China This Week: GDP Beats Forecasts, Xi Courts South East Asia, Zelenskyy Alleges Arms to Russia
This week's Beyond the Great Wall provides an overview of key developments within China, along with insights into its foreign affairs.
China Quote 🗩
“[This is] to meet the country’s major needs, provide theoretical support for borderland governance and deconstruct the Western theoretical discourse on China’s borderlands from an academic and theoretical perspective,”
Xing Guangcheng, director of the Institute of Chinese Borderland Studies at the Chinese Academy of Social Sciences in Beijing
Economic Activity🏦
China's Q1 GDP Growth Beats Expectations Amid Escalating Trade Tensions
CNBC reports that China's economy grew by 5.4% year-on-year in the first quarter of 2025, surpassing expectations due to strong domestic consumption and industrial output. However, analysts caution that the recent escalation in the U.S.-China trade war, with the U.S. imposing tariffs up to 145% on Chinese goods and China retaliating with 125% duties, could significantly impact future growth. Economists have revised China's 2025 growth forecasts downward, with UBS projecting a slowdown to 3.4%, citing the unprecedented challenges posed by the trade tensions.
Aboard the 'Silver Trains', China's Retirees Do Their Bit to Offset Trump's Tariffs
Stephen McDonell writes in BBC that China is encouraging domestic consumption among retirees through the "silver trains" initiative, aimed at boosting local economies in remote regions. As Beijing braces for economic fallout from U.S. tariffs, the government is tapping into retirees' savings and free time, offering senior-friendly train tours to underdeveloped areas. While symbolic, the scheme reflects China’s strategy to address sluggish spending and a rapidly ageing population.
Why China Curbing Rare Earth Exports Is a Blow to the US
Ayeshea Perera writes in BBC that China's restrictions on rare earth mineral exports, crucial for high-tech and defence applications, have exposed America's heavy dependence on Chinese supplies. As the US struggles to scale up domestic production and processing, the curbs—part of China's broader retaliation in the trade war—threaten to disrupt sectors from EVs to missile systems. Experts warn of production delays, soaring costs, and strategic vulnerabilities, especially as China controls over 90% of global rare earth refining.
Inside China🐉
Former Head of China Geological Survey Sentenced to 13 Years for Bribery and Leaking State Secrets
China Daily reports that Zhong Ziran, former head of the China Geological Survey, has been sentenced to 13 years in prison for accepting over 23.56 million yuan in bribes and leaking state secrets. The court found that between 2011 and 2023, Zhong exploited his positions to benefit individuals and departments in exchange for bribes.
Former Chinese Agricultural Minister Prosecuted for Bribery
Cao Yin writes in China Daily that Tang Renjian, former Minister of Agriculture and Rural Affairs, has been formally prosecuted for bribery in Changchun, Jilin province. Prosecutors allege that Tang exploited his senior roles—including as governor of Gansu and deputy head of the central economic affairs office—to accept large sums in exchange for favours. He was expelled from the Communist Party and removed from office in late 2024 following an internal investigation.
China Steps Up Measures to Combat Illegal Fishing, Officially Joins PSMA
China Daily reports that China has formally joined the UN’s Agreement on Port State Measures (PSMA), reinforcing its commitment to combat illegal, unreported, and unregulated fishing. The move enables China to deny port access to foreign vessels engaged in illicit activities and aligns its fisheries law with international standards to enhance marine resource protection.
China and the World🌏
Xi Makes a Case for Free Trade, Presenting China as a Source of 'Stability and Certainty'
AP News reports that Chinese President Xi Jinping, during his Southeast Asia tour, positioned China as a stabilizing force amid global economic turbulence. In Malaysia, Xi proposed a free trade agreement between China and ASEAN, emphasizing cooperation in green technology and AI. The visit underscores China's strategic intent to strengthen regional partnerships in contrast to shifting U.S. economic policies.
China’s Xi Aims to ‘Screw’ US on Southeast Asia Tour, Says Trump
The Guardian reports that Chinese President Xi Jinping signed a series of economic cooperation deals with Vietnam during his Southeast Asia tour, including agreements on trade and supply chains. In response, U.S. President Donald Trump accused Xi of attempting to "screw the United States" amid intensifying trade tensions. The visit underscores Beijing’s push to deepen regional ties as Washington ramps up tariffs across Asia.
"Stop Threatening and Blackmailing": China's Message on Tariffs for Trump
Agence France-Presse writes in NDTV that Beijing has urged Washington to cease "threatening and blackmailing" tactics after President Trump stated it was up to China to initiate trade negotiations. In response to the U.S. imposing 145% tariffs on Chinese imports, China has retaliated with 125% tariffs on U.S. goods. Chinese Foreign Ministry spokesperson Lin Jian emphasized that while China does not seek a trade war, it is prepared to defend its interests, advocating for dialogue based on equality and mutual respect.
China Names New Hardline ‘Bulldog’ Trade Negotiator
Australian Financial Review reports that China has appointed Li Chenggang, a seasoned WTO negotiator known for his combative style, as its new vice-minister for international trade. Li replaces Wang Shouwen amid escalating tensions with the U.S., marking a strategic shift towards a more aggressive trade posture. His appointment comes as China grapples with sweeping American tariffs and seeks to harden its negotiating stance.
Lithuanian PM Seeks to Restore Diplomatic Relations with China
Euractiv reports that Lithuanian Prime Minister Gintautas Paluckas aims to normalise ties with China, calling the previous government's decision to allow a Taiwanese representative office a "grave diplomatic mistake." Paluckas has not disclosed plans regarding the office's future. The move follows strained relations since 2021, when China downgraded diplomatic ties and imposed trade restrictions after Lithuania permitted Taiwan to open an office in Vilnius under the name "Taiwanese Representative Office."
Kenyan President Ruto to Visit China from April 22 to 26
CGTN reports that Kenyan President William Ruto will undertake a state visit to China from April 22 to 26, at the invitation of Chinese President Xi Jinping. The visit aims to bolster bilateral relations and explore avenues for enhanced cooperation between the two nations.
China Accuses UK Politicians of 'Arrogance' in British Steel Row
Jasper Jolly writes in The Guardian that China's embassy has condemned UK politicians for their "arrogance, ignorance and twisted mindset" following criticism of Jingye, the Chinese owner of British Steel. The rebuke came after UK Business Secretary Jonathan Reynolds accused Jingye of threatening to shut down Scunthorpe's blast furnaces, risking 2,700 jobs. In response, the UK government enacted emergency legislation to maintain control over the plant. Jingye defended its record, asserting it had preserved jobs and invested in the facility, and urged the UK to respect its rights as a foreign investor.
China Accuses U.S. of Launching Advanced Cyberattacks, Names Alleged NSA Agents
The Straits Times reports that China has publicly accused the United States of conducting sophisticated cyberattacks on critical Chinese institutions, including Huawei. Beijing named specific individuals allegedly linked to the NSA, claiming they were involved in cyber-espionage operations. The move signals escalating cyber tensions between the two powers, as China seeks to highlight U.S. involvement in global digital surveillance.
Ukraine Parades Captured Chinese Soldiers to Refute Beijing's Denial
Abhishek Chakraborty writes in NDTV that Ukraine has publicly presented two Chinese nationals captured while fighting alongside Russian forces in Donetsk. This action, approved by President Zelensky, contravenes international humanitarian law but aims to challenge China's denial of its citizens' involvement in the conflict. The move underscores Kyiv's frustration with Beijing's stance and seeks to draw international attention to the issue.
Ex-NYPD Officer Sentenced for Role in China’s Operation Fox Hunt
AP News reports that former New York police sergeant Michael McMahon has been sentenced to 18 months in prison for acting as an illegal foreign agent and participating in a Chinese transnational repression scheme. Linked to Beijing’s Operation Fox Hunt, McMahon stalked a Chinese dissident in New Jersey under the guise of a private investigation. Despite claims of being misled, the court emphasised the national security implications of his actions.
US Shuts Down Office Countering Disinformation from Russia, China, and Iran
AP News reports that U.S. Secretary of State Marco Rubio has closed the State Department's Global Engagement Center, which was responsible for countering disinformation from adversaries like Russia, China, and Iran. Rubio argued that the centre infringed upon free speech by targeting U.S. media and social media accounts. Former State Department spokesman Ned Price criticised the move, describing it as a misrepresentation of the centre's mission.
US Says Chinese Firm Is Helping Houthis Target American Warships
Demetri Sevastopulo writes in Financial Times that U.S. officials have accused Chinese satellite company Chang Guang Satellite Technology Co Ltd (CGSTL), which has links to the People’s Liberation Army, of supplying imagery to Iran-backed Houthi rebels in Yemen to target American warships in the Red Sea. Despite repeated warnings, Washington claims Beijing has ignored concerns. The allegations come amid deepening U.S.-China tensions and highlight China's growing role in global surveillance and dual-use satellite technology.
China's Y-20 Aircraft Arrival in Egypt Sparks U.S. Concern
Boyko Nikolov writes in Bulgarian Military that the recent arrival of China's Y-20 heavy transport aircraft in Egypt has raised alarms in Washington. The deployment, seen as a strategic move to expand China's military footprint in the Middle East, has prompted concerns over Beijing's growing influence in a region traditionally under U.S. strategic purview. Analysts suggest this development could signal a shift in regional power dynamics and challenge existing alliances.
China Is Supplying Weapons to Russia, Zelenskyy Says
Veronika Melkozerova writes in Politico that Ukrainian President Volodymyr Zelenskyy has accused China of covertly providing weapons, gunpowder, and artillery to Russia, citing intelligence from Ukrainian security services. Although Beijing claims neutrality and denies arming Moscow, Zelenskyy stated that facts contradict earlier assurances from President Xi. The revelations come amid escalating geopolitical scrutiny of China’s defence partnerships.
Is Donald Trump Channeling Liz Truss and Chairman Mao?
Washington Monthly reports that President Donald Trump’s economic policies in his second term—marked by sweeping tariffs and executive orders—have led to over $5.4 trillion in market losses, raising fears of stagflation. His rhetoric and approach have drawn comparisons to Liz Truss’s failed UK premiership, Mao Zedong’s radicalism, and Marie Antoinette’s detachment. Critics warn of severe political and economic repercussions.
Chinese Couple Shot in Rome Amid Escalating Chinese Mafia Turf War
CNN reports that a Chinese couple was fatally shot in Rome, highlighting a violent escalation in turf wars among Chinese criminal groups operating in Italy. The victims, linked to rival Chinese mafia factions, were targeted in what authorities describe as a professional hit. This incident underscores the growing influence of Chinese organized crime in Europe, particularly in cities like Prato and Rome, where these groups are vying for control over illicit activities such as extortion, labor exploitation, and illegal gambling.
Nvidia Chief Jensen Huang Flies into Beijing for Talks
Financial Times reports that Nvidia CEO Jensen Huang visited Beijing on Thursday amid heightened U.S. scrutiny over the company's chip sales to China. The trip comes as Washington tightens export controls on advanced semiconductors, impacting Nvidia's business in the region. Huang's visit underscores the company's efforts to navigate the complex geopolitical landscape affecting the tech industry.
Nvidia Warns of $5.5 Billion Loss Amid U.S. Crackdown on AI Chip Exports to China
Yahoo Finance reports that Nvidia anticipates a $5.5 billion revenue hit due to new U.S. export restrictions on its H20 AI chips to China. The U.S. government's tightened controls aim to prevent China's advancement in AI and military technologies. This move has led to a significant drop in Nvidia's stock and heightened concerns over escalating U.S.-China trade tensions.
China's Boeing Ban May Benefit Indian Airlines
Nikkei Asia reports that China's suspension of Boeing aircraft deliveries, in retaliation to U.S. tariffs, could advantage Indian airlines. With Chinese carriers halting new Boeing orders, Indian airlines like IndiGo and Air India may gain better access to aircraft slots and negotiate favourable terms, aiding their expansion plans amid surging domestic and international travel demand.
Intel Will Need License to Export AI Chips to Chinese Clients: FT
Business Times reports that Intel has informed Chinese clients that certain high-bandwidth AI chips will now require a U.S. export license, aligning with recent trade restrictions. The move follows Washington's curbs on Nvidia’s H20 processors and reflects growing limits on semiconductor exports to China. Intel’s shares fell over 3% as the chip sector grapples with mounting trade and regulatory pressures under Trump’s renewed tariff policies.
China Leads Green Energy Transition in Antarctic Exploration
CGTN reports that China has commissioned its first large-scale renewable energy system at the Qinling Station in Antarctica. The hybrid system, activated in March, supplies over 60% of the station's power needs, reducing reliance on fossil fuels. A 12-year roadmap for clean energy development in the region has also been released, aiming to guide future sustainable initiatives.
Tech in China🖥️
China Launches World's First AI-Powered Underwater Data Centre
Nigel Pereira writes in Sify that China has unveiled the world's first commercial AI-powered underwater data centre off Hainan Province. Housing over 400 high-performance servers, the facility leverages oceanic cooling to reduce energy consumption and environmental impact. It can process over 7,000 DeepSeek AI queries per second, including AI model training and industrial simulations.
Alibaba’s Quark Surpasses ByteDance’s Doubao, DeepSeek as China’s Top AI App
Ben Jiang writes in South China Morning Post that Alibaba's AI assistant app, Quark, has become China's most popular AI app, recording nearly 150 million monthly active users in March. This marks a significant rise from its origins as a cloud storage and search service. ByteDance’s Doubao and DeepSeek followed with approximately 100 million and 77 million users, respectively. Globally, Quark ranks sixth among AI apps by user base, trailing OpenAI’s ChatGPT and Microsoft’s Edge browser.
Huawei Launches New AI Architecture Said to Rival Nvidia's Products
South China Morning Post reports that Huawei Technologies has introduced the CloudMatrix 384 Supernode, an AI infrastructure architecture designed to address computing bottlenecks in data centres. This system reportedly achieves 300 petaflops of computing power, surpassing Nvidia's NVL72 system, which offers 180 petaflops. The CloudMatrix 384 Supernode is currently deployed in Huawei's data centres in Wuhu, Anhui province.
Image of the Week📸
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