Top News
China readies big event to mark 80th anniversary of victory over Japanese Invasion
Land, sea and air strategic and hypersonic weapons will highlight China's V-Day military parade on September 3, marking 80 years since the defeat of Japanese invasion forces. The central government held a press conference on Wednesday to announce completion of preparations for the gala event. The parade will proceed along the city's main thoroughfare Chang'an Avenue to Tiananmen Square, where President Xi Jinping will review troop formations.
Russia casts doubt on latest Ukrainian peace initiatives
Russia said it must be part of any talks on NATO-style security guarantees for Ukraine as the Kremlin appears to stall in accepting US President Donald Trump's call for a face-to-face meeting between President Vladimir Putin and Ukrainian President Volodymyr Zelensky. Russian Foreign Minister Sergei Lavrov called a European commitment to come to Ukraine's defense if Russia attacked the country again as an "aggressive escalation" and a "clumsy effort to sway Trump." He said, "To discuss security guarantees seriously without Russia is a road to nowhere," adding that China should be among Ukrainian security guarantors. As European nations met to work out details of security guarantees, the Pentagon in Washington said the US role will be minimal.
Israel calls up reservists as it begins new Gaza offensive
Israel called up 60,000 reservists as it began an offensive to occupy the entire Gaza strip, beginning with attacks on heavily populated Gaza City. It also threw a spanner into the latest ceasefire efforts by demanding the release of all 50 hostages held in Gaza, both alive and deceased, instead of a phased release. A 60-day ceasefire proposal, brokered by Egypt and Qatar and accepted by Hamas, calls for release of 10 living and 18 dead hostages while both sides negotiate a permanent ceasefire.
Israel ratchets up row with France, Australia
Israeli Prime Minister Benjamin Netanyahu stepped attacks on countries that announced they will recognize Palestinian statehood next month. On Monday, he sent letters to French President Emmanuel Macron and Australian Prime Minister Anthony Albanese accusing them of pouring "fuel on the antisemitic fire" and saying "Jew-hating now stalks your streets." Macron called the claim "abject and erroneous." On Tuesday. Netanyahu called Albanese "a weak politician who betrayed Israel and abandoned Australia's Jews." Tony Burke, home affairs minister, sharply responded, "Strength is not measured in how many people you can blow up or how many children you can leave hungry."
Top Business
Baidu posts declines in profit and revenue, shares drop
Beijing-based Baidu, a multinational technology company specializing in Internet search, cloud services and more recently autonomous driving, posted a 5 percent decline in second-quarter profit from a year earlier to 7.3 billion yuan (US$1 billion). Revenue dropped 4 percent to 32.7 billion yuan, its worst decline in three years. The slides reflect tighter consumer spending and a 15 percent decline in online advertising revenue. Baidu shares fell 2.6 percent in New York.
Company operations in AI cloud increased non-ad revenue by a third. The company said its open-sourced Ernie 4.5 series, the most advanced family of foundation models, was a strong growth driver. Baidu said that over 50 percent of its search pages are generated by artificial intelligence. The company's Apollo Go self-driving, ride-hailing service provided 2.2 million rides in the quarter. The company has a multiyear partnership with Uber to deploy its vehicles in several countries, initially in Asia and the Middle Dast. It also has a partnership with Lyft for self-driving services in Germany and the UK. Baidu has returned US$677 million to shareholders this year under a 2023 US$2.3 billion share buyback program.
ZTO suffers profit slump as customers shift to lower-cost services
Shanghai-based ZTO, one of China's largest courier services, said second-quarter net income fell 25 percent from a year earlier to 1.9 billion yuan (US$272 million) as customer trends drifted toward lower-priced services over quality services. Revenue, however, rose 10 percent to 11.8 billion yuan, with express deliveries accounting for 93 percent of the total. It reported a 16.5 percent rise in parcel volume to 9.8 billion, with pickup and delivery outlets reaching 31,000. Operating expenses rose to 469.3 million yuan from 405.3 million yuan. The company lowered its previous forecast of 2025 parcel volume to around 40 billion.
Laopu Gold first-half profit surges
Beijing-based Laopu Gold, an upmarket jeweler that combines modern design with Chinese cultural motifs, said net income in the first half rose 286 percent to 2.3 billion yuan (US$315 million) on a revenue increase of 251 percent to 12.4 billion yuan. The company said it will raise its prices next week though it didn't reveal by how much. Its shares in Hong Kong, which have tripled this year, jumped 8.8 percent on the results. The company operates 41 boutiques in luxury malls in 16 mainland cities and opened its first overseas shop in Singapore in June. Its "heritage gold" concept taps into a market where consumers are trending toward goods expressing Chinese culture. As of the end of June, Laopu said it has handcrafted 2,100 original designs for sale.
