Weekend Buzz: 19-20 September 2026

Chinese Vice Premier Leading Delegation to US for Trade Consultations

Chinese Vice Premier He Lifeng is leading a delegation to the US for talks through September 23 on economic and trade measures, China's Ministry of Commerce said. The visit is to discuss bilateral agreements reached by Chinese President Xi Jinping and US President Donald Trump at their Beijing summit in May.

US, Denmark Reach Agreement on US Security in Greenland

US President Donald Trump announced a deal with Denmark that will grant the US "permanent control" over Greenland's security, including a large military presence. Danish Prime Minister Mette Frederiksen, confirming the agreement, said the deal "strengthens security in the Arctic and the North Atlantic area" but did not address specifics, including Trump's assertion that no US adversary will be allowed to invest in the semi-autonomous Danish territory without express US approval. The accord comes after months of threats by Trump to seize control of Greenland, citing its strategic defense location and its mineral wealth. The US currently operates the Pituffik Space Base 1,200 kilometers north of the Arctic Circle, as part of the Norad air-defense tracking system. During the peak of the Cold War, the US had 17 military sites and radar stations across Greenland.

Russia Begins Parliamentary Elections, Outcome in No Doubt

Russia began a three-day election period to elect 450 members to the Duma, the lower house of the Russian parliament. The election is the first since the war in Ukraine began more than four years ago – a conflict that Ukraine has increasingly taken to the Russian heartland with drone attacks on energy facilities and military sites. Only parties that back President Vladimir Putin were allowed to field candidates, so control of parliament won't change and the elections won't be read as public sentiment toward the war. Putin said earlier in the week that the election will show a united nation. Western analysts will be watching turnout figures as a possible indicator.

South Korea Rejects Trump's Call for Help in Iran War

South Korea President Lee Jae Myung said his nation will not deploy troops in the war against Iran, following earlier media reports that the government was considering US President Trump's repeated demand for "a little hand" from a decades-old American ally. Trump has criticized Seoul – and other allies – for what he called insufficient support in the US fight against Iran. Washington earlier scaled back major joint military drills with South Korea in response.

Top Business

Alibaba Introduces Next-Generation Qwen Omni-Flash Model

Alibaba has unveiled its next-generation AI model Qwen3.8-Omni-Flash, which supports a 1 million token context window and achieves an average score improvement of over 25 percent across 29 benchmarks compared with its predecessor. Application Programming Interface pricing for audio input has been slashed by more than 98 percent while audio-video input costs have dropped by about 93 percent. The model introduces agent understanding for long-form audio and video, which works backward from the query to process content efficiently, while simultaneously reducing token consumption by 46 percent. Alibaba claims the model outperforms Google's Gemini 3.8 Flash on multiple benchmarks. Speech recognition supports 74 languages and speech generation covers 29 languages. The company also released supporting tools Qwen-MM-Plugins and Qwen-Live Harness.

Separately, Alibaba's Damo Academy research institute has developed an AI model that can identify nearly 150 abdominal conditions, such as stomach and liver cancers, potentially replacing models that typically target a single disease, according to a study published in Science magazine on Friday. The pioneering Damo Radar model, developed in tandem with First Affiliated Hospital of Zhejiang University, was evaluated on nearly 40,000 real-world examinations. Researchers said it was the first general-purpose medical imaging AI model to reach radiologist-level performance across multiple diseases and organs.

CXMT to Expand Into NAND Flash Chips

Chinese chipmaker ChangXin Memory Technologies, the world's fourth-largest maker of dynamic random-access memory, is preparing to enter the NAND flash memory market. The company said it plans to establish a research and development production line at a new facility in Beijing and is already in discussions with startups seeking to adopt its NAND chips for storage products targeting AI systems and supercomputers. The move marks a significant expansion beyond CXMT's core business, pitting the Hefei-based company against domestic rival Yangtze Memory Technologies and overseas giants such as Samsung Electronics.

Microsoft AI Chief Says Latest Revelations of AI Behavior 'Serious'

Microsoft AI chief Mustafa Suleyman told US news outlet CNBC on Friday that OpenAI's latest disclosures of AI model behavior are a sign of just how powerful frontier machine intelligence is becoming. He was referring to OpenAI admission of evidence that the working memory of AI is being tampered with by AI itself, leaving messages on future versions of itself. "Now we don't know why that is or was behind that, but that's a pretty serious situation," he said. In a blog post, OpenAI described instances where agents communicated with each other through unsanctioned message boards, uploaded files to the internet and shared files with each other. Suleyman lauded a "healthy, open public" debate on AI risks, that started after a former Anthropic researcher quit his job and warned that the rapidly evolving technology could kill humans by the end of the decade.

