China News Highlights, 28 July 2025: Plunge in Chinese tourists impacts Thailand's stock market and tourism sector

A sharp decline in visitors from China is weighing heavily on Thailand's tourism-dependent economy and its underperforming stock market, Nikkei Asia said in a report. The plunge in Chinese tourists is primarily attributed to China's domestic economic challenges following its post-COVID reopening, including subdued consumer confidence and a property sector crisis, which have reduced the willingness of its citizens to travel internationally. This trend has led to underperformance in Thailand's benchmark SET index and continues despite government efforts, such as visa waivers, to revive the sector.

Laos is undertaking a major governmental restructuring by merging several ministries to address severe economic challenges, according to a report in Nikkei Asia. The move is reportedly driven by high domestic inflation and significant debt pressure, with a substantial portion of the country's foreign debt owed to China for large-scale infrastructure projects. These projects, such as the Laos-China railway under the Belt and Road Initiative, have placed considerable financial strain on the Lao economy, prompting the government to take measures aimed at streamlining its operations and improving fiscal management.

Cadence Design Systems raised its annual sales and profit forecast on Monday after the U.S. government lifted export curbs on chip design software to China earlier this month, allowing the company to resume sales to the key market, according to a report in Reuters. The restrictions, which were originally announced in late May, had previously blocked access for Cadence to its Chinese customers. Following the news of the lifted curbs and the revised forecast, shares of the company increased by 7% in extended trading.

A bipartisan group of US senators has urged Apple and Google to remove virtual private network (VPN) applications owned by Chinese companies from their app stores, The Epoch Times said in a report. The senators stated that these apps pose a national security risk, alleging they could provide the Chinese government with access to the private information of American users. The request is based on concerns that Chinese national security laws could compel companies headquartered in China to share user data with state intelligence agencies.

Cadence Design is expected to pay over $100 million to the US government as part of a settlement to resolve an investigation into its sales to a Chinese military university, according to a report in Reuters. The company is accused of illegally selling its chip design products to the Chinese institution, which is reportedly involved in simulating nuclear explosions. The investigation centers on the alleged illegal transfer of chip design technology in violation of US export controls.

China voiced its support for Brazil on Monday, offering to enhance economic ties and defend "fairness" in global trade as new US tariffs on Brazilian exports are scheduled to begin on Friday, according to a report in the South China Morning Post. Chinese Foreign Ministry spokesman Guo Jiakun stated that Beijing is prepared to work with Brazil, a move that adds a new dimension to the escalating trade conflict between Washington and Brasília.

Hong Kong lawmakers have completed a two-day clause-by-clause examination of a bill aimed at establishing a registration regime for same-sex couples, according to a report in the South China Morning Post. The scrutiny, which concluded on Monday, saw legislators raise a total of 61 questions over two meetings. The questions addressed concerns including potential criminal offenses associated with the proposed registration system. The process moved forward despite what the report described as strong opposition within the city's legislature.

China's long-held dominance over the Democratic Republic of Congo's critical mineral sector is being challenged by growing competition from the United States, according to a report in the South China Morning Post. A US consortium, which includes firms led by former military executives, has recently placed a bid for the operator of the Etoile copper-cobalt mine. This development follows reports that the US government pressured the DRC last year to prevent a Chinese firm's acquisition of Chemaf Resources, another key mining company in the region.

Henry Hu Hung-lick, a respected educator and the co-founder of Hong Kong Shue Yan University, has passed away at the age of 105, according to a report in the South China Morning Post. The university announced he died peacefully on Sunday, surrounded by his family. Tributes from colleagues, friends, and alumni have praised Hu as a "pioneer of private higher education" and for his "selfless contributions to the younger generations."

Scientists from China and the United States have conducted a comprehensive global study identifying a significant abundance and diversity of antibiotic-resistance genes (ARGs) in the manure of chickens, cows, and pigs, according to a report in the South China Morning Post. The research, published in late June 2025, analyzed the "livestock resistome"—the complete set of ARGs in the microbiome—and warns that these genes present a potential global health risk amid the growing threat of drug resistance. As part of their work, the collaborative team also developed a new framework to help identify the highest-risk ARGs for future monitoring and mitigation efforts.

