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Hong Kong Leader Warns New U.S. Consul Against “Destructive” Actions

Following Beijing’s lead, Hong Kong Chief Executive John Lee has drawn red lines for the new U.S. Consul General to Hong Kong, Julie Eadeh, regarding her diplomatic work in the city. Lee’s warnings include directives that she should “not do destructive things” and “must not interfere in Hong Kong affairs.”

Since Eadeh assumed her post last month, she has invited several prominent figures to a welcome reception, including former Chief Secretary Anson Chan and former Democratic Party Chairperson Emily Lau. These invitations provoked strong criticism from pro-Beijing newspapers Ta Kung Pao and Wen Wei Po, which published consecutive articles attacking her actions. The State Council’s Hong Kong and Macau Affairs Office and the Chinese Communist Party’s Hong Kong and Macau Work Office both republished these critical articles on their websites.

When responding to media inquiries before today’s Executive Council meeting, Lee stated that he hopes consuls stationed in Hong Kong will engage in constructive rather than destructive activities. He emphasized that consuls have a responsibility to strictly observe international conventions and diplomatic protocols, performing their duties in a manner befitting their diplomatic status. Lee stressed that they must not interfere in China’s internal affairs or Hong Kong matters under any pretext or in any form, and should respect China’s sovereignty.

Additionally, China’s Foreign Ministry Office in Hong Kong recently announced that Commissioner Cui Jianchun had received Eadeh for her courtesy call upon assuming office. The announcement notably stated that Cui “required Eadeh to perform her duties in Hong Kong in a manner consistent with her diplomatic status and not to interfere in Hong Kong affairs and China’s internal affairs.” The wording was markedly more severe than in previous similar announcements.

Source: Central News Agency (Taiwan), September 30, 2025
https://www.cna.com.tw/news/acn/202509300074.aspx

Briefings | | |   US-China Relations

China Joins Andean Community as Observer, Marking a New Chapter in Regional Cooperation

On September 30, the 31st regular meeting of the Andean Community (CAN) Council of Foreign Ministers was held in Bogotá, Colombia. During the session, member states unanimously approved a resolution to officially admit China as an observer country to the organization. This marks a significant milestone in China’s engagement with Latin American regional institutions.

Russian media outlet Sputnik News reported that CAN member nations praised China’s “consistent role in global governance and international affairs,” emphasizing that its observer status “carries historical importance.” They expressed hope that this development would “foster deeper cooperation, support regional economic integration, and promote sustainable development, while safeguarding the shared interests of developing countries.”

Zhang Liping, the chargé d’affaires at the Chinese Embassy in Colombia, attended the meeting as China’s representative. In his remarks, Zhang commended CAN’s decision and reaffirmed China’s commitment to working with Latin American partners to implement the “Five Major Projects” of the China-Latin America community with a shared future. He highlighted the potential for new bilateral and multilateral collaborations that would benefit both sides.

During the meeting, Ecuador assumed the rotating presidency of the CAN from Colombia for a one-year term.

Established in May 1969, the Andean Community is a key regional economic integration organization in Latin America. Headquartered in Lima, Peru, it currently comprises four member states: Peru, Ecuador, Colombia, and Bolivia. Chile and Venezuela withdrew from the organization in 1976 and 2006, respectively. The CAN aims to harness regional resources, promote balanced and coordinated development among its members, eliminate tariff barriers, and accelerate the formation of a common market to advance economic integration.

Source: Sputnik News, October 1, 2025
https://sputniknews.cn/20251001/1067684092.html

Briefings | | |   Geo-Strategic Trend

Chinese Cars Accelerate Market Dominance Across Middle East

Chinese automotive exports to the Middle East have surged dramatically, with annual vehicle exports reaching over one million units in 2024, a sixfold increase from approximately 150,000 units in 2019. This remarkable growth reflects the rising popularity of Chinese car brands in a market traditionally dominated by Western and Japanese manufacturers.

In Gulf countries where SUVs and pickup trucks have long been favored, previously unknown Chinese brands are now attracting increasing numbers of drivers. Jaafar al-Hayki from Bahrain drives a Chinese Changan SUV, impressed by its technological features and build quality. He notes that Chinese manufacturers focus extensively on entertainment functions and safety features while offering radar systems and sensors not found in comparable Japanese or Korean vehicles at similar price points.

Nasser al-Marri from Saudi Arabia recently replaced his American GMC Yukon with a Chinese Jetour SUV, choosing it because it offers high-end features comparable to German cars but at much more affordable prices. Despite some quality concerns, positive word-of-mouth and online reviews are driving adoption.

Recent research by Dubai-based CARMA revealed that 79 percent of Saudi respondents hold positive views of Chinese automobiles, compared to only 42 percent of American respondents, who have less exposure due to trade barriers. AlixPartners predicts Chinese brands’ Middle East market share will exceed one-third by 2030, up from 10 percent in 2024.

However, challenges remain. The biggest complaint from Chinese car owners is the lack of spare parts and maintenance services rather than durability issues. Some owners waited months for replacement parts or abandoned future Chinese car purchases due to expensive, hard-to-find components.

Chinese companies are responding by establishing maintenance infrastructure and announcing factory plans throughout the region. Egypt is positioned to become a manufacturing hub, with six major Chinese automotive companies potentially establishing local factories. If these plans materialize with sophisticated production processes and local workforce training, Chinese automotive expansion could generate profound economic impacts across the Middle East.

