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China economic policy
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Hong Kong launches free AI training courses for SMEs with Google and Microsoft
The Hong Kong government, through the Hong Kong Productivity Council, launched a series of free AI training courses for small and medium-sized enterprises (SMEs) in collaboration with Google and Microsoft. The initiative, supported by a HK$50 million (US$6.38 million) government fund titled "AI for All," aimed to assist sectors including healthcare, education, manufacturing, retail, and logistics. Secretary for Innovation, Technology and Industry Sun Dong stated the program was designed to facilitate SME transformation and enhance competitiveness by integrating AI into workflows such as content creation and data analysis.
Huawei plans for more AI pharma partnerships, says healthcare president
Huawei’s healthcare business president, William Zhang, announced plans on August 27 to expand the conglomerate's AI partnerships with domestic pharmaceutical firms into drug development and clinical practice. Huawei leveraged its Ascend and Kunpeng chips, as well as its AI modeling tools, to assist companies like Guangzhou Pharmaceutical Holdings in validating AI research models. This strategy emerged as technology firms sought to capitalize on the increasing pharmaceutical demand for machine learning tools capable of shortening drug development timelines.
India expands semiconductor industry initiatives amid concerns over market entry timing
Prime Minister Narendra Modi accelerated India’s semiconductor industry initiatives by launching the $13.4 billion Semicon 2.0 program. As part of this expansion, he virtually laid the foundation stone for a 25 billion-rupee ($262.25 million) semiconductor facility in the southern state of Andhra Pradesh. The government initiated these efforts as the nation's annual bill for chip-related imports was projected to reach $240 billion by 2035.
Hong Kong Exchanges and Clearing considers merging GEM and main board
Hong Kong Exchanges and Clearing (HKEX) explored a proposal to merge the GEM board with its main board by creating a new listing rule chapter designated as 18D. The initiative followed the poor performance of the GEM board, which experienced minimal turnover and a decline in new listings. According to a source familiar with the discussions, the proposal served as a second phase of a listing regime review intended to provide a better option for smaller-sized companies to list.
Hong Kong gold imports fall 18 percent in July
Non-monetary gold imports into Hong Kong fell 18 percent in July to approximately 107 tonnes, following a decade-long high in June. The decline in value to HK$114.71 billion occurred as banks stabilized inventories after the July 7 launch of the city’s gold clearing and settlement system. Despite the monthly drop, market demand remained higher than the 72.16 tonnes recorded in February as major entities like SF Express and the Industrial and Commercial Bank of China invested in new bullion vaults. These infrastructure projects reflect a broader strategic effort to establish Hong Kong as a premier regional hub for precious metals.
Hong Kong remains top-ranked city in Asian Cities Internationality Index
The Hong Kong General Chamber of Commerce released its annual Asian Cities Internationality Index, which ranked Hong Kong as the top city among 11 Asian participants with a score of 74.6 out of 100. Hong Kong expanded its lead over second-ranked Singapore to two points, up from a 0.2-point lead the previous year. The city secured first place in the business and economy category while showing improvement in innovation and ideas, rising from fourth to third place. Chamber chairman Jacob Kam Chak-pui attributed the performance to the city's success in scientific research, university exchanges, and the recruitment of global professionals.
China launches 100kW bamboo-based floating solar farm in Shandong
The Yantai CIMC Raffles Ocean Technology Group, in collaboration with the China Forestry Group Corporation and Beijing Forestry University, launched a 100-kilowatt floating solar farm named Jilin-2 off the coast of Yantai, Shandong. The platform utilized composite bamboo tubes and pipes rather than conventional steel or high-density polythene to reduce marine environmental impact. The installation was designed to supply power to an integrated hydrogen, ammonia, and methanol production project. This development followed the successful testing of a 10-kilowatt prototype, Jilin-1, which was deployed in 2023.
Analysis of regional resource wealth and corruption in China
The South China Morning Post conducted a multi-year data analysis examining the correlation between regional resource wealth and official corruption in China from 2013 to 2025. By reviewing detention notices and investigation conclusions from the Central Commission for Discipline Inspection, researchers identified that mineral-abundant areas such as Jiangxi, Liaoning, Inner Mongolia, Shanxi, and Hebei recorded the highest number of high-ranking official sackings. This data highlighted that these resource-rich and border regions served as primary focal points for President Xi Jinping’s decade-long anti-graft campaign.