In his annual state of the nation address, Philippine President Ferdinand Marcos Jr. said the country is more confident and better prepared to defend its sovereignty due to strengthened security alliances amid tensions with China in the disputed South China Sea, according to a report in AP. Speaking before Congress, top government and military officials, and diplomats, Marcos directly linked the nation's improved defensive posture to these alliances in the face of ongoing maritime disputes.

Chinese AI startup Zhipu, one of the country's government-backed 'AI tigers', on Monday released a new open-source model named GLM-4.5, which is designed for intelligent agent applications, Reuters said in a report. The move is part of a trend of similar releases from rival Chinese companies in an increasingly competitive domestic AI sector. Zhipu had previously gained attention in June after a statement from the U.S. company OpenAI.

The decline in profits for major Chinese industrial companies narrowed to 4.3% year-on-year in June, a significant improvement from May's 9.1% fall, according to a report in Caixin Global. This positive monthly performance was largely attributed to a strong rebound in the equipment manufacturing sector, which saw its profits grow by 9.6% after a previous decline. However, for the first half of the year (January to June), the overall profit decline for the sector widened to 1.8%.

The Hong Kong Monetary Authority (HKMA) is conducting a 'proof of concept' project for a new business credit-scoring system designed to help small businesses obtain loans faster and at a reduced cost, the South China Morning Post said in a report. HKMA Chief Executive Eddie Yue Wai-man stated the initiative aims to encourage the development of credit scores and benchmarks for corporations, creating a more digitalized and efficient data infrastructure. This system focuses specifically on assessing the financial creditworthiness of companies for lending purposes and is distinct from mainland China's broader social credit system.

Delegations from the United States and China are scheduled to arrive in Stockholm, Sweden, for trade talks on Monday, according to a report in Reuters. The meetings are set to be held at Rosenbad, the office of the Swedish prime minister, which serves as a neutral venue for the discussions.

Hong Kong's flag carrier, Cathay Pacific Airways, plans to increase its recruitment of pilots from mainland China in an effort to diversify its workforce, according to a report in the South China Morning Post. The decision comes after the first 30 cadets recruited from the mainland finished their training and started flying as second officers. Chris Kempis, the airline's director of flight operations, stated that since the program's expansion in 2023, a total of 60 mainland cadets have entered the program, selected from a pool of more than 750 applicants.

The Trump administration is currently debating whether to allow Taiwan’s leader to make a planned transit stop in the US next week, according to a report in Bloomberg. This deliberation stems from mounting concerns that approving the stopover could derail sensitive trade talks with China and jeopardize a potential summit between President Donald Trump and Chinese President Xi Jinping.

Four more premium taxi service fleets began operating in Hong Kong on Monday after the Transport Department granted them full five-year licences, according to a report in South China Morning Post. A department spokesman confirmed the services officially commenced on Monday. The four fleets are operated by Big Boss Taxi Company, CMG Fleet Management, Sino Development (International), and Tai Wo Management.

Apple will close a retail store in Dalian on August 9, marking the company's first shutdown of a directly managed outlet in mainland China amid reports of declining iPhone sales, according to a report in the South China Morning Post. The store, located in the Parkland shopping centre, will be the first of two Apple-owned outlets to close in the city of 7.5 million people. Concurrently, new data shows that Huawei Technologies returned to the top of China’s smartphone market during the second quarter.

Industry leaders in Hong Kong have called for an urgent overhaul of the city's trade ecosystem, emphasizing the need to accelerate the transition from paper-based processes to digital solutions, according to a report in South China Morning Post. The call to action was made on Monday at a 'Digital Trade Masterclass' event, co-hosted by the Trade Development Council and attended by over 200 small to medium-sized enterprises. Speakers at the event warned that without a rapid digital shift, Hong Kong risks losing its status as a global trade hub to rapidly advancing international rivals.

