Daily Buzz: 3 September 2026

Chinese President Urges Middle East Nations to be 'Masters of Their Own Destiny'

Chinese President Xi Jinping, on a state visit to Egypt, said Middle Eastern nations should be "masters of their own destiny," oppose external interference and develop a new "security architecture," Xinhua news agency reported. Egypt, which receives US$1.8 billion a year in US military aid, has become an important market as it increases trade ties with China, importing US$10 billion from the Chinese mainland in the first half of 2026. Xi said China stands ready to work with regional countries to safeguard shipping routes in the Persian Gulf and Red Sea, which have been disrupted by the US war against Iran. Egyptian President Abdel Fattah al-Sisi said Cairo is pursuing a policy of "strategic balance" amid global rivalry. The two leaders also agreed to expand bilateral ties to include data centers, semiconductors and critical metals supply chains.

Separately, NATO member Turkey said it will consider membership in the Shanghai Cooperation Organization, a Sino-Russia led security bloc. President ⁠Tayyip Erdogan said such a move wouldn't imply a break from NATO or relations with the West. He made the comments after attending this week's organization summit in Kyrgyzstan.

Just How Much Oil Is Getting Through the Strait of Hormuz?

Global oil prices surged amid this week's flare-up of hostilities between Iran and the US, with widely divergent estimates of just how much oil is getting through the flash-point Strait of Hormuz. Brussels-based ship-tracking service Kpler said traffic has "declined sharply," with five vessels transiting on Monday after the US and Iran exchanged strikes for the first time in a month. That is below the 10-day average of 14 vessels. Reuters reported that figures suggest daily oil flows out of the Persian Gulf average 6 million barrels, compared with prewar levels of 20 million barrels. However, US Energy Secretary Chris Wright told CNBC that more than 17 million barrels of oil passed through the waterway on Monday, calling it a record since the conflict began six months ago. The International Monetary Fund and Oxford University said they have documented fewer than five oil tanker crossings per day and overall crossing numbers in single digits for weeks. TankerTrackers.com said about 4.9 million barrels a day have transited. Investors appear to believe the outside experts. Global benchmark Brent crude futures in New York ended above US$95 a barrel. Higher oil prices contribute to higher inflation, which in turn is sending global bond yields higher.

On the ground, Iran launched missiles and drones at US targets in Jordan, Kuwait, Iraq and Bahrain on Wednesday after American forces struck Iran a day earlier, including an attack that Tehran claims killed five and injured dozens at a wedding. The US military command said it was aware of the claim but never targets civilians. The two sides resumed military warfare over the weekend, triggered by US strikes on two Iranian missile-launch sites near the Strait of Hormuz. No direct talks on a permanent peace are underway.

Ukraine Tells Global Airlines to Avoid Russian Airspace

Ukraine President Volodymyr Zelensky advised global airlines to avoid Russian airspace as his nation escalates its drone strikes inside Russia. "The Russian sky is becoming completely dangerous," Zelensky said, adding that Ukraine would never target civilian aviation. Chinese and some Gulf airlines are among the carriers still flying routes over Russia. Russian President Vladimir Putin said Zelensky's comments amounted to a declaration of "state terrorism" and said Moscow would continue intensifying its attacks on Ukraine.

China Updates Casualties From Flash Floods at Border With Nepal

China said 21 people died and 541 remain missing after a glacial collapse last week caused massive flash floods in its Himalayan region bordering Nepal. China's insurance companies have made a preliminary assessment of losses at 450 million yuan (US$67 million), according to the National Financial Regulatory Administration. Nepal, which was hardest hit by walls of mud and rocks that poured into lower valleys, said the death toll from the disaster has surpassed 1,000, with 4,400 missing.

Enflame IPO in Shanghai 61 Times Oversubscribed

Shanghai-based AI chipmaker Enflame Technology, which is backed by Tencent, attracted investor orders 6,100 times the number of shares available in the online portion of its Shanghai initial public offering, Reuters reported, citing an exchange filing. Investors are betting that Beijing's push to develop domestic alternatives to US chip suppliers such as Nvidia will create opportunities for Chinese AI chipmakers, after the Trump administration tightened export restrictions on ⁠advanced chips and chipmaking equipment to China. In response to the excess demand, Enflame moved 3.4 million shares from the offline sale to the online portion. Enflame, dubbed one of China's "four little dragons" in graphics processing units, is seeking to raise 6.12 billion yuan (US$908 million) on Shanghai's Nasdaq-style STAR Market.