Hubei province pursues economic policies diverging from central government directives
On August 17, the Hubei Daily published a statement critiquing the notion of developing behind closed doors and asserting such an approach was destined to fail. According to a report by Katsuji Nakazawa for Nikkei on August 27, 2026, political circles interpreted the newspaper's reference to a 'small group of people' as a critique of figures supporting President Xi Jinping's current policies. The article highlighted that this stance appeared to mirror Deng-like reform rhetoric and suggested a link between the province's prominent leader and the divergence from central government directives.
Qiushi Journal urges Chinese steel sector to avoid U.S. rust belt fate
The Qiushi Journal and the China Iron and Steel Association published an article urging China's steel sector to avoid the industrial decline experienced by the U.S. rust belt. The publication emphasized that China, which produced over 960 million tonnes of crude steel in 2025, should not permit market-driven liquidation of the sector despite shrinking margins and foreign trade restrictions. The article argued that the steel industry is vital to national economic security and should not be contracted to prioritize emerging industries.
China targets high-tech industry development by 2030
China’s Ministry of Industry and Information Technology, represented by Vice-minister Xin Guobin and department head Liu Yulin, announced a strategy to establish sectors such as 6G, robotics, quantum technology, and fusion as primary economic pillars by 2030. This policy aimed to foster 'new quality productive forces' to mitigate domestic economic challenges, including a property sector slump and sluggish consumer spending. Beijing simultaneously pledged to regulate internal industrial overcapacity, specifically citing cutthroat competition within the domestic automotive sector.
China makes officials liable for environmental damage for life
The Communist Party and the State Council of China issued revised rules that mandated lifelong accountability for officials regarding serious environmental damage occurring during their tenure. The policy applied to officials regardless of their subsequent reassignment, promotion, retirement, or departure from their positions. This initiative was linked to President Xi Jinping’s 'new development philosophy' and served as part of a broader shift toward an 'ecological civilisation' aimed at prioritizing sustainability over quantity-focused growth. The Central Organisation Department stated the measure was necessary because long-term pressures on environmental protection had not yet been fundamentally eased.
Hong Kong to unveil first five-year plan and policy address on September 16
Hong Kong Chief Executive John Lee Ka-chiu announced that the city would unveil its first five-year plan alongside his annual policy address on September 16. Lee, who gathered public feedback during visits to lower-income households and elderly care services in the Sham Shui Po district, stated that the five-year plan provides the directional guidance while the policy address details the implementation. He is scheduled to present both documents to the Legislative Council on September 17 for a question and answer session.
China’s BeiDou satellite system reaches 90% adoption in key industries
China’s Ministry of Industry and Information Technology announced that the domestic BeiDou satellite navigation system reached approximately 90% adoption across key industry applications nationwide. This milestone followed the launch of a 2024 pilot programme designed to accelerate the large-scale integration of the system into the Chinese economy. Within the first half of the year, 39 participating cities deployed over 12 million BeiDou-enabled positioning terminals, reflecting a 30% increase in terminal additions compared to the same period in 2023. Specific sectors, including shared bicycles, taxis, government vehicles, and agricultural machinery, achieved 100% adoption rates in several of these pilot cities.
Calls for SME energy subsidies as Hong Kong power fuel surcharges increase
An industry leader and a lawmaker called for SME electricity subsidies after Hong Kong's two power suppliers raised fuel surcharges due to the Middle East conflict. HK Electric increased its fuel clause charge by 5.9 percent for September, marking a 78.5 percent rise since March to 60.7 HK cents per kWh. Simultaneously, CLP Power raised its fuel cost to 45.1 cents per unit, representing a 15 percent increase since March. Pamela Mak Mei-yee, honorary president of the Hong Kong Small and Medium Enterprises Association, stated that these rising costs threatened to squeeze merchant profits as businesses struggled to pass expenses on to customers.
