CNA: AI Surge Expected to Push Taiwanese GDP Growth to 16-Year High
Primary Taiwanese news agency Central News Agency (CNA) recently reported that, benefiting from the explosive growth of artificial intelligence (AI) business opportunities, and with a high base of 8.76 percent economic growth last year, the Taiwanese Directorate-General of Budget, Accounting and Statistics (DGBAS) significantly revised its economic growth forecast for this year upward to 9.64 percent, a 16-year high. This includes upward revisions to imports and exports, private consumption, and private investment. DGBAS Director-General Chen Shu-Tzu stated that the economic growth momentum is extremely strong.
Taiwan’s current economic boom is driven by exports, which boost investment and consumption. Major global cloud service providers (CSPs) continue to increase capital expenditures, coupled with the mass production of next-generation high-end servers. Demand was stronger than expected. DGBAS estimates that the total value of merchandise exports this year will reach US$894.5 billion, a significant upward revision of more than US$100 billion, setting a new record. The annual growth rate of merchandise exports is 39.77 percent, also the highest level in 50 years.
Source: CNA, May 29, 2026
https://www.cna.com.tw/news/afe/202605290275.aspx
LTN: NVIDIA to Release Its First Windows Computer Chip
Major Taiwanese news network Liberty Times Network (LTN) recently reported that, NVIDIA is expected to release its first Windows PC processor. This marks the AI chip giant’s official entry into the PC market and provides Microsoft with a new opportunity to revitalize its AI-centric computer strategy.
NVIDIA posted the coordinates “25.0528, 121.5990” on the social media platform X, referring to the Taipei Music Center (PKC) campus, where CEO Jensen Huang will a speech on June 1st. Microsoft and ARM subsequently followed suit by posting the same message, hinting at a new era that is about to begin in the PC industry. Microsoft’s initial foray into the AI PC market suffered a setback, but the addition of NVIDIA may give it a second chance. This time, it has the support of the world’s most popular chip manufacturer. NVIDIA and Microsoft plan to jointly showcase these new systems at Computex and the Microsoft Build developer conference in San Francisco.
Sources revealed that the PCs being launched are expected to include Microsoft’s Surface series and related models from Dell. This launch will also be NVIDIA’s most significant expansion to date, extending its dominance in AI data center chips into the mass-market consumer computer market. Microsoft and Dell declined to comment, NVIDIA did not respond to requests for comment.
Source: LTN, May 31, 2026
https://ec.ltn.com.tw/article/breakingnews/5455351
People’s Daily Criticizes EU Foreign Subsidies Regulation as “Improper Extraterritorial Jurisdiction”
People’s Daily published an article criticizing recent European Union investigations into Chinese companies, including Nuctech, under the EU’s Foreign Subsidies Regulation (FSR), describing them as “improper extraterritorial jurisdiction measures.” The dispute follows earlier tensions involving the EU’s proposed Net-Zero Industry Act and revisions to cybersecurity-related legislation, highlighting growing China–EU trade frictions.
The article describes the FSR as an increasingly protectionist and unilateral tool. It accuses EU authorities of compelling Chinese companies and banks to provide sensitive data located in China, broadly defining Chinese industrial support policies as “market-distorting subsidies,” and creating a dilemma in which compliance with EU demands could violate China’s data security laws, while refusal could lead to heavy fines or exclusion from the European market.
The article states that expanded FSR investigations not only disrupt Chinese companies operating in Europe, but also harm European interests, particularly in electric vehicles, wind power, and solar energy sectors tied to Europe’s green transition goals.
It also links the issue to broader concerns over “long-arm jurisdiction,” describing extraterritorial measures as tools historically used by hegemonic powers (indirectly referring to the U.S.) against foreign competitors. Similar practices, it notes, had previously harmed European manufacturers and financial institutions, and applying them against Chinese firms could undermine China–EU economic and trade cooperation.
Source: People’s Daily, May 25, 2026
https://world.people.com.cn/n1/2026/0525/c1002-40726885.htm
Impact on Xi Jinping If Russia Suffers Defeat in Ukraine
A Chinese article analyzes the potential impact on Beijing and Xi Jinping if Russia suffers defeat in the Ukraine war. It argues that such an outcome could significantly affect Xi’s governing environment, strategic legacy, and historical standing.
1. Pressure on Political Legitimacy and Narrative Framework
Russia’s weakening as a major strategic partner could undermine the Chinese Communist Party’s (CCP’s) official narratives emphasizing “historical confidence” and “confidence in the system.” Any abrupt adjustment in China’s Russia policy could create cognitive dissonance within both the Party and broader society, particularly among nationalist groups. Xi’s highly centralized governance model is closely tied to perceptions of strategic foresight and correct decision-making. A major failure by a close partner could therefore be viewed as a foreign policy misjudgment, weakening Xi’s authority within elite political circles.
