China

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Some US states are purging Chinese companies from their investments The scrapping of investments in Chinese companies follows tensions between the world's largest economies. Indiana, Florida and Missouri all have taken actions requiring their public retirement systems to divest from certain Chinese companies. A similar measure was vetoed this year in Arizona. Read more.

Why this matters: Between 2018 and 2022, U.S. public pension and university endowments invested about $146 billion in China, according to an analysis by Future Union, a nonprofit pro-democracy group. The report said more than four-fifths of U.S. states have at least one public pension fund investing in China and Hong Kong.   Some investment officials and economists have raised concerns that the emerging patchwork of state divestment policies could weaken investment returns for retirees. “Most of these policies are unwise and would make U.S. citizens poorer,” said Ben Powell, an economics professor and executive director of the Free Market Institute at Texas Tech University.

RELATED COVERAGE ➤ American flags should be born in the USA now, too, Congress says   US proposes rules to stop Americans from investing in Chinese technology with military uses   As North Korean and Chinese threats rise, US looks to lock in defense partnerships with Asian allies

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Facing budget crunches, Chinese tax collectors descend on companies Chinese authorities are chasing unpaid taxes from companies and individuals dating back decades, as the government moves to plug massive budget shortfalls and address a mounting debt crisis. Read more.

Why this matters: More than a dozen listed Chinese companies say they were slapped with millions of dollars in back taxes in a renewed effort to fix local finances that have been wrecked by a downturn in the property market that hit sales of land leases. Dozens of singers, actors, and internet celebrities were fined millions of dollars for avoiding taxes in the past few years, according to a review of government notices.   Local government debt is estimated at up to $11 trillion, including what’s owed by local government financing entities that aren’t included in official estimates.   The scramble to collect long overdue taxes shows the urgency of the problems and economists have long warned the situation is unsustainable, saying China must beef up tax collection to balance budgets in the long run.

RELATED COVERAGE ➤ Chinese businesses hoping to expand in the US and bring jobs face uncertainty and suspicion   US, Australia, Canada, Philippines stage naval and air force maneuvers in disputed South China Sea   Tesla is recalling more than 1.6 million cars in China for a remote software fix

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🇨🇳 Scoop: Sullivan to China

National security adviser Jake Sullivan will visit China next week to meet with Foreign Minister Wang Yi, three people familiar with the matter told Axios' Hans Nichols.

• Why it matters: The two officials are expected to lay the groundwork for a potential final meeting between President Biden and his Chinese counterpart, Xi Jinping, later this year, to follow up on their California summit last November.

After dropping out of the presidential race, Biden has indicated that he plans to spend more time on foreign affairs, including international travel.

• Both presidents are expected to attend the G-20 summit in Brazil after Election Day.

🔬 Between the lines: Sullivan's high-level visit, on Aug. 27-29, comes as the U.S. is heading into the home stretch of a presidential campaign in which both parties have adopted tough-on-China positions, especially on tariffs.

• Trump has proposed 60% tariffs on all Chinese imports, and has led both parties toward a more confrontational approach to Beijing.

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Chinese leader Xi meets US national security adviser as the two powers try to avoid conflict

BEIJING (AP) — Chinese leader Xi Jinping met with U.S. National Security Adviser Jake Sullivan on Thursday as the latter wound up a three-day visit with the stated aim of keeping communications open in a relationship that has become increasingly tense in recent years.

https://apnews.com/article/china-us-sullivan-xi-jinping-military-f309d86175fe4ba4a70dc7792591a5a5?

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China bus crash

 

A bus crashed into a crowd of students and parents outside a school in eastern China today, killing 11 people and injuring 13 others, according to police. The students were waiting to enter the gate of a middle school in the city of Tai'an in Shandong province when the bus slammed into them after 7 a.m. local time, state news agency Xinhua reported. The bus, specially customized for transporting students, "lost control" when it drove into an intersection, authorities said in a statement. The bus driver has been placed in police custody and the cause of the accident is being investigated.

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China’s halt of foreign adoptions leaves questions about pending cases

BEIJING (AP) — The Chinese government is ending its intercountry adoption program, and the U.S. is seeking clarification on how the decision will affect hundreds of American families with pending applications.

https://apnews.com/article/china-international-adoptions-7112b4ff7e68cca76a5edea310cb835b?

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China puts provisional tariffs on European brandy after EU OKs duties on Chinese EVs

BEIJING (AP) — Chinese drinkers may pay more for Remy Martin and other European brandies after the government announced on Tuesday provisional tariffs of 30.6% to 39% on those liquors, four days after a majority of European Union countries approved duties on electric vehicles made in China.

https://apnews.com/article/china-eu-tariffs-brandy-4fd38e01790bdc0c7191589fe946e7f7?

