China News Highlights, 31 July 2025: Satellite imagery reveals expansion at Chinese aircraft carrier bases

Recent satellite imagery shows the continued expansion of two key Chinese naval bases designed to host aircraft carriers, according to a report in Newsweek. The upgrades are occurring at Yulin Naval Base, located near the contested South China Sea, and at Yuchi Naval Base in the northeastern Shandong province. The expansion at Yuchi, which is the home base for China's first aircraft carrier, the Liaoning, includes the construction of at least four new piers.

Chinese tech giants Meituan and JD.com are escalating their competition in the instant commerce market by constructing thousands of central kitchens in strategic locations to speed up food delivery, according to a report in the South China Morning Post. Meituan, a leader in on-demand local delivery, announced plans in early July to launch 1,200 of these facilities, called "Raccoon Restaurants," over the next three years. These central kitchens are designed as large, food court-style hubs that house various food brands to streamline the preparation and fulfillment of online orders.

Apple has reported a significant market rebound in China, which contributed to a jump in the company's overall revenues, as per a report in Financial Times. The company's Chief Financial Officer stated that a portion of the sales surge was due to customers pulling forward orders to get ahead of US tariff deadlines on Chinese goods. The situation demonstrates the ongoing influence of US-China trade policies on corporate performance and consumer behavior.

Hong Kong's largest bus operator, Kowloon Motor Bus (KMB), announced it will use renovated open-top double-decker buses for its HK1 sightseeing route in Kowloon, as per a report in South China Morning Post. Citing opportunities from an increasing number of tourists, the company will also double the fare for the route from HK$20 to HK$40 per ride. The changes are scheduled to take effect from the upcoming Sunday.

Chip equipment maker KLA Corp has flagged weakness in the Chinese market, even as it forecasts strong overall first-quarter revenue driven by global demand for AI processors, according to a report in Reuters. The company's revenue forecast surpassed Wall Street estimates, propelled by booming orders for its equipment used to manufacture advanced chips for artificial intelligence. The noted weakness in China is attributed to the impact of US export controls on advanced technology, which were initiated by the former Biden administration to limit China's access to high-end chipmaking capabilities.

The United States and Japan have held their first reported discussions on the potential use of nuclear weapons, a development aimed at reinforcing the credibility of the US nuclear umbrella, South China Morning Post says in a report. The talks, which reportedly occurred over the weekend, centered on a scenario where the US military might use nuclear weapons amid growing concerns in Tokyo about a potential conflict in the Taiwan Strait. While experts suggest the discussions may alleviate Japan's worries about its role in defending Taiwan, they also anticipate the move will be met with disapproval from Beijing.

Hong Kong's Exchange Fund recorded its largest interim return in more than two decades, driven by a local stock market rally and stable bonds, according to a report in the South China Morning Post. The Hong Kong Monetary Authority (HKMA) announced on Thursday that the fund's earnings for the first half of the year increased by 76.6% to HK$194 billion (US$24.7 billion). This performance contributed to an 8% annual rise in the fund's total assets, which reached HK$4.297 trillion by the end of June.

Hong Kong police have publicly thanked the Lung Fung Pharmaceutical Group for its “understanding and cooperation” after the company complained that officers had mistakenly raided its Tsim Sha Tsui branch, South China Morning Post said in a report. The company stated that police entered its Canton Road location on Tuesday afternoon as part of a citywide anti-triad operation, despite the search warrant listing a different address. The force issued its response to the complaint on Thursday, acknowledging the incident.

A China-led deep-sea expedition in the northwest Pacific Ocean has discovered the deepest known live animal habitat, according to a report in the South China Morning Post. Thriving colonies of tubeworms and molluscs were found at depths of up to 9,500 meters (31,150 feet). These organisms survive in complete darkness by using chemosynthesis, deriving energy from chemicals like hydrogen sulphide and methane that seep from faults in the tectonic plate, rather than relying on sunlight.

China is broadening its export control regime to target a wider range of resources and advanced technologies beyond just rare earths, according to a report in The Diplomat. The expanded controls, implemented under the country's 2020 Export Control Law, now affect critical minerals like gallium, germanium, and graphite, which are essential for semiconductors and electric vehicle batteries. The measures also extend to processing technologies and specialized high-tech equipment, shifting from previous methods like tariffs to more direct restrictions such as licensing requirements based on national security concerns.

