Daily Buzz: 6 August 2026

China Issues New Sanctions in Response to US Export Controls

China's Commerce Ministry imposed sanctions on six US organizations in response to US sanctions targeting Chinese companies over alleged forced labor. The measures, effective August 5, prohibit organizations and individuals in China from transactions or cooperation with entities that include Applied DNA Sciences, Stratum Reservoir, Altana Technologies, the Responsible Business Alliance, Verite Group and Human Rights in China. A ministry spokesperson said Beijing also tightened export controls on drones and key components destined for the US, suspended certain certification cooperation with US agencies, launched a national security investigation into imported printers and copiers, and added US compliance testing firms to its sanctions list.

Beijing said the sanctions were in response to recent US restrictions affecting Chinese telecom operators, testing laboratories, drones, consumer routers, submarine cables, advanced robotics equipment and power inverters. They come amid reports that the Trump administration is drafting a "national-security" measure to bar US imports of new models ⁠of Chinese data-center components, including optical transceivers.

Iran Signals Agreement With Oman on Hormuz Transit Channel

Iran and Oman, which sit on opposite shores of the Strait of Hormuz, have reached an understanding on ⁠the geographic coordinates for a shipping route through the strait, Tehran said.

The proposed agreement would reportedly give Iran control over vessels entering the Persian Gulf through the strait and would involve a shipping channel passing through territorial waters of both nations. It's not clear if tolls might be charged transiting vessels or if the US approves of the plan. The US earlier said it was indirectly involved in the talks, but Iran denied that. A senior Gulf official familiar with the talks suggested there is about a 50-50 chance of a deal being announced by Friday. Global benchmark Brent crude oil closed New York trading just below US$80 a barrel.

The US military has exhausted nearly 80 percent of its THAAD missile inventory and about half of its Patriot defense missiles, CNN reported, citing multiple sources familiar with the situation. The Center for Strategic and International Studies estimates the US had about 2,200 Patriots and 452 THAADs when the war started. Rumors about drawn-down munitions stockpiles surfaces last week in reports that some US military brass cautioned President Donald Trump against his plan for a massive escalation of attacks on Iran to levels not previously seen.

Drone Found Near Ukraine Cargo Planes at German Airport

A drone carrying an explosive device was found at Germany's Leipzig/Halle Airport near Ukrainian cargo planes, and a second unidentified object collided with a cargo aircraft near the same airport. It landed in Hanover with minor damage. German police warned of potential Russian involvement, which Moscow denied.

Separately, in one of the deadliest attacks on the Kiev region this year, Russian missiles and drones killed 21 people and injured at least 50. The Russian defense ministry said logistics hubs and supply centers were targeted, though residential buildings were also damaged. The attacks came after Russia accused Ukraine of a drone attack on a Black Sea resort beach that killed seven people and after Ukraine continued strikes on warehouses run by Wildberries, Russia's version of Amazon, which Kiev accuses of abetting Russian drones.

Top Business

GM, Shanghai SAIC Motor Renew Joint Venture for 20 Years

General Motors and Shanghai-based SAIC Motor announced a 20-year extension of their decades-long joint venture that was set to end next year. The partnership has turned out more than 20 million vehicles since it was formed in 1997. The venture going forward will focus on domestic sales of Buick and Cadillac models in China in addition to exporting vehicles built in China for non-U.S. markets. China was GM's top sales market from 2010 to 2023, but shifting dynamics turned consumer preferences to domestic marques. GM's earnings from China fell from around US$2 billion in 2018 to losses in 2024 and 2025. The partners have restructured their operations to address new market trends.

Alibaba to Open-Source Qwen Max Model for First Time

Alibaba has announced that its flagship Qwen3.8-Max model released this week will be open-source. The model offers 2.4 trillion parameters, improving the capability to recognize patterns, generate answers, and carry out tasks. Since releasing the Qwen series in 2023, Alibaba has launched several open-source models but kept its Max series closed. Qwen 3.8-Max costs about US$6 per million output tokens, compared with Anthropic's Claude Fable 5 model priced at US$50.

BeOne Medicines Posts 151 Percent Jump in Q2 Profit

BeOne Medicines, a Sino-US company involved in developing cancer therapies and formerly known as BeiGene, reported second-quarter profit rose 151 percent to US$237 million on a 30 percent gain in revenue to US$1.7 billion. The company said earnings were driven by a 31 percent increase in sales of its Brukinsa drug. Research and development expenses in the quarter rose17 percent to US$612 million. For the first half, the company reported a 386 percent jump in net to US$464.4 million on a 31 percent increase in revenue to US$3.2 billion. The Hong Kong-listed company, founded in Beijing in 2010, raised its full-year revenue forecast to as high as US$6.8 billion.

Samsung, SK Hynix Said to Be Looking at China-Sourced Chip Equipment

South Korean chip giants Samsung Electronics and SK Hynix are evaluating chipmaking equipment from Shanghai-based Advanced Micro-Fabrication Equipment (AMEC) for possible use at their Chinese factories, Reuters reported, citing industry sources Samsung denied the report, and SK Hynix declined comment. Sourcing from China would be a hedge against the risk of tighter US export controls. Samsung operates a flash memory chip plant in Xi'an, and SK Hynix has chipmaking facilities in Dalian and Wuxi. At a recent event in Shanghai, Yin Zhiuao, chairman and general manager of AMEC, said within five years, the company will cover at least 60 percent of the market for more than 100 types of high-end semiconductor equipment.