Separately, Alex Karp, chief executive of AI software maker Palantir, floated the controversial idea that leading AI labs may ultimately need to be nationalized, arguing that the technology's "boundless risks" make it impossible for developers to bear legal liability. He called for enforceable regulatory standards and advocated for legal accountability for irresponsible developers.

China Opposes Proposed EU Hybrid Export Caps

China's Ministry of Commerce rejected a call from the EU to voluntarily restrict hybrid vehicle exports to 15 percent of the bloc's market. A ministry spokesperson said restraints violate World Trade Organization rules and fair competition. China continues to insist that trade disputes be resolved through negotiations that respect the interests of both sides. The EU has threatened higher tariffs on Chinese cars amid attempts to whittle its trade deficit with China.

Anthropic Annualized Revenue Said to Exceed US$100 Billion

Anthropic is expected to generate more than US$100 billion in annualized revenue this year as it continues to prepare for an initial public offering, possibly as soon as November, the New York Times reported. It said the company's run rate, a metric that projects full-year revenue from a shorter period, has surged throughout the year as business customers flocked to its Claude artificial intelligence software to streamline coding and other workplace tasks. Media reports have speculated that Anthropic may seek a valuation of US$2 trillion in its IPO. Rival OpenAI said earlier this week that it is delaying its expected IPO to 2027 from this year amid the contentious debate over AI safety risks.

Economy & Markets

Japan Raises Interest Rates to Highest in 31 Years

Japan's central bank raised its main interest rate a quarter point to 1.25 percent, a 31-year high as it moves away from decades of near-zero borrowing costs amid increasing economic pressures. The Bank of Japan has raised rates six times since 2024, when the rate was a negative 0.1 percent after years of deflation, but it still remains below other advanced economies. Japan's low rates triggered what is known as the "carry trade," whereby global investors borrowed cheap money in Japan and invested it in higher-yielding assets overseas. That trade has been unwinding as rates have moved higher, weakening the yen. Japan's seasonally adjusted core inflation rate in August was 0.1 percent. Japan is dependent on Middle East oil, but government fuel subsidies for consumers have cushioned a price blowout.

Chinese Yuan Appreciates to Three-and-a-Half Year High

China's central bank raised the yuan's central parity rate against the US dollar on Friday to 6.7521, marking the eighth consecutive trading day of upward adjustment and the strongest level since February 2023. Both the onshore and offshore yuan broke through the 6.7 threshold during trading, with the offshore rate touching a four-year high of 6.6930 at one point. The appreciation comes after the US Federal Reserve raised rates a quarter point this week and the dollar index remains near seven-week highs. The People's Bank of China sets a daily rate for the yuan, allowing it to trade 2 percent either side of that mark.

US Airlines Oppose Additional Flights for Air China

A group representing major US airlines said on Friday it opposes Air China's bid to schedule additional flights from Beijing ‌to New York and Washington. Airlines for America, which represents American Airlines, Delta Air Lines, United Airlines and other carriers, said its opposition is based on fact that US airlines are currently banned by Russia from flying over its airspace on flights to China, while Chinese carriers can use the route to the US. The group said in a statement that Chinese carriers have "shorter, less costly and more economical routings on flights" giving them an advantage.

China's Residential Market Shifting to Existing Home Sales From New Housing

Zhang Xuetao, market regulatory director at China's Ministry of Housing and Urban-Rural Development, said Friday that existing home sales accounted for 52 percent of all residential transactions in the first eight months of this year, surpassing the 50 percent threshold for the first time. That's a rise from 46 percent last year and from 27 percent in 2020, reflecting a fundamental shift in market supply-demand dynamics. China has suffered a slump in the residential property market the past five years, triggered by a liquidity squeeze that caused some developers to default on debt.

China Unveils Five-Year Plan Promoting the Pharma Industry

China released a five-year plan for development of the nation's pharmaceutical industry, targeting a market valued at 3.5 trillion yuan (US$523 billion) by 2030 and average annual growth in first-in-class new drugs of a least 20 percent. It aims to see the industry take a 25 percent global share of the innovative drug market. The plan promotes AI, quantum computing, brain-interface technology and cell therapy as target breakthrough areas, calling for the development of 50 companies with annual revenues exceeding 10 billion yuan.

Shipping Costs From China to US East Coast Near Record

Spot rates for non-contract container shipping from China to the US East Coast have surged to within striking distance of the all-time high set during the Covid-19 pandemic. The Shanghai-to-New York route now commands US$10,948 per 40-foot container, more than triple the level seen before the Iran war and just shy of the US$11,900 record set in January 2022. The Middle East conflict has pushed marine fuel prices to US$901.50 per metric ton.

Deep Dive

China's Biotech Licensing Boom Has a Value Problem

The licensing boom in Chinese biotech has raised the question of how much value Chinese companies can retain after selling assets.