Financial losses from cybersecurity crimes in Hong Kong reached HK$3.04 billion (US$387.3 million) in the first half of 2025, a nearly 15% increase compared to the previous year, according to a report in South China Morning Post. Hong Kong police also noted a significant surge in losses from hacking activities specifically, which rose more than tenfold to HK$39.4 million from HK$3.3 million in the same period last year, despite a decrease in the total number of hacking cases reported.

The 11th edition of Hong Kong’s largest LGBTQ carnival, Pink Dot HK, has been cancelled after its venue partner withdrew support, according to a report in the South China Morning Post. The organizing committee announced on Thursday that the free pride event, scheduled for October 12, could not proceed because the West Kowloon Cultural District Authority backed out of providing the venue without offering a reason. The organizers have apologized for the cancellation.

A Hong Kong jury has returned a verdict of "unlawful killing" in the case of a taxi driver who died in 2012 after being put in a headlock by a police officer during an arrest, the South China Morning Post said in a report. Following the verdict on Thursday, the daughters of the deceased, Chan Fai-wong, have called on authorities to bring the officer involved to justice. This marks the second time an inquest into Chan's death has concluded with the rare verdict of unlawful killing, with a separate jury reaching the same conclusion in 2018.

Hong Kong's economy expanded by 3.1% in the second quarter of 2025 compared to the same period in 2024, a slight increase from the first quarter, according to a report in the South China Morning Post. The government attributed the growth to strong export performance, which was partially driven by 'rush shipments' as businesses expedited orders to get ahead of renewed US tariffs, as well as improved domestic demand. However, the government also issued a warning that the impending US tariff hikes would exert pressure on the local economy, and observers anticipate a slowdown in the upcoming quarters.

Hong Kong authorities have renamed the emerging drug known as "space oil" to etomidate, its main ingredient, in an effort to strip the narcotic of any positive or fantasy-like connotations, according to a report in the South China Morning Post. Secretary for Security Chris Tang Ping-keung announced the change on Thursday, stating the goal is to deter potential users. He also revealed that police intercepted 250,000 vape cartridges containing the drug in the first half of this year, a significant increase from the 7,000 seized during the same period in 2024.

The Chinese embassy in Tokyo has issued a security alert after two Chinese nationals were wounded in an attack in the city on Thursday, according to a report in the South China Morning Post. Four unidentified men armed with iron pipes reportedly attacked the two Chinese men in Tokyo’s Kanda district. The victims sustained non-life-threatening head wounds. Japanese police are currently searching for the attackers.

A research paper co-authored by Liang Wenfeng, the founder of Chinese artificial intelligence start-up DeepSeek, was honored with the best paper award at the Association for Computational Linguistics (ACL) conference in Vienna, Austria, according to a report in the South China Morning Post. The ACL conference is widely recognized as a premier global event for AI researchers. The award-winning paper, titled “Native Sparse Attention: Hardware-Aligned and Natively Trainable Sparse Attention,” was published on February 27 and lists Liang as one of 15 authors.

Chinese military scientists have revealed a design for a microwave weapon theoretically capable of firing 10-gigawatt power beams at a repeating rate of 126 million times per second, according to a report in the South China Morning Post. The blueprint's concept is rooted in the physics of "superradiance," a principle intended to provide unprecedented peak power and firing speed. The inspiration for the weapon's design traces back to a quantum phenomenon first observed in Soviet laboratories during the Cold War.

A former Hong Kong politician and prominent democracy campaigner, Carmen Lau, has accused the UK's Thames Valley police of asking her to “self-censor” and “retreat from public life”, according to a report in The Guardian. The request for Lau to avoid public gatherings was reportedly outlined in a “memorandum of understanding” presented by officers after her neighbors received so-called bounty letters. The incident has raised concerns among exiled dissidents that such actions could embolden efforts by Chinese and Hong Kong authorities to silence criticism globally.

A local Communist party official in Beijing has made a rare public admission of government failings following deadly floods in the capital, according to a report in The Guardian. Yu Weiguo, the party secretary for the hard-hit Miyun district, stated at a press conference on Thursday that there were "gaps" in the city's readiness for the extreme weather. The severe flooding has resulted in the deaths of at least 40 people in the region.

