Weekend Buzz: 17-18 October 2026

Top News

China Calls on Israel to Stop Jewish Settlements in Occupied West Bank

Chinese Foreign Minister Wang Yi told Israeli President Isaac Herzog at a global forum meeting in Azerbaijan that Israel should stop and reverse its "forced establishment" of Israeli settlements in the occupied Palestinian West Bank, according to a foreign ministry statement. China has consistently held that the Palestinian question is the greatest historical injustice of this century, Wang told Herzog, and said promoting peace and reconciliation in the region is the "cornerstone" of China's Middle East policy. China advocates the "two-state solution" and the immediate, full opening of the Gaza Strip to humanitarian aid.

Separately, Israeli settlers have been attacking Palestinian olive groves in the West Bank during the current harvest season, uprooting or setting fire to trees that provide local livelihoods. The BBC filmed an attack near the village of Abu Falah, which injured 12 people, including a reporter from the Washington Post. The UN says the past two weeks have seen more attacks by violent Israeli settlers than during the entire harvest season last year.

Oil Prices Spike on Escalation in Middle East Conflict

Global oil prices spiked on Friday amid escalating Iranian attacks on shipping through the Strait of Hormuz and stepped-up strikes on Saudi Arabian oil facilities by Iranian-backed Houthi rebels. Benchmark Brent crude futures touched US$110 a barrel for the first time since May, closing New York trading at US$109.86. Saudi Arabia reported intercepting several missiles fired over the Red Sea and other parts of the nation. In the Strait of Hormuz, at least nine tankers and cargo ships have come under attack this week, including a Singapore-flagged vessel that sank.

US President Donald Trump said he won't use nuclear weapons against Iran and has no plans to deploy ground troops there. His comments in an interview with Newsmax, amid media reports that the US military is making contingent plans to use a non-nuclear weapon called the "mother of all bombs" against Iran nuclear sites. The weapon, largest in the US arsenal, has not been used in the Iran war.

Ukraine Regains Access to US Intel Through Starlink

Ukraine's access to Elon Musk's Starlink internet satellite system has been restored, after the White House restricted access earlier this week. The disruption in the flow of US intelligence sharing meant that Kiev wasn't receiving advance notice of Russian drone and missile attacks, which is used to alert residents. The breach occurred following a spat between President Donald Trump and his Ukrainian counterpart Volodymyr Zelensky over Kiev's attacks on Russian refineries, which Trump blames for record-high diesel prices. However, Russian President Vladimir Putin said that recent ⁠Ukrainian drone strikes on refineries have not caused significant ⁠damage. Both countries are continuing reciprocal strikes, ignoring an energy ceasefire Trump declared.

Canadian Province to Vote on Separatist Referendum

Voters in the Canadian province Alberta will be casting ballots on Monday in a non-binding referendum on whether they want to remain part of Canada. One of the questions on the ballot asks if they want to start the legal process required to hold a binding referendum on separation. Polls have consistently shown about 70 percent of Albertans want to stay part of Canada. The separation movement is built on longstanding grievances that too much of the province's oil and gas wealth goes to poorer parts of the country. Prime Minister Mark Carney, who was largely raised in Alberta, urged a no vote, arguing that a divided country can't succeed. US President Donald Trump, who has previously said all of Canada should become the 51st state, has been conspicuously silent on the election, amid reports that representatives from an Alberta separatist group have met with US officials in the past seeking support.

Top Business

Chinese Tech Companies Signal Strong Profits. Is It Enough?

Chinese tech companies are signaling strong third-quarter earnings, but will they be enough to shift negative investor sentiment on the sector that has led to a global rout in tech stocks? ChangXin Memory Technologies (CXMT), China's biggest maker of dynamic random-access memory chips, signaled its third-quarter net profit will rise as much as 3 percent to 54.9 billion yuan (US$8.2 billion) on global AI demand. Revenue is forecast to hit 117 billion yuan. For the first nine months of 2026, it is projecting net profit as high as 132.5 billion yuan, with the company turning to profit from a year earlier loss.

Yang Chao, an analyst with Galaxy Securities, told China Biz Buzz that investors harbor concerns about how AI development is funded and how the money is spent. "Above all, people need to be convinced that tech shares are worthy of their investment and trust," he said.

Among other corporate projections, memory chip maker Longsys foresees up to a 20-fold increase in Q3 profit to 14.9 billion yuan; optical module maker Accelink Technologies projects profit as high as 1.3 billion yuan, up 82 percent; printed circuit-board maker Shennan Circuits forecast up to a 78 percent profit increase to 4.2 billion yuan. Chip maker Hygon signaled that profit will rise as much as 52 percent to 3 billion yuan, MetaX is projecting it will swing from a year-earlier loss to profit of up to 717 million yuan, and Sugon has issued a profit forecast of 1.7 billion yuan, up 78 percent. Chip equipment maker Han's CNC is signaling a doubling of nine-month profit to 1.5 billion yuan.

