China News Highlights, 26 July 2025: China tightens control over strategic mineral exports amid smuggling crackdown

China is strengthening its control over strategic minerals like rare earths by further institutionalizing its export-control regime, as per a report in South China Morning Post. This move is part of an intensified crackdown on smuggling that began two months ago. Authorities report that some individuals are using various methods to illegally export these materials, which are considered a key leverage point for Beijing in its trade negotiations with the United States.

Authorities in Hong Kong have defended the need for an official registration system for same-sex partnerships, arguing that simple record-keeping is insufficient for the government to verify marriages conducted overseas, as per a report in the South China Morning Post. The proposed bill is currently facing opposition from at least 41 of the 89 members of the Legislative Council. During the bill's first clause-by-clause examination on Friday, the government rebutted a suggestion from lawmaker Erik Yim Kong to implement a more basic record-keeping system instead of a formal registration process.

China is increasing its global maritime presence through significant investments in overseas ports, a development being tracked by a new interactive map, as per a report in the Council on Foreign Relations. These port investments are a cornerstone of the maritime dimension of China's Belt and Road Initiative, designed to enhance global trade routes and secure access to markets and resources. While China frames these as commercial ventures, the investments often provide substantial influence through operational rights or majority stakes, rather than outright sovereign control. These projects are a central element in the strategic competition between China and the U.S., with Western nations expressing concern over the dual-use potential of these ports, which could support military as well as civilian activities.

US scrap metal dealers intend to continue exporting copper to China and other Asian economies even after a new 50% tariff from the Trump administration comes into force on August 1, the South China Morning Post said in a report. The administration has stated the tariff is designed to revive the US copper industry by making domestic production more profitable. However, scrap dealers report that it is currently cheaper and easier to ship the metal to Asia for processing than to do so within the United States, suggesting the tariff may not achieve its intended goal.

France has released a new Indo-Pacific strategy document that centers on protecting its overseas territories and forging robust partnerships with regional powers, according to a report in The Diplomat. The updated policy reflects a shift in the global order and includes a sharpening of criticism toward China. The strategy reinforces France's long-standing role as a 'resident power' in the region, aiming to secure its economic and strategic interests through increased diplomatic engagement and a focus on security cooperation.

Hong Kong's Observatory issued warnings for heavy rain and potential hail on Friday evening as the city was hit by severe downpours, according to a report in the South China Morning Post. The forecaster issued an amber rainstorm alert, which was active for nearly three hours. Additionally, a warning was released at 6:30 p.m. stating that hail could affect the city shortly as heavy rain lashed the region.

The fifth Hong Kong Brands and Products Shopping Festival, scheduled for August 1-4 at Asia World-Expo, will introduce a new area dedicated to specialties from 10 mainland Chinese provinces and cities, the South China Morning Post said in a report. Organizers are aiming to lure more tourists from mainland China with this addition. The festival will also feature promotional deals, including a limited daily supply of products like sesame paste and Chinese sausage for HK$1 (US$0.13).

The United States and China confronted each other at the United Nations on Friday, with the US urging Beijing to "stop fueling Russia's aggression" in Ukraine, according to a report in Reuters. Acting U.S. Ambassador to the U.N. Dorothy Shea specifically called on China to halt the export of dual-use goods to Russia. In response, China accused Washington of attempting to shift blame for the conflict and provoke a confrontation.

Hong Kong customs authorities have arrested two individuals after seizing nearly 250 vials of suspected botulinum toxin for wrinkle treatments, according to a report in the South China Morning Post. The Customs and Excise Department announced on Friday that the seizure included 20 vials discovered during an X-ray inspection of a parcel at the Shenzhen Bay control point. The parcel, which had been declared as carrying body lotion, was found to contain substances suspected to be Part 1 poisons, which are regulated under Hong Kong law.

China is set to host the 2025 League of Legends World Championship, the premier tournament for the popular esports title, according to a report in South China Morning Post. The event, organized by US-based developer Riot Games, a subsidiary of Chinese tech firm Tencent, will commence in Beijing on October 14. The competition will then move to Shanghai for the quarter-final and semi-final rounds, scheduled to take place from October 28 to November 2.

The US House is moving forward with a key spending bill that includes language calling for the revival of a program similar to the controversial 'China Initiative,' according to a report in the South China Morning Post. The Fiscal Year 2026 Commerce, Justice, Science, and Related Agencies appropriations bill does not name the program directly, but an accompanying report calls for its re-establishment to 'maintain America’s competitive edge.' The original China Initiative was a US Department of Justice program that officially ended in 2022 following significant criticism that it unfairly targeted researchers of Chinese descent and negatively impacted their careers.

The supply of new private homes in Hong Kong is projected to decrease over the next four years due to a recent revival in market sentiment and increased sales, according to a report in the South China Morning Post. A quarterly projection from the Housing Bureau on Friday estimated the number of new homes will drop to approximately 101,000 units through 2029. This figure represents a decline of 4,000 units from the March projection and 8,000 units from the same period a year earlier, marking the fifth consecutive decline in the housing inventory projection.

A 17-year-old has been arrested in Hong Kong for alleged drug trafficking following the death of his 16-year-old friend, according to a report in the South China Morning Post. The arrest occurred on Friday in Sau Mau Ping, one day after the 16-year-old was found unconscious by his mother at their home in Chai Wan and later died in hospital. Police reportedly found cannabis and liquid methamphetamine at the deceased's residence.

China delivered only a small fraction of the development aid it promised to the Philippines between 2015 and 2023, with just US$700 million disbursed out of a total US$30.5 billion pledged, according to a report in South China Morning Post. Citing data from an Australian think tank, the report attributes the significant shortfall to several factors, including derailed infrastructure projects, a shift in the political climate in Manila, and increasing bilateral tensions.

An outbreak of the mosquito-borne infection chikungunya is affecting southern China, with the number of cases rising rapidly to 4,014 as of Friday in the city of Foshan, according to a report in AP. The city, located in Guangdong province, has been heavily impacted by the surge. Sun Yang, a deputy director at a local health department, described the outbreak as "quite severe," based on public records released by health authorities in Foshan's districts over the past two weeks.

A Hong Kong Airlines plane, flight HX252 carrying 161 passengers and seven crew, had a close encounter with another aircraft on the runway after landing at Taoyuan International Airport in Taiwan on Friday, the South China Morning Post said in a report. While the incident appears to have been a potential blunder by air traffic controllers, the Hong Kong-based carrier has since denied some Taiwanese media reports that its aircraft had landed on the wrong runway.

China’s new Information Support Force (ISF) has increased joint training with other military branches to showcase an integrated combat system and enhance its mobile and decentralized deployment capabilities, according to a report in the South China Morning Post. The new training approach involves embedding small ISF teams directly into the People's Liberation Army's (PLA) air, naval, and ground forces to offer real-time information support. The ISF was established in April 2024 as part of the PLA's broader modernization efforts.

The European Union has issued a formal warning to Spain over its reliance on technology from Chinese firm Huawei, the Financial Times said in a report. The diplomatic move follows the emergence of details about a €12 million contract the Spanish government awarded to Huawei for wiretapping technology. This action is part of the EU's broader 'de-risking' strategy aimed at reducing dependencies on China in critical sectors and aligns with the bloc's security guidelines, which recommend mitigating risks from high-risk vendors. The warning highlights the EU's increasing assertiveness on technological sovereignty and security, especially for sensitive national intelligence capabilities.

Shanghai Healthcare M&A Fund (SHMAF), a fund managed by a subsidiary of the state-owned SIIC Group, has agreed to purchase 135,335,204 shares in MicroPort Scientific Corporation from Japan's Otsuka Medical Devices Co., Ltd., as per a report in AP. Through this transaction, the state-backed fund will become a strategic shareholder in the major Chinese medical device company. The acquisition is seen as part of China's larger industrial policy to enhance self-reliance in critical high-tech sectors and meet the growing healthcare demands of its aging population.

Tesla's Level 2 advanced driving assistance system (ADAS) outperformed technologies from Chinese competitors like BYD, Xiaomi, and Huawei in a recent test on China's highways, according to a report in Reuters. The results of the test, which evaluated the ADAS from over 20 electric vehicle brands, were jointly published by China's state television broadcaster CCTV and Dcar, the automotive unit of TikTok owner Bytedance. The evaluation focused specifically on the performance of these assisted driving features in highway conditions.

An Australian non-permanent judge serving on Hong Kong's Court of Final Appeal, Justice William Gummow, has had his term extended for an additional three years, according to a report in the South China Morning Post. The judiciary's announcement on Friday confirmed that Gummow, who joined the court in 2013, will begin his new term next Tuesday. The extension comes amid a period that has seen several other foreign justices resign from the court. Two local non-permanent judges also had their terms extended for another three years.

A new wave of Chinese consumer companies, led by toymaker Pop Mart, is increasingly seeking a global presence, reflecting China's strategic pivot toward exporting brands and not just products, the South China Morning Post said in a report. In a recent interview on state broadcaster China Central Television, Pop Mart's founder and CEO, Wang Ning, announced a shift in the company's ambitions. Wang stated, "We originally hoped to become China’s Disney; now we hope to become the world’s Pop Mart," signaling a move to leverage China's manufacturing base to incubate internationally recognized brands.

Tesla plans to address its declining market share in mainland China by launching new variants of its locally produced vehicles, according to a report in the South China Morning Post. The US carmaker intends to follow the strategy of its Chinese rivals by rolling out larger and longer-range models to attract consumers. Upcoming releases reportedly include a six-seat version of the Model Y and an upgraded Model 3 with a driving range of 800 kilometers, which are expected to boost the company's deliveries in the country.

US pharmaceutical giant Pfizer has completed a licensing agreement with Shenyang-based Chinese biotech firm 3SBio for its cancer drug, SSGJ-707. The deal grants Pfizer exclusive global rights to the drug outside of China, in what is the largest out-licensing agreement for a single drug in China's biotech history. As part of the agreement, 3SBio, which is listed in Hong Kong but has its primary operations in mainland China, will receive an upfront payment of US$1.25 billion.

A number of Chinese companies are increasing their fundraising activities to strengthen liquidity and address refinancing needs as market sentiment shows signs of recovery, according to a report in the South China Morning Post. On Thursday, artificial intelligence firm SenseTime announced an agreement to raise HK$2.5 billion (US$318 million) through a share subscription. Concurrently, dairy company Mengniu Dairy stated it would generate 3.5 billion yuan (US$489 million) through a bond issuance, reflecting a wider move by corporations to tap capital markets.

Life insurance sales in Hong Kong rose 43% in the first quarter to a record HK$93.4 billion (US$12 billion), driven by demand from high-net-worth customers and visitors from mainland China, according to a report in South China Morning Post. The Hong Kong Insurance Authority released the figures on Friday, noting it was the highest-ever sales tally for a first quarter. The surge is linked to the city's efforts to establish itself as a major wealth management hub, attracting mainland Chinese seeking protection and estate planning services.

Chinese toymaker Pop Mart International has filed a lawsuit against several 7-Eleven store operators in California, alleging trademark infringement and the sale of counterfeit Labubu merchandise, according to a report in the South China Morning Post. The complaint, filed on July 18 in a California district court by Pop Mart's units in Beijing, Singapore, and the US, names 7-Eleven Inc. and seven individual store owners or franchisees. The company is seeking injunctions to prevent the stores from continuing to sell the alleged counterfeit products.

Stellantis-backed Chinese electric vehicle (EV) manufacturer Leapmotor is expanding globally with the launch of its new B01 midsize sedan, according to a report in the South China Morning Post. The Hangzhou-based company has priced the new model from 89,800 yuan (US$12,542) in mainland China, offering features comparable to Tesla's Model 3 at less than half the price. Leapmotor stated the move to target international markets is intended to find new growth opportunities amid intense competition within China's domestic EV sector.

Hong Kong's first listed and licensed virtual-asset trading platform, OSL Group, has secured HK$2.36 billion (US$300 million) in new capital, South China Morning Post said in a report. The funds were raised through a combination of existing share sales, top-up subscriptions, and the issuance of new shares. The company stated this represents the largest publicly disclosed equity raise to date for a digital-asset company in Asia, coming amid market anticipation for Hong Kong's new regulatory framework for stablecoins.

