Weekend Buzz: 28 February-1 March 2026

China Urges Citizens to Leave Iran, US Evacuates Israel Embassy

China's foreign ministry, citing "the current security situation," urged its citizens to leave Iran, and Washington ordered the evacuation of non-essential personnel from its embassy in Israel as speculation swirled about a possible imminent attack on Iran by the US. President Donald Trump ratcheted up anxieties on Friday when asked about his reaction to US-Iran nuclear talks held a day earlier. "We're not thrilled with the way they're negotiating," he said. "They cannot have nuclear weapons." Asked about the use of military force, he said, "I'd love not to use it, but sometimes you have to." The US has sent two carrier strike forces to the Middle East in the biggest military buildup there since the Iraq war.

Iranian military officials warned that any "unwise" American action would spark a widespread regional conflict, placing US interests in the Middle East within range of Iranian missiles. State media increased broadcasts showcasing Iran's missile capabilities.

The heightened tensions sent gold and oil prices higher. Spot gold was up 1.6 percent in late trading in New York, and benchmark Brent crude rose 2.5 percent to US$72.52.

Pakistan Bombs Taliban Targets in Afghan Cities

Pakistan bombed Taliban government targets in Kabul and other major cities in Afghanistan, with Pakistan's defense minister describing the escalating conflict as "open warfare," Reuters reported. "Our cup of patience has overflowed," declared defense chief Khawaja Muhammad Asif on Friday. The two neighbors have frequently clashed in cycles of attacks along their common border, amid Islamabad claims that Kabul harbors militants who carry out strikes in Pakistan – an allegation Afghanistan denies. Both sides reported inflicting heavy losses on the other in conflicting figures.

China, Russia, Turkey and Saudi Arabia are trying to mediate, diplomats and news reports said. China's foreign ministry urged both sides to agree to a ceasefire. "As their neighbor and friend, China is deeply concerned over the escalation of the Pakistan-Afghanistan conflict and is saddened by the casualties," ministry spokesperson Mao Ning said.

Trump Hints at "Friendly Takeover" of Cuba

US President Donald Trump on Friday raised the prospect of a "friendly takeover" of Cuba, telling reporters at the White House that Secretary of State Marco Rubio is dealing with the issue at a "very high level," Reuters reported. "The Cuban government is talking with us, and they're in big trouble," Trump said. "They have no money, they have no oil, they have no food, and they want our help." The Cuban government has denied any high-level talks with the US but has not discounted informal talks. The US has imposed a partial oil embargo on the island.

Danish Prime Minister Calls Snap Poll

Danish Prime Minister Mette Frederiksen called a snap election for March 24 to refresh her government's mandate amid a continuing conflict with the US over ownership of Greenland. US President Donald Trump wants to annex the Arctic island, which is a semi-autonomous part of Denmark, but has backed off threats to take it by force. Greenland, Denmark and the EU have denounced US ambitions. "We as Danes and as Europeans will really have to stand on our own feet," Frederiksen told parliament. "We need to define our relationship with the US."

Top Business

China's Emerging Chip Makers Post Strong 2025 Revenue

Shanghai-listed Chinese chip startups Cambricon, Moore Threads and MetaX reported strong earnings on Friday, driven by growing demand for domestic semiconductors as Beijing intensifies its drive for self-sufficiency in advanced technologies, the South China Morning Post reported. Beijing-based Cambricon, often called "China's Nvidia," reported 2025 net profit of 2.1 billion yuan (US$301 million), its first annual profit since listing in 2020, according to a filing to the Shanghai Stock Exchange. Revenue rose 450 percent from a year earlier to 6.5 billion yuan.

Chip designer Moore Threads, which listed in December, said annual revenue surged 243 percent to 1.5 billion yuan, with its loss narrowing to 1 billion yuan. The Beijing-based company said this week that it has achieved full-stack compatibility between its flagship MTT S5000 graphics processing unit and Alibaba Cloud's Qwen 3.5 series. Shanghai-based MetaX Integrated Circuits, which also listed in December, posted a 121 percent increase in revenue to 1.6 billion yuan, with its loss reduced from a year earlier to 781 billion yuan. Separately, Zhongji Innolight, a telecom-equipment maker, reported a 60 percent increase in revenue last year to 38.2 billion yuan, with profit doubling to 10.8 billion yuan.