Chinese vacuum maker Dreame cancels automotive project
Chinese appliance manufacturer Dreame terminated its 'Star Project,' an electric vehicle venture that aimed to produce the world's fastest car. Despite showcasing the Nebula NEXT 01 sports coupe and NEXT 01X SUV concepts and running a $10 million Super Bowl advertisement, the company reduced the project's workforce from nearly 1,000 employees to a few dozen staff. The remaining personnel are currently focused on supplier settlements, corporate deregistration, and legal matters. Dreame stated that this decision was part of a strategic refocus to integrate research and technologies into its core operations, including smart homes, outdoor living, and embodied AI.
Mainland Chinese engineers may help Hong Kong firms address talent gap
Industry leaders during a six-day media tour of the Greater Bay Area, organized by the Hong Kong and Macau Affairs Office, identified mainland Chinese engineering talent as a resource to address Hong Kong’s talent shortage. Gao Min, general director of the Guangzhou HKUST Fok Ying Tung Research Institute in Nansha, noted that Hong Kong companies struggle to scale due to an insufficient local supply of engineers, citing a hypothetical start-up that would require 500 personnel. The tour included visits to a research institute in Guangzhou, a cargo facility, and a university in Dongguan to illustrate the potential for combining Hong Kong’s research capabilities with mainland engineering strengths.
Chinese Anti-Corruption Investigations Increase Under President Xi
Chinese President Xi Jinping intensified his anti-corruption campaign, with the number of investigations into civilian officials of vice-ministerial grade or above rising from 19 in 2013 to 65 in 2023. The Central Commission for Discipline Inspection (CCDI), China’s primary anti-corruption body, initiated 46 probes in the current year compared to 39 during the same period in previous tracking. These findings, detailed in a South China Morning Post report, indicated that the government’s efforts against corruption continued to accelerate after more than a decade of active investigations.
JD.com and Chinese state firms invest in Hong Kong infrastructure project
A consortium of six companies, including the e-commerce firm JD.com and various Chinese state-owned enterprises, secured the first government land tender for Hong Kong’s Northern Metropolis development project. The contract, valued at $130 million, was awarded for a site located near a rail station in Hung Shui Kiu. This development marked the initial government land sale for the Northern Metropolis plan.
China reviews draft law to combat cross-border corruption
The 24th session of the Standing Committee of the 14th National People’s Congress reviewed a draft Anti-Cross-Border Corruption Law in Beijing during a session scheduled to run through Friday. The proposed legislation, which consists of six chapters and 47 articles, aims to expand China's anti-graft legal framework to address offshore financial crimes and jurisdictional loopholes. According to Xinhua, the law was drafted to support fugitive repatriation, assist in asset recovery, and promote compliant overseas business growth.
Chinese biotech firms face potential decrease in international licensing deals
Chinese biotech firms secured record-breaking cross-border licensing deals totaling US$110 billion in the first half of the year, a figure derived from 81 separate agreements. These international partnerships emerged as the primary funding source for these firms, surpassing capital raised through 11 Hong Kong listings and six mainland China A-share market IPOs. While these deals previously helped certain loss-making companies reach profitability, multinational drugmakers began signaling intentions to tighten their future deal budgets.
Chinese tech and pharma firms consider Hong Kong for global expansion
Mainland Chinese technology and pharmaceutical companies signaled an interest in using Hong Kong as a base for global expansion during a six-day, state-arranged tour of the Greater Bay Area. Chen Jiehui, vice-chairman of Guangzhou Pharmaceutical Holdings, stated that the company was considering an investment in the Northern Metropolis, a 30,000-hectare project intended to become a technological and economic hub near the mainland border. Representatives cited Hong Kong’s blend of Chinese and Western cultures and its international standards as key advantages for helping industries like traditional Chinese medicine reach global markets.
Sinopec sees easing headwinds despite Iran uncertainty
Sinopec reported a 19.3% profit increase for the first half of 2026, leading executives to issue an optimistic outlook for the remainder of the year. Company leadership expected that pressure on refined oil demand would subside despite ongoing uncertainty involving the Middle East and the emergence of alternative energy sources. The announcement highlighted the state energy giant's resilience in maintaining performance amidst these broader market challenges.
