Daily Buzz: 26 May 2026

Top News

US Military Launches New Strikes on Iran

The US military launched new strikes on southern Iran, targeting what it said were Iranian missile sites and boats attempting to place mines. The US Central Command said in a statement the strikes were taken in "self-defense," and were designed "to protect our troops from threats posed by Iranian forces." Tehran didn't respond immediately. The attacks, the first since a ceasefire declared in early April, disrupt an optimism that has washed over attempts to negotiate a peace framework to end the war. US President Donald Trump said earlier that direct talks with Iran were "proceeding nicely," though Iran said some progress has been achieved but a deal is "not imminent." Global benchmark Brent crude futures rose 1.5 percent on news of the attacks to US$97.60 a barrel.

The new strikes cast doubt on the negotiating process. Earlier, reports said a memorandum of understanding between Iran and the US involves a 60-day ceasefire extension, reopening of the Strait of Hormuz and ending the US blockade of Iranian ports, and further negotiations over Iran's nuclear program. The status of Israel's war against Iran ally Hezbollah in Lebanon, which has been intensifying, remains unclear. Tehran earlier said any peace deal must include that conflict.

Markets in Asia rose on Monday amid optimism that the oil shipments through the strait,which largely supply Asia,will resume. The benchmark Shanghai Composite Index rose almost 1 percent, with the tech-heavy STAR market jumping 6 percent. Hong Kong's Hang Seng added 0.9 percent, and Japan's Nikkei closed at a record high. Wall Street was closed for a holiday.

Huawei Unveils Chip Design Breakthrough

Shenzhen-based Huawei Technologies announced a new path toward narrowing its lag with industry leader Taiwan Semiconductor Manufacturing (TSMC) in what could be a breakthrough in making advanced semiconductors without cutting-edge equipment. Huawei chip chief He Tingbo introduced the company's newly developed "Tau (τ) Scaling Law" at a symposium, noting that this new principle will guide "the evolution of both semiconductors and electronic systems."

According to the company's official statement, the high-end chips Huawei designs based on the technology are expected to feature a transistor density equivalent to 1.4-nanometer processes by 2031. TSMC currently produces chips on 2-nanometer technology and has stated it plans to begin mass production of 1.4-nanometer chips in 2028.

The new technology means that chipmakers can bypass Dutch supplier ASML's state-of-the-art extreme ultraviolet lithography machines now essential in mass-producing advanced AI chips that are 5 nanometers or less. A nanometer refers to the size of transistors on a chip. Smaller nanometer measurements signify more compact transistor designs, allowing more transistors on a single chip, increasing computing power.

The announcement signals Huawei's progress toward creating a self-reliant semiconductor ecosystem, in tune with Beijing drive to become self-sufficient in chipmaking. The news lifted sentiment in China's tech sector. Shares of Semiconductor Manufacturing International, Chinese mainland's largest chipmaker, surged 18 percent in Shanghai.

China, Serbian Presidents Pledge Closer Partnership

China and Serbia pledged to expand their economic partnership into advanced technology, renewable energy and advanced manufacturing as Chinese President Xi Jinping met visiting Serbian President Aleksandar Vucic in Beijing. Both leaders called for greater multilateralism in international affairs. Bilateral trade ties have been steadily advancing with Chinese-owned companies accounting for four of Serbia's top six export companies and employing 40,000 Serbians.

Top Business

Unitree Earnings Growth Slows as IPO Nears

Hangzhou-based Unitree Robotics, entering the final stretch toward becoming Chinese mainland's first listed humanoid robotics company, said in a prospectus update filed with the Shanghai Stock Exchange that first-quarter revenue rose 69 percent to 423 million yuan (US$62.3 million) – a significant slowdown from triple-digit sales growth last year. Net profit plunged 53 percent to 40 million yuan as surging research and development costs bit into earnings. Unitree predicted first-half revenue of up to 1 billion yuan. It also flagged long-term risks, including core talent retention and intellectual property vulnerabilities from just 20 domestic patents.

JD.com Mulls Takeover Offer for UK's The Very Group

Chinese e-commerce giant JD.com is considering a 2 billion pound (US$2.7 billion) bid for British online shopping platform The Very Group, Sky News reported. JD failed in an earlier attempt to buy UK electricals group Currys and last year walked away from talks to acquire retailer Argos from Sainsbury's. The Very Group's owner, private equity firm Carlyle, said in January that it was planning to sell the company.

Wingtech Files Lawsuit for Losses from Nexperia Battle

Chinese chipmaker Wingtech Technology has filed an 8-billion-yuan (US$1.2 billion) lawsuit in a Guangzhou court against Dutch-based subsidiary Nexperia and five other entities, seeking compensation for economic losses sustained in its longstanding legal battle to regain control of Nexperia. Wingtech last month reported its 2025 net loss widened to 8.7 billion yuan from a 2.8 billion yuan a year earlier. The Dutch subsidiary was seized by Netherlands regulators eight months ago over alleged management problems and concerns about intellectual property being transferred to China. Negotiations have failed to resolve the stalemate. Nexperia is an offshoot of Dutch electronics giant Philips, which spun off the unit and sold it to a Beijing asset management company that subsequently sold it to Wingtech in 2018.