2. Systemic Pressure on China’s Diplomatic Strategy
A Russian defeat could reshape China’s external environment. Without Russia serving as a northern strategic buffer and absorbing part of U.S. and Western strategic attention, more American resources could shift toward the Indo-Pacific region, increasing pressure on issues such as Taiwan and the South China Sea. China’s broader “anti-hegemony” alignment could weaken, reducing the effectiveness of organizations such as BRICS and the Shanghai Cooperation Organisation.
China’s Eurasian strategy could also face setbacks. Projects linked to the Belt and Road Initiative, including Arctic shipping routes and cross-border infrastructure projects, could stall or require renegotiation. On the Taiwan issue, weaker Russian support could reduce certain external variables, but it could also increase the likelihood of stronger Western intervention, raising strategic uncertainty for Beijing.
3. Domestic Economic and Governance Risks
External shocks could quickly transmit into China’s domestic economy. Reduced access to discounted Russian energy supplies could increase import costs and amplify commodity price volatility. Combined with existing problems in real estate, local government debt, and industrial supply chains, these pressures could narrow the policy space for initiatives such as “dual circulation” and “common prosperity.”
Broader financial instability could trigger capital outflows and weaken market confidence. Within the Party, more pragmatic factions could use the situation to criticize policies perceived as prioritizing “security” over economic development.
4. Extreme Scenario: Political Challenges to Xi Jinping
In a more severe scenario, a Russian defeat could trigger a chain reaction involving deterioration in China–Russia relations, intensified economic pressure, growing factional struggles within the Party, and greater international isolation. Under such conditions, Xi’s political position could face systemic challenges, including the possibility of being forced down. Historically, the collapse or weakening of major strategic allies has often accelerated the erosion of authority for highly centralized authoritarian leaders, especially when domestic structural tensions remain unresolved.
Source: CReaders.Net, May 22, 2026
https://news.creaders.net/china/2026/05/22/3006530.html
Al Jazeera Report: What Drives The China–Pakistan “Brotherhood” Relations
A report published by Al Jazeera challenges China’s long-promoted narrative of a uniquely close China–Pakistan relationship. It argues that ties between Beijing and Islamabad are not driven by ideology or emotional affinity as they claim, but rather shared geopolitical interests centered on countering India. The report states that the $62 billion China–Pakistan Economic Corridor (CPEC), once promoted as a flagship Belt and Road Initiative (BRI) effort, has instead exposed mounting debt burdens, economic imbalances, and security risks.
The report reviews two historical secret arrangements between the two countries. The first was Pakistan’s 1963 transfer of control over the disputed Shaksgam Valley to China shortly after the 1962 Sino–Indian war, as part of a strategic alignment against India. The second involved alleged secret nuclear cooperation beginning in the 1970s after India’s nuclear test, including Chinese assistance in nuclear technology and weapons-related development.
CPEC has failed to deliver the prosperity initially promised. China is now Pakistan’s largest bilateral creditor, holding roughly $29 billion in loans, accounting for about 22 percent of Pakistan’s external debt. Pakistan has become increasingly dependent on Chinese debt rollovers. The report also highlights a major trade imbalance: China exported $20.2 billion worth of goods to Pakistan in 2025, while Pakistan’s exports only $2.8 billion to China.
Chinese-led infrastructure projects, including development around Gwadar Port, have reportedly generated local resentment because surrounding communities were largely excluded from ownership and economic benefits. Some Chinese BRI projects have also reportedly been scaled back or abandoned due to concerns over Pakistan’s repayment capacity and deteriorating security conditions.
During the 2025 India–Pakistan military clash, Pakistan extensively used Chinese-made weapons systems, including J-10C fighter jets, HQ-9 air defense systems, and PL-15 missiles. However, China’s diplomatic influence in de-escalating the conflict proved limited, while the United States played the leading role in mediating a ceasefire.
The report concludes that despite the economic difficulties surrounding CPEC, Beijing is unlikely to allow Pakistan to collapse because of its continuing strategic value as a counterweight to India.
Source: Renminbao, May 23, 2026
https://renminbao.com/rmb/articles/2026/5/23/95288b.html
Franco-Chinese Battery Plant Breaks Ground in Dunkirk, with Chinese Partner Holding 51 Percent Stake
A joint venture between French nuclear energy company Orano and Chinese battery materials firm Xiamen Tungsten New Energy Technology (XTC) has officially launched, with French Economy Minister Roland Lescure attending the groundbreaking ceremony on May 29. Lescure called the facility “a critical link in battery technology research and innovation,” and said the partnership would demonstrate that France, Europe, and China “can work together in a mutually beneficial way — not through destructive competition, but through cooperation.”