Beijing-based TAL Education Group announced earnings of $31.3 million in its fiscal first quarter, as per a report in AP. The education services provider stated its profit was 5 cents per share. On an adjusted basis for stock option expenses, earnings came to 7 cents per share. The company also posted revenue of $575 million for the period.

Malaysian airlines are expressing interest in China's C919 passenger jet, driven by growing air travel in Southeast Asia and significant delivery backlogs from competitors Airbus and Boeing, according to a report in the South China Morning Post. Malaysian Transport Minister Anthony Loke stated that the country's budget airlines are considering the C919. The aircraft, built by the Shanghai-based Commercial Aircraft Corporation of China (Comac), is being promoted by China as a more affordable alternative to established aircraft from Western manufacturers.

Chinese astronauts recently disclosed that an unexpected hardware problem on the Tiangong space station required an unrehearsed repair during their record-breaking nine-hour spacewalk at the end of 2024, the South China Morning Post said in a report. Shenzhou-19 mission commander Cai Xuzhe recounted the incident during a state broadcaster CCTV interview and had first mentioned it during a press conference on July 9. The event marked the first public appearance for Cai and his crewmates, Song Lingdong and Wang Haoze, since their mission.

Police in Macao have detained a man, identified by local media as a former pro-democracy advocate with the surname Au, on suspicion of colluding with outside forces in breach of the city's national security law, according to a report in AP. A police statement indicated the suspect allegedly collaborated with an 'anti-China group' outside Macao and provided 'false and seditious materials' for public display online or in other countries.

The US Federal Bureau of Investigation (FBI) has upgraded its legal attaché office in New Zealand, a move aimed at countering China's regional influence and tackling international crime, according to a report in Al Jazeera. The enhanced office will also expand its coordination with other Pacific Island nations. This development is part of a broader US strategy to strengthen alliances and increase its security presence in the Indo-Pacific in response to China's growing footprint. The upgrade signifies deeper security cooperation between the US and New Zealand, though it presents a balancing act for New Zealand given its significant trade relationship with China.

New World Development (NWD) is increasing its delivery of residential projects after raising more than HK$13 billion (US$1.7 billion) from selling luxury apartments in Hong Kong and mainland China, the South China Morning Post said in a report. This capital infusion comes as the developer undergoes the largest debt workout in its history, reflecting the severe financial pressures on the region's property sector. NWD also announced it will hold a sale for its ready-for-occupancy project, The Pavilia Forest in Kai Tak, in September.

The Hong Kong government has announced a new policy requiring the children of non-local talent to reside in the city for a minimum of two years to qualify for subsidized education benefits, according to a report in the South China Morning Post. This change, set to begin in the 2027-28 academic year, is aimed at preventing potential abuse of the system. The requirement applies to individuals under 18 holding dependent visas or entry permits, who must fulfill the two-year residency period before they can apply for local student status at publicly funded sub-degree and undergraduate programs.

Heavy flooding in the Miyun district on the outskirts of Beijing has resulted in at least 30 deaths, with residents now facing the costs of recovery with what is described as limited state support, as per a report in The Guardian. Many of those impacted by the floods, which residents said occurred without advance warning, do not have insurance to cover the damage to their homes. One resident recounted how floodwaters rushed into her home after neighbors warned of rising water levels on the street.

Taiwan's President Lai Ching-te has delayed a planned trip to Latin America, where he intended to reinforce ties with the country's remaining allies amid increasing diplomatic isolation from China, according to a report in The Guardian. While the Taiwanese government cited domestic issues such as natural disasters and tariff negotiations as the reason for the postponement, the delay follows reports that the US opposed a potential stopover for Lai in New York. The trip was seen as a crucial effort to shore up support in a region where several nations have recently switched diplomatic recognition to China, which considers Taiwan its territory.

A planned visit to Taiwan by US Senator Roger Wicker, the Ranking Member of the Senate Armed Services Committee, is being seen as a signal of continued US congressional support for the island, according to a report in Al Jazeera. The potential trip comes after Taiwanese President William Lai Ching-te canceled a tour of Latin America and amid reports of President Donald Trump's potential shift to a less interventionist stance on Taiwan. Beijing, which views Taiwan as its own territory under its 'One China Principle', is expected to condemn the visit, consistent with its strong diplomatic and military responses to past US delegations.