Chinese Carmaker BYD Explores Potential Formula 1 Entry

Chinese automotive giant BYD has held talks with former Red Bull Racing boss Christian Horner about its potential high-profile move into Formula 1 auto racing. The talks included BYD Chief Executive Wang Chuanfu and Executive Vice President Stella Li. To secure a spot in the championship racing series, the Shenzhen-based automaker is considering three options: purchasing a minority stake, a partial takeover of the Renault-owned Alpine team or launching an entirely new 12th team. Running a top team can cost up to US$500 million per season. Talks remain in the early stages.

Economy & Markets

Trickle of Oil, Gas Shipments Transiting the Strait of Hormuz

Two liquefied natural gas tankers on Monday exited the Strait of Hormuz, bound for Pakistan and China, after a supertanker with Iraqi crude for China left the Persian Gulf a day earlier, maritime shipping trackers said. Last week, three crude carriers passed through the strait, carrying six million barrels of oil bound for China and South Korea. The transits show that trickles of energy shipments are getting through the waterway, although Iran still controls who gets through. It's not known if any of the transiting vessels paid tolls. Before the war started on February 28, shipping traffic through the strait averaged 125 to ⁠140 daily passages. A framework for ending the Iran war that is currently being negotiated between Iran and the US reportedly includes reopening the strait under a two-month extension of their current ceasefire, but both sides have yet to confirm the final terms. The long, effective closure of the waterway has caused energy prices to spike up to30 percent and disrupted global supply chains.

China Central Bank Adds Liquidity to Banking System

China's central bank added 100 billion yuan (US$14.7 billion) into the banking system this month through its medium-term lending facility. The People's Bank of China conducted a one-year operation of 600 billion yuan through a tender to offset 500 billion yuan of maturing funds. The operation was a reversal from April, when the central bank drained funds from the system.

Robotics Startup Tianji Lifts Valuation in Latest Fundraising

Chinese robotics startup Tianji Intelligent System raised 1 billion yuan (US$147.4 million) in a fundraising round led by Hillhouse Capital-backed GL Ventures and Chinese e-commerce giant Meituan, lifting its valuation to nearly 10 billion yuan. The funding comes as China's humanoid robotics industry moves from prototypes toward large-scale commercial deployment.

Pope Urges More Controls Over AI Deployment

Pope Leo urged governments to slow down and closely regulate the development of AI systems in the first major document of his year-long papacy. It warned about the spread of misinformation and use of the technology in advanced warfare systems that are becoming beyond human control "What is needed is a more active political involvement that is capable of slowing things down when everything is accelerating," the encyclical said.

Corporate

Quectel Wireless Sues US Over Inclusion on Blacklist

Chinese communications module maker Quectel Wireless Solutions sued the US Department of Defense recently after it placed the company on a blacklist of firms, citing links to China's military.

"Quectel has always operated with integrity, transparency and full compliance with the laws and regulations of every jurisdiction in which we do business," the company said in a statement. Quectel was added to the list in January, along with ChangXin Memory Technologies and drone maker Autel Robotics, in what China claims is an attempt to curb the nation's rise in technology. In 2021, Chinese smartphone maker Xiaomi filed a lawsuit against its inclusion on the same blacklist and four months later was removed from the list. Quectel is one of the world's largest suppliers of wireless communication modules used in Internet of Things devices.

Tianshui Huatian Plans Expansion of Chip Packaging Capacity

Tianshui Huatian Technology said it plans to invest 3 billion yuan (US$442 million) to expand memory chip packaging and testing capacity at its Nanjing plant. The expansion will add capacity of 430 million memory chips a year. The company reported first quarter profit of 87 million yuan on a 35 percent increase in revenue to 4.8 billion yuan.

AliExpress Deepens Bet on South Korea

Alibaba's AliExpress is tripling its investment in South Korea this year as compliance pressures hinder its expansion in the EU. The investment will increase core logistics, which already deliver half of all orders in the country within three days. AliExpress boasts nearly 10 million monthly active users in South Korea, ranking tops in South Korea's cross-border e-commerce sector.

Ninebot Rolls Out Innovations for Mopeds

Chinese two-wheeler maker Ninebot has rolled out new technologies for electric mopeds. The Self-Balancing 2.0 stability system reduces the need for riders to repeatedly put a foot down or manually steady the vehicle in congested traffic or at traffic lights, the company said. It also introduced a lighting control system that allows multiple mopeds to receive instructions and flash warning lights in the same rhythm.