. Pan said monetary policy must balance internal and external pressures, “primarily taking into account domestic economic and financial conditions”, while also factoring in the “spillover effects” from other economies, in an editorial for the Communist Party’s...

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The EU has for the first time launched a formal review of a price undertaking offer from a company seeking to avoid its tariffs on Chinese-made electric vehicles, following a submission from Volkswagen’s Chinese joint venture. Over the course of 12 to 15 months, the European Commission will examine whether VW Anhui can replace its countervailing duties with a managed price system in a move that would effectively equalise the impact of the tariffs. While the commission is not reopening its...

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Beijing has dismissed Japanese Prime Minister Sanae Takaichi’s latest remarks on Taiwan as “prevarication”, warning that it “absolutely does not accept” her continued refusal to retract comments made in early November. On Wednesday, Takaichi appeared to attempt to dial down weeks of tensions when she told a parliamentary questioning session that Tokyo’s “fundamental position regarding Taiwan remains unchanged from that stated in the 1972 Japan-China Joint Communique, and there has been no change...

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A new Chinese AI system called Wen Dao – billed as the world’s first such model to be designed explicitly for ethical risk detection – has landed in the middle of its first major moral dilemma. Its immediate challenge is to navigate one of 2025’s most explosive social debates: whether the country should automatically seal the records of convicted drug users under the newly revised Public Security Administration Punishments Law. Effective January 1, an amendment to the law known as Article 136...

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With their domestic profits narrowing and production capacity expanding, China’s firms are continuing to widen their overseas footprints in search of new, more lucrative markets. In this series, we examine China Inc.’s next phase of “going global” and the complex, challenging international environment its companies have chosen to enter. The “Made in China” label has evolved considerably in recent decades. Mostly found affixed to low-cost goods of relative simplicity in China’s early years as a...

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Mainland China’s billionaires have tightened their grip as Asia-Pacific’s wealthiest after their combined fortunes swelled to nearly US$1.8 trillion, with electric-vehicle (EV) maker BYD’s founder Wang Chuanfu and bubble tea chain Mixue’s bosses among the biggest drivers of that growth, according to a UBS report. Backed by a booming tech sector and surging asset prices, the wealth of mainland China’s billionaires jumped 22.2 per cent year on year to US$1.77 trillion in the 12 months to early...

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Malaysia’s announcement that the search for missing Malaysia Airlines flight 370 will resume was welcome news for Jiang Hui, whose mother was a passenger on the plane. “I hope the truth will come out soon, the wait has been such a torment for the families,” he wrote in a social media post sharing the news. Malaysia’s transport ministry made the announcement on Wednesday, more than a decade after the Boeing 777 carrying 227 passengers and 12 crew vanished en route from Kuala Lumpur to Beijing in...

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Chinese President Xi Jinping told his French counterpart Emmanuel Macron that he was willing to work with France to “eliminate interference” and work on developing a steady relationship as they met for talks on Thursday, where issues such as trade are expected to be on the agenda. Xi said the world was undergoing rapid changes and the two countries “should demonstrate their responsibility, uphold the banner of multilateralism… and firmly stand on the right side of history”. “China, together with...

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The fragile rapprochement between China and India faces a fresh test as New Delhi looks to promote its links with the sixth Dalai Lama, observers have warned. India is hosting the first international conference of the 17th century Tibetan spiritual leader at his birthplace in today’s Tawang, a mountain town in an area that India governs as the border state of Arunachal Pradesh and China claims as Zangnan or southern Tibet. Pema Khandu, the state chief minister, opened the four-day event at...

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A majority of Europeans want to maintain an equal distance from the United States and China rather than aligning with one of the two superpowers over the other, a survey published on Thursday shows. While just 4 per cent of Europeans polled would prioritise alignment with China over the US, 55 per cent preferred to keep “the same distance between the two”, according to the result of the Eurobazooka, a survey published by Le Grand Continent, a French magazine. One-fifth of those polled across...

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China’s pharmaceutical industry is on the brink of enormous growth and transformation. In just a few years, it has moved on from being the world’s cheapest source of active pharmaceutical ingredients to becoming a major hub for pharmaceutical innovation – a place where new, more effective drugs are born. It is now the second-largest developer of drugs, trailing only the United States. In the global drug development pipeline, China’s growth rate is phenomenal, leaping from 3 per cent in 2013 to...

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China should focus on technological innovation to drive domestic and global development, a forum this week has heard. China would push for high-quality development and opening up to the outside world, Li Shulei, head of the Communist Party’s publicity department, told the 2025 Understanding China Conference in Guangzhou on Monday. The event, which ran between Sunday and Tuesday, was attended by around 800 people and technological innovation was a central theme. China also strove to help...

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