Top News
US approves US$825 million sale of missiles to Ukraine
The Trump administration has approved the sale of 3,350 extended range missiles to Ukraine. The first major sale of new weapons under President Donald Trump is valued at US$825 million. Ukraine will draw on European allies for funding. The sale was announced a day after Russia's second-heaviest attack on Ukraine civilian targets.
Ukraine said it used Russian-stashed caches of mines to blow up two Russian bridges near the border with Ukraine's Kharkiv region. The Kremlin has yet to show any moves toward peace talks after a summit earlier this month between Trump and Russian President Vladimir Putin to discuss an end to the war.
US court said Trump's reciprocal tariffs are illegal
A US appeals court struck down President Donald Trump's "reciprocal" tariffs on imports from other countries, dealing a legal blow to the core of his attempts to restructure global trade. The court said Congress, not the president, has the power to impose tariffs, except in national emergency situations, which the court said it didn't find. The administration is expected to appeal the ruling to the Supreme Court. The court ruling does cover product specific tariffs, such as those Trump imposed on steel and aluminum imports.
Thai court ousts prime minister
Thai Prime Minister Paetongtarn Shinawatra, daughter of a former prime minister, was removed from office by the nation's Constitutional Court over a leaked phone call she had with former Cambodian leader Hun Sen, a family friend. In the call, she criticized the Thai army as border tensions between the two countries were escalating. The court said she violated ethical standards. She is the fifth prime minister to be removed from office by the court since 2008. In the fractured politics of Thailand, no successor is obvious.
South Korea indicts former first lady on corruption charges
A special counsel in South Korea has indicted former first lady Kim Keon Hee on charges of bribery and market manipulation. The indictment comes amid a wider investigation into the administration of her husband, former President Yoon Suk Yeol, who was removed from office earlier this year following his short-lived martial law decree. Kim is accused of profiting to the tune of over 1 billion Korean won (US$720,000) from criminal activities, including stock manipulation.
Top Business
Alibaba reports strong profit, driven by AI businesses
Alibaba Group, a Chinese multinational technology company that operates one of the world's largest e-commerce platforms and also specializes in AI applications, reported profit in its first fiscal quarter ended June 30 rose 78 percent from a year earlier to 43 billion yuan (US$6 billion). Revenue edged up 2 percent to 247.6 billion yuan, largely on gains in digital businesses and equity investments. It said revenue from its e-commerce platforms Taobao, Tmall, Ele.me and travel agency Fliggy rose 10 percent, but the company didn't break out specific figures for its new instant-delivery food service that began in April and pits Alibaba against rivals Meituan and JD.com in a fierce discounting war.
Huawei profit drops as spending on research and development surges
Chinese technology giant Huawei posted a 32 percent drop in first-half net profit to 37 billion yuan (US$5.2 billion) on heavy research and development spending to challenge Nvidia's dominance in the global chip market. Revenue rose 4 percent to 427 billion yuan. Investment in research and development rose 9 percent to 97 billion yuan, accounting for 23 percent of total revenue. China is relying on advanced technologies from companies like Huawei to reduce national dependence on US AI chips, which have been weaponized by the Trump administration its trade showdown with China. Huawei is also a major manufacturer of smart phones and a top selling brand in China. The company shipped 26.6 million smartphones globally in the first half, a 1.7 percent rise from a year earlier, with 95 percent shipments going to the China market, according to data from business consulting firm IDC, Reuters reported.
BYD posts quarter profit loss as industry price war bites
China's BYD, the world's largest electric carmaker, reported its first quarterly profit decline in three years as a domestic price war eroded earnings. Second-quarter net profit fell 30 percent from a year earlier to 6.4 billion (US$895 million), but revenue rose 14 percent to 201 billion yuan. For the first half, revenue rose 23 percent to 371 billion yuan, delivering a 14 percent increase in profit of 15.5 billion yuan. Chinese regulators have stepped in to hose down a price war in the electric-car industry that has cut into profit margins. BYD car sales in the domestic market fell for a third month in July. The company set a goal of selling 5.5 million autos in 2025, but was short of halfway at the seventh-month mark. BYD, which also makes mobile handset components, earns 81 percent of its revenue from vehicles. It has aggressively moved into overseas markets, edging out rival Tesla in market share in Europe in July. Some analysts expressed concerns about BYD's balance sheet, noting a rise in debt-to-equity ratio to 71.1 percent and a wider deficit in working capital.
SMIC profit surges on chip demand
China's largest chipmaker, Semiconductor Manufacturing International Corp (SMIC), posted a 40 percent jump in first-half net profit, powered by stronger wafer demand and higher selling prices, despite global industry headwinds. SMIC said profit rose to 2.3 billion yuan (US$321 million) in the January-June period, while revenue climbed 23 percent to 32.4 billion yuan. Wafer shipments increased nearly 20 percent to 4.68 million units, with average selling prices also up. Gross margin expanded to 22 percent from 14 percent a year earlier, underscoring improved profitability. The results highlight SMIC's growing competitiveness as China pushes for self-reliance in semiconductors amid US export curbs.
