China News Highlights, 05 August 2025: US copper tariffs risk strengthening China's lead in metals processing, executives warn

Industry executives are warning that new US tariffs on copper could inadvertently strengthen China's dominance in metals processing, according to a report in the Financial Times. Mining billionaire Andrew Forrest stated that the duties risk "exporting" jobs and industry, suggesting that the policy could make US-based processing uncompetitive and force that capacity to move to other countries like China. The concern is that by making domestic refining more costly, the tariffs could divert more raw copper ore to China, solidifying its lead in a sector critical for the global green energy transition and further entrenching its position in the ongoing US-China economic rivalry.

Hong Kong authorities have deployed three "mobile powerful pumping robots" for the first time to drain at least 24 flooded locations following the heaviest daily rainfall recorded for August since 1884, according to a report in the South China Morning Post. The Drainage Services Department confirmed that the robots, known colloquially as "water-pumping dragons," were used to tackle severe flooding on Tuesday in numerous districts, including Pok Fu Lam, Admiralty, Kwun Tong, and Sha Tin.

Taiwan's government has detained three employees from the Taiwan Semiconductor Manufacturing Company (TSMC) on suspicion of obtaining the chip giant's "core technology trade secrets," according to a report in The New York Times. The investigation into the alleged intellectual property theft is critical, as TSMC is the world's leading manufacturer of advanced semiconductors. The incident highlights potential security vulnerabilities at a company central to the global tech supply chain and comes amid intense geopolitical competition, particularly concerning China's ambition to achieve self-sufficiency in advanced chip manufacturing.

The Chinese city of Foshan is implementing a large-scale public health campaign to curb the mosquito-borne Chikungunya virus, The New York Times says in a report. The initiative employs drones for surveillance and deploys "elephant mosquitoes" (Toxorhynchites splendens), a non-biting species whose larvae prey on the larvae of the virus-carrying Aedes mosquito. As part of the effort, authorities are conducting inspections and issuing warnings to residents who fail to comply with the mandated measures aimed at eliminating mosquito breeding grounds.

Hong Kong police have arrested an 80-year-old taxi driver who fatally struck a tourist from the Philippines after crashing into a hotel taxi rank, according to a report in the South China Morning Post. The incident occurred in the Tsuen Wan district when the driver, who told authorities he felt dizzy, veered his vehicle onto the pavement at the Nina Hotel. The 35-year-old victim was rushed to a hospital but was pronounced dead shortly after arrival.

Shanghai aims to complete at least five new large-scale data centers by the end of the year to meet the rising demand for computing power, according to a report in the South China Morning Post. The initiative, part of China's effort to enhance its digital infrastructure for its artificial intelligence ambitions, is expected to elevate the city’s AI computing capacity beyond 100 exaflops. The plan was recently made public by the Shanghai Communications Administration.

The United States' effective tariff rate on global imports has increased to 17% from approximately 2% last year, making it one of the world's most protected markets, according to a report in the South China Morning Post. This significant rise, noted in a recent update to Fitch Ratings' US Effective Tariff Rate Monitor, has triggered renewed calls within China for strategic adjustments. These include pushing for greater trade diversification, accelerating efforts toward technological self-reliance, and seizing new strategic roles in global governance.

Two Chinese nationals, Chuan Geng and Shiwei Yang, were arrested in California and charged with illegally shipping tens of millions of dollars' worth of advanced AI chips to China, according to a report in Reuters. The U.S. Justice Department announced on Tuesday that the pair allegedly exported Nvidia H100 chips and other technology to China from October 2022 through July, in violation of U.S. export controls designed to prevent sensitive technology from reaching the country.

Huawei Technologies plans to open-source its Compute Architecture for Neural Networks (CANN), the software toolkit used for its Ascend AI processors, in an effort to challenge industry leader Nvidia, according to a report in South China Morning Post. The announcement, made by Eric Xu Zhijun on Tuesday, is aimed at accelerating innovation from developers and making the company's Ascend platform more accessible. This strategic decision comes days after Beijing reportedly raised security concerns about Nvidia's H20 chip, which was specifically designed for the Chinese market.

US Transportation Secretary and interim NASA Administrator Sean Duffy announced a plan to fast-track the construction of a nuclear reactor on the moon, explicitly framing the initiative as a "race with China," according to a report in The Hill. Duffy stated on Tuesday that establishing a lunar base requires a significant energy source, which the reactor is intended to provide. The move is a key part of the broader strategic competition between the two nations, which extends to space exploration and establishing a long-term presence on the moon.

China's nuclear arsenal is growing faster than any other country's, with its stockpile now estimated at 600 warheads by the Stockholm International Peace Research Institute (SIPRI), according to a report in Radio Free Asia. While the rate of increase is notable, the report clarifies that China's total number of warheads remains significantly smaller than the arsenals of the United States and Russia. This nuclear build-up is occurring as part of a broader, long-term modernization of the People's Liberation Army. China officially maintains a 'no first use' policy, pledging not to be the first to use nuclear weapons in a conflict.

Significant and widespread pay cuts and layoffs are affecting civil servants and employees of state-owned enterprises across China, leading to a drop in consumer spending and heightening deflationary fears, as per a report in Radio Free Asia. The measures are reportedly a response to severe fiscal stress on local governments, which are grappling with the economic aftermath of the country's previous Zero-COVID policy and an ongoing crisis in the real estate sector. These salary reductions impact a segment of the workforce traditionally considered stable, contributing to broader economic anxiety.

Chinese dissident Chen Yunfei has been subjected to ongoing police harassment, including multiple rounds of questioning and repeated surveillance, since his release from prison in March, according to a report in Radio Free Asia. The source describes the actions as part of a broader pattern of state control over politically sensitive individuals, even after they have served their sentences.

The League of Social Democrats, one of Hong Kong's last remaining pro-democracy opposition parties, has officially disbanded amid mounting political pressure, Radio Free Asia says in a report. The party, which was known for protesting pro-Beijing government moves, cited the current political environment as the reason for its dissolution. This development further diminishes the presence of organized political opposition in the city following the implementation of national security legislation.

A 68-year-old man was arrested in Hong Kong after allegedly assaulting a bus driver during a dispute on a double-decker vehicle, according to a report in the South China Morning Post. Hong Kong police stated on Tuesday that they received a report on Monday from the 25-year-old driver, who accused the passenger of physically attacking him on Argyle Street in Kowloon City. The man also allegedly threw the driver's phone to the ground before fleeing the scene.

A Chinese ship has been conducting a survey within Vietnam's exclusive economic zone (EEZ), covering an area of 2,000 square kilometers since mid-June, according to a report in Radio Free Asia. The incident is the latest development in ongoing maritime disputes in the South China Sea, where China's claims overlap with those of its neighbors. Under international law, conducting scientific surveys within another nation's EEZ without permission infringes on the coastal state's sovereign rights. Throughout the vessel's operation, state media in Hanoi has remained silent on the issue.

The Philippines has condemned a recent rocket launch by China after suspected debris fell near the western Palawan province on Monday night, according to a report in AP. National Security Adviser Eduardo Año stated on Tuesday that the falling debris posed a clear danger to people, ships, and aircraft, and caused alarm. There have been no immediate reports of injuries or damage resulting from the incident.

China's slumping property market may be reaching a bottom as credit resumes flowing to developers and the national inventory of unsold homes decreases, according to a report in the South China Morning Post. Citing a better-than-expected performance in the first half of the year, Fitch Ratings on Tuesday revised its forecast for the decline in China's new home sales for the year to 7 percent. This is a significant adjustment from its previous forecast of a 15 percent decline.

Chinese carmakers, particularly BYD, recorded substantial sales growth in the UK during July despite a broader market downturn, according to a report in The Guardian. Data from the Society of Motor Manufacturers and Traders (SMMT) released on Tuesday shows BYD's sales quadrupled year-on-year to 3,200 vehicles. This increase occurred as the total UK car market shrank by 5% to 140,000 units for the month, and electric vehicle competitor Tesla experienced a 59% slump in its sales.

The southern Chinese city of Foshan, in Guangdong province, has ordered retail pharmacies to implement real-name registration for the sale of medications used to treat chikungunya fever, according to a report in the South China Morning Post. The city's market supervision bureau issued the public notice on Sunday, requiring pharmacies to keep records of these purchases. Additionally, two other cities in southeastern China have advised travelers returning from areas affected by the mosquito-borne illness to self-monitor for symptoms.

Images of a previously unknown stealth aircraft have begun circulating on Chinese social media, sparking debate over whether it is a new piloted warplane or an uncrewed 'loyal wingman' drone, according to a report in the South China Morning Post. At least two photographs taken from different angles on the ground have been shared since Monday, August 4. The images reveal an aircraft with a slimmer fuselage and smaller size compared to other known Chinese prototypes, but it is not clear from the pictures whether the plane has a cockpit or an internal weapons bay.