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China is bracing for fresh tensions with Trump over trade, tech and Taiwan  As the President-elect prepares to start his second term in office, China is bracing for unpredictability in its ties with the United States and renewed tensions over trade, technology and Taiwan. Read more.

Why this matters: Perhaps the biggest consequence for China — if Trump stays true to his campaign promises — is his threat to slap blanket 60% tariffs on all Chinese exports to the U.S. Tariffs like that would be a blow to China’s already unstable economy, which is suffering from high youth unemployment, a lengthy property slump and government debt. A 60% duty on Chinese imports could shave off 2.5 percentage points, or about half, of China’s projected economic growth, according to an analysis published earlier this year by UBS.   There is one scenario in which Trump has threatened to impose even higher tariffs — 150% to 200% — on Chinese goods: if China invades Taiwan. Trump angered Beijing in December 2016 by taking a congratulatory call from Taiwan’s then-president Tsai Ing-wen in a breach of diplomatic protocol. No U.S. president had spoken directly to a Taiwanese leader since Washington and Beijing established ties in 1979. That created anxiety in China-watching circles, but ultimately he stuck to supporting the status quo in relations between Taipei and Beijing.

RELATED COVERAGE ➤ China’s exports grew 12.7% in October, fastest pace in more than 2 years   50 European leaders assess how Trump will affect their fortunes. German crisis adds to challenges   Trump’s second term could realign US diplomacy toward authoritarian leaders

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Satellite images and documents indicate China working on nuclear propulsion for new aircraft carrier

BANGKOK (AP) — China has built a land-based prototype nuclear reactor for a large surface warship, in the clearest sign yet Beijing is advancing toward producing its first nuclear-powered aircraft carrier, according to a new analysis of satellite imagery and Chinese government documents provided to The Associated Press.

https://apnews.com/article/china-nuclear-aircraft-carrier-3e693365eb914324cc5e6b7dd33df73b?

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China hit-and-run

Thirty-five people were killed in southern China after a man plowed his car into crowds exercising at an outdoor sports center on Monday. It is the country's deadliest known attack on the public in a decade. Another 43 people were injured and hospitalized in the rampage in the city of Zhuhai, local police said Tuesday. A 62-year-old male driver was apprehended while trying to flee the scene, police said. An initial investigation suggested he was unhappy with the outcome of a divorce settlement, they added. Chinese leader Xi Jinping described the mass hit-and-run in Zhuhai as "extremely vicious," calling for the perpetrator to be severely punished in accordance with the law, state broadcaster CCTV reported.

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China’s aging population fuels ‘silver economy’ boom, but profits can prove elusive

HONG KONG (AP) — Every Wednesday, retiree Zhang Zhili travels an hour by bus to an education center, drawn by the pulsing rhythms of the African drum she plays there in a classroom filled with fellow retirees whose hands move in unison, every beat lifting her spirits.

https://apnews.com/article/china-elderly-aging-population-silver-b81916bc8fea7b9f251ec8565941e692?

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China bans exports to US of gallium, germanium, antimony in response to chip sanctions

BANGKOK (AP) — China announced Tuesday it is banning exports to the United States of gallium, germanium, antimony and other key high-tech materials with potential military applications, as a general principle, lashing back at U.S. limits on semiconductor-related exports.

https://apnews.com/article/china-us-tech-semiconductor-chip-gallium-6b4216551e200fb719caa6a6cc67e2a4?

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Record spacewalk

China says two of its astronauts completed a nine-hour spacewalk on Tuesday, breaking a US record. Cai Xuzhe and Song Lingdong, crew members of the Shenzhou-19 spaceflight, wrapped the nine-hour extravehicular activity  just before 10 p.m. Beijing time, according to the China Manned Space Agency. The previous record of eight hours and 56 minutes was set by US astronauts James Voss and Susan Helms on March 12, 2001, according to NASA. This comes as China has mounted a significant effort to establish itself as a major player in space: China is aiming to become the second country, after the US, to land on the moon and has already unveiled a spacesuit for the mission, set to take place by 2030.

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🇨🇳 Stealthy new warplane

The belly of the Chinese aircraft, seen in a handful of videos spreading on social media. Screenshot via X Footage showing a previously unseen Chinese warplane scrambled aviation geeks today, with some joking the clips were the perfect Christmas present. Why it matters: The aircraft emerges amid fiery debates about the future of airpower — manned versus unmanned, mainly — in the U.S. and abroad, Axios' Colin Demarest writes. Zoom in: Videos and photos flooding social media show a large, delta-wing-style aircraft with a cockpit chased by a J-20S fighter. Its design suggests stealth. Russian state media quickly amplified the visuals, dubbing it the "White Emperor." What to watch: Much remains unknown about the aircraft. Neither the Chinese government nor industry immediately took credit for the daytime flight.