To combat a deepening demographic crisis and its potential impact on economic growth, China has introduced a national childcare subsidy program, according to a report in South China Morning Post. The new policy, which follows previous measures such as the three-child policy, provides families with up to 10,800 yuan (US$1,505) per child under the age of three. This central government initiative is described as the most significant effort to date to reverse the country's population decline, replacing previous, less effective piecemeal incentives from local authorities.

A student from Wenzhou, China, was honored with a grand ceremony by his ancestral clan after becoming the family's first member in a century to be admitted to the prestigious Peking University, South China Morning Post says in a report. The student, Li Guoyao, from the southeastern Zhejiang province, was accepted into the university’s Strengthening Basic Disciplines programme. He will major in biology and basic psychology.

Hong Kong’s eight public universities have signed new documents with their funding body, the University Grants Committee (UGC), promising to return recurrent funding if asked by the government within the next three academic years and to follow Beijing’s guidance, the South China Morning Post says in a report. Under the new agreements, the government also has the right to reduce a university's regular funding allocation if it fails to meet its commitments or experiences any major deficiency in institutional governance.

US senators from both major parties intend to introduce three bills this week aimed at pressuring China, as per a report in Reuters. The bipartisan legislation will reportedly target Beijing over its treatment of minority groups, political dissidents, and its actions concerning Taiwan. This congressional focus on security and human rights contrasts with the emphasis on trade in negotiations led by President Donald Trump.

A new study from Renmin University finds that the internationalization of China's yuan is on an upward, though uneven, trajectory, according to a report in the South China Morning Post. The study, released at an economic forum in Beijing, shows the university's yuan internationalization index increased by approximately 11 percent in 2024 to a value of 6.06. Despite this growth, some participants at the forum expressed concern that US efforts in digital finance, particularly through US-dollar-backed stablecoins, present a potential threat.

Hong Kong's total exports increased by 11.9% in June compared to the same month last year, reaching a value of HK$417.8 billion (US$53.5 billion), according to a report in the South China Morning Post. The government attributed this sustained performance to a significant expansion of sales to mainland China and other Asian markets. This growth occurred even as exports to the United States and the European Union fell, a trend linked to the ongoing US-China trade war. The June increase, however, marked a tapering of growth from the 15.5% year-on-year rise seen in May.

Hong Kong is implementing a new "dual-track" system that permits doctors to hold concurrent positions at public hospitals and the city’s two medical schools, according to a report in the South China Morning Post. Secretary for Health Lo Chung-mau announced the policy on Monday, describing it as a "breakthrough" aimed at strengthening the medical education and research talent pool. He stated that the new mechanism provides a "more fitting development pathway" for professionals to engage in medical, teaching, and research work compared to previous arrangements.

The South Pacific nation of Vanuatu is seeking closer ties with Hong Kong to support its ambitions in digital finance and economic diversification, according to a report in the South China Morning Post. The country aims to position itself as a gateway for collaboration between the Global South and Asia. According to Vanuatu's Deputy Prime Minister, Johnny Koanapo Rasou, the nation is entering a new era of economic stability with a renewed focus on infrastructure, digital transformation, and international commercial engagement.

US-based McDonald’s Corp is selling eight fully tenanted retail properties across Hong Kong with an estimated market value of HK$1.2 billion (US$153 million), as per a report in the South China Morning Post. The move is part of a review of the fast-food chain's real estate portfolio in the city. The properties are located in key districts including Tsim Sha Tsui, Causeway Bay, Mong Kok, Kennedy Town, and Yuen Long, with the company appointing JLL as the sole agent for the transaction.

