China This Week: U.S. Shipping Ban, UN Accuses China of Targeting Activists, UK Reveals Spy Case Evidence
This week in China, we explore key shifts in its domestic and foreign policy landscape. We also expand our coverage to look at the key developing international stories.
China Quote 🗩
“The US interpretation seriously distorts and exaggerates China’s measures, deliberately creating unnecessary misunderstanding and panic.”
- Ministry of Commerce spokesperson He Yongqian at a news conference.
Economic Activity🏦
Global markets tumble as Beijing bans U.S. shipping
Fortune reports that global stock markets fell sharply after China barred domestic firms from working with U.S. subsidiaries of South Korea’s Hanwha Ocean. U.S. Treasury Secretary Scott Bessent warned that Beijing “will be hurt the most” if it resists Washington’s trade demands. The Nikkei dropped 2.58%, Europe’s Stoxx 600 fell 0.49%, and China’s CSI 300 slid 1.2%, amid fears of escalating economic confrontation.
Trump threatens China with cooking oil embargo over soybean halt
CNBC reports that President Donald Trump warned he may “terminate business with China having to do with cooking oil” after Beijing stopped buying U.S. soybeans. Calling China’s move an “economically hostile act,” Trump said retaliation was on the table as Beijing sources soybeans from South America. The S&P 500 dipped following the remarks, reflecting renewed trade tensions.
China accuses US of stoking panic over rare earth controls, says it is open to talks
CNBC reports that Beijing has accused Washington of “deliberately creating panic” over China’s new export restrictions on rare earth minerals but said it remains open to trade talks. The statement comes ahead of a planned Trump–Xi meeting in South Korea, with Trump threatening 100% tariffs on Chinese goods. The Ministry of Commerce said the curbs were for national security, while US officials, including Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent, accused China of trying to dominate global tech supply chains and manipulating markets.
China to retain production-driven strategy amid U.S. rivalry
Reuters reports that Beijing’s upcoming Communist Party plenum (Oct 20–23) will reaffirm its focus on high-tech manufacturing and industrial capacity, despite calls to boost consumption. Analysts say intensifying U.S. tensions and Trump’s renewed tariff threats make a pivot to demand-side policies unlikely, as China seeks to secure the “strategic high ground” in global technology competition.
China’s deflation persists as domestic demand remains weak
Equiti reports that China’s consumer price index fell 0.3% year-on-year in September, marking its second straight month of deflation amid subdued household spending and a sluggish property sector. Analysts say the weak demand highlights fragile post-pandemic recovery, while Japan and the EU also saw industrial output decline, reflecting broader global manufacturing slowdown.
China sanctions U.S. units of South Korea’s Hanwha Ocean amid shipbuilding dispute
Associated Press reports that Beijing has barred Chinese companies from dealing with five U.S. subsidiaries of South Korea’s Hanwha Ocean, escalating tensions over Washington’s probe into China’s dominance in global shipbuilding. The Commerce Ministry said the move was in response to U.S. “threats” to China’s shipping sector, while South Korea’s government is assessing the sanctions’ economic impact.
BYD recalls over 115,000 vehicles over design and battery safety risks
Reuters reports that China’s BYD has announced its largest-ever vehicle recall, covering more than 115,000 Tang series and Yuan Pro models manufactured between 2015 and 2022. The recall addresses design flaws and battery-related safety hazards, including defective components and improper battery installation. China’s market regulator said BYD will repair the affected cars at no cost. This follows earlier recalls of nearly 100,000 vehicles over fire and steering risks, highlighting ongoing quality control concerns for the world’s top electric carmaker.
Inside China🐉
China arrests pastor and staff of underground Zion Church
NPR reports that Pastor Ezra Jin, founder of Beijing’s Zion Church, and dozens of members were arrested amid a nationwide crackdown on unregistered religious groups. Authorities accused the church of “illegally disseminating religious information online.” U.S. officials, including Secretary of State Marco Rubio, condemned the arrests and urged China to release the detained pastors immediately.