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China’s Xi orders a stop to a spree of mass killings known as ‘revenge on society crimes’ China's leader Xi Jinping wants the recent spree of mass killings that shocked the country not to happen again. The attacks, where drivers mow down people on foot or knife-wielding assailants stab multiple victims, are not new in China. But the latest surge drew attention. Read more.

Why this matters: In November alone, three attacks took place: A man struck people at an elementary school in Hunan province after suffering investment losses. A student who failed his examination stabbed and killed eight at a vocational school in the city of Yixing. A man supposedly upset over his divorce mowed down a crowd in Zhuhai. While pinpointing the exact motive of such attacks can be difficult, there is an overwhelming feeling of being pressured within Chinese society, experts say.     Local officials were quick to vow to examine all sorts of personal disputes that could trigger aggression, from marital troubles to disagreements over inheritance. The increasing reach into people’s private lives raises concerns at a time when the Chinese state has already tightened its grip over all social and political aspects in the East Asian nation.   A decade ago, media outlets could report an incident as it developed and even share a suspect’s name. Nowadays, it's rarely possible. A tally of violent attacks can be documented in other countries; notably, the U.S. has had 38 mass killings so far this year, according to an Associated Press database. But in China, a lack of public data makes it hard to decipher mass killing trends.

RELATED COVERAGE ➤ China launches amphibious assault ship that can launch fighter jets   As China cracks down on bookstores at home, Chinese-language booksellers are flourishing overseas   German Christmas market ramming is the latest attack to use vehicles as deadly weapons

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China’s population falls for a third straight year, posing challenges for its government and economy

TAIPEI, Taiwan (AP) — China’s population fell last year for the third straight year, its government said Friday, pointing to further demographic challenges for the world’s second most populous nation, which is now facing both an aging population and an emerging shortage of working age people.

https://apnews.com/article/china-population-economy-growth-6415abe5e6422de26bd838b6bf0b7564?

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🇨🇳 China builds nuke-resistant bunker

Children ride tank-styled snow carts on artificial snow at a park in Beijing yesterday, on the second day of Lunar New Year. Photo: Aaron Favila/AP China's military is building a massive complex in western Beijing that would be the world's largest military command center — at least 10 times the size of the Pentagon, the Financial Times reports. Why it matters: The 1,500-acre construction site has "deep holes that military experts assess will house large, hardened bunkers to protect Chinese military leaders during any conflict — including potentially a nuclear war," per the FT. Major construction started in mid-2024. Some intelligence analysts are calling the project "Beijing Military City." "Chinese leaders may judge that the new facility will enable greater security against U.S. 'bunker buster' munitions, and even against nuclear weapons," a former senior U.S. intelligence official told the FT.

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China issued ‘disconcerting’ warning of live-fire exercises to planes flying above, Australia says

Airliners were over the Tasman Sea crossing between Australia and New Zealand when the Chinese navy warned they were flying over a secret live-fire exercise, Australian Defense Minister Richard Marles said on Friday.

https://apnews.com/article/australia-new-zealand-chinese-flight-diverted-08067898b342c350ce7ef7cec56717de?

Here’s why Chinese warships near Australia and New Zealand have prompted alarm

WELLINGTON, New Zealand (AP) — Leaders in Australia and New Zealand say China should have given them more warning before its navy conducted an unusual series of live fire exercises in the seas between the two countries, forcing flights to divert on short notice.

https://apnews.com/article/china-tasman-sea-australia-zealand-military-ships-822b6e993d93f27c1501139df5c9acd6?

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China will increase its defense budget 7.2% this year

TAIPEI, Taiwan (AP) — China said Wednesday it will increase its defense budget 7.2% this year, as it continues its campaign to build a larger, more modern military to assert its territorial claims and challenge the U.S. defense lead in Asia.

https://apnews.com/article/china-defense-budget-taiwan-4ac7cbdc7d5b889732cd55916ff7eb36?