White House joins TikTok
The White House opened an official TikTok account this week to spread the messages of President Donald Trump to the video app's 170 million American users, even as the future of the Chinese-owned platform in the US remains in doubt. The Congress last year enacted a law banning TikTok operations in the US if the company remains in the hands of Beijing-based parent ByteDance, citing national security concerns. Trump, a fan of social media, has delayed implementation of the law three times this year to allow talks on possible sale of operations to a US-backed consortium of private equity investors. The latest deadline is mid-September.
Economy & Markets
China central bank leaves rates steady
China's central bank left its prime loan rates unchanged on Wednesday. The one-year rate, a benchmark for corporate and consumer loans, remains at 3 percent. The five-year rate, used for mortgages, stays at 3.5 percent. The People's Bank of China has said it intends to keep monetary policy "moderately loose" to underpin economic growth.
Car dealers struggling with losses
About half of all Chinese auto dealers reported losses in the first half, with 30 percent in profit, according to a survey of 936 members of by the China Automobile Dealers Association. Dealers have been under pressure from an industry price war, low after-sales revenue and long payback periods by carmakers. Independent dealers in electric and hybrid vehicles fared better, with 43 percent showing profit. Only 49 percent of dealers said they expect annual sales growth in 2025.
Rare-earth magnet exports increase
China exports of rare- earth magnets, used in electric vehicles, computer hard disk drives, wind turbines and MRI scanners, rose 5.7 percent in July from a year earlier to a six-month high of 5,577 metric tons, surging 75 percent from June, the General Administration of Customs reported. Germany was the top export destination. China produces about 90 percent of the world's supply of rare-earth magnets.
Japan exports post worst decline since 2021
Japan's exports in July suffered their worst drop in four years, plunging 2.6 percent from a year earlier, on steep declines to its two largest markets, the US and China. Imports in the month sank 7.5 percent. Exports to the US, which imposed 15 percent tariffs on the world's fourth-largest economy, effective this month, were down 10.1 percent while shipments to China slid 3.5 percent. However, exports to Hong Kong surged almost 18 percent.
Corporate
Wuxi Biologics net profit rises 55 percent
Wuxi Biologics, a Chinese contract research development and manufacturing company with manufacturing facilities in the US, Ireland, Germany and Singapore, said first-half net profit rose 55 percent from a year earlier to 2.8 billion yuan (US$390 million) on a 16 percent increase in revenue to 10 billion yuan. The group said it secured a record 86 new integrated projects in the six months, bringing the total to 864. Biologics said it spent 343.5 million yuan on research and development in the first half and debt increased to 2.7 billion to support rapid business growth.
Wind farm operator Longyuan posts declines in profit, revenue
China Longyuan Power Group, China's largest wind farm operator, reported a 14 percent drop in first-half profit net profit to 3.37 billion yuan (US$464 million), on an 19 percent decline in revenue to 15.7 billion yuan. The company attributed the declines to what it called "challenges" in its operations.
BYD to expand into Argentina? Possibly
BYD, the best-selling electric car brand in China and the world's third most valuable carmaker by market capitalization, has registered as a car manufacturer in Argentine, sparking speculation that it's planning its second production foray into Latin America after its US$620 million investment in a car-making facility in Brazil, the South China Morning Post reported. The company announced earlier this year that Argentina is part of Latin American expansion plans that also include Chile and Mexico. According to US-based consulting firm Rhodium, Chinese electric car companies last year invested more outside China than at home.
Haitian International profit, revenue increase 13 percent
Ningbo-based Haitian International, which manufactures plastic injection molding machines used in vehicles, packaging, electronics and consumer goods, said first-half profit rose 13 percent to 1.7 billion yuan (US$237 million) on a 13 percent increase in revenue to 9 billion yuan. It attributed the growth to a restructuring in its global industry chain, the boom in new energy vehicles and low raw materials prices. The Hong Kong-listed company said slower sales on the mainland, which rose only 0.3 percent, were offset by 35 percent growth in overseas revenue, particularly in emerging markets. Exports, it said, have withstood tariff pressures, though the global environment in the first half was challenging.