China's Biggest Airlines Report Passenger, Cargo Gains

China's "Big Three" airlines, Air China, China Eastern Airlines and China Southern Airlines, reported higher passenger traffic in September, largely driven by overseas flights. Overall available capacity and passenger volumes rose across the board, but investors will be waiting to see how high jet fuel costs and fare discounting impact the bottom line following deep profit losses in the first half.

Air China said it carried 14 million passengers in September, a 3 percent increase from a year earlier. Domestic passengers were up 2.3 percent, international travelers increased 9.5 percent and regional transport fell 2.5 percent. Passenger capacity measured by available seat kilometers increased 3.5 percent, and the average load factor rose 2.3 percentage points to 85.4 percent. Cargo and mail volume rose 10.5 percent. Air China was operating a fleet of 974 aircraft at the end last month.

Shanghai-based China Eastern Airlines Air China said it flew 12.5 million passengers last month, a 4.1 percent increase. Domestic traffic rose 4 percent, international was up 3.9 percent and regional jumped 10 percent. Passenger capacity rose 3.8 percent, and the load factor fell 0.2 point to 87.4. Cargo traffic rose 12 percent. China Eastern operated a fleet of 837.

Guangzhou-based China Southern Airlines flew 14 million passengers, up 1.7 percent. Domestic travelers rose 0.8 percent, international passengers rose 7 percent and regional transport was up 16.5 percent. Passenger capacity rose 3.8 percent, and the load factor slipped half a point to 85.9. Cargo traffic increased 6 percent. The carrier was operating 978 aircraft at the end of the month.

Tesla's Musk Unveils Roadster That May Someday Be Able to Fly

Tesla chief Elon Musk unveiled a redesigned Roadster prototype with thrusters that he predicts will enable the vehicle to fly someday. "Success is not guaranteed," he said. "It'll probably work." At a demonstration, the Roadster was shown in a full mid-air rotation before landing, and jumping over five lined-up vehicles. The Roadster can accelerate from zero to 60 miles per hour in less than one second and can hit a top speed of over 230 miles an hour, Musk said. Chinese companies, notably carmaker XPeng have been developing different versions of low-altitude "flying cars," with models that combine vertical takeoff and landing technologies similar to drones. XPeng's Land Aircraft Carrier has a six-wheel electric ground vehicle that contains a detachable all-electric vertical takeoff and landing air module.

US Import Prices Surge, Budget Deficit Widens 12 Percent

US import prices surged beyond expectations in September to an 8.1 percent year-on-year increase, boosted by higher energy costs and raising pressure on consumer prices. It was the biggest rise since 2022. The US Labor Department report on Friday showed a 1.1 percent gain from August. The data take on special meaning ahead of US midterm elections on November 3, where the cost of living has emerged as a major campaign issue.

Separately, the US Treasury Department reported that the federal budget deficit reached US$1.99 trillion for fiscal year ended September 30, a 12 percent increase from a year earlier. The shortfall equals about 6 percent of US gross domestic product and requires higher borrowing in bond markets to cover. The nation's gross national debt now exceeds US$40.3 trillion, with annual interest costs at a record US$1.1 trillion.

China Proposes Export Controls on AI, Solar Technologies

China's commerce and science ministries are seeking public feedback on proposed export controls covering 40 technologies related to AI, biomedicine and solar power. They would affect large language models, AI agents, cell and gene therapies, polysilicon production and solar-cell manufacturing. The ministries said the measures aim to address security risks while preserving international cooperation. They stressed that the proposed changes do not target any specific country or entity.

In the solar industry, China's industry ministry is continuing efforts to curb capacity expansion, proposing measures that encourage technological innovation and more efficient investment. The Ministry of Industry and Information Technology on Friday solicited public feedback on draft rules for the industry, which has long been suffering from oversupply and price wars. Last year, China's top solar giants – Longi Green Energy, Trina Solar, JinkoSolar, JA Solar and Tongwei – shed more than 40,000 jobs following a 31 percent cutback a year earlier.

Shanghai to Host Major Robotics Event

The Pudong New Area of Shanghai will host the 2026 Global Developer Pioneer Summit and International Embodied Intelligence Skills Competition from October 23-25. Leading robotics developers, including AgiBot, Unitree, and Fourier, will showcase complete humanoid systems alongside key components such as dexterous hands, joint modules and tactile sensors.

Economy & Markets

Chinese Game Makers Dominate Global Industry

Chinese game publishers topped the global revenue chart in September, raking in US$2 billion, according to data compiler Sensor Tower. Thirty-seven Chinese publishers ranked in the global top 100 mobile game makers, accounting for 42 percent of the worldwide total. Tencent continued to hold the No. 1 spot, with Bilibili, Joy Games, Yishi World and Youku Shengshi among top sellers.

China Money Supply Figures Reflect Drop in Non-Bank Deposits

China's M2, the broadest and most widely watched measure of money supply, rose 7.2 percent in September. M2 includes cash in circulation and all deposits. A sharp drop in non-bank deposits has widened the gap with M1, a narrower measure that covers physical currency in circulation, demand deposits and checking accounts, which rose 3.2 percent. Deposits at non-banking institutions fell by 1.9 trillion yuan (US$285.4 billion) last month from a year earlier, according to the People's Bank of China. The deposit trend reflects a temporary pullback in household risk appetite.

US Fed Chief Says He's Optimistic on AI

US Federal Reserve Chairman Kevin Warsh, attending this week's IMF-World Bank annual meeting in Bangkok, said he's optimistic that artificial intelligence will make economies that use it wealthier and more productive, but said the road to get there will be "very bumpy" and the near-term effect on jobs is unknown.

A decade from now, he said, people will look on the emergence of AI "hugely consequential" but "optimism is leavened by the seriousness of the purpose." He declined to discuss whether the Fed might raise rates a second time this year after inflation heated up in September.

China to Issue Fifth Portion of Yuan Treasury Bonds in Hong Kong

China's finance ministry said it will issue 15.5 billion yuan (US$2.3 billion) in treasury bonds in Hong Kong on October 23, the fifth tranche of the year, bringing the total to 75 billion yuan of the 2026 allocation of 84 billion yuan in yuan-denominated sovereign bonds.

China's Super Wealthy Winding Down Offshore Trusts

China's super rich are scrambling to wind down their offshore trusts by selling shares and even switching nationalities ahead of a deadline to declare income booked overseas, the South China Morning Post reported. In late July, Beijing set an October 22 deadline for the declaration of offshore trust income, with a tax of 20 percent to be imposed on trust profits. Boston Consulting Group estimates China's offshore wealth at about US$1.7 trillion.

Deep Dive

AI Scientist Applies Technology to Life Sciences Problems, Like Rare Diseases

Xie Weidi is an AI scientist at Shanghai Jiao Tong University who has spent much of his career solving problems. He started in communications, jumped into computers as deep learning took off, then moved from supervised to self-supervised learning. His latest turn is life sciences, where unanswered questions abound, like rare diseases.

Pampering Pets Is a Big Industry in China, But It's Not Indulging the Bottom Line

The financial reports of major pet companies show the darker reality of an industry trapped in the structural squeeze of "increasing revenue without increasing profit."

Corporate

Preorders for Apple's Foldable iPhone Duo Sell Out in Minutes

Preorders for Apple's US$1,999 foldable iPhone Duo sold out within minutes after opening on Friday, pushing estimated delivery dates back to late January. In China, demand was particularly intense in Shanghai, where launch-day, in-store pickup slots were snapped up instantly. All official Apple retail stores across Shanghai and surrounding areas currently show no inventory available for in-store collection.

Ganfeng Lithium Signals 196-Fold Surge in Nine-Month Profit

Ganfeng Lithium, China's largest lithium compound maker, issued preliminary nine-month financial figures showing a 196-fold increase in net profit from a year earlier to 5 billion yuan (US$747 million) on a 147 percent surge in revenue to 36.2 billion. The company, based in Jiangxi Province, is dual-listed on the Shenzhen and Hong Kong stock exchanges, and it ranks third largest in the global industry. It is also the world's largest producer of lithium metal.

DeepSeek Consolidates Teams into Product Division

Chinese AI startup DeepSeek is consolidating several teams into a new product division to oversee product development, design and research. The new unit will combine the company's Harness, web, app and platform teams, with Cui Tianyi, previously head of the Harness team, taking charge, The Paper reported on Friday. DeepSeek is also recruiting product and design professionals for the division.

XPeng Begins Pre-Sales of Mona L05 SUV Models

Chinese carmaker XPeng officially launched pre-sales of the Mona L05, the first large five-seat SUV in the brand's lineup. The model comes in five versions, with pre-sale prices ranging from 169,800 yuan (US$25,000) to 191,800 yuan, with both battery electric and extended-range powertrain options. The new models are expected to enter the European market in early 2027.

Geely to Deploy Google In-Car Services in Cars Sold Overseas

Chinese automaker Geely said on Friday that its vehicles sold in overseas markets will feature Google's ⁠in-car services, including Gemini, Play and Maps. The deployment will begin in the second half of 2027.

BMW Begins Production of Sixth-Generation Batteries

German automaker BMW began mass production of its sixth-generation high-voltage batteries at one of its facilities in the northeastern city of Shenyang. The company invested 10 billion yuan (US$1.49 billion) in the project. It is aiming to raise the share of locally manufactured vehicles sold in China to 95 percent by 2030. BMW operates a joint venture with China's Brilliance Auto in the city and has multiple production sites there.

Li Auto's Chip Unit Secures Investment in First Funding Round

Li Auto announced that its semiconductor unit Mach Heart Technology raised 1.6 billion yuan (US$228.6 million) in its first fundraising round, valuing the subsidiary at up to 17.1 billion yuan. The round was led by Hangzhou Jingtao, BlueRun Ventures and Huaye Tiancheng. The money will be used for domain controller research and development and the acceleration of product commercialization.

Hudong-Zhonghua Secures LNG Ship Order from Malaysia's MISC

China's Hudong-Zhonghua Shipbuilding signed a contract with Malaysian shipping company MISC to construct five 174,000-cubic-meter liquefied natural gas carriers. This agreement raises the shipbuilder's order book for such carriers to 57 vessels. The company now holds over a 21 percent global market share, ranking first worldwide in terms of cargo capacity.