A man in Beijing, identified as Wang, has successfully sued his former engineering company for overtime pay, according to a report in the South China Morning Post. A court ordered the employer to pay him US$2,600 as compensation for repeatedly requiring him to attend online training sessions outside of his regular work hours. The case, which was reported by the state-affiliated Workers’ Daily, has been labeled a “landmark” ruling and has garnered significant public attention in China for addressing the issue of unpaid work.

A 50-year-old man who allegedly absconded in connection with a 2018 narcotics trafficking case has been transferred to Hong Kong by mainland Chinese authorities, the South China Morning Post said in a report. Hong Kong police stated on Friday that the transfer was facilitated through a mutual notification mechanism after mainland authorities informed them on May 20 that the suspect had been detained for illegally crossing the border into the mainland. The man is scheduled to appear in a Hong Kong court on Friday.

A US congressional commission has issued a warning that industrial-scale scam centers with links to China are defrauding Americans of more than $5 billion each year, The Washington Post said in a report. The commission's report also states that these criminal operations provide Beijing with a pretext to expand its geopolitical influence across Asia.

China is launching a national digital ID system designed to increase state control over citizens' online activities, according to a report in The Washington Post. The new system will link online behavior directly to verifiable individual identities, enhancing the government's surveillance and censorship capabilities. It is expected to integrate with and provide foundational data for the country's broader Social Credit System, formalizing control mechanisms similar to those used in Xinjiang and reinforcing the 'Great Firewall' by reducing online anonymity. The move operationalizes recent cybersecurity and data security laws, raising concerns about a significant reduction in personal privacy and an increase in self-censorship among the population.

Hong Kong's national security police announced on Friday that they have placed bounties of up to HK$1 million (US$127,400) each on 19 overseas activists, according to a report in the South China Morning Post. The individuals are accused of violating the Beijing-imposed national security law through their involvement with a group called the "Hong Kong Parliament." Authorities have described the group as "subversive" and accused it of holding an unlawful "election." The arrest warrants name activists including Elmer Yuan Gong-yi, Victor Ho Leung-mau, and Fok Ka-chi.

The Hong Kong Institute of Certified Public Accountants (HKICPA) has signed a Memorandum of Understanding with ten mainland Chinese universities to enhance cooperation in cultivating accounting talent, AP said in a report. The agreement involves Nankai University, Huazhong University of Science and Technology, Xiamen National Accounting Institute, China University of Political Science and Law, Beijing University of Technology, Liaoning University, Tianjin University of Finance and Economics, Jilin University of Finance and Economics, Guangdong University of Finance and Economics, and Shenyang Agricultural University. The collaboration includes a 'New Partnership Program' to provide students with industry information, career development seminars, and a pathway for course exemptions from the HKICPA's Qualification Programme (QP). This initiative expands on existing partnerships the HKICPA has maintained with mainland universities since 2009.

Airport Authority Hong Kong is in talks with New World Development (NWD) to resolve issues with the 11 Skies commercial property project located at the city's international airport, according to a report in the South China Morning Post. Citing multiple sources, the report indicates the authority is considering seeking a new partner to take over and complete the shopping centre, which was awarded to NWD in 2018. The financial terms for this potential change in partnership are reportedly still being negotiated.

Major Chinese and Western technology firms will convene in Shanghai for the World AI Conference this weekend to display their latest artificial intelligence innovations, according to a report in Reuters. The event highlights the growth of China's AI sector even as it contends with U.S. sanctions targeting its technological advancement. Prominent Chinese companies like Huawei and Alibaba will be featured alongside Western firms such as Tesla, Alphabet, and Amazon at the two-day conference.

A zoo in China's Jiangsu province refunded an annual pass for a two-year-old girl named Xiaoran after she was diagnosed with cancer, according to a report in the South China Morning Post. The Nantong Forest Safari Park also donated all the coins from its wishing well, totaling approximately US$1,700, to help support the girl's family. The girl was reportedly a frequent visitor to the park before her diagnosis, with her parents having purchased an annual pass for 588 yuan (US$80).