The plant, operating under the name Neomat CAM, is located in Dunkirk in northern France and targets the European electric vehicle market, with an annual production capacity equivalent to 500,000 EVs. It is expected to begin operations by the end of 2028.
Ownership stakes have shifted since earlier reporting. A July 2025 account indicated XTC held a 49 percent stake after contributing €103 million (US$ 112 million); however, more recent AFP reporting shows Orano now holds 49 percent while XTC has taken a 51 percent majority controlling interest.
Total project investment stands at €500 million (US$ 545 million), with roughly one quarter funded through France’s green industry tax credit program (C3IV). The project also includes a dedicated research and development center in Dunkirk, set to open alongside the factory. During construction, the site is expected to employ nearly 400 workers, with 400 permanent jobs to follow upon launch — 90% of which will be filled locally, according to Orano.
The Dunkirk site sits at the heart of France’s so-called “Battery Valley,” where all of the country’s major battery manufacturers are based in the Hauts-de-France region, including ACC, AESC, Verkor, and ProLogium. If market conditions allow, Neomat CAM aims to double its capacity to 80,000 tons annually by 2035 — enough for one million vehicles and roughly 10% of the European market.
Source: Radio France International, May 29, 2026
https://rfi.my/CkKH
Oriental Daily: China’s FDI Plunged 56.7 Percent Month-over-Month in April
Oriental Daily News, Hong Kong’s number one newspaper in circulation since 1976, recently reported that, the actual use of foreign direct investment (FDI) in mainland China in the first four months of this year recorded a significant slowdown in the inflow of foreign capital into the mainland.
China’s Ministry of Commerce announced that foreign direct investment (FDI) in the first four months of the year amounted to RMB 287.69 billion (around US$42.5 billion), a 10.3 percent decrease compared to the same period last year. Also, actual single-month FDI in April alone was RMB 38.09 billion (around US$5.6 billion), a sharp drop of 26.1 percent year-over-year, and a major decrease of 56.7 percent month-over-month.
By industry sector, FDI in the manufacturing sector totaled 78.88 billion yuan (around US$11.7 billion) from January to April, while FDI in the service sector totaled 204.15 billion yuan (around US$30.2 billion). FDI in manufacturing and services declined by 6.2 percent and 11.7 percent year-over-year, respectively.
In the meantime, according to data released by the People’s Bank of China (Central Bank), after 12 consecutive months of reducing its holdings of bonds in China’s interbank market, foreign investors’ total holdings of interbank market bonds amounted to RMB 3.12 trillion yuan (around US$461 billion) as of the end of April, the lowest level since November 2020.
Source: Oriental Daily, May 24, 2026
https://hk.on.cc/hk/bkn/cnt/news/20260524/bkn-20260524104539657-0524_00822_001_cn.html
China Sidesteps Question on Storing Iran’s Enriched Uranium as Ceasefire Nears
A ceasefire agreement between the United States and Iran appears close to finalization, with Iran reportedly seeking to transfer its stockpile of highly enriched uranium to China for safekeeping. China’s Foreign Ministry, however, declined to directly address the request, saying only that Beijing remains willing to play a “constructive role” in reaching a political and diplomatic resolution to the Iranian nuclear issue.
Pakistani Army Chief Asim Munir, who has been mediating between Washington and Tehran, met with Chinese Foreign Minister Wang Yi in Beijing on May 25. Munir briefed Wang on the latest developments, stating that “an agreement is close to being reached,” and expressed hope that China would take a more active role. Wang praised Pakistan’s mediation efforts, calling Islamabad a trusted and capable intermediary, and offered the hopeful remark that “peace, though difficult, will ultimately come.”
Al Arabiya reported late on May 25, citing informed sources, that Iran is seeking Chinese guarantees before finalizing any deal to end the war, and has specifically requested that its highly enriched uranium be transferred to China. The sources also indicated that Munir was likely to travel to Doha, Qatar, to continue mediation efforts.
Chinese Foreign Ministry spokesperson Mao Ning, speaking at a routine press briefing on May 26, said China has maintained close communication with all relevant parties, including Iran, since the outbreak of hostilities, and has been actively working toward a ceasefire and peace.
Mao did not respond directly to whether China would accept Iran’s enriched uranium. She reiterated China’s consistent position of supporting peaceful resolution through dialogue and negotiation.
The U.S.-Iran ceasefire reached in early April is set to be extended by 60 days, during which both sides are expected to hold negotiations on Iran’s nuclear program. U.S. President Donald Trump, however, posted on May 25 that Iran’s enriched uranium must be handed over to the United States for destruction — or destroyed on-site or at another acceptable location.
Source: Central News Agency (Taiwan), May 26, 2026
https://www.cna.com.tw/news/acn/202605260231.aspx