Wealthy Chinese investors are increasingly purchasing luxury hotels in prime Shanghai locations, driven by the assets' scarcity value and the city's tourism appeal, according to a report in South China Morning Post. Citing analysis from real estate services firm JLL, the trend indicates that these 'super-rich' individuals are undeterred by current low returns, showing a rekindled risk appetite amid perceived economic stability. In contrast, larger institutional investors, such as insurers, real estate investment funds, and private equity firms, are reportedly taking a more cautious approach and are less active in this market segment.

A 26-year-old forensic doctor in Chongqing, China, known as Yanyan, has gained viral attention for her muscular build, according to a report in the South China Morning Post. She is the first female forensic pathologist at her laboratory and has handled approximately 600 corpses over the past three years. Yanyan stated that she works out to better handle the physical demands of her work and to challenge stereotypes about women in the medical field.

Three more activists in the Hong Kong 47 national security case have been released after completing their prison sentences, according to a report in South China Morning Post. Former union leader Carol Ng Man-yee, along with activists Nathan Lau Chak-fung and Frankie Fung Tak-chun, were freed after serving four-year-and-five-month sentences for conspiracy to commit subversion. The trio, who had pleaded guilty to the charges, are the third group of defendants in the landmark case to be released.

Authorities in the Chinese tech hub of Shenzhen have introduced a new policy calling for leniency towards innovators whose government-funded projects fail, according to a report in the South China Morning Post. The directive from the Shenzhen Science and Technology Innovation Commission, described as the first of its kind, applies to projects at institutions like universities and hospitals. This move comes as China aims to bolster its status as a high-tech power and decrease its reliance on foreign technology amid strategic competition with the United States.

Hong Kong must achieve "exponential" growth in its innovation and technology (I&T) sector to be comparable with Shenzhen, a goal that requires attracting significant talent and capital, the outgoing CEO of the government-backed Science Park, Albert Wong Hak-keung, said in an interview before stepping down, as per a report in South China Morning Post. Wong noted that while the innovation hub has evolved significantly over the past two decades from being viewed simply as a landlord, it still faces a major challenge in scaling up to match the I&T ecosystem of its neighboring mainland city.

US President Donald Trump is interested in a visit to China in October or November, with a previously reported September trip now off the table, according to a report in the South China Morning Post. Sources indicate that while hurdles remain, high-level officials in both Beijing and Washington share a consensus on the need for the trip. Media reports had previously suggested China planned to invite Trump to a parade in Beijing on September 3 to commemorate the 80th anniversary of the end of World War II, but this is no longer being considered.

Alibaba Group Holding has showcased its first AI-powered smart glasses at the World Artificial Intelligence Conference (WAIC) in Shanghai, China's largest annual AI event, the South China Morning Post said in a report. The product, named the Quark AI glasses after the company's AI assistant, was previewed to the public for the first time on Saturday. Alibaba stated that development of the glasses is complete and it aims for an official launch later this year, though a specific date has not been announced.

China's battle with deflation is a complex issue stemming from more than just weak consumer demand, according to a report in the Financial Times. The country's economic policies have created a structural problem by encouraging significant overproduction across multiple sectors. This state-driven oversupply, fueled by government subsidies and investment initiatives, has resulted in excessive and intense competition among businesses. This competition, in turn, puts downward pressure on prices, contributing directly to the deflationary environment and highlighting systemic issues within China's investment-led growth model.

China and the United States are expected to extend their tariff truce by another three months during trade negotiations set to begin in Stockholm on Monday, according to a report in the South China Morning Post. This development follows a previous 90-day agreement from May, which suspended most of the heavy tariffs each country had imposed on the other's goods. That initial suspension is scheduled to expire on August 12, and the upcoming talks represent the third round of negotiations between the two nations.

Shanghai-based Keenon Robotics believes the real-world deployment of humanoid robots will be a gradual process that begins with simple, repetitive tasks, adding that truly versatile humanoids remain a distant goal, according to a report in the South China Morning Post. The company, founded in 2010, was the world's leading commercial service robot manufacturer last year with a global shipment market share of nearly 23%, according to research firm IDC. Keenon Robotics also stated it has sold over 100,000 robot units globally.