China's Supreme People's Court has released a series of 12 court rulings to illustrate how a new law protecting the private sector is being enforced, as per a report in the South China Morning Post. The rulings were drawn from various courts across the country. In a recent statement, the court said the release of these cases demonstrates how the law is being applied to safeguard the private economy and is intended to boost public confidence, particularly among private business owners.

US industrial firm Caterpillar has warned that tariffs stemming from the ongoing trade dispute with China could impact its earnings by up to $1.5 billion, according to a report in the Financial Times. The company, often seen as a bellwether for the global industrial economy, reported lower-than-expected profits due to rising costs associated with the tariffs. The warning highlights the financial pressure US multinational corporations are facing due to trade policies and disruptions to global supply chains involving China.

Record-setting torrential rain has caused widespread flooding and chaos in parts of Hong Kong, submerging streets, stranding buses, and triggering landslides, as per a report in The New York Times. Authorities have advised residents to avoid going outdoors as the city grapples with the effects of the extreme weather.

China's People's Liberation Army (PLA) has showcased its advanced amphibious assault and landing capabilities in the latest episode of a documentary series, a move widely seen as a message to Taiwan, according to a report in the South China Morning Post. The episode, released online on Monday as part of a series commemorating the PLA's foundation, depicts a “cold start” operation in which units transition directly from a training drill to a simulated full-scale assault. The documentary also appears to include footage from previous live-fire exercises conducted by the PLA in the region.

A 14-year-old Chinese girl has been fatally stabbed at her host family's home in the NSW Hunter region of Australia, according to a report in The Guardian. Emergency services were called to the residence on Monday night after a member of the host family discovered the older girl with stab wounds. A 13-year-old girl, also a Chinese student living at the home, was taken into custody and was assisting police with their inquiries on Tuesday.

A man in Zibo, northern China, reported to police that he was defrauded of 4,000 yuan (US$550) by his online "girlfriend," according to a report in South China Morning Post. The victim, surnamed Wang, had met the supposed woman on a gaming and entertainment app. An investigation revealed that the "girlfriend" was actually a sophisticated 14-man fraud gang who used voice-changing technology to impersonate a female during their interactions. The case has generated significant discussion on mainland Chinese social media.

Trump administration technology adviser Michael Kratsios has urged Asian nations to reject what he termed Europe’s 'over-regulation' of artificial intelligence and instead align with the United States' innovation-focused approach, the Financial Times said in a report. The call to adopt US-developed AI systems is part of a broader American strategy to counter China's growing technological influence and footprint in the region. The US is promoting its 'light-touch' regulatory model as a direct alternative to both the EU's comprehensive rules and China's state-driven AI development.

Chinese tech giants Alibaba and ByteDance have launched separate campus recruitment campaigns focused on artificial intelligence talent, as per a report in the South China Morning Post. The recruitment drives are targeting fresh graduates, signaling the companies' focus on future growth driven by AI. Alibaba’s e-commerce unit, Taobao and Tmall Group, began its global campaign on Tuesday, offering roles to students graduating between November 2025 and October 2026, with half of the positions reportedly related to AI.

Protests have erupted in China's Sichuan province after a school bullying incident went viral online. Demonstrators gathered to voice their anger over the case, leading to a confrontation with law enforcement. One protester claimed that the situation became violent, alleging that police used batons and electric prods on the crowd.

Heavy rains at the end of July caused severe flooding in northern China, leading to significant casualties, according to a report in South China Morning Post. In Beijing, at least 30 people were reported killed after the city received a year's worth of rain in under a week. In the neighboring Hebei province, a mudslide in Jizhou District resulted in the deaths of eight people, with an additional four reported missing. Amid the disaster, a story of a husband trapped in floodwaters who insisted rescuers save his wife first has gained widespread attention among internet users in the country.

Li Yong, the former deputy Party secretary and general manager of China National Offshore Oil Corporation (CNOOC), was sentenced to 14 years in prison for corruption on Tuesday after being found to have illegally accepted property worth more than 67.94 million yuan, according to a Reuters report citing China's state media CCTV. Li retired from his position in December 2023.

China's high-speed rail network, the world's largest, is nearing a 50,000-kilometer milestone after nearly two decades of rapid construction, according to a report in the South China Morning Post. As policymakers prepare for the next five-year plan for 2026-2030, analysts are warning about the network's long-term sustainability. The key challenges identified are ensuring commercial profitability and managing the mounting debt associated with the massive expansion, raising questions about whether the government will continue to take on more debt to further expand the system.

A former assistant to a politician for Germany's far-right Alternative for Germany (AfD) party went on trial in a Dresden court on Tuesday, charged with spying for China's intelligence agency, Reuters said in a report. The defendant, a German national identified as Jian G. in line with German privacy rules, is suspected by prosecutors of having worked for a Chinese intelligence service since 2002.

Hundreds of tourists were stranded in a valley while rafting in southern China’s Guizhou province, according to a report in the South China Morning Post. At another tourist site in the same region, rafts were seen crashing into each other and accumulating in a pile-up in the downstream area of the river.

Alibaba Group Holding’s research arm, Damo Academy, has formed a strategic partnership with Beijing United Family Hospital to apply artificial intelligence to complex cancer diagnosis and treatment, according to a report in the South China Morning Post. The collaboration will utilize Damo Academy’s medical AI system, named “One Sweep Multi-Check,” as part of a broader initiative to provide multi-disease AI screening services to the public.

China's government will waive tuition fees for children in their final year at public kindergartens and reduce them for eligible private institutions, according to a report in Reuters. The new measures, announced on Tuesday in guidelines from the State Council, will take effect at the start of the upcoming school term. This policy is part of a broader government plan aimed at a phased roll-out of free pre-school education across the country.

A fresh diplomatic dispute has erupted between Manila and Beijing after Chinese state media broadcast footage allegedly showing its coastguard towing a Philippine vessel in the South China Sea, according to a report in the South China Morning Post. Philippine authorities have rejected the broadcast, labeling the footage as “fake news” and accusing China of manipulating public opinion by recycling video from previous confrontations. The incident has intensified scrutiny of China's information strategy in the contested maritime region.

Yueyang Open University in China's Hunan province has partnered with the Yueyang Barbecue Association to establish the nation's first Barbecue Research Institute, according to a report in South China Morning Post. The institute aims to professionalize the barbecue industry and plans to train 1,000 'craftsmen'. The collaboration seeks to formalize skills in the popular street food sector through a strategic cooperation agreement between the university and the local industry association.

China Tower, the country's state-owned telecom infrastructure provider, reported its interim results for the first half of 2025, showing an 8.0% year-on-year increase in profit attributable to shareholders to ¥5.757 billion, according to a report in AP. The company's operating revenue grew by 2.8% to ¥49.601 billion, while its EBITDA increased by 3.6% to ¥34.227 billion. While profit and revenue saw growth, operating cash flow decreased to ¥28.679 billion and free cash flow fell to ¥16.287 billion. The company also reported a lower net debt leverage ratio of 29.5%.

The United States will deploy its Navy/Marine Corps Expeditionary Ship Interdiction System (NMESIS) for a joint military exercise in Japan, according to a report in Nikkei Asia. The ground-based system is designed to launch the Naval Strike Missile, which has a range of approximately 185 km for coastal defense and anti-ship operations. The report indicates that the selection of this specific shorter-range weapon is intended to bolster the US-Japan alliance's defensive posture while seeking to avoid a significant escalation or provocation of China.

Hong Kong was brought to a standstill on Tuesday after the city's weather forecaster issued a second black rainstorm signal—the highest-level warning—within a six-hour period, the South China Morning Post said in a report. The severe weather warning came as heavy showers caused widespread flooding across different areas of the city. The extreme weather conditions led to the disruption of at least 105 flights, and the Hong Kong Observatory stated the warning would remain in force.

Hong Kong police are conducting a city-wide search for a man suspected of using counterfeit banknotes worth HK$4.5 million (US$573,242) to purchase two luxury watches, a Patek Philippe and a Richard Mille, as per a report in the South China Morning Post. The two sellers, individuals from mainland China, met the suspect on Monday at a watch repair shop in Tsim Sha Tsui to complete the transaction. The suspect allegedly inspected the timepieces before paying with the fake bills.

China is urging its electric vehicle industry to halt price cuts and rein in production, citing fears that persistent deflation and overcapacity are imperilling national economic growth, according to a report in The Guardian. Chinese officials have increasingly expressed concern over 'involution'—a phenomenon where sectors like EVs invest more for diminishing returns—in industries suffering from oversupply. The government's intervention aims to curb what it sees as disorderly competition that puts the country's broader growth at risk.

Amid falling prices and competition from imports, China has announced a plan to strengthen its cattle industry, according to a report in South China Morning Post. The initiative, unveiled by the nation’s top economic planner and nine government departments, will focus on increasing domestic beef production and implementing a quality-grading system for locally produced beef. The stated goal is to promote the consumption of high-quality versions of the meat as part of a broader effort to boost the consumption of domestic farm produce.

Hong Kong's largest retail chain operator, DFI Retail Group, is actively trying to win back local customers from the neighboring mainland city of Shenzhen by matching prices in its Wellcome supermarkets, the South China Morning Post said in a report. To achieve this, Group Chief Executive Scott Price stated the company has expanded its import sources from 26 to 54 countries in the past year, which has helped lower prices by 20 percent. The strategy also includes a recent partnership with the mainland Chinese fresh food platform Dingdong (Cayman) to bolster its offerings and competitiveness.

Hong Kong police have launched a search for the head of a dismembered body found in the upscale Mid-Levels district on Tuesday morning, the South China Morning Post said in a report. Authorities were alerted by a passerby who spotted a "human-shaped object" near Kennedy Road. The body was discovered under a tree, missing its head and one leg. Officers later located the leg across the road and have partially closed off the area as the investigation continues.

Hong Kong's Stablecoin Ordinance officially came into force on August 1, establishing the city as the first jurisdiction in Asia with a comprehensive regulatory and licensing framework for stablecoins, according to a report in Asia Times. The Hong Kong Monetary Authority (HKMA) is now overseeing the new regime and announced it expects to issue the first batch of licenses to stablecoin issuers by early 2027.

Taiwan's energy reserves would be rapidly depleted in the event of a military blockade by Beijing, with natural gas lasting approximately 10 days, coal for seven weeks, and oil for 20 weeks, a new report from the Centre for Strategic and International Studies (CSIS) found, according to the South China Morning Post. The think tank based its conclusions on an analysis of 26 different war-gaming scenarios designed to assess the island's vulnerabilities.

To manage crowds and congestion, the Hong Kong government plans to bar taxis from accessing the scenic High Island Reservoir in Sai Kung during certain peak times, the South China Morning Post said in a report. The new rule, set to begin September 13, will prohibit taxi entry to Sai Kung Man Yee Road from 9 a.m. to 6 p.m. on weekends, public holidays, and during mainland China’s “golden week” breaks. The measure is intended to effectively reduce road traffic during these busy periods.

Hong Kong power utility CLP Holdings announced a decline in its first-half net profit but identified growth opportunities in a proposed industrial park in Tuen Mun, according to a report in the South China Morning Post. The Hong Kong government's plan, introduced in July, aims to reserve 301 hectares for industrial development in the area. This includes a significant 145-hectare land reclamation project in Lung Kwu Tan and the replanning of other spaces, aligning with broader goals for economic diversification.

Hong Kong experienced a significantly rainy July with monthly rainfall reaching 56% above the climatological normal, following a very dry first half of the year. The city's Observatory stated on Monday that 601.7mm of rain was recorded, far exceeding the normal 385.8mm. This increase in precipitation was attributed to the remnants of tropical cyclone Danas early in the month and Typhoon Wipha in mid-July.

The Hong Kong Trade Development Council (HKTDC) will form a "strategic alliance" with the Bank of China (BOC) to encourage mainland Chinese companies to use the city as a "superconnector" for their overseas ventures, according to a report in the South China Morning Post. HKTDC's new chairman, Frederick Ma Si-hang, stated that this initiative is part of an expanded role for the council in response to ongoing geopolitical tensions. Ma explained the move is part of a vision to realign the statutory body's global strategy to better facilitate the international expansion of firms from mainland China.

Uncertainties from a reignited US-China tariff war could negatively impact Hong Kong's business expansion plans and economic growth for the remainder of the year, Hong Kong Trade Development Council chairman Frederick Ma Si-hang has stated, as per a report in the South China Morning Post. Despite the concerns, Ma expressed cautious optimism that a trade agreement could be reached by the end of the year. He noted that Washington is aware that imposing heavy tariffs on Beijing would harm the US economy and increase its inflation.

China's Hainan province is accelerating its strategy to develop its medical tourism hub, primarily targeting Chinese citizens who might otherwise seek treatment abroad, according to a report in the South China Morning Post. This renewed push follows South Korea's announcement that it will eliminate tax rebates for foreigners undergoing cosmetic surgery, creating an opportunity for Hainan to capture this market. The southern Chinese island province has set a goal to increase its number of domestic medical tourists from the current level of over 400,000 to more than 1.5 million annually by 2027.