World Labs, Co-Founded by Li Fei-Fei, Launches Atlas Model

California-based World Labs, the artificial intelligence startup co-founded by Chinese AI pioneer Li Fei-Fei, now a professor at Stanford University, unveiled Atlas, a multimodal world model designed to generate and understand detailed 3D environments. The company said Atlas can create high-resolution images and video frames and reconstruct them as three-dimensional worlds from a single image, with precise control over camera position and perspective. Unlike conventional generative AI models that rely mainly on text prompts, Atlas uses spatial information, including camera poses and depth, as core inputs. The launch advances Li's push for "spatial intelligence," the concept that AI needs to understand the physical world to achieve more advanced reasoning and action. World Labs has raised about US$1.2 billion from investors including Nvidia, AMD and Autodesk.

Swire Sells Stake in Cathay Pacific to Fund Debt Repurchase

Hong Kong conglomerate Swire Pacific said it sold 362.7 million shares in Cathay Pacific Airways, dropping its stake almost 6 percentage points to 39 percent. The sell-off is valued at HK$4.79 billion (US$614 million) and the proceeds will be used to fund debt repurchase. The shares were sold at a 7.7 percent discount to their closing price on Tuesday. Swire said it remains confident in Cathay Pacific and doesn't intend to propose any changes to airline management.

Lianhua Posts Loss on Squeezed Margin in Supermarkets

Lianhua Supermarket, the Hong Kong-listed subsidiary of Chinese retail giant Bailian Group, has reported a first-half loss of 202.5 million yuan (US$30 million) on an 11 percent drop in revenue to 8.57 billion yuan. The loss turned from a profit of 42.3 million yuan a year earlier. The company said margins came under pressure in its hypermart, supermarket and convenience store businesses despite cutting distribution, selling and administrative expenses by 14 percent. Still, Lianhua continued to expand outlets in a domestic environment of weaker consumer spending.

Anthropic Releases Upgraded Fable, Claude AI Models

US technology giant Anthropic this week released upgraded versions of its most powerful AI models, cut costs for some users, adjusted safety interventions and rolled out new privacy safeguards for business users. Its Claude Fable 5.1 version is now generally available, while the more restricted Claude Mythos 5.1 remains limited to vetted partners working in areas like cybersecurity and life sciences. Anthropic says Fable 5.1 features improvements in coding and multi-step knowledge work. Its base price remains at US$10 per million input tokens and US$50 per million output tokens.

Ternus Takes Over as Apple CEO

John Ternus officially took over as Apple's chief executive this week, ending Tim Cook's 15-year tenure in the job. Ternus will receive an annual base salary of US$3 million a year, with a target equity award worth US$55 million. Ternus, who joined Apple in 2001, led the company's hardware engineering team since 2021, overseeing products including the iPhone, iPad, Mac and AirPods. Cook will become executive chairman and continue handling global relations.

Economy & Markets

China Dissents in G20 Statement on Trade Imbalances

US Treasury Secretary Scott Bessent said the Group of 20 finance ministers this week in the US approved a statement agreeing to take action against "non-market-based economies pushing out a never-ending stream of cheap exports," with China the lone dissenter. The statement was obviously aimed at China, which has the world's largest current-account surplus. China's foreign ministry rebuffed Bessent's call for G20 nations to rethink their trade with China, saying Beijing never deliberately seeks trade surpluses. Ministry spokesman Guo Jiakun told a press briefing this week, "China is committed to highstandard opening up. Its vast market offers new opportunities to all, including the US. Both sides need to act on important common understandings, resolve outstanding issues through consultation on the basis of equality, mutual respect and mutual benefit, and to strive to maintain the hardwon positive momentum in bilateral trade." The US call for G20 unity on trade imbalances is unlikely to succeed, analysts said. For its part, Britain said it will maintain a "pragmatic ‌relationship" with China on trade while navigating the "sensitive" issue of how to reduce global imbalances.

The meeting also exposed other cracks among members. Europeans attending the meeting complained that US tariffs and its war against Iran are stifling global growth. German Finance Minister Lars Klingbeil said geopolitical uncertainty is weighing on the global economy. Europeans attending the meeting also criticized Washington for inviting Russia's foreign minister to attend while the Kremlin continues its war against Ukraine.

Global Growth in Tesla's China-Made Cars Slows

Global sales of Tesla's China-made electric vehicles in August slowed to a gain of 3.6 percent from a year earlier, dropping sharply from 38 percent growth in July. Sales of Model 3 and Model Y vehicles from its Shanghai factory, including exports to Europe, Asia Pacific and Canada, rose to 86,166 units from a year earlier, marking a 10th straight month of growth. Strong sales in Denmark and France were offset by weaker sales in Norway, Spain, Sweden, Portugal and Italy. Exports accounted for more than ⁠half of sales in the second quarter. Tesla faces increasing competition from domestic new energy vehicle manufacturers in China. Its share of the Chinese mainland market fell to 6.6 percent in the second quarter from a peak of more than 15 percent in 2020.

Shein Shares Slide 5.2 Percent on Second Day of Trading

Shares of Chinese global discount fashion retailer Shein tumbled 5.2 percent in Hong Kong on Wednesday, after closing flat in their debut a day earlier. Investors have been wary about the company's US$1.7 billion IPO amid concerns about its profit outlook and regulatory criticism of its business practices. The IPO valued Shein at US$26.5 billion, three-quarters lower than its 2022 peak. The company is facing higher duties on its goods delivered in EU and US markets, and increased competition from rivals such as Temu.

China Issues Guidelines for Automakers Marketing Overseas

China has released its first guidelines regulating domestic carmakers' pricing, promotion and brand marketing practices in overseas markets and calling on them to avoid frequent and significant price changes. They also offer general guidance on compliance in production safety, quality management, labor protection and data security abroad. The guidance comes as automakers on the Chinese mainland accelerate exports, with sales overseas offsetting weaker demand at home and driving profit growth. Car exports worldwide have surged to 8.32 million vehicles.

Shanghai District Launches Space-Based Computing Base

Shanghai's Songjiang District officially opened its Space-Based Computing Industry Base with a forum on development of the industry. Space computing enables satellites to perform AI inference and analyze data directly in orbit. Building on its commercial satellite and terminal application cluster, Songjiang has established itself as a premier industry center in China. The base is home to 100 companies. To drive multi-tech integration, Songjiang is also positioning itself at the intersection of 6G, AI and satellite communications.

Corporate

Honda, Nissan Team Up on Car Software

Japanese automakers Honda and Nissan will jointly develop the software and electronic architecture for their next-generation vehicles, with the technology expected to appear in models by 2029. The Japanese automakers will standardize several core electronic control units, as well as an in-vehicle operating system. Sharing technologies, they said, will reduce development duplication, improve economy of scales and lower costs. The partnership comes after Honda and Nissan abandoned earlier merger talks.

State Railway Achieves Record Profit on Higher Demand, Lower Debt

China State Railway Group, the state-owned business that runs the nation's passenger and freight services, reported this week that first-half net profit rose more than 19 percent to a record 1.9 billion yuan (US$275 million) amid high demand and a lower debt ratio. Operating revenue edged up 0.5 percent to 589 billion yuan. China's railroads handled a record 2.4 billion passenger trips in the first six months of the year, up 5 percent. The company said its debt-to-asset ratio dropped to 61.8 percent from 62 at the end of last year. China State Railway said it is striving to complete infrastructure investment of 520 billion yuan to deploy over 2,000 kilometers of new lines into operation this year. China has the world's largest rail network.

Nubia NaviX Ultra Receives Access Permit

Chinese smartphone maker Nubia said its NaviX Ultra, powered by ByteDance's Doubao mobile assistant, received a network access permit from China's Ministry of Industry and Information Technology. It becomes the world's first AI agent smartphone transitioning from a proof-of-concept prototype to mass market release this month. Media reports said its high-frequency AI usage consumes 10 yuan (US$1.40) a day in tokens for most consumers. It will be free for users initially. NaviX Ultra first debuted at the world AI conference in Shanghai in July.

Honeywell Tech Opens Innovation Center in Shanghai

US-based Honeywell Technology opened an innovation center in Shanghai's Zhangjiang High-Tech Park this week, its first center of its kind in China since the company was spun off by parent Honeywell in June. The center showcases the company's creative products spanning energy, smart manufacturing and infrastructure, Yicai said.

Southern Power Grid, China Telecom, State Power Investment Form Consortium

China Southern Power Grid is forming a consortium with China Telecom and State Power Investment Corp to promote national computing power interconnectivity and provide renewable energy support for development of the sector. China's rapidly growing computing power market relies heavily on stable electricity support, with issues such as high energy consumption, high carbon emissions and a mismatch between computing power and green energy becoming increasingly prominent.