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🔋 China's EV charging breakthrough

Illustration: Shoshana Gordon/Axios

China continues to raise the bar on electric vehicles: BYD unveiled a new EV platform that can be recharged about as fast as it takes to refuel a gasoline car, Axios automotive expert Joann Muller writes. Why it matters: Making EV charging as painless as visiting a gas station is one less hurdle for consumers, and could help spur widespread EV adoption. 🖼️ The big picture: The system — which the company claims can provide nearly 300 miles of driving range in 5 minutes — is a further sign of the growing dominance of BYD, while onetime EV leader Tesla's fortunes wane both in China and the rest of the world. "Tesla has definitely moved from leader to laggard in EV battery and charging technology," said Matt Teske, founder and CEO of Chargeway, a startup aiming to simplify EV charging.

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Xi makes a case for free trade, presenting China as a source of ‘stability and certainty’ China’s President Xi Jinping is making the case for free trade as he tours Southeast Asia this week. In Hanoi, Xi met with Vietnam’s Communist Party General Secretary To Lam, his counterpart, where he said the two countries “have brought the world valuable stability and certainty” in a “turbulent world.” Read more.

Why this matters: China and Vietnam signed a series of memorandums on cooperation in supply chains and a joint railway project, and Xi also promised greater access for Vietnamese agricultural exports to China, although few details were made public about the agreements.   U.S. President Donald Trump complained about the Vietnam meeting, which comes days after his tariffs upended global markets and left governments across the world scrambling. Reacting to the meeting Monday, Trump said China and Vietnam were trying “to figure out how do we screw the United States of America.”   The timing of the visit sends a “strong political message that Southeast Asia is important to China,” said Huong Le-Thu of the International Crisis Group think tank. She said that given the severity of Trump’s tariffs and despite the 90-day pause, Southeast Asian nations were anxious that the tariffs, if implemented, could complicate their development.

RELATED COVERAGE ➤ Confusion reigns after Trump exempts electronics from new tariff regime. Here’s what we know   Japanese warships will be the first to visit a Cambodian port where China funded upgrades   China is pursuing 3 alleged US operatives over cyberattacks during the Asian Games

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China seeks a united front with Latin America in countering Trump’s trade war China is moving to strengthen its alliances with other countries as a counterweight to President Donald Trump’s trade war, presenting a united front with Latin American leaders a day after China and the U.S. agreed to a 90-day truce in their tariffs stalemate. Read more.

Why this matters: China’s leaders have positioned the world’s second-largest economy as a reliable trade and development partner, in contrast to the uncertainty and instability from Trump’s tariff hikes and other policies. Still, Beijing’s ire over the trade war remains apparent.   Speaking to the China-CELAC, or Community of Latin American and Caribbean States, Forum, Chinese leader Xi Jinping announced plans to build closer ties with Latin America through political, economic, academic and security exchanges.   China’s trade with the region has been growing rapidly, exceeding $500 billion for the first time last year, as it imported more farm products such as soybeans and beef, energy resources such as crude oil, iron ore, and critical minerals. Beijing’s investments in the region through Xi’s Belt and Road Initiative, or BRI, have included installing 5G networks and building ports and hydropower plants.

RELATED COVERAGE ➤ World shares make modest gains as euphoria over China-US trade truce wavers   What’s next with Trump’s trade war truce with China   Sen. Paul points to business-sector resistance to Trump’s tariffs in solidly red Kentucky

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🧬 China's biotech boom

Illustration: Sarah Grillo/Axios

China is now setting the pace in medical research — conducting more clinical trials than the U.S. and licensing new discoveries to American companies, Axios' Adriel Bettelheim and Maya Goldman write. Why it matters: China has become a linchpin in global drug development, the result of a decade-long national strategy to develop a biopharmaceutical industry. Zoom in: China has surpassed the U.S. in drug clinical trials, according to a report from GlobalData, marking a turning point in the global race to dominate the life sciences. An independent, bipartisan commission told Congress last month that China is beating the U.S. in advanced biotech and that policymakers need to pour significant resources into the sector over the next five years to keep up. 👀 What we're watching: Some experts say the Trump administration's cuts to the National Institutes of Health and university-based biomedical research risk putting the U.S. further behind.

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China forms new global mediation group with dozens of countries Representatives of more than 30 other countries, from Pakistan and Indonesia to Belarus and Cuba, joined China on Friday in establishing an international mediation-based dispute resolution group. Read more.

Why this matters: The support of developing countries signaled Beijing’s rising influence in the global south amid heightened geopolitical tensions, partly exacerbated by U.S. President Donald Trump’s trade tariffs.

RELATED COVERAGE ➤ Japan’s Ishiba warns against tension over tariffs and vows to expand Asia-Pacific trade group   Macron will kick off Singapore security conference with Hegseth in attendance   US and allies accuse North Korea and Russia of flagrantly violating UN sanctions in military deals