Top News
Israeli plan to expand war in Gaza widely condemned
China's Foreign Ministry expressed serious concern over Israel's plan to expand the war in Gaza and take control of the entire enclave, urging an immediate halt to the dangerous move. It was one of many nations condemning the decision.
Israel's security cabinet approved the controversial plan on Friday over the objections of top miliary leaders and amid widespread public opposition. President Benjamin Netanyahu said the first step would takeover of Gaza City, the enclave's largest city.
The UK, France, Ireland and Canada were quick to condemn the plan. Germany said it is suspending military supplies to Israel. Saudi Arabia called Israel's conduct "beastly," and UN human rights chief Volker Türk warned that further escalation will result in "more unbearable suffering, senseless destruction and atrocities."
The US, Israel's strongest ally, shrugged off the backlash. "It's up to Israel," President Donald Trump said. Netanyahu defended the expanded military campaign, saying its purpose is to "free Gaza from Hamas."
Trump, Putin set date and place for summit next week
The state of Alaska, sold to the US by Russia in 1867, was chosen to host the summit between President Donald Trump and Russian President Vladimir Putin on August 15 to discuss the war in Ukraine. Trump said he thinks Putin wants peace. Polish Prime Minister Donald Tusk said after a meeting with Ukrainian President Volodymyr Zelensky that he believes a ceasefire is imminent. What's still unclear is whether a trilateral meeting of Trump, Putin and Zelensky, hinted at by Trump, will follow the Alaska summit.
Chinese President Xi Jinping, in a phone call with Putin, discussed the Ukraine conflict and welcomed efforts between the US and Russia to engage in dialogue and seek a political solution to the war.
Azerbaijan, Armenia sign peace agreement
Azerbaijan and Armenia signed a US-broker peace accord at the White House, ending 35 years of conflict over a breakaway region that has sometimes broken out in warfare. President Donald Trump said the Caucasus nations are now "friends" for the foreseeable future.
Top Business
Cosco seeks stake in CK Hutchison's mega ports sale
China's state-owned shipping giant Cosco is seeking a minimum 20 percent stake in Hong Kong-based CK Hutchison's planned US$23 billion sale of worldwide ports, including two in the Panama Canal Zone, the Financial Times reported. China has indicated it will reject the sale unless there is a significant Chinese stakeholder. Under a preliminary agreement reached in March, CK Hutchinson said it would sell 43 ports in 23 countries to a consortium led by US investment firm Black Rock and Italian shipping company MSC.
Kevin Marino Cabrera, the US ambassador to Panama, criticized CK Hutchinson's Panama Ports Co again this week and said the US is keen to curb Chinese influence in the Panama Canal, which Washington considers strategic to its security.
China chip giant posts rise in revenue, drop in profit
Shanghai-based Semiconductor Manufacturing International Corp (SMIC), China's largest contract chip maker, said second-quarter revenue rose 16 percent from a year earlier to US$2.2 billion and fears of US tariffs biting deep into earnings haven't eventuated. The company said it sold 84 percent of its output in the domestic market and 13 percent to the US. Profit, however, fell 19.5 percent to US$132.5 million. The company forecast that third-quarter revenue will be 5-7 percent above the second-quarter result. The company's shares in Hong Kong fell 8.2 percent.
China's auto market sets new records in July
Production, sales and exports of China-made vehicles hit records in July amid an easing in the industry price war. The China Passenger Car Association said car production increased by 12 percent from a year earlier to 2.2 million vehicles, retail sales rose 6.3 percent and exports climbed 25 percent. BYD, Geely Automobile, and FAW-Volkswagen were the top-selling brands, although only Geely saw a significant sales increase, at 71 percent. In contrast, US-based Tesla didn't make the top 10.
China sets up company for new rail link in remote western region
China State Railway Group set up Xinjiang-Tibet Railway Co with registered capital of 95 billion yuan (US$13 billion), according to corporate filings. The state-owned company will oversee construction, equipment manufacturing, transport operations and tourism services for the line linking Hotan in Xinjiang to Lhasa in Xizang.
China to accelerate progress in brain-computer interface sector
Seven Chinese ministries have issued guidelines to accelerate development of the brain-computer interface industry, setting a 2027 goal for breakthroughs in technologies such as electrodes and chips used in the advanced science. By 2030, the plan envisions globally competitive industry clusters and two or three leading companies in the field.
