China This Week: US Seeks G7 Tariffs on China & India, PLA Rocket Force Purge, First US House Visit in 6 Years
This week in China, we explore key shifts in its domestic and foreign policy landscape as well as a closer look at China's show of force at their military parade.
China Quote đ©
âChina Unicom, China Mobile and China Telecom will provide eSIM support, with specific timing subject to regulatory approval. Until then, Apple will not be able to launch the new iPhone Air in China.â
â Apple Statement
Economic ActivityđŠ
US to push G7 for tariffs on China and India over Russian oil
Financial Times reports that Washington will urge G7 allies to impose tariffs of up to 100% on China and India for purchasing Russian oil, part of President Trumpâs bid to force Moscow into Ukraine peace talks. The US Treasury said Beijing and Delhiâs imports were âfunding Putinâs war machine.â EU officials are cautious, citing economic risks and ongoing trade talks with India, but discussions will include tougher sanctions on Russian energy and efforts to accelerate Europeâs exit from Russian gas. Canada, holding the G7 presidency, confirmed the call for coordinated new measures.
Mexico to raise tariffs on Chinese cars to 50%
Reuters reports that Mexico will hike tariffs on cars from China and other Asian countries without trade deals to 50%, up from the current 20%. The Economy Ministry said the overhaul, covering $52 billion in imports across sectors including textiles and steel, is aimed at protecting 325,000 jobs. Analysts say the move is also intended to appease US pressure to curb Chinese economic influence in Latin America. Chinaâs foreign ministry opposed the decision, warning it would defend its rights.
China Bets Big on Thai Industrial Cluster With US$8.4 Billion Investment
China will invest about US$8.4 billion to develop an industrial cluster in Thailand, focused on electric vehicles, batteries, electronics, and green energy. The project, part of the Eastern Economic Corridor, signals Beijingâs strategy to deepen Southeast Asian ties amid U.S.-China tensions. Analysts say it could make Thailand a regional hub for Chinese manufacturing supply chains, while boosting local jobs and technology transfer.
Chinaâs Rich Exit Singapore as Wealth Rules Tighten
CNBC reports that wealthy Chinese families are pulling money out of Singapore as tighter regulations, tax scrutiny, and compliance demands erode its appeal as a safe haven. Once attractive for its stability, family-office regime, and Mandarin-friendly environment, Singapore is losing ground to alternatives like Hong Kong, Dubai, and Tokyo.
China Aims to More Than Double Energy Storage Capacity by 2027
Bloomberg reports that China plans to expand its battery storage capacity to over 180GW by 2027, up from 76.9GW in March. The initiative, led by the National Development and Reform Commission and the National Energy Administration, is expected to drive 250 billion yuan ($35.1 billion) in investment. The push focuses on ânew typeâ battery storage, distinct from hydro-pumped systems, to support grid integration of intermittent solar and wind power. China is already the worldâs largest battery storage market.
Inside Chinađ
PLA Rocket Force Bans Nearly 200 Suppliers and Evaluators After Corruption Probe
SCMP reports that Chinaâs PLA Rocket Force has blacklisted 74 bid evaluators and 116 suppliers over procurement violations dating back to 2016, including collusive bidding, forgery and biased scoring. The crackdown, part of Xi Jinpingâs wider anti-corruption drive following the downfall of ex-defence minister Li Shangfu, highlights persistent problems in the militaryâs procurement system, even involving state-owned enterprises and defence-linked universities.
China Opens Worldâs Longest Cable-Stayed Bridge
Travel and Tour World reports that China has inaugurated the 10.3km Changtai Yangtze River Bridge, linking Changzhou and Taizhou in Jiangsu Province. The multi-level structure integrates an expressway, regular road, and intercity railway, cutting travel time between the cities from over an hour to 20 minutes. With a 1,208-metre main span, the bridge surpasses Russiaâs Russky Bridge as the longest cable-stayed bridge in the world and is expected to drive tourism and regional growth.
Harvard Mathematician Liu Jun Returns to China
SCMP reports that Liu Jun, one of the worldâs leading statisticians and a longtime Harvard professor, has left the US to take up a chair at Tsinghua University. Liu stressed his move was for family reasons and his bond with Tsinghua, where he was born, and âhad nothing to do with Trumpâ or US politics. His return has sparked debate amid falling numbers of Chinese students in America and Beijingâs growing pull on global science talent.
