China This Week: UN Innovation Ranking, Nvidia Chip Ban, TikTok Deal Talks
This week in China, we explore key shifts in its domestic and foreign policy landscape.
China Quote đ©
I have always advocated that we are not rejecting the West at all. We need to learn from Western methodologies, which are very important. But the concepts and theories generated by those tools often do not fit Chinaâs reality.
- Zheng Yongnian is a leading political scientist and government adviser in China
Economic ActivityđŠ
China Allows American Banker Placed Under Exit Ban to Leave Country
CNN reports that Wells Fargo executive Chenyue Mao, a U.S. citizen born in China, has been released from an exit ban following talks between Washington and Beijing. The case had become a point of tension, with the U.S. warning of Beijingâs arbitrary enforcement of laws. Her release comes ahead of a TrumpâXi call and soon after a new executive order enabling penalties against countries that wrongfully detain Americans.
How China Is Losing Its Title as the Worldâs Sneaker Factory
New York Times reports that Vietnam has overtaken China as the leading exporter of sneakers for brands like Nike, Adidas and Brooks. Factories around Ho Chi Minh City now produce most of the worldâs soles, laces and insoles, while Chinaâs role is shifting to domestic sales. Rising tariffs and Covid-19 supply chain shocks have accelerated the move, with companies aiming to cut reliance on China despite its dominance in raw materials.
U.S. Investors, Trump Close In on TikTok Deal With China
Wall Street Journal reports that a consortium including Oracle, Silver Lake and Andreessen Horowitz is set to take an 80 percent stake in TikTokâs U.S. operations. The deal, being finalised with Beijing, would create a new U.S. entity to run the app, with Chinese investors holding the rest. Negotiations in Madrid signal both sides are close to agreement ahead of a planned TrumpâXi call.
China Drops Google Antitrust Probe During US Trade Talks
Financial Times reports that Beijing has ended its antitrust investigation into Googleâs Android system as trade talks with Washington intensify over TikTok, Nvidia and tariffs. Regulators have shifted their focus to Nvidia, accused of antitrust violations in its Mellanox acquisition. Dropping the case is seen as a gesture to ease tensions ahead of a TrumpâXi call, even as Googleâs services remain blocked in China.
âDramaticâ Nasdaq Rules Would Upgrade China Listings, Spur Solutions
Forbes reports that Nasdaq has proposed tougher listing standards, raising the minimum public float for Chinese companies from $5 million to $25 million. The move follows weak IPO performance in 2024 and aims to protect investors. Analysts expect a rush of listings before the rules take effect, while others may turn to alternatives such as NYSE American, Singapore, or SPAC mergers.
China Rare-Earth Exports Hit Highest Since at Least 2012
Bloomberg reports that Chinaâs rare-earth exports surged to 7,338 tons in August, the highest monthly total in over a decade. Shipments had collapsed earlier this year after Beijing imposed controls amid a trade war with Washington. The rebound comes just before a planned TrumpâXi call, underlining the strategic role of rare earths in consumer goods and defence.
Inside Chinađ
Chinaâs âTemple Economyâ in the Spotlight as Scandals Rock Influential Religious Leaders
The Guardian reports that a wave of scandals involving prominent Buddhist monks has shaken Chinaâs lucrative temple economy. Shaolin abbot Shi Yongxin, once known as the âCEO monkâ, has been dismissed and stripped of his monkhood after allegations of embezzlement and fathering illegitimate children. Other temples face fraud probes and viral criticism over displays of wealth, reflecting Beijingâs broader crackdown on excess and corruption.
China and the Worldđ
China's defence minister urges greater unity to avoid 'law of the jungle'
Reuters reports that Defence Minister Dong Jun warned against a divided world driven by âmight is rightâ at the Beijing Xiangshan Forum. He said Chinaâs military strength would act as a force for peace but stressed that Beijing would not allow any Taiwanese separatist attempts. Dongâs remarks were more hawkish than last year and echoed Xi Jinpingâs recent calls against âhegemonism.â Ministers from Singapore and Malaysia also cautioned against escalating tensions, urging respect for international law in the South China Sea.
EU, China Parliaments Aim to Hold Their First Talks in 7 Years on October 16
South China Morning Post reports that the European Parliament and Chinaâs National Peopleâs Congress will meet in Brussels on 16 October, the first official dialogue since 2018. The session, expected to become a biannual exchange, follows a thaw in relations after mutual sanctions were lifted earlier this year. European Parliament President Roberta Metsola has led the reset, though tensions remain over Beijingâs ties with Russia and its stance on Taiwan.
Bessent, Chinese Vice Premier to Meet in Madrid Next Week on Trade, TikTok
Reuters reports that U.S. Treasury Secretary Scott Bessent will meet Chinese Vice Premier He Lifeng in Madrid to discuss trade, TikTok and financial security issues. The talks, part of Bessentâs trip to Spain and Britain, mark the fourth major meeting between the two officials this year, aimed at maintaining a tariff truce and addressing money laundering. Agriculture and technology remain sticking points, while TikTok faces a U.S. divestment deadline on 17 September.
South Korea Should Side With China as Bulwark Against âRampantâ Bullying in Trade: Wang Yi
South China Morning Post reports that Chinese Foreign Minister Wang Yi has urged South Korea to join China in opposing trade protectionism, calling unilateral actions by the U.S. ârampant bullyingâ. At talks in Beijing with his South Korean counterpart Cho Hyun, Wang stressed the importance of deepening cooperation while handling sensitive issues. Cho requested Beijingâs help in restarting dialogue with Pyongyang, while the visit is seen as paving the way for Xi Jinping to attend the APEC summit in South Korea in late October.
UK Government âDisappointedâ Charges Dropped Against Men Accused of Spying for China
The Guardian reports that prosecutors have dropped espionage charges against Christopher Cash, a parliamentary aide, and Christopher Berry, who were accused of breaching the Official Secrets Act by passing information to China. The Crown Prosecution Service said it could not proceed with the case, sparking criticism from ministers and MPs concerned about Chinese espionage. Security Minister Dan Jarvis said the decision was independent and noted new legislation now strengthens the UKâs ability to prosecute future state threat cases.
China Allows American Banker Placed Under Exit Ban to Leave Country
CNN reports that Wells Fargo executive Chenyue Mao, a U.S. citizen born in China, has been released from an exit ban following talks between Washington and Beijing. The case had become a point of tension, with the U.S. warning of Beijingâs arbitrary enforcement of laws. Her release comes ahead of a TrumpâXi call and soon after a new executive order enabling penalties against countries that wrongfully detain Americans.
Pentagon Plan Prioritises Homeland Over China Threat
Politico reports that a draft National Defence Strategy proposes shifting U.S. military priorities toward protecting the homeland and Western Hemisphere, moving away from deterring China. The plan, awaiting Defence Secretary Pete Hegsethâs approval, contrasts sharply with the 2018 strategy that labelled Beijing Americaâs greatest rival. While the Pentagon maintains tough rhetoric on China, the draft emphasises domestic deployments, regional missions and urging allies to take more responsibility for their own security.
China Says It Fired Water Cannon at Philippine Ships in South China Sea
NBC News reports that Chinaâs Coast Guard used water cannon against Philippine vessels near the disputed Scarborough Shoal, accusing Manila of an illegal incursion and ramming a Chinese ship. The Philippine Coast Guard denied the claims, saying its vessels were on a humanitarian mission to support fishermen and faced âaggressive actionsâ from Chinese ships. The clash comes days after Beijing declared the shoal a national nature reserve, escalating a long-running sovereignty dispute in the South China Sea.
China Tests an Express Route to Europe Through a Thawing Arctic
Politico reports that China will send a container ship on an 18-day voyage via Russiaâs Northern Sea Route, aiming to establish a regular Arctic shipping service between Asia and Europe. The test reflects how melting ice from climate change is opening shorter trade lanes, though analysts say volumes remain tiny compared with routes through the Suez Canal. Experts warn of environmental risks from heavy fuel use and limited spill response, while Beijing frames the experiment as long-term positioning for future trade and logistics advantages.
âClaims of Surrender Are Falseâ: Taiwan Updates Security Handbook Wary of China Threat
Reuters reports that Taiwan will issue an updated civil defence handbook to prepare citizens for emergencies, including the possibility of a Chinese invasion. The guide stresses that any reports of surrender should be treated as false and offers instructions on finding bomb shelters, assembling emergency kits and dealing with misinformation campaigns. Officials say the handbook draws lessons from Ukraineâs war and highlights risks from Chinese-made technologies, aiming to strengthen public resilience amid growing military pressure from Beijing.
Tech in Chinađ„ïž
China Replaces Germany in UNâs Top 10 Most Innovative Nations
Business Times reports that China has entered the UNâs Global Innovation Index top 10 for the first time, overtaking Germany. The 2025 survey ranks Switzerland first, followed by Sweden, the US, South Korea, Singapore, the UK, Finland, the Netherlands, Denmark and China in 10th place. The index highlights Chinaâs rapid growth in private-sector R&D, putting it on track to become the worldâs largest spender, as well as its dominance in international patent applications. However, the global outlook for innovation is clouded by slowing R&D investment, expected to grow at its weakest pace since the 2008 financial crisis.
China Bans Tech Firms from Buying Nvidiaâs AI Chips
Financial Times reports that Chinaâs Cyberspace Administration has ordered major tech companies, including ByteDance and Alibaba, to stop testing and purchasing Nvidiaâs RTX Pro 6000D, the last AI chip the US firm was allowed to sell in large volumes in the country. The move expands earlier curbs on Nvidiaâs H20 chip and follows regulatorsâ assessment that Chinese processors are now comparable in performance. The decision is part of Beijingâs push to reduce reliance on US suppliers and accelerate domestic chip production, even as Nvidiaâs shares fell 3 per cent on the news.
Huawei touts âworldâs most powerfulâ AI chip cluster as Nvidiaâs China challenges mount
CNBC reports that Huawei has unveiled plans for its new Atlas 950 SuperCluster, claiming it will surpass Nvidiaâs upcoming systems in computing power. Built on its in-house Ascend chips, the cluster will scale up to more than 500,000 chips, with a future Atlas 960 version exceeding 1 million by 2027. Huawei says its system will deliver 6.7 times more computing power than Nvidiaâs NVL144, though analysts caution the company may be overstating capabilities. The move underscores Chinaâs push for semiconductor self-reliance amid U.S. restrictions and follows Beijingâs order for tech giants to stop purchasing Nvidiaâs RTX Pro 6000D.
A Chinese firm has just launched a constantly changing set of AI benchmarks
MIT Technology Review reports that HongShan Capital Group has released Xbench, a new benchmarking system for AI models designed to stay relevant through regular updates. Originally created to evaluate investment opportunities, Xbench is now partly open-source and features a public leaderboard. Unlike conventional tests, it combines academic-style evaluations with real-world tasks such as recruitment and marketing. The system also includes specialised components like ScienceQA and DeepResearch, which test reasoning, factual accuracy and research skills in Chinese-language contexts. Developers plan quarterly updates and future expansions into finance, legal and design tasks.
Decypher Data Diveđ
China has entered the Global Innovation Index (GII) top 10 for the first time, standing out as the global leader in knowledge and technology outputs. It is the only middle-income economy among the top 30.
Image of the Weekđž
Hong Kongâs Central throughout the 1900s
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Data By Bhupesh
Edited By Aurko
Produced by Decypher Team in New Delhi, India
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