Cathay Pacific Reports Second-Strongest Six-Month Profit

Cathay Pacific Airways, Hong Kong's flagship carrier, reported first-half profit rose 71 percent to HK$6.2 billion, the second highest ever, on strong passenger numbers and cargo demand. A one -time gain from its stake in Air China helped offset higher jet-fuel prices, which doubled in the second quarter from the first three months of the year. Revenue rose 25 percent to HK$68 billion. Cathay said summer travel demand in the current quarter is "looking strong." The carrier's profit margin rose to 9.2 percent from 6.7 percent. The strong results come after Singapore Airlines posted a second-quarter loss, its first in four years, and after brokerage reports warnings of weak half-year earnings at mainland-based carriers, which are due to report later.

Economy & Markets

Unitree Set to Begin Shanghai IPO Amid High Valuation Forecast

Hangzhou-based humanoid robot maker Unitree Technology, which is set to start taking subscriptions on Friday for its Shanghai initial public offering, is expected to be valued at more than 56 billion yuan (US$8.3 billion) within six to 12 months of its listing, according to IPO sponsor Citic Securities. Unitree will release pricing figures today, amid reports it will seek to raise 4.2 billion yuan to fund research, development and production. The IPO comes amid heightened rivalry between China and the US in robotics development. Washington recently added foreign-made advanced robots to a list restricting sales in the US.

Separately, Chinese start-up X Square Robot has filed confidentially for an initial public offering in Hong Kong, the South China Morning Post reported. The Shenzhen-based firm tapped Huatai Securities and Morgan Stanley as sponsors for the prospective float. And Bloomberg News reported that Chinese startup AI² Robotics, which makes general-purpose robots, is considering a Hong Kong listing as soon as next year. The Shenzhen company, established in 2023, creates wheeled robots and the Alpha Brain for humanoid robots.

DeepSeek Restarts Second Fundraising Round

AI startup DeepSeek has resumed a second fundraising round about a month after pausing it, aiming to raise 50 billion yuan (US$7.4 billion), according to Chinese media reports. The Hangzhou-based company completed its first-ever funding round in June, securing 50 billion yuan from investors that included the National AI Industry Investment Fund, Tencent Holdings, Contemporary Amperex Technology (CATL), NetEase and JD.com.

China Services-Sector Expands at Slower Rate

China's services sector in July expanded at its slowest pace since September 2024, according to the S&P RatingDog services purchasing manager's index. Its gauge dropped from 54.1 in June to 50.4 last month, barely holding on to expansion territory that shifts to contraction at below 50. The slowdown was attributed to weaker new business development and softer domestic demand. Business sentiment, however, stayed positive. RatingDog's Composite Output Index, which combines manufacturing and services, fell to 50.8 from 53.6 in June.

China Raises 15 Billion Yuan in Bond Auction in Hong Kong

China's Ministry of Finance raised 15 billion yuan (US$2.2 billion) through a sovereign bond auction in Hong Kong, tapping international capital just days after the city launched new futures contracts on mainland government bonds. Two-year bonds in the sale carried interest of 1.27 percent, three-year bonds had interest of 1.3 per cent, five-year bonds were at 1.43 per cent, 15-year bonds at 1.99 per cent, and 30-year debt at 2.24 per cent. The sale marks the fourth tranche of Beijing's 84-billion-yuan sovereign bond program this year.

Corporate

AMD Reports Record Quarterly Earnings

US AI chipmaker Advanced Micro Devices (AMD) reported record second-quarter revenue and profit, driven by demand for artificial intelligence infrastructure that more than doubled its data center business. Revenue rose 50 percent of US$11.5 billion, with net income rising to US$2.3 billion from $872 million a year earlier. Gross margin was 54 percent, while operating income reached US$2 billion. For the third quarter, AMD forecast revenue of about US$13 billion, plus or minus US$300 million.

Hongkong & Shanghai Hotels Turns to Profit From Loss

Hongkong & Shanghai Hotels, which operates luxury hotels under the Peninsula brand in Shanghai, Beijing, Hong Kong, London, New York, Manila and Bangkok, said it turned to half-year profit of HK$23 million (US$3 million) from a year earlier loss of HK$289 million. Revenue rose 20 percent to HK$3.9 billion. The company said the global travel environment remains uneven, but the premium accommodation sector continues to show resilience on "highly personalized, experience-led travel." It also operates the iconic Peak Tram in Hong Kong.

BYD Launches New Flex-Fuel Vehicle in Brazil

BYD, China's largest electric-car maker, launched its first Brazilian-made, plug-in hybrid flex-fuel car after a two-year investment of US$19.6 million. The vehicle features a powertrain that can run on electricity, gasoline or ethanol. The driving range is between 60-120 kilometers, depending on model. The vehicle was specially tailored for the rapidly-growing Brazilian market, where use of ethanol from agricultural products is prevalent. BYD sales in Brazil last month were double from a year earlier at 23,465 vehicles.

FinVolution AI Contest Targets Conversation Skills

FinVolution, a New York-listed online finance firm, hosted the global finals of its latest AI algorithm competition in Shanghai, focusing on improving AI's ability to manage the flow of human conversations. Participants were tasked with enabling AI systems to predict, in real time, whether a conversation would continue, switch speakers, receive a brief response, be interrupted or fall into silence within the next two seconds. The competition attracted 776 participants and 553 teams from around the world.

IQiyi Launches New Drama Thriller Series

China streaming platform iQiyi launched a new drama brand focused on quality thriller series of durations between 10 and 25 minutes per episode. Its debut work is entitled "In the Dead of Winter."