Daily Buzz: 10 June 2026

Top News

Alibaba, Baidu, Nio, BYD Reject US Accusation of 'Military Ties'

China tech giants Alibaba and Baidu, and carmakers BYD and Nio – all listed in New York – hit back at a US Defense Department notice that it will add their names, along with dozens of other Chinese companies, to a blacklist of entities with ties to China's military. Alibaba called the allegation a "mistake." In a statement to the Hong Kong stock exchange, the company said, "Alibaba Group is not a Chinese military company nor part of any military-civil fusion strategy. The company will take all available legal action against attempts to misrepresent the company." Baidu termed the claim "entirely baseless" and said it will pursue all options to have its name removed from the list. Nio and BYD each said there is "no justification" for their names being included on the list and will consider legal action.

The Pentagon list includes prominent names in the electric vehicle, AI, battery, biotech and solar industries. Among them was Shanghai-based biotech WuXi AppTech, which also denied the allegation. The designation can complicate companies' access to US capital markets and government business, but it doesn't automatically trigger sanctions or export controls. However, the Pentagon is prohibited from procuring, directly or indirectly, goods, services or technology from entities on the list.

In Beijing, foreign ministry spokesman Lin Jian said China opposes stretching the use of "national security" to draw up discriminatory lists. "We urge the US to correct this wrong practice and stop its arbitrary suppression of Chinese companies," Lin said. "China will take necessary measures to safeguard the legitimate and lawful rights and interests of China.

US Launches Fresh Strikes on Iran After Downing of Army Helicopter

The US launched its strongest attacks against Iran in nearly two months after it said an Iranian drone downed an Apache army helicopter off the coast of Oman near the Strait of Hormuz. Two crewmen were rescued uninjured from sea. Iran didn't immediately claim responsibility for the incident, but earlier in the day, Iranian Foreign Minister Abbas Araghchi urged "foreign forces" to leave the Hormuz area lest they risk "human errors, plain accidents or potentially being caught in crossfire." The US attacks came a day after President Donald Trump said a deal with Iran could come "within two or three days." CNN said he has made similar claims 37 times in the last two months. Trump has said a deal with reopen the Strait of Hormuz to shipping. US-Israeli ties have been strained over details of a peace agreement. Israel insists that any upfront deal must involve a complete removal of Iran's stockpile of enriched uranium – a point Trump has seemed willing to push into future negotiations.

In Lebanon, the Israeli military ordered the evacuation of some residents in the southern coastal city of Tyre, with its jets striking the port there, killing eight. The attacks came a day after Israel said its war against Iran ally Hezbollah in Lebanon isn't over despite a temporary truce brokered by the US, and Iran warned again that Israeli attacks on Lebanon stop.

Global benchmark Brent crude futures opened Asian trading at US$92.28 after closing in New York at US$91.45 a barrel before the US attacks began.

Top Business

China Retail Passenger Car Sales Slump 22 Percent

China's retail car sales in May plunged 22 percent from a year earlier to 1.5 million passenger vehicles, the China Passenger Car Association reported. Sales of gasoline-powered cars plummeted 39 percent, while new-energy vehicles slipped 7.5 percent but accounted for a record 61 percent of the market.

Car exports surged 75 percent to 784,000 units, accounting for 35 percent of sales, led by more than doubled sales of hybrid and electric vehicles.

The auto association said it expects sales this month to recover from May levels but generally remain lower year-on-year. In the latest month, BYD led retail sales, followed by Geely Auto and Changan Automobile, though all three established Chinese carmakers had lower sales. Leapmotor was the only electric-car startup to make it into the Top 10 sellers, with a sales surge of 48 percent.

Sagging auto sales have accelerated price cutting, the association said. Sticker prices on 32 new-energy vehicle models were reduced in the first five months of the year, with seven cut in the last month alone, Yicai reported. The average price of a new passenger car fell 13 percent to 241,000 yuan (US$35,587). The price of an imported BMW X2 saw the steepest reduction, standing at a two-year low of 248,000 yuan.

Samsung Electronics Considers New Chip-Packaging Factory

Samsung Electronics is considering building an advanced semiconductor packaging facility in the southwestern city of Gwangju, Korea Economic Daily reported, with an announcement expected by the end of the month. Such a plan would be the latest effort by Samsung to strengthen its chip capabilities as demand surges for high-bandwidth memory chips used in AI servers. Advanced packaging has become important as chipmakers seek to improve performance by integrating multiple chips into a single package. Samsung's major clients include Nvidia, Advanced Micro Devices and Google.

Economy & Markets

China Exports Beat Forecasts, Shipments to US Rebound

China's exports in May surged more than expected on robust trade in AI-related goods and autos, with shipments to the US rebounding 35.4 percent in their strongest growth in five years. Total exports jumped 19.4 percent from a year earlier in dollar terms, accelerating from growth of 14.1 percent in April. The increase was fueled by higher chip prices that more than doubled the value of shipments of integrated circuits. China's exports of automated data-processing equipment soared 66 percent, high-tech products jumped 51 percent, and shipment of cars rose 39 percent.

Imports in May expanded 27.4 percent, increasing the nation's trade surplus to US$105.4 billion from US$84.8 billion a month earlier. China's soybean imports fell 15.3 percent in May to 11.8 million tons from a year earlier, but the level was still the second-highest on record for the month, on peak supplies from Brazil, Chinese customs reported. Seaborne imports of crude oil in the month fell 22 percent from April to 6.4 million barrels a day, the weakest level in 10 years, on reduced supplies and rising prices from the Iran war, commodities data provider Kpler reported last week.

IPOs in Chinese Mainland Top US$8.4 Billion This Year

Sixty-four companies have completed initial public offerings in Chinese mainland so far this year, raising a combined 58.6 billion (US$8.4 billion), Cailian reported. Eight of the IPOs listed on the Shanghai Stock Exchange, 10 on Shanghai's tech-focused STAR Market, 32 on the Beijing exchange and 14 in Shenzhen.

Tencent Expands Offering of Global Debt

Chinese tech giant Tencent is increasing its global offering of short-dated debt, with plans to sell up to US$30 billion in notes in the coming year, the South China Morning Post reported. Proceeds will be used for general corporate purposes, according to the Shenzhen-based company, which is a leader in Chinese mainland social media, video games and AI development. Tencent said it has already sold US$17.5 billion in the debt offering, denominated in yuan and US dollars. The notes have a rating of "A+" from Standard & Poor's.

China-US Maritime Freight Rates Climb

Freight rates on China-US shipping routes have risen up to 50 percent since late April, amid strong demand, tightened global shipping capacity and higher fuel costs from the Iran war, according to freight forwarders. The rate for a forty-foot equivalent unit from the eastern Chinese port of Ningbo to the US West Coast has risen to nearly US$5,000 from about US$2,900.

Corporate

CATL Places Large Order for Battery Materials

Contemporary Amperex Technology (CATL), the world's largest battery maker, has placed an order for 50,000 tons of lithium battery electrolytes this year and 100,000 tons next year from Capchem Technology. No financial details were disclosed, but based on market prices, the deal could be valued at about 8.1 billion yuan (US$1.2 billion), Yicai reported. Shenzhen-listed Capchem is a leading Chinese supplier of battery electrolytes.

Yutong Buses to Operate in Mexico City During World Cup

China's Yutong Bus has supplied about 85 percent of the 800 electric buses deployed in Mexico City ahead of the start of the FIFA World Cup 2026 this week. The buses aim to address chronic smog in the city. During the World Cup, the buses will operate dedicated routes linking the city center, stadiums and the airport. Zhengzhou-based Yutong is a global leader in sales of electric buses and coaches.

XtalPi Announces Share Buyback

Chinese biotech company XtalPi Holdings said its board has approved a share repurchase plan of up to US$100 million of its stock, or 10 percent of shares listed in Hong Kong, over the next year. The company is engaged in research and development for early-stage drug discovery and material science through methods backed by AI.

NetEase Pay Fined for Management Flaw

NetEase Pay, a unit of Chinese Internet giant NetEase, said it received a fine of 2.2 million yuan (US$324,555) from the Zhejiang Province branch of the People's Bank of China for violations related to account management, clearing operations, data security and customer due diligence requirements.