Source: BBC Chinese, September 27, 2025
https://www.bbc.com/zhongwen/articles/c1dqzdgeg12o/simp

Briefings | | |   Geo-Strategic Trend

China Cracks Down on Illegal Antimony Smuggling Operations

China’s Ministry of State Security announced that national security agencies have cracked multiple cases of criminals attempting to smuggle antimony abroad for massive profits, reinforcing the country’s protection of strategic resources.

Antimony, a rare metal essential in industrial and military applications – particularly in the production of advanced weapons and equipment – is recognized internationally as a strategic resource. It appears on critical mineral lists in multiple countries. In 2024, China imposed export controls on antimony-related items to secure national reserves. However, driven by soaring prices and high profit margins, criminal groups have sought to circumvent these controls through illegal channels.

Authorities reported that one major case involved a family-run network. The overseas ringleader, “A,” financed the operation and purchased antimony ingots through shell companies. His son organized smuggling logistics, while his brother received shipments overseas and routed them to third countries. Eight suspects were arrested and contraband seized. In another case, smugglers concealed antimony ingots within shipments of “miscellaneous goods” for export. Five individuals were detained and several tons of antimony recovered.

Officials stressed that antimony and other rare metals are critical dual-use materials vital to modern industry, defense, and high technology. As strategic resources underpinning national security, industrial upgrading, and technological innovation, they are essential to China’s development. Security agencies warned that certain foreign countries are seeking to bypass China’s export controls to acquire these resources, posing serious threats to national security and interests.

Source: Sputnik News, September 27, 2025
https://sputniknews.cn/20250927/1067630280.html

Briefings | | |   Government/Politics

China Launches World’s First Arctic Container Route to Europe, Cutting Transit to 18 Days

On September 23, 2025, China officially launched the world’s first Arctic container express shipping route linking China and Europe, reducing transit time to just 18 days – nearly 10 days faster than existing options. The new route, which passes through the Arctic Northeast Passage, underscores Beijing’s push to enhance logistics autonomy and expand trade opportunities amid growing global uncertainty.

The inaugural vessel, Istanbul Bridge, departed from Ningbo-Zhoushan Port bound for Felixstowe in the United Kingdom. Compared to the roughly 40 days required via the Suez Canal and 26 days on the China-Europe Express route to Germany’s Wilhelmshaven (opened in late 2024), the Arctic corridor offers a dramatic efficiency gain. It also cuts single-voyage carbon emissions by about 50 percent, aligning with global green shipping goals.

Beyond logistics, the initiative advances China’s Belt and Road strategy by reducing dependence on traditional chokepoints like the Suez Canal, which has faced repeated disruptions due to conflict and geopolitical instability. The project also highlights deepened China-Russia cooperation, with Beijing signaling readiness to work with Moscow and other partners on Arctic infrastructure development.

For Chinese enterprises, the route offers a stable alternative amid economic headwinds and rising protectionism, ensuring faster, more reliable delivery for high-tech goods and perishables. Still, challenges remain: harsh Arctic conditions demand specialized vessels, advanced safety systems, and major investment. Despite these hurdles, the Arctic express marks a milestone in global logistics—signaling China’s intent to diversify trade routes, expand influence, and elevate the Arctic as a new hub of international commerce.

Source: Sputnik News, September 23, 2025
https://sputniknews.cn/20250923/1067558704.html

Briefings | | |   Geo-Strategic Trend

China’s Trade with ASEAN Reaches Historic High Amid US Tariff Pressures

China’s trade relationship with the Association of Southeast Asian Nations (ASEAN) has reached unprecedented levels, according to new data from China’s General Administration of Customs. From January to August 2025, bilateral trade totaled 4.93 trillion yuan (approximately $690 billion USD), marking a historic high with a 9.7 percent year-on-year increase.

This surge reflects China’s strategic pivot away from US markets amid ongoing tariff tensions. ASEAN now accounts for 16.7 percent of China’s total import and export value, highlighting the region’s growing importance as a trading partner.

ASEAN has maintained its position as China’s largest agricultural trading partner for eight consecutive years. Agricultural trade between the regions reached 290.6 billion yuan (approximately $41 billion USD) in the first eight months of 2025, representing 20.1 percent of China’s total agricultural imports and exports.

Manufacturing cooperation has been particularly robust, driving significant growth in related product categories. China’s exports of machine tools and automotive components to ASEAN increased by 56.1 percent and 22 percent respectively, while imports of computer components and printed circuit boards from ASEAN grew by 47.4 percent and 22.2 percent.

The expansion coincides with China’s broader trade diversification strategy. According to New York Times reporting from July, Chinese traders have increasingly shifted focus to markets outside the United States, including Southeast Asia, the European Union, and African nations. Direct exports to the US dropped by over 20 percent in July as American buyers remained cautious about tariff implications.

Lu Daliang, spokesperson for China’s General Administration of Customs, noted that the China-ASEAN Free Trade Area is advancing toward version 3.0, with both sides planning to expand cooperation and deepen regional supply chain integration.

Source: Central News Agency (Taiwan), September 16, 2025
https://www.cna.com.tw/news/acn/202509160197.aspx

Briefings | