China News Live: Hong Kong's URA considers reviewing resident compensation policy amid financial challenges

Hong Kong’s cash-strapped Urban Renewal Authority (URA) may review its compensation policy for residents affected by redevelopments amid financial challenges, the South China Morning Post said in a report. URA Managing Director Donald Choi Wun-hing stated on Friday that it was an appropriate time to review the current compensation package. Currently, residential flat owners affected by redevelopment receive a cash payment equivalent to the market price of a comparable seven-year-old flat in the same area.

Former Australian Prime Minister Scott Morrison will testify before the U.S. House Select Committee on China on Wednesday, according to a report in Reuters. The hearing's focus is on countering China's "economic coercion against democracies." Rahm Emanuel, a former U.S. ambassador to Japan, is also scheduled to testify before the panel.

Senator Tom Cotton has formally questioned the Department of Defense about Microsoft's reported use of engineers from China for the maintenance of the agency's computer systems, according to a report in The Hill. In a letter to Defense Secretary Pete Hegseth, Cotton cited a recent ProPublica report which indicated that Microsoft relies on Chinese engineers to work on these systems. The report noted that these engineers are supervised by U.S. citizens who hold security clearances.

Microsoft announced it will no longer use engineers located in China for technical assistance related to U.S. military contracts, Reuters said in a report. The decision follows a report by the investigative journalism outlet ProPublica, which prompted inquiries from a U.S. senator and a review by the U.S. Defense Secretary. The policy change addresses national security concerns regarding potential risks of having personnel within China's jurisdiction handle sensitive U.S. defense-related work.

A man died after falling from a residential building in Hong Kong's Tsuen Wan district during a fire that authorities have deemed suspicious, according to a report in the South China Morning Post. Police received reports of the blaze at Shek To House in Shek Wai Kok Estate around 4:05 p.m. on Friday. The man, who fell from the building, was transported to Yan Chai Hospital where he was later certified dead. Officials stated the fire occurred following a dispute.

A restaurant named Wanhui in Taiyuan, the capital of China's Shanxi province, is facing criticism from animal welfare organizations for offering lion cub interactions to its customers, according to a report in The Guardian. The offer was reportedly part of a four-course afternoon menu priced at 1,192 yuan ($166), which included playtime with the animals. Wildlife experts have condemned the practice, accusing the restaurant of exploiting wild animals for entertainment and selfies, after a screenshot of the menu circulated on social media.

A Beijing court has sentenced a Japanese employee of pharmaceuticals manufacturer Astellas Pharma to three years and six months in prison on espionage charges, according to a report in the South China Morning Post. In response, Japan's government warned that the arrest and prosecution of its citizens is fuelling public anxiety and deterring travel to the country. Tokyo officially expressed concern on Wednesday over deteriorating relations, as academics and businesspeople in Japan are reportedly now either taking extra precautions or avoiding visits to China altogether.

China's Ministry of Education has warned its students about safety and security risks in the Philippines amid ongoing bilateral tensions, according to a report in South China Morning Post. In a statement issued Friday, the ministry urged students planning to study in the Southeast Asian nation to "carefully assess security risks" and "strengthen safety awareness." The advisory cites an unstable public security situation and frequent crimes targeting Chinese citizens as the reason for the warning, which comes during a period of heightened friction over the South China Sea.

The chairman of the House Select Committee on China sent a letter to the U.S. Commerce Secretary on Friday objecting to the resumption of Nvidia's H20 AI chip sales to China, Reuters said in a report. This action came after Nvidia stated earlier in the week that it had received U.S. government approval to resume selling the H20 graphics processing unit, a key source of revenue. The H20 is a chip specifically designed with reduced capabilities to comply with U.S. export controls.

China has lodged "stern representations" with the Philippines over what it termed recent "negative moves" related to Taiwan, maritime disputes, and security issues, according to a report in Reuters. A statement from the Chinese foreign ministry on Friday confirmed that Department of Asian Affairs Director-General Liu Jinsong conveyed the formal protest and China's "strong dissatisfaction" to the Philippine Ambassador to China, Jaime FlorCruz.

Chinese Commerce Minister Wang Wentao met with Nvidia CEO Jensen Huang on Thursday to discuss cooperation in artificial intelligence, according to a report in the South China Morning Post. The meeting followed Nvidia's recent announcement that it was resuming sales of its H20 chips, designed to comply with US export controls, to China. In a statement released Friday, the commerce ministry said Wang reiterated that China's policies for attracting foreign investment are unchanged and that its doors would "only open wider." Wang also encouraged multinational companies, including Nvidia, to continue investing in China, highlighting the country's vast market.

Hong Kong is committed to resolving the long-standing conflict between its taxi and ride-hailing industries by creating a framework for them to coexist under fair competition, according to a report in the South China Morning Post. Mable Chan, the city's Secretary for Transport and Logistics, stated the government will seek a solution for both services. Chan also announced plans to include a reservation of rights clause in the new regulatory regime to prevent issues such as excessive fares and cutthroat competition.

Rail transport companies from the US and China remain committed to strengthening cooperation, including on projects in third-country markets, even as the trade rivalry between the two nations continues, according to a report in the South China Morning Post. Everett Wakai, minister counsellor for commercial affairs at the US embassy, stated that the two sides could deepen cooperation in the rail-transport sector. The collaboration would leverage the US's long-standing leadership in freight rail and urban transit and China's emergence as a global leader in high-speed rail.

The European Union has sanctioned two regional Chinese lenders, Suifenhe Rural Commercial Bank and Heihe Rural Commercial Bank, in its 18th package of sanctions aimed at Russia's war effort, according to a report in the South China Morning Post. The two banks, both located in cities near China's border with Russia, were blacklisted on Friday despite warnings from Beijing to expect consequences for such an action. The move is part of the EU's broader effort to counter entities believed to be aiding Russia's military campaign.

A Hong Kong man, Fung Chun-kwai, has admitted to manslaughter and arson at the High Court after his attempt to commit suicide by setting his public rental flat on fire in April 2022 inadvertently caused the death of a neighbour, the South China Morning Post said in a report. His guilty plea was based on the grounds that a mental illness had significantly impaired his judgment at the time of the incident. The prosecution noted that Fung had developed suicidal thoughts leading up to the event.

A Mexican envoy stated it is 'very unlikely' that Chinese-funded factories in Mexico will be excluded from preferential trade treatment under the United States-Mexico-Canada Agreement (USMCA), according to a report in the South China Morning Post. David Trujillo, deputy commercial counsellor at the Mexican Embassy in China, said on Thursday that there is 'no indication' of forthcoming restrictions targeting Chinese companies. His comments come as the USMCA free trade deal is scheduled for a joint review in 2026, a point at which member nations could potentially raise new concerns.

Hong Kong authorities have proposed reclaiming 190 hectares of land in waters near Lung Kwu Tan and Tuen Mun West to foster future growth amid a sluggish market, the South China Morning Post said in a report. The Development Bureau stated on Friday that the government is open to various financing models for the reclamation work. This new land will be designated for the development of modern industries, including green energy, advanced construction, and the circular economy.

China has announced plans to boost service consumption over the next five years by cutting red tape and attracting more foreign investment, as per a report in the South China Morning Post. The move is part of Beijing's strategy to rely more heavily on domestic demand for economic growth amid an uncertain global trade environment. At a press conference in Beijing, Minister of Commerce Wang Wentao stated that while service consumption is growing, there is currently a "shortage of high-quality service on the supply side" that the new incentives aim to address.

The US consulate in the central Chinese city of Wuhan has suspended all visa interviews, citing "unsafe" indoor temperatures which it blames on the building's management, the South China Morning Post said in a report. In a public notice posted to its social media on Friday, the consulate stated that temperatures in its interview waiting area had exceeded 33 degrees Celsius (91 degrees Fahrenheit). It accused the building management of "routinely delaying the activation of air conditioning," leading to the temporary halt of services.

Equity investors are turning their attention to China’s forthcoming Politburo meeting for indications of whether the leadership will introduce measures to manage overcapacity in emerging industries, according to a report in the South China Morning Post. There is a particular focus on how the 24 members of the Communist Party's decision-making body will address hyper-competition in sectors such as solar power, lithium batteries, electric vehicles (EVs), and e-commerce. The high-level summit is anticipated to take place later this month.

A government-appointed district councillor in Hong Kong, Kenneth Yip Kat-kong, is facing an investigation for alleged misconduct stemming from a record of traffic offence convictions, according to a report in the South China Morning Post. Home Affairs Minister Alice Mak Mei-kuen announced she has appointed a five-member supervisory committee to look into the allegations against the Tuen Mun District Council member. The investigation could result in Yip being suspended from his duties.

The United States' sixth-generation fighter jet program, reportedly designated F-47, is expected to encounter development delays because of supply chain challenges, set against the backdrop of an increasing US-China rivalry in advanced aircraft, according to a report in the South China Morning Post. Citing recent media reports and 2026 budget documents, the engine system for the new fighter is likely to face a two-year delay, which would push its completion past 2030.

Chinese robotics startup Unitree Robotics has initiated the formal 'tutoring' process for a potential initial public offering, according to a report in Reuters. A filing with China's securities regulator on Friday showed that CITIC Securities is serving as the company's tutoring institution. CITIC Securities is scheduled to assist Unitree in preparing its listing application documents during the fourth quarter of the year.

Hong Kong's government has proposed banning the sale of mini konjac-jelly cups from April 2026 over the products' choking-hazard risk, according to a report in the South China Morning Post. The proposed amendments, which will be tabled in the Legislative Council next Wednesday, would ban jellies containing konjac with a height or width of 45mm or less. If passed, individuals caught selling the prohibited items could face penalties including up to six months in jail and a fine of HK$50,000 (US$6,370).

A viral conspiracy theory speculating that the popular Chinese plush toy Labubu is possessed by a demon has prompted some fans to burn their dolls, sparking a debate in China, according to a report in South China Morning Post. The theory, which reportedly originated on non-Chinese social media platforms, focuses on the character's nine pointy teeth, which give it a mischievous look. Labubu is a series of dolls produced by the Chinese company Pop Mart and designed by Hong Kong artist Kasing Lung.

During closing arguments in a Hong Kong court, prosecutors accused Jenny Li Sui-heung, the former mother-in-law of slain model Abby Choi, of concocting a "convenient excuse" to mislead investigators, as per a report in the South China Morning Post. Li is on trial for perverting the course of justice, with prosecutors alleging she deliberately impeded the police investigation into Choi's disappearance two years ago. The charge is related to actions she took after learning a police report had been filed regarding Choi, which also involved her son, Alex Kwong.

Twelve-year-old Chinese swimmer Yu Zidi will compete at the upcoming world championships in Singapore, according to a report in AP. Despite her young age, she has recorded some of the fastest times in the world this year in three separate events. Her performances are notably competitive, with times that would have placed her near medal contention at the Paris Olympics last year.

The Hong Kong Observatory is set to issue a No 1 typhoon signal at midnight on Friday as Tropical Storm Wipha moves closer to the city, the South China Morning Post said in a report. The forecaster has warned residents of strong winds and torrential rain expected over the weekend due to the approaching storm. The name 'Wipha' originates from a Thai word.

The Shanghai municipal government has unveiled plans to augment its shipyards on Changxing Island, aiming to position the city as a world-class shipbuilding hub, according to a report in the South China Morning Post. The expansion focuses on increasing capacity for high-value models, such as vessels designed to transport liquefied natural gas (LNG) and advanced container ships. This development is intended to build on Shanghai's existing status as the world's busiest shipping port, with the shipyards located near the Yangshan Deep-Water Port at the mouth of the Yangtze River.

Chinese researchers have developed a new infrared sensor inspired by fire beetles that is claimed to be 20,000 times faster than conventional technology and could be used for advanced defense surveillance, according to a report in the South China Morning Post. After studying the insect's highly sensitive heat-seeking abilities, the research team produced a device with what they describe as unprecedented detection speeds. The technology is intended for use in building a surveillance network that the article suggests could be more powerful than a proposed US missile defense system referred to as the “Golden Dome”.

China's holdings of US Treasury securities fell for the third consecutive month in May to US$756.3 billion, the lowest level recorded since March 2009, according to a report in the South China Morning Post. The data, released by the US Treasury Department, shows a decline from US$757.2 billion in April. The report links the continued reduction to escalating trade tensions with Washington and mounting concerns over a significant US tax and spending bill.

Momentum in Hong Kong's follow-on fundraising market is set to continue, according to senior investment bankers cited in a report from the South China Morning Post. This trend is reportedly driven by the significant capital requirements of mainland Chinese firms and a reorientation of global investor portfolios towards Chinese assets. In the first half of the year, follow-on offerings, which include share placements and equity-linked debt issued after initial public offerings, raised US$31.4 billion.

Hong Kong stocks rose on Friday, following a rally on Wall Street that was prompted by strong US consumer data and earnings optimism, according to a report in South China Morning Post. The Hang Seng Index was up 1.2% to 24,780.84 in afternoon trading, after hitting its highest level since February 2022. The index has gained 2.6% this week, its best performance in three weeks, while the Hang Seng Tech Index also added 1.5%.

Chinese authorities have prevented a banker from the U.S. financial institution Wells Fargo from leaving the country, according to a report in the Financial Times. The exit ban has been implemented at a time of sustained high geopolitical tensions between Washington and Beijing. Such bans are legal measures that prohibit an individual from leaving China and have historically raised concerns among foreign businesses and governments about the legal environment and political risks of operating in the country.

Taiwan will not provoke a confrontation with China and does not seek conflict, Vice President Hsiao Bi-khim stated on Friday, as per a report in Reuters. Hsiao described Beijing's military posturing as "aggressive" and counterproductive. The statement comes as China, which considers democratic Taiwan part of its own territory, continues to label President Lai Ching-te a "separatist," a claim Taiwan's government disputes.

A carer support hotline in Hong Kong, commissioned by the government, will expand its operations to meet growing demand after handling almost 100,000 calls in nearly two years, according to a report in the South China Morning Post. The 24-hour '182183' hotline, operated by the Tung Wah Group of Hospitals, provides emotional support and welfare service referrals. The service, which was established following a series of family tragedies, is currently staffed by over 100 social workers working in shifts across 30 phone lines.

A report from the National Economic Research Institute, a Beijing-based think tank, has revealed a decline in China's marketisation index, prompting calls from Chinese economists for further pro-market reforms, according to a report in the South China Morning Post. The index, which measures factors including government-market relations, fell to 5.62 out of 10 in 2023, down 0.1 points from 2019. The economists argue that such reforms are necessary to address the country's economic imbalances and what they describe as vicious intra-industry competition.

China's Ministry of State Security has accused foreign spy agencies of attempting to "steal" the country's rare earth minerals and has pledged to crack down on espionage targeting the critical sector, according to a report in Reuters. The ministry stated on Friday that foreign intelligence services and their agents have collaborated with "domestic lawbreakers" to illicitly acquire rare earth-related items. It warned that these activities pose a significant threat to China's national security.

Commuters in Hong Kong faced significant disruptions on Friday after a signalling equipment malfunction on the MTR's Tseung Kwan O line led to service delays during the morning rush hour, according to a report in the South China Morning Post. The breakdown resulted in long queues on station platforms and widespread passenger frustration. The MTR Corporation advised travelers needing to cross the harbour to use alternative routes such as the Tsuen Wan or East Rail lines until services were gradually restored around 10:30 am.

Hong Kong’s flag carrier, Cathay Pacific Airways, issued two apologies on Thursday following significant disruptions to a flight caused by separate technical problems, according to a report in South China Morning Post. Flight CX705, scheduled to depart Hong Kong at 8 a.m., was initially delayed by a technical issue found during boarding. Subsequently, the aircraft experienced an air conditioning failure, forcing passengers to remain on the plane without cooling and leading to substantial delays for two destinations.

An online platform is circulating a false claim that Hongkongers 'will start receiving income from taxes', incorrectly attributing the statement to the city's finance chief, according to a report in the South China Morning Post. The misinformation was investigated and debunked as part of a new fact-checking series by the news outlet, which aims to counter viral misinformation impacting residents in the city.

Hong Kong has tightened its prison regulations, allowing authorities to restrict visits to inmates on national security grounds, as per a report in AP. Under the new rules, which took effect Friday, correctional service officers can apply to magistrates for warrants to bar communications between specific legal representatives or religious personnel and persons in custody. A warrant can be issued if a judge believes such contact could endanger national security or cause bodily harm to any person.

The Beijing Stock Exchange (BSE) is experiencing a surge in activity, attracting more initial public offering applications than the larger Shanghai and Shenzhen exchanges combined, according to a report in the Financial Times. This growth is attributed to the BSE's more flexible listing requirements, which are designed for smaller, innovative companies, and strong investor demand for small-cap technology firms. The exchange's focus on funding these enterprises aligns with China's broader strategic goals of fostering technological self-reliance. This development marks a significant shift from the exchange's initial perception as a niche, state-supported initiative to its current status as a key player in China's capital markets.

China has unveiled a new 'tail-sitter' drone, which takes off and lands vertically on its tail like a rocket, during a disaster rescue drill, according to a report in South China Morning Post. The unmanned aerial vehicle's debut took place in a mountainous region of Sichuan province, where its sensors and cameras were tested for reconnaissance and providing real-time situational awareness. The demonstration also showcased the drone's Wenyao intelligent control system, as reported by the official Science and Technology Daily on Tuesday.

A series of recent viral scandals on the Chinese internet has targeted privileged individuals, sparking widespread public outrage, as per a report in BBC. The online backlash has recently focused on several high-profile figures, including two actresses, a Harvard graduate, and a doctor from a prominent Beijing hospital. These incidents have fueled a broader public discussion in China about wealth, privilege, and social inequality.

Significant salary reductions and layoffs are affecting Chinese civil servants and employees of state-owned enterprises, contributing to a decline in consumer spending and increasing fears of deflation, according to a report in Radio Free Asia. The pay cuts are reportedly most concentrated in sectors reliant on government spending, which is under strain due to a prolonged crisis in the real estate market and high local government debt. This trend is exacerbating concerns about the country's economic stability as reduced household income and confidence hinder a post-pandemic recovery.

China's Commerce Minister Wang Wentao is scheduled to hold a press conference on July 18, 2025, according to a report in Reuters. The event is drawing attention for potential comments on China's trade ties with the United States and the European Union. Observers are also anticipating remarks on the country's plans to reduce its economy's reliance on exports for growth, a key component of its ongoing 'dual circulation' strategy aimed at strengthening domestic demand.

A record-breaking heatwave across China has pushed the nation's power demand to a new high, straining the electricity grid and raising concerns about potential power shortages, according to a report in Reuters. The surge in electricity consumption is largely driven by the increased use of air conditioning. This event highlights China's ongoing energy security challenges as authorities work to meet the soaring demand while balancing climate commitments. Despite being a world leader in renewable energy investment, the country remains heavily reliant on coal to provide stable power, particularly during periods of extreme weather, recalling previous power crunches in recent years.

Brazil's rare earth exports to China tripled during the first half of 2025, a period in which China's total rare earth imports also reached a record high, the South China Morning Post said in a report. Citing figures from the China-Brazil Business Council (CBBC), the report highlights the trade shift as a potential consequence of ongoing US-China trade tensions rerouting global supply chains. The CBBC report also showed that while rare earth trade surged, Brazil's overall exports to China fell 7.5% to US$47.7 billion in the first half of the year, while its imports from China grew by 22%.

Representative John Moolenaar, chairman of the US House Select Committee on the Chinese Communist Party, has warned Panama about potential Chinese influence over the Panama Canal, according to a report in the South China Morning Post. In a letter to Panama's Minister of Maritime Affairs, Luis Roquebert, Moolenaar expressed concern over reports that Chinese state-owned conglomerates are bidding for port concessions near the canal. The concessions are currently being sold by the Hong Kong-based company CK Hutchison Holdings.

The US Commerce Department has imposed preliminary anti-dumping duties of 93.5% on imports of graphite from China, a key component for batteries, according to a report in Bloomberg. The department's action follows its conclusion that the materials had been unfairly subsidized by China.

The heads of the US House and Senate intelligence committees are advocating for a reduction in intelligence sharing with Spain, according to a report in Bloomberg. The call for this pullback is based on allegations that Spain utilizes technology from Chinese vendor Huawei Technologies Co. to support its national wiretap system. This reflects ongoing US security concerns regarding the use of Huawei equipment by allied nations in sensitive infrastructure.