China's state-owned companies suffer declining profits
Profits at China's state-owned companies fell 3.3 percent in the first seven months of 2025 amid relatively flat revenue growth, signaling persistent weakness in the industrial economy. The Ministry of Finance said state-owned companies had combined profit of 2.48 trillion yuan (US$348 billion) in the January-July period, with operating revenue held steady at 47.3 trillion yuan. The sector's debt ratio rose 0.3 percentage point to 65.1 percent.
Airline profits fail to get off the ground
It's been a tough year for Chinese airlines, which reported losses or declining profits amid weak domestic consumer spending and competition from high-speed rail services.
China Eastern Airlines narrowed its first-half loss to 1.4 billion yuan (US$200 million) from a, 2.8 billion yuan loss a year earlier. Revenue rose 4 percent to
66.8 billion yuan. Passenger traffic increased 8 percent to over 73 million passengers, while cargo and mail transport gained 4 percent.
Air China reported its operating loss narrowed to 2.7 billion yuan from 3.5 billion yuan a year earlier, on a revenue gain of 0.7 percent to 83 billion yuan. Domestic passenger numbers fell 3 percent, but international numbers increased 19 percent. The carrier said it operated 934 aircraft in the period. Jet fuel costs declines, but the costs of maintenance, catering services, marketing and airport charges all rose.
China Southern Airlines narrowed its first-half loss to 1.5 billion yuan from 1 billion yuan a year earlier, with operating revenue rising 1.8 percent to 86 billion yuan. The carrier, which operates a fleet of 943 planes, said passenger revenue rose 1.8 percent, and cargo was up 4 percent. Domestic revenue fell 1.8 percent on less consumer discretionary spending, and international revenue rose 16 percent. The airline said the market in the first six months was beset by rising competition, both from within the domestic industry and from high-speed rail.
Chinese budget carrier Spring Airlines reported first-half profit fell 14 percent from a year earlier to 1.2 billion yuan. Revenue rose 4.4 percent to 10.3 billion yuan.
Economy and Markets
China on guard against wasteful investment in AI industry
China said it is monitoring the sizzling artificial intelligence industry for signs of wasteful investment in a sector it has signaled out as a pillar of growth. "We will resolutely avoid disorderly competition or a 'follow-the-crowd' approach," Zhang Kailin, an official with the National Development and Reform Commission told a press briefing. He said the government wants provinces to develop a coordinated effort that leverages their individual strengths without duplicating efforts. The government has intervened in the past when overcapacity or undisciplined growth engulfed other industries, like solar power and electric vehicles. The central government earlier issued an action plan for development of AI.
US consumers keep spending as inflation indicator rises
US consumer spending rose 0.5 percent in July, up from a revised 0.4 gain in June even as a measure of underlying inflation accelerated as import tariffs raised prices of some goods. The so-called personal consumption expenditures price index, a key factor in Federal Reserve Bank rate decisions, rose 2.9 percent in July from a year earlier, exceeding the central bank's 2 percent inflation target.
China approves new drug for lung cancer
China's National Medical Products Administration approved the new cancer drug Hernexeos for the treatment of adults with advanced or metastatic non-small cell lung cancer. The drug was developed by German pharma giant Boehringer Ingelheim and is co-marketed with Sino Biopharm on the Chinese mainland.
Deep Dive
Tomorrow's technology today: the burgeoning market for smart glasses
Wearing smart glasses or headsets for work, study or gaming was long seen as a futuristic concept until wearable devices came onto the market to turn fiction to fact.
(Click the headline to read the full article.)
Corporate
Dongfeng Motors-Nissan venture approved
Dongfeng Motors' proposed joint venture with Nissan's China investment arm has been approved by Chinese regulators. The two companies announced in July that they would set up a venture 60 percent controlled by Nissan China to focus on vehicle and auto part exports.
Jinjiang Hotels forms partnership with Malaysian hotel chain
Shanghai-based Jinjiang Hotels, the largest domestic hotel chain in China, signed a management agreement with Malaysia's Riyaz International hotel and resorts chain to expand its RJJ Hotels and four other brands across Southeast Asia, using Malaysia as a regional hub. The two companies will work together on a planned 150 hotels in the next five years. Jinjiang, a subsidiary of Jinjiang International Hotels (Group) Co, manages nearly 400 hotels and inns in major Chinese cities, including the celebrated Peace Hotel on Shanghai's historic Bund.
JD ranks first among Chinese private companies in revenue
JD.com claimed top spot among China's 500 largest privately owned companies, followed by e-commerce giant Alibaba and petroleum group Hengli. The 2025 list was compiled by the All-China Federation of Industry and Commerce. It said the list was drawn from 6,379 private companies in China with annual operating revenues exceeding 1 billion yuan (US$140 million).
Leapmotor to restart European production in Spain
Chinese electric vehicle startup Leapmotor is set to restart production in Europe at a Stellantis plant in Spain. That follows a cancelled trial run in Poland. Production of Leapmotor's B10 compact SUV, designed for overseas markets, is expected to begin in the third quarter of next year. The partnership with Stellantis is a key step in the company's global expansion amid intense competition in China.