China Censors Popular Rednote App
The Times reports that Beijing has abruptly restricted Rednote, a TikTok-style short-video app that had surged in popularity among young Chinese users. Authorities cited concerns over âimproper contentâ and national security, with analysts suggesting the move reflects tightening control of online culture ahead of sensitive political meetings. The crackdown underscores Chinaâs pattern of abruptly curbing platforms that gain mass traction outside state-approved narratives.
China and the Worldđ
US House Delegation to Visit China for First Time Since 2019
NBC News reports that a bipartisan group of House lawmakers, led by Rep. Adam Smith (D-WA), will travel to China later this month in the first official House visit since 2019. The trip, organized by the Armed Services Committee, comes amid heightened tensions following the Xi-Putin-Kim military parade in Beijing. Smith said the goal is to reopen dialogue: âMerely talking with China is not endorsing everything that they do.â Details, including whether the delegation will meet Xi Jinping, remain undisclosed. The CODEL will also stop in Cambodia but not Taiwan.
China Approves Nature Reserve at Disputed South China Sea Shoal
ABC News reports that Beijing has established a national nature reserve at Scarborough Shoal, a territory also claimed by the Philippines. The State Council said the reserve would help preserve biodiversity, though details will follow. The move comes amid recent clashes between Chinese and Philippine vessels near the shoal and joint military drills by the Philippines, Australia, and Canada.
China, Russia, Mongolia Hold First Joint Border Defence Exercise
Anadolu Agency reports that the three countries held their inaugural joint border defence drill, Border Defence Cooperation 2025, on Sept. 8â9 where their borders converge. The exercise focused on counterterrorism, anti-sabotage operations, and strengthening coordination. A joint command post was set up in China, with forces conducting planning, reconnaissance, and strikes to test new models of collaboration.
Chinaâs Fujian Carrier Leaves Port, Signalling Imminent Commissioning
SCMP reports that Chinaâs third aircraft carrier, the Fujian, has departed its Shanghai shipyard after months of maintenance, fuelling speculation it will soon enter service. The vessel â the countryâs first electromagnetic catapult carrier â has completed eight sea trials since May 2024 and was recently displayed in themed state promotions. Observers suggest it could be commissioned on September 18 or October 1, marking the start of Chinaâs âthree-carrier era.â
Zambia Presses China for More Compensation Over Toxic Mine Spill
BBC reports that Zambia may demand further compensation from Sino-Metals Leach Zambia after a February dam collapse spilled 1.5m tonnes of toxic waste into the Kafue River. The Chinese state-owned subsidiary initially pledged $580,000, but Vice-President Mutale Nalumango said payouts must follow an independent assessment. The spill, containing heavy metals like arsenic and lead, killed fish, crops and livestock, with residents still reporting health issues. Embassies have issued health warnings, while Zambia has banned fishing and deployed the air force to treat the river.
Tech in Chinađ„ïž
Alibaba, Baidu Begin Using Own Chips to Train AI Models
Reuters reports that Alibaba and Baidu have started training AI models with in-house chips, partly replacing Nvidia processors. Alibaba has applied its chips to smaller models since early 2025, while Baidu is testing its Kunlun P800 chip for new versions of its Ernie model. The shift comes amid tighter U.S. export restrictions and Beijingâs push for self-reliance. Nvidia remains used for top-end models, but insiders say Alibabaâs chip rivals Nvidiaâs H20 in performance.
Top Beijing Adviser Says China Should Ditch Nvidia for Own Tech
Bloomberg reports that Wei Shaojun, a Tsinghua University professor and senior government adviser, urged China and other Asian countries to reduce reliance on Nvidiaâs GPUs, which dominate AI model training globally. Speaking at a forum in Singapore, he said nations risk becoming dependent on U.S. technology and should instead develop chips tailored for AI that move beyond Nvidiaâs general-purpose accelerators.
Malaysia Reins in Data Centre Growth, Complicating Chinaâs AI Chip Access
Reuters reports that Malaysia is slowing approvals for new data centres amid power and water constraints, as well as US pressure to prevent Chinese firms from using the country as a backdoor to access restricted AI chips. Johor, near Singapore, has become a hub with $39bn in approved projects, but a new vetting system has rejected 30% of applications for sustainability concerns. Malaysia now requires permits for exports of US-made high-performance chips, complicating Chinaâs AI model training overseas.
Decypher Data Diveđ
Chinaâs Consumer Price Index (CPI) fell 0.4% year-on-year in August, driven mainly by a 4.3% drop in food prices. Consumer goods declined 1%, while services rose 0.6%, highlighting weak domestic demand despite modest gains in core inflation.
Image of the Weekđž
â â â
Data By Bhupesh
Edited By Aurko
Produced by Decypher Team in New Delhi, India
â â â