The UK government intends to restart extradition cooperation with Hong Kong on a 'case-by-case basis,' raising concerns that activists in Britain could be sent back to the city, according to a report in South China Morning Post. The plan, which was outlined in a letter from a government minister and would involve changes to the Extradition Act 2003, was made public by the UK’s Shadow National Security and Safeguarding Minister Alicia Kearns. The proposal has triggered alarm among Hong Kong activists who sought refuge in the UK, particularly after Britain suspended its formal extradition treaty in 2020 following Beijing's imposition of the National Security Law.

Hong Kong's stock market ended a five-day winning streak on Friday, which had pushed the main index to a three-and-a-half-year high, with mainland Chinese markets also declining ahead of upcoming trade talks between China and the US, according to a report in South China Morning Post. The Hang Seng Index fell 0.6 per cent and the Hang Seng Tech Index dropped 1.1 per cent. On the mainland, the CSI 300 Index slid 0.4 per cent, while the Shanghai Composite Index retreated 0.2 per cent, reflecting investor caution before the weekend negotiations.

Researchers in China from the Lanzhou Institute of Chemical Physics have made a significant discovery, becoming the first to directly observe friction between solid materials at the quantum level, the South China Morning Post said in a report. The team observed the rare quantum friction effect while experimenting with folded, ultra-thin sheets of graphene. In an unexpected result, the scientists found that friction did not consistently increase as the material got thicker, with some thicker folds sliding more easily than thinner ones.

Hong Kong police will incorporate facial recognition technology into their surveillance cameras as early as the end of this year, enabling officers to identify suspects and missing people in real time, according to a report in the South China Morning Post. The force also revealed plans to expand its “SmartView” surveillance camera program from the end of July, which will involve installing mobile cameras on 60 patrol cars capable of identifying vehicles and licence plates.

Amid the protracted trade dispute, China has returned to the negotiating table with the United States for a new round of talks, as per a report in Financial Times. The development occurs as businesses are beginning to issue early warnings in their earnings guidance, signaling that existing or potential future tariffs are expected to negatively impact their profitability. These negotiations follow previous rounds that have had limited results and are set against a backdrop of a global economic slowdown, supply chain disruptions, and domestic political pressures in both nations. The US continues to seek structural changes in China's economic policies, including issues related to intellectual property and market access.

A Hong Kong lawmaker has stated that "obedient and caring" virtual partners generated by artificial intelligence are a contributing factor to the city's declining birth rate, according to a report in the South China Morning Post. Legislator William Wong Kam-fai, who is also a computational linguistics professor, argued that these digital companions offer emotional support without the interpersonal conflicts found in human relationships. To address the demographic challenge, Wong also called on the government to promote “happy learning” in schools and lower the income threshold for public housing to encourage more people to have children.

Demand is surging in China for the repair of advanced Nvidia artificial intelligence chipsets, a business that has emerged following a U.S. ban on the export of such technology to the country, as per a report in Reuters. A growing number of boutique companies, with around a dozen identified in the tech hub of Shenzhen, are now offering these specialized repair services. This development addresses the need to maintain existing high-end AI chips already within China, which are crucial for the nation's tech firms.

A new US artificial intelligence action plan from President Donald Trump's administration is set to intensify the US-China tech rivalry by maintaining tight restrictions on key technology exports to China while simultaneously accelerating support for American AI companies, according to a report in the South China Morning Post. The strategy, which includes deregulation and infrastructure support for the US tech sector, is seen by analysts as a continuation of existing policy aimed at preserving America's technological advantage. In response to Washington's sustained pressure and unlikely policy reversal, China is expected to accelerate its national strategy for technological self-reliance to reduce its dependency on foreign technology in critical sectors.

Chinese researchers have manufactured the world's largest barium gallium selenide (BGSe) crystal, a key component for potential high-power laser systems, according to a report in South China Morning Post. The synthetic crystal measures 60 millimeters in diameter and is designed to efficiently convert short-wave infrared lasers into mid- to far-infrared beams. This conversion is significant as these longer wavelengths can more easily penetrate the Earth's atmosphere, enabling potential long-distance applications such as ground-based systems capable of targeting satellites.