Economy and Markets
Gold market roiled by US tariff threat
The White House said it plans to clarify what it calls "misinformation" about import tariffs for gold bars, which saw some industry players pausing deliveries of bullion to the US, Reuters reported. US Customs on Friday ruled that imports of bullion bars from Switzerland, the world's largest refiner of gold, would not be exempt from the 39 percent US tariff imposed on all goods from Switzerland. Investors fearing disruption of global gold supply chains could face disruption, sending gold prices lower in New York trading.
China's central bank deploys liquidity tool
The People's Bank of China conducted a 700-billion-yuan (US$98 billion) outright reverse repo operation on Friday to maintain ample liquidity in China's banking system. The central bank said the operation carries a three-month tenor and was conducted using a fixed-quantity, interest-rate-bidding and multiple-price-bidding method. Outright reverse repo operations are a tool the central bank introduced last October to manage liquidity conditions. In essence, they transfer bonds that banks use as collateral to the account of the central bank, giving it more policy flexibility in sale of the bonds.
Beijing eases home ownership policies
Beijing announced new policies to stimulate the home-buying market, effective today.
The new regulations allow eligible families and single adults to purchase an unlimited number of homes in outer suburbs and provide easier access to mortgage financing through its provident fund. Maximum loans of 1 million yuan (US$139,247) will be available on second homes with a 30 percent down payment.
Forex reserves slip in July
China's foreign exchange reserves in July fell 0.76 percent from June to US$3.29 trillion. The State Administration of Foreign Exchange noted in a statement that the decline in reserves was related to exchange rate and asset price fluctuations.
Retailers show optimism about business prospects
A China General Chamber of Commerce index tracking business expectations in the retail sector came in at 50.1 percent in August, up 0.5 percentage point from July. The 50-mark separates optimism from pessimism. Among the bright spots were offline retailers and businesses involved in tourism.
Deep Dive
The last Hema X store will close at the end of August, leaving a clear field for US-based rivals Sam's Club and Costco. Parent Hema is switching its focus to community-based retailing.
(Click the headline to read the full article.)
Novartis heart drug a China case study: How drug exclusivity dies by a thousand filings
Entresto, Novartis's blockbuster drug to treat chronic heart failure, lost its core US patent protection on July 16, opening the floodgates for global generics. China is already ahead in the race.
(Click the headline to read the full article.)
Corporate
TSMC reports strong July revenue
Taiwan-based contract chip giant TSMC said July revenue surged 26 percent from a year earlier to US$10.8 billion, aligning with analysts' forecasts for a 25 percent increase in the company's third-quarter sales. The increase was driven by accelerating spending by tech companies on chips used in artificial intelligence technologies. TSMC shares hit a record this week after the US announced that new tariffs on chips would not include companies like TSMC that have manufacturing facilities in the US.
Tencent Games retains top spot in China ranking
Tencent Games led 32 Chinese mobile game publishers in aggregate earnings of nearly US$2 billion in July, accounting for a third of the revenue of the world's top 100 mobile game companies, according to Sensor Tower. It said major titles such as "Honor of Kings" and "Game for Peace" drove Tencent Games' global revenue up by 20 percent from June, maintaining its top spot in global revenue rankings for Chinese mobile game publishers.
Fortescue Metals secures yuan loan, will seek alliances in China
Australia's Fortescue Metals, the world's fourth-largest iron ore miner, said it secured a 14.2 billion yuan (US$2 billion) syndicated loan, the first of its kind for an Australian corporation. The miner said the funds will be used to accelerate decarbonization plans after it recently scrapped a green hydrogen project in the US as the Trump administration moves away from climate change policies.
Billionaire Fortescue founder and chairman Andrew Forrest, who visited China last month, lauded China's commitment to investing in green technologies and said his company will seek alliances on the mainland.
Novo Nordisk keeps strong outlook on China market
Danish pharmaceutical giant Novo Nordisk said it maintains strong confidence in its long-term growth in the Chinese market despite an 11 percent drop in first-half sales of its weight loss and anti-diabetes drugs Ozempic and Wegovy. Despite growing competition in the mainland market from domestic pharma companies, Novo Nordisk blamed the decline on wholesale adjustments.
Mike Doustdar, new chief executive of the company, said China has huge unmet needs. "Two hundred million people live with obesity and 100 million people live with diabetes," he said. "We are not losing market share in China; we're gaining market share."
Louis Vuitton closing chocolate shop in Shanghai
French luxury goods maker Louis Vuitton said it will close its first chocolate store in China, located at Qiantan Taikoo Li in Shanghai, this weekend. The store, which opened two years ago, comes as its lease expires. It was the company's second chocolate shop in Asia after Singapore. No reason was given for the decision.