'China's Netflix' Narrows Loss in Fourth Quarter

Nasdaq-listed online entertainment video provider iQiyi, sometimes called "China's Netflix," narrowed its fourth-quarter loss to 5.8 million yuan (US$800,000) from 189.4 million yuan a year earlier. The company, majority-owned by Chinese tech giant Baidu, said revenue rose 3 percent to 6.8 billion yuan. The Beijing-based company, which has about 100 million paid subscribers, said revenue from memberships was flat and ad sales were down 6 percent. Content costs rose 11 percent on what the company said was "a more robust lineup of original dramas." For the full year, iQiyi said revenue fell 7 percent to 27.3 billion yuan and its net loss narrowed to 206.3 million from 764.1 million yuan a year earlier. The company said memberships grew 30 percent in 2025, and it is deploying AI tools to cut production and marketing costs.

OpenAI Secures US$110 Billion in Funding

Privately held OpenAI, creator of ChatGPT, announced on Friday that it completed a new US$110 billion funding round, doubling what it raised last year and taking its valuation to US$840 billion. The fundraising involves US$50 billion from Amazon and U$30 billion each from SoftBank and Nvidia. OpenAI has committed to expanding its partnership with Amazon Web Services by US$100 billion over the next eight years, including use of Amazon's custom Trainium chips to power its next-generation models. A separate collaboration with Nvidia gives it access to next-generation inference computing.

Economy & Markets

China Moves to Cool Pace of Yuan Appreciation

China's central bank moved on Friday to slow the pace of a rapid yuan appreciation, saying it will scrap the foreign exchange risk reserves for some forward contracts, set at 20 percent in 2022 to stem yuan losses and capital outflow. The change will encourage dollar buying, Reuters reported. The decision came after the yuan firmed to a near three-year high against the US dollar a day earlier, driven by exporters rushing to sell dollars. The offshore yuan, which had appreciated over 1 percent against the dollar this year, weakened about 0.2 percent on Friday. The currency is set at a daily reference rate by the Chinese central bank and allowed to trade in a narrow range in the spot market. On Friday, the so-called central parity rate was set at 6.9228 against the dollar, Xinhua reported.

Bloomberg News, citing data from Depositary Trust & Clearing, reported that trading in dollar-yuan options has surged recently, with bets that the currency will rise by the end of the year edging out bets it will decline. China is keen to maintain stability and orderly movements in the yuan as it seeks to encourage use of the currency in cross-border trade. Citigroup, Goldman Sachs and BNP Paribas Asset Management have all predicted further gains in the yuan this year, reflecting positive investor sentiment toward China.

China Eases Tariffs on Canada Goods

China will suspend additional tariffs on certain Canadian agricultural and seafood imports from March 1 to the end of the year, according to the Customs Tariff Commission. An additional 100 percent levy on Canadian oil cakes and peas, and an extra 25 percent tariff on lobsters and crabs are suspended. The commerce ministry said the revisions reflect "changes in circumstances," citing a preliminary bilateral agreement reached on trade issues. Canada has formally announced partial adjustments to extra tariffs and restrictive measures previously applied to steel and aluminum products imported from China.

China Securities Regulator Tightens Rules

The China Securities Regulatory Commission issued new rules to strengthen information disclosure by private investment funds, aiming to enhance transparency and better protect investors. The new regulation, which will take effect on September 1, requires private fund managers to disclose information in accordance with fund contracts. Managers are also prohibited from forecasting investment performance or guaranteeing returns. For private securities funds, the deadline for quarterly reports has been extended to one month, while private equity funds will shift from quarterly to semi-annual reporting.

EU Officially Ends Tax-Break for Small Parcels

The EU formally abolished a duty exemption on parcels valued below 150 euros (US$177), a move that will particularly impact the business models of Chinese discount e-commerce companies like Shein and Temu, which account for about 90 percent of such small parcel deliveries. A flat duty of 3 euros will be imposed on the parcels, beginning July 1.