Top Chinese biomedical scientist Hu Ye leaves US for Tsinghua after NIH funding cuts
South China Morning Post reports that leading biomedical researcher Hu “Tony” Ye has resigned from Tulane University and returned to China to become the founding dean of Tsinghua University’s new School of Biomedical Engineering. The move follows US$8.3 million in cuts to his US National Institutes of Health grants. Hu, known for rapid virus detection technologies and a saliva-based Covid-19 test, warned earlier this year that funding reductions could severely harm global public health research.
Chery’s Jetour Zongheng G700 becomes first SUV to cross Yangtze River
CarNewsChina reports that Chery’s Jetour Zongheng G700 successfully crossed the 1.5-km-wide Yangtze River in 22 minutes, marking the first such feat by an SUV. The amphibious hybrid vehicle maintained stability using a 6-axis gyroscope and 800V propulsion system. Set to launch on 19 October, the luxury off-road SUV offers up to 751 hp and a 1,400 km range, with prices starting at 349,900 yuan (around US$49,000).
China and the World🌏
EU and China lawmakers clash over Russia and Taiwan in first talks since 2018
South China Morning Post reports that European and Chinese lawmakers exchanged sharp words over Ukraine and Taiwan during their first official dialogue in Brussels in seven years. Chinese delegates defended Moscow and questioned NATO’s relevance, while EU lawmakers warned that relations depended on Beijing’s stance toward Russia’s invasion of Ukraine. The sides also sparred over Taiwan’s status and UN Resolution 2758, with the EU reaffirming opposition to any unilateral change to the status quo and raising human rights concerns including the cases of Ilham Tohti and Jimmy Lai.
China and Sweden call for dialogue to rebuild trust
Reuters reports that Chinese Foreign Minister Wang Yi told his Swedish counterpart in Beijing that “face-to-face dialogue” was essential to restore mutual trust after years of strained ties. Wang urged Stockholm to engage with an “independent and strategic mindset” and expressed China’s willingness to expand trade, investment, and even implement a visa-free policy for Swedish citizens.
UK releases evidence in failed China spying case, raising political tensions
Sky News reports that Prime Minister Keir Starmer faces renewed scrutiny after the government released witness statements revealing large-scale Chinese espionage in the UK. The collapse of a trial against two men accused of spying for Beijing has prompted calls for an inquiry, with opposition parties questioning whether the government’s cautious China policy contributed to the prosecution’s failure.
UK delays decision on China’s ‘super embassy’ amid spy controversy
The Independent reports that Prime Minister Keir Starmer’s government has postponed its decision on whether to approve China’s proposed “super embassy” near the Tower of London until December. The delay follows heightened political pressure after MI5 warnings that the site could be used for surveillance. The Joint Committee on the National Security Strategy urged ministers to block the project, citing espionage and sabotage risks. Critics, including Dominic Cummings, allege the plan would enable Beijing to build a “spy centre” in the capital, while pro-democracy groups fear intimidation from Chinese authorities if the embassy proceeds.
Iceland defends ‘paradoxical’ geothermal deal with China
Euractiv reports that Iceland is defending a new geothermal cooperation agreement with China despite growing Western scrutiny of Beijing-linked energy projects. The Icelandic government said the deal aims to export Iceland’s geothermal expertise globally, including to Europe and China, as part of its clean energy diplomacy. Officials acknowledged the partnership may appear “paradoxical” given strategic concerns but argued that expanding renewable cooperation with China supports broader climate and sustainability goals.
EDF’s Arabelle Solutions moves to cut China ties
Intelligence Online reports that Arabelle Solutions, the former General Electric nuclear division acquired by France’s EDF in 2024, is scaling back its partnerships with China. The company, which manufactures key turbines for nuclear reactors, is distancing itself amid rising geopolitical tensions and tightening French scrutiny of strategic technologies. The move aligns with broader efforts in Europe to reduce dependence on Chinese-linked nuclear and energy supply chains.
UN report accuses China of targeting activists abroad through transnational repression
ICIJ reports that a new United Nations document lists China among two dozen countries accused of intimidating human rights defenders, echoing ICIJ’s earlier findings on Beijing’s extraterritorial surveillance of dissidents. The report cites cases involving Hong Kong and Uyghur activists, alleging digital harassment, AI-generated smear campaigns, and threats to family members, marking a growing pattern of cross-border repression.
China seizes 60,000 maps for ‘mislabelling’ Taiwan and missing disputed islands
Channel News Asia reports that Chinese customs in Qingdao confiscated 60,000 export-bound maps for showing Taiwan incorrectly and omitting islands claimed by Beijing in the South and East China Seas. Authorities said the maps lacked official vetting numbers and failed to include China’s nine-dash line, classifying them as threats to “national unity and territorial integrity.”
China punishes officials and sponsors over Tibet ‘Rising Dragon’ fireworks stunt
Tibetan Review reports that Beijing has dismissed and disciplined local officials in Tibet after a September fireworks display damaged 30 hectares of grassland in Shigatse. The Cai Guoqiang Art Studio and outdoor brand Arc’teryx face legal action for environmental violations, marking a rare instance of China holding officials and sponsors accountable for ecological harm on the Tibetan Plateau.
China airs confession of Myanmar crime boss amid cross-border crackdown
South China Morning Post reports that Chinese state broadcaster CCTV aired a confession by Wei Huairen, a Kokang-based crime boss accused of running telecom and investment scams targeting Chinese citizens. Wei admitted to being the “supreme commander of the border forces” in northern Myanmar, where his family allegedly operated with state authorisation. The case highlights China’s broader campaign against cross-border fraud networks.
Chinese airlines protest U.S. plan to ban flights over Russian airspace
Euronews reports that China’s major carriers, including Air China, China Eastern and China Southern, have filed complaints against a U.S. proposal to bar them from flying over Russia on U.S. routes. The airlines warned the move would lengthen flight times, raise fares and harm travellers, while Beijing called it “punishing” to the public. The U.S. argues the current shorter routes give Chinese carriers an unfair competitive edge.
Tech in China🖥️
Microsoft to shift most new product manufacturing out of China by 2026
Nikkei Asia reports that Microsoft plans to produce the majority of its new hardware outside China starting in 2026, as part of a broader supply chain realignment. Amazon Web Services and Google are also deepening their diversification efforts down to component sourcing, reflecting an industry-wide push to reduce exposure to U.S.-China trade tensions.
Netherlands seizes control of Chinese-owned chipmaker Nexperia amid security concerns
Politico Europe reports that the Dutch government has taken control of Chinese-owned semiconductor firm Nexperia, citing threats to national security and “crucial technological knowledge.” The move, allowing officials to block company decisions, marks a major escalation in EU-China trade tensions. Nexperia’s parent firm Wingtech condemned the intervention as “geopolitical bias” and appealed to Beijing for support.
International Outlook 🗺️
Trump and Putin agree in principle to Ukraine ceasefire framework
The New York Times reports that US President Donald Trump and Russian President Vladimir Putin have agreed in principle to a framework for a ceasefire in Ukraine, marking the most significant diplomatic development since the 2022 invasion. The plan would freeze fighting along current front lines and initiate talks on territorial control and security guarantees. While Moscow welcomed the proposal, Kyiv has voiced strong opposition, warning it risks legitimising Russian occupation. European allies have expressed caution, awaiting further details before backing Washington’s approach.
Hamas kills 32 rivals in Gaza City as it reasserts control after ceasefire
Arab News reports that Hamas has killed 32 members of a rival clan in Gaza City amid efforts to restore control after a recent ceasefire. The group’s Qassam Brigades deployed forces across Gaza as it freed the last remaining hostages taken in 2023. President Trump confirmed the US had given Hamas temporary approval to police the enclave, despite his plan for a demilitarised Gaza under international supervision. The clashes, mainly with the Doghmosh clan, highlight internal instability and challenges to Hamas’s authority.
German spy chief warns Russia conflict could “turn hot anytime”
Bloomberg reports that Germany’s intelligence chief Thomas Haldenwang cautioned that tensions between Russia and the West could escalate into open conflict “at any moment.” Speaking in Berlin, he cited Russia’s intensified hybrid warfare tactics, including cyberattacks and disinformation campaigns across Europe. Haldenwang urged greater vigilance and military preparedness, warning that Moscow’s destabilising actions extend far beyond Ukraine’s borders.
EU unveils flagship defence projects to counter Russian threat
France 24 reports that the European Union has launched a set of flagship joint defence initiatives aimed at strengthening the bloc’s military capabilities in response to growing Russian aggression. The projects, announced in Brussels, include a new European missile shield, enhanced cyber-defence networks, and greater integration of arms production among member states. EU foreign policy chief Josep Borrell said the plan marks a “historic step” towards strategic autonomy, while officials stressed the need to reduce reliance on US systems and coordinate more closely under the European Defence Fund.
US admiral to retire amid rising tensions with Venezuela and Caribbean strikes
The Guardian reports that Admiral Alvin Holsey, head of the US Southern Command, will retire at the end of the year following US military strikes on suspected drug smugglers in the Caribbean and growing tensions with Venezuela. His early departure, less than a year into a three-year posting, has raised concerns in Washington about instability in the chain of command. Holsey reportedly disagreed with Defence Secretary Pete Hegseth over the mission’s scope, while Senator Jack Reed warned that any intervention in Venezuela without congressional approval would be “unwise and dangerous.”
Saudi Arabia in talks with US for new defence pact
Financial Times reports that Saudi Arabia is negotiating a defence agreement with the Trump administration similar to Washington’s recent pact with Qatar, pledging mutual security guarantees. Crown Prince Mohammed bin Salman aims to finalise the deal during his visit to Washington next month, marking his first US trip since 2018. The proposed pact would strengthen military and intelligence cooperation as Riyadh seeks reassurance of US commitment amid regional instability. Analysts say the agreement could hinge on US pressure for Saudi–Israel normalisation, though the kingdom insists it will only do so if a Palestinian state is recognised.
Pakistan says it is ready for talks with Afghanistan as Kabul residents recall airstrike shock
The Straits Times reports that Pakistan has expressed readiness to resume talks with Afghanistan after deadly cross-border clashes and airstrikes near Kandahar and Kabul earlier this week. Islamabad said dialogue was essential to “avoid further escalation” and ensure border stability. The strikes, which Pakistan said targeted militant hideouts, caused widespread panic among Kabul residents, with eyewitnesses describing the explosions as the most intense since 2021. The Taliban government has accused Pakistan of violating Afghan sovereignty, while regional observers warn that continued hostilities could further destabilise the already fragile border regions.
Singapore’s CPF becomes first Asia-Pacific pension system to earn ‘A’ grade
The Straits Times reports that Singapore’s Central Provident Fund (CPF) has received an “A” rating in the 2025 Mercer CFA Institute Global Pension Index, the first in the Asia-Pacific to do so. The upgrade reflects improvements in sustainability and integrity, placing CPF alongside top-ranked systems in the Netherlands, Iceland, Denmark and Israel. Mercer recommended easing barriers to corporate retirement plans and raising withdrawal ages to further strengthen long-term financial security.
Taliban foreign minister faces backlash in India over exclusion of women journalists
BBC News reports that Taliban Foreign Minister Amir Khan Muttaqi held a second press conference in Delhi after outrage erupted when women journalists were barred from his first briefing. Facing criticism from Indian media groups and politicians, Muttaqi claimed the exclusion was “unintentional.” The episode has sparked debate over India’s diplomatic engagement with the Taliban, even as the group continues to enforce severe restrictions on women’s rights in Afghanistan.
Decypher Data Dive📊
China’s Tsinghua University has claimed the top global position in computer science across several major international rankings, signaling a notable shift in a field long led by American universities. Notably, 7 of the top 15 universities are from China. Some universities share the same rank in CSRankings due to identical normalized publication scores.
Image of the Week📸
Man Mo Parade and Autumn Sacrificial Rites in Hong Kong
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Data By Bhupesh
Edited By Aurko
Produced by Decypher Team in New Delhi, India
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