Li Yun appointed as acting mayor and deputy party secretary of Shenzhen
Li Yun, a banking veteran and former vice-governor of Guangdong province, was appointed as the deputy Communist Party secretary and acting mayor of Shenzhen, replacing Qin Weizhong. Li brings over two decades of experience in financial institutions, including the Agricultural Bank of China and China Construction Bank, to the leadership of the city. This leadership transition occurred months before Shenzhen is scheduled to host a series of APEC meetings in November. Li pledged to implement the decisions of the central committee and provincial and municipal party committees while focusing on Shenzhen's modernization drive.
China probes use of formaldehyde to keep cabbages fresh
Authorities in China’s Hebei province launched an investigation after an environmental blogger released footage showing individuals dipping cabbages in formaldehyde to preserve their freshness for transport. Although formaldehyde is a known carcinogen and is strictly prohibited for use in food products, it was utilized by wholesalers seeking immediate economic gain. Police took legal action against the identified individuals, and officials began conducting nationwide spot checks to trace affected vegetables and restore consumer confidence. As China produces over 30 million tonnes of cabbages annually—nearly half the world’s total—this practice poses potential risks to the vegetable supply chain for both domestic markets and major export destinations including Vietnam, South Korea, and Russia.
Alibaba shares fall 10% after announcing $10.2 billion share placement for AI
Alibaba shares fell as much as 10% in Hong Kong on Monday following the company’s announcement of an 80 billion Hong Kong dollar ($10.20 billion) share placement. The Chinese tech giant issued 710 million new shares at HK$112.70 each to non-U.S. investors, with the net proceeds earmarked for expanding and enhancing its full-stack AI infrastructure. This move occurred shortly after the firm reported a 75% drop in June-quarter profit, driven by a 75% increase in capital expenditure to 67.7 billion yuan.
New rail routes increase durian supply and lower prices in China
Retail durian prices in China decreased significantly this summer, with some prices falling below 40 yuan per kilogram due to expanded import sources and improved cross-border infrastructure. The China-Laos-Thailand all-rail cold-chain service, launched in March, facilitated the delivery of Southeast Asian durians to Chinese markets in as little as three days. China expanded its approved list of import sources to include countries such as Vietnam, Malaysia, and Laos, causing imports to reach 1.45 million tonnes in the first seven months of this year, a 45% increase from the previous year. This development made the fruit more affordable and accessible to Chinese consumers, who account for over 90% of global durian consumption.
Shein targets $27 billion valuation for Hong Kong stock market debut
Fast-fashion retailer Shein filed to raise up to $1.77 billion through a Hong Kong stock market debut on 1 September, targeting a valuation of nearly $27 billion. The move followed failed listing attempts in the US and London amid regulatory scrutiny regarding supply chain practices and forced labor allegations. While the company maintained over 281 million active customers, the $27 billion valuation reflected a significant decline from its 2022 private valuation of $100 billion, a drop attributed by the firm to weaker sales growth and higher costs. The listing, supported by Goldman Sachs, Morgan Stanley, and JP Morgan, arrived as the company reported a $99 million quarterly loss, influenced by the removal of US import duty exemptions and operational challenges linked to the Iran war.
Former Chinese Premier Zhu Rongji dies
Former Chinese Premier Zhu Rongji died on the morning of August 12. Zhu served as the fifth premier of China beginning in March 1998, a period characterized by the country's economic transition toward a market economy under then-president Jiang Zemin. He was involved in the implementation of the "one country, two systems" governing principle following Hong Kong's return to Chinese sovereignty in 1997.
Hong Kong to launch AI training program for workers
Hong Kong Financial Secretary Paul Chan Mo-po announced that the city’s Employees Retraining Board will partner with major tech firms to launch an "AI for All" training program in November. The HK$50 million initiative aimed to train 50,000 workers over two years through more than 200 activities to help the workforce adapt to shifting technological demands. Chan stated that the program was designed to assist young people in mastering AI skills and to support small and medium-sized enterprises in navigating this economic shift.
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