Deep Dive

Moore's Law Falls Flat, Consumer Electronics Chip Prices Are Soaring

The humble memory chip has become as precious as gold, triggering a global price surge that is reshaping the consumer electronics landscape.

Corporate

Zai Lab Reports Revenue Growth, Narrows Losses

China biopharma company Zai Lab said 2025 revenue rose 15 percent to US$460 million, with its net loss narrowing to US$176 million. For the fourth quarter, the company posted a loss of US$69.4 million on a 77 percent gain in revenue to US$128 million. The company, which is developing drugs to treat cancer and infectious diseases, is listed in Hong Kong and on the Nasdaq in New York.

New World Development Posts Interim Loss

New World Development, one of Hong Kong's big four developers, posted a net loss of HK$3.7 billion (US$477million) in its fiscal first half ended December 31 on valuation write-downs. The result narrowed from a loss of HK$6.6 billion a year earlier. Revenue fell 50 percent from a year earlier to HK$8.39 billion. The company's China arm has extensive residential, retail and commercial projects in major mainland cities, including K11 malls. On the mainland, property revenue reached 934 million yuan (US$128 million).

Huawei Unveils Mate 80 Pro Smartphone in Madrid

Huawei Technologies released its latest smartphone model, the Mate 80 Pro, at the consumer electronics show in Madrid, along with a new smartwatch. The new phone is powered by company's Kirin 9030 Pro processor. The domestic Chinese version will run on Huawei's propriety Harmony OS system, while the overseas model will run on the Android-based EMUI 15. Huawei edged out Apple last year to claim the top spot in domestic smartphone sales.

GAC Honda Slashes Prices on Select Accord Models

GAC Honda, a joint venture between China's GAC automotive group and Japan's Honda, announced it is slashing the price on 1,000 Accord 2:PHEV models by as much as 100,000 yuan (US$14,618), pricing them at 138,800 yuan. In January, the brand's sales dropped 17 percent from December. GAC is not alone in trying to break through weak consumer spending. Tesla, Nio, XPeng and Li Auto are among a host of carmakers that have announced seven-year, low interest car financing.

Nio Chip-Making Arm Raises Money in Share Sale

GeniTech, the intelligent-driving chip arm of electric carmaker Nio, said it has secured 2.3 billion yuan (US$329 million) from investors buying newly issued shares, valuing the company at nearly 10 billion yuan. The sale will leave Nio with a 62.7 percent stake in GeniTech. The carmaker last year spun off its in-house chip business, establishing GeniTech, which subsequently set up a venture with Axera Semiconductor and OmniVision Integrated Circuits, Yicai Global reported.

Diageo Chief Dismisses Talk of Shui Jing Fang Sale

David Lewis, chief executive of UK-based drinks giant Diageo, said rumors that the company may divest its holding in Chengdu-based distilled spirits maker Shui Jing Fang are pure speculation, Yicai Global reported. The talk began after Diageo, whose brands also include Guinness, Johnnie Walker and Smirnoff, announced at the end of last year that it intends to divest some non-core assets. "We are not actively out in the marketplace hawking a whole series of what people have called 'tail brands,' nor are we active in a couple of things speculated about," Lewis said. Shui Jing Fang makes the popular fiery spirit called baijiu, a traditional Chinese drink that has been losing favor among the younger generation.

Gree Electric Stakeholder to Sell Down Holding

China's Gree Electric Appliances said Chinese private equity firm Hillhouse Capital intends to trim its stake in the company for the first time since it bought a 15 percent holding in 2020, which has increased to 16.1 percent on share repurchase programs. Zhuhai Mingjun Investment Partnership, a fund controlled by Hillhouse, will sell up to 112 million Gree shares, valued at about 4.2 billion yuan (US$614.3 million).

Insta360 Cleared in US Patent Dispute

The US International Trade Commission, in a final ruling, said China camera maker Insta360's current products do not infringe on the patents of US competitor GoPro. The ruling means that Insta360 will be allowed to sell its products in the US without any restrictions.