Chinese authorities have imposed an exit ban on a banker from Wells Fargo, prohibiting the individual from leaving the country, according to a report in CNN. The measure, which restricts international travel but is not a formal arrest, comes amid a backdrop of heightened geopolitical tensions between the US and China. This incident aligns with what observers note as an increasing use of such exit bans by Beijing on foreign businesspeople and occurs as the US State Department has previously warned American citizens about the risks of arbitrary detention in China.

Nvidia will resume sales of a key artificial intelligence chip to the Chinese market, a significant development amid ongoing US export controls on advanced technology, CNN says in a report. This move is understood not as a complete reversal of US policy, but rather an indication that Nvidia has engineered a chip that complies with the specific performance thresholds set by the US Commerce Department. The US restrictions are aimed at curbing China's access to high-performance semiconductors for technological and military advancement, and Nvidia had previously designed other downgraded chips to maintain its presence in the Chinese market.

U.S. President Donald Trump stated that a buyer for TikTok's U.S. operations has been found and that he will announce their identity in about two weeks, according to a report in CNN. The development follows the passage of a law in April 2024, signed by then-President Joe Biden, which mandates that the app's Chinese parent company, ByteDance, must divest its U.S. assets or face a ban. ByteDance is currently challenging the law's constitutionality in court.

China's finance ministry has earmarked an initial budget of 90 billion yuan ($12.54 billion) for childcare subsidy payments this year, according to a report in Reuters. The allocation follows a recent announcement of a new policy providing a subsidy of 3,600 yuan per year for every child until they reach the age of three. The report also notes that some experts believe the amount will likely be insufficient to significantly increase China's flagging birth rate.

China has put forward a proposal to establish a global group dedicated to the governance of artificial intelligence, as per a report in CNN. This initiative is presented as a multilateral approach to setting international norms and standards for the rapidly advancing technology. The move contrasts with the US strategy, which has focused more on domestic regulations, such as an executive order on AI from the former Biden administration, and partnerships with specific allies rather than endorsing a single, overarching global body. China's proposal comes amid a broader tech rivalry with the US and follows recent international discussions on AI safety.

An employer in China's Shaanxi province is facing public backlash after refusing to recognize a security guard's death as work-related and denying compensation to his family, according to a report in the South China Morning Post. The 50-year-old guard, surnamed Zhou, died on July 15 at his post in a residential community in Xi'an after arriving an hour early for his shift in a workplace that reportedly had no air conditioning. The company's refusal to acknowledge the death as work-related has led to widespread online criticism.

Voters in Taiwan have rejected a recall attempt against several Kuomintang (KMT) lawmakers described as favoring closer ties with mainland China, according to a report in CNN. The recall effort, which failed to achieve the necessary voter threshold, was seen as a significant political test following the January 2024 elections that resulted in a divided government. The opposition KMT, which advocates for dialogue with Beijing, is the largest party in the legislature, while the ruling Democratic Progressive Party (DPP) holds the presidency. The outcome is considered a setback for those pushing to remove the lawmakers and suggests a complex public opinion on how to manage relations across the Taiwan Strait.

A mother in China's Anhui province has gained online sympathy after being filmed delivering food with her sick four-year-old daughter inside the meal-carrying box on her electric bicycle, according to a report in the South China Morning Post. The 25-year-old mother, surnamed Zhu, was working in the summer heat while her daughter, who had a vein-detained needle in her hand and a chemo port on her chest, rode in the box. The incident, captured by an online influencer, highlights the woman's efforts to care for her child while working, reportedly to save on childcare costs.

Wuxi AppTec, described as Asia’s largest contract pharmaceutical research provider, has raised HK$7.70 billion (US$981 million) through an additional share sale in Hong Kong, the South China Morning Post says in a report. The Shanghai-based company sold 73.8 million new shares to institutional investors at a price of HK$104.27 each. This sale price represented a 6.9 per cent discount to the stock's closing price on the previous day.

China's cyberspace regulator summoned US tech firm Nvidia on Thursday over alleged security risks related to its H20 chips, according to a report in Reuters. The Cyberspace Administration of China said in a statement that it required Nvidia to provide an explanation for "backdoor vulnerability security risks" and to submit relevant documents. The H20 chip is a version of Nvidia's advanced AI processors that was specifically designed for the Chinese market to comply with US export restrictions.

The Hong Kong Monetary Authority (HKMA) maintained its base rate at 4.75% on Thursday, a move made in lockstep with the US Federal Reserve, the South China Morning Post said in a report. The decision followed the Fed's choice to leave its own target range between 4.25% and 4.5%. The US central bank stated it needed more time and data to monitor the potential inflationary impact of tariffs imposed by the administration of President Donald Trump.

The Hong Kong government has unveiled a 102-page business report, its first in four years, aiming to showcase the city's "Unique Strengths under ‘One Country, Two Systems’" to the world, as per a report in the South China Morning Post. According to commerce chamber chiefs and economists who responded to the report's release by Financial Secretary Paul Chan Mo-po, the document can serve as a useful reference for investors. However, they suggested it is unlikely to be sufficient to change the perceptions of those with preconceived views about the city, which are influenced by ongoing geopolitical tensions, and that investors will ultimately conduct their own independent research.

A top Republican lawmaker is set to lead a US congressional delegation to Taiwan, a visit that comes at a delicate time as China increases its military and political pressure on the self-governing island, according to a report in the Financial Times. The planned trip is viewed as a demonstration of US support for Taipei and occurs within the broader context of strategic competition between Washington and Beijing. China typically condemns such high-level visits, viewing them as a violation of its sovereignty claims over Taiwan and an interference in its internal affairs.

US President Donald Trump stated on Wednesday that negotiations with China regarding tariffs were "moving along well," without providing specific details about a potential agreement, according to a report in the South China Morning Post. Speaking to reporters at the White House, Trump expressed confidence in the process, saying, "I think it’s going to work out very well. We’re right in step … I think we’re going to have a very fair deal with China."

Hong Kong-based Silicon Motion Technology Corp. announced second-quarter earnings of $16.3 million, as per a report in AP. The chip company's net income was 49 cents per share, with adjusted earnings reaching 69 cents per share. These results surpassed the average Wall Street estimate of 52 cents per share, which was based on a survey of five analysts.

Samsung Electronics reported a 55% drop in its second-quarter operating profit, which stood at 4.7 trillion won ($3.37 billion), according to a report in Reuters. The company stated that the decline was driven by ongoing U.S. export curbs on advanced semiconductor sales to China, which have negatively impacted its key chip division. Delays in shipments of high-bandwidth memory chips were also cited as a contributing factor to the profit decrease.

In response to heightened military pressure from China, Taiwan is building up its own drone army to strengthen its defense capabilities, according to a report in Al Jazeera. This initiative is a central element of Taiwan's 'asymmetric' defense strategy, which aims to make an invasion by a larger power prohibitively costly. The development is influenced by the successful use of drones in the war in Ukraine and is part of a wider effort by Taipei to enhance its domestic defense industry. While the drone program is seen as a key step, some analysts have expressed concern that the current plans for the scale and sophistication of the fleet may not be sufficient to counter a full-scale attack.

Starbucks is seeking a strategic partner for its China operations and has received significant interest from more than 20 potential buyers, according to a report in the South China Morning Post. During a recent earnings call, Laxman Narasimhan said the company is looking for a partner with a 'like-minded vision and values' to help capture further growth opportunities. The announcement comes as the coffee chain's China business reported an 8% quarterly revenue jump, as the company regains momentum on the mainland.

China’s geriatric healthcare industry is projected to be worth 963 billion yuan (US$134 billion) over the next decade, as per a report in the South China Morning Post. This growth is attributed to a rapidly ageing population combined with an expanding middle class that has an increased willingness to spend on post-retirement healthcare. The analysis, based on a Goldman Sachs report, notes that wealthy Chinese consumers are expected to spend three times more than their peers on such services, indicating significant growth potential for the sector.

ByteDance's Douyin, the Chinese counterpart to TikTok, is set to intensify competition in China's instant commerce sector against established players including Alibaba Group Holding, JD.com, and Meituan, according to a report in the South China Morning Post. The company is merging its online shopping platform, Douyin Supermarket, with its Douyin Hourly Delivery service. This integration will utilize precise mapping and location services to facilitate rapid deliveries, positioning Douyin as a more formidable competitor in the market.