China Regulators Warn Domestic Automaker to Play Fair in Overseas Markets

A new directive stresses the importance of fair market pricing, reliable after-sales services and compliance with foreign norms. The days of relentless price-cutting as a market strategy are ending.

Corporate

Huawei Unveils Technology to Power Next-Gen Ascend 960 Processors

Huawei Technologies has showcased its proprietary near-packaged optics interconnection technology in Shanghai, aiming to reduce power consumption and signal latency for chips deployed in AI data centers. Designed to support Huawei's next-generation Ascend 960 processor slated for release next year, the architecture optimizes data transmission by placing optical modules in close proximity to the processors. This unique engineering approach offers the industry a domestic alternative to Nvidia's co-packaged optics technology.

Spirit AI Predicts Advent of Robots Responding to User Voice Commands

Hangzhou-based startup Spirit AI has signaled that humanoid robots capable of executing tasks from verbal commands alone could become a reality as early as mid-2027. The company said it has achieved about a 90 percent success rate on voice commands for simple tasks, and expects industrial applications within the next one to two years, with deployment in the services sector following two years later. However, the company took a cautious view on deployment in households, saying that could be more than eight years away. Founded in 2024, Spirit AI has raised more than US$670 million in funding.

Eve Energy Signs Battery Deal With US Energy-Storage Company

Eve Energy's lithium-ion battery unit signed a deal to deliver 206 gigawatt-hours of batteries to US energy-storage supplier Fluence Energy's global production unit from 2027-31. The order is almost twice Eve's shipments for all of 2025. No financial details were disclosed.

Leapmotor Signs Agreements With Two FAW Units

Electric car startup Leapmotor plans to participate in a fundraising round for Qixin Powertrain Technology, a subsidiary of Chinese automaker FAW, expanding ties established between both companies last year. Under a letter of intent signed this week, Leapmotor and Qixin will explore resource sharing in hybrid engines, electric-drive systems and range extenders. Leapmotor also signed a technology cooperation agreement with China Automotive New Energy Technology, another FAW-affiliated company, for joint research into next-generation battery technologies. Last year, Leapmotor signed a deal with parent FAW to supply an electric-car platform for a new model of FAW premium marque Hongqi.

Two Tesla Suppliers in China Deny Knowledge of Reported Tesla Audits

Two Tesla suppliers in China told Yicai media outlet that they have no knowledge of the US automaker conducting factory audits of suppliers related to its development of the Optimus humanoid robot. Media reports said a Tesla team had arrived in Ningbo to do the assessments. Tuopu Group and Sanhua Intelligent Controls said they have received no notification about facility inspections. Both companies supply robot joint components.

China's Z.ai Raises Revenue Target 25 Percent After US$5 billion Cash Injection

Chinese AI developer Z.ai, also known as Zhipu, has increased its outlook for year-end annual recurring revenue by 25 percent to US$3 billion, after raising US$5 billion last month in a share placement and sale of convertible bonds in Hong Kong, where it is listed. The company has allocated the funds to support training new models to meet a surge in demand for its AI services. The company said it is planning a 30-billion-yuan (US$4.5 billion) infrastructure push that could add up to 100,000 "petaflops" of computing power.

VW Flags US$11.5 Billion in One-Time Costs

Volkswagen's financial crisis worsened as the German automaker flagged 10 billion euros (US$11.5 billion) of one-time costs, mostly at struggling sports car brand Porsche, Reuters reported. The world's second-largest automaker has already entered its biggest-ever restructuring to cut costs. Porsche has been hit hard by US tariffs and collapsing demand for foreign luxury brands in China.

Meta to Pull Two AI Deepfake Videos, Board Calls Safeguards 'Inadequate'

Meta, owner of Facebook and Instagram, has been ordered by its Oversight Board to remove two AI-generated videos from Facebook and strengthen its safeguards against deepfakes, with the board calling the company's current policies "consistently and fundamentally inadequate." The cases involved a Scottish politician falsely depicted making inflammatory remarks about refugees and ridiculing a Muslim woman campaigner in Europe. Meta said it will comply with the removal orders.

Baidu Lifts Revenue Goal for AI Office Agent as Growth Surges

Baidu raised its annual revenue goal for its AI office agent WorkBuddy up to five times, following strong growth in July and August. Launched in March as a dual-version subscription service, the product has gained rapid traction. In July, WorkBuddy had 6.7 million monthly active desktop users, more than a 1,000 percent surge from a month earlier and ranking second overall among AI office agents.

CATL Proposed Plant Undergoes Environmental Assessment

Battery giant Contemporary Ampere Technology's (CATL) plans to build a 1.4-billion-yuan (US$209 million) production center in Ya'an is undergoing an environmental impact assessment, according to National Business Daily. The plant will have annual production capacity of about 40,000 tons of lithium carbonate, 30,000 tons of lithium dihydrogen phosphate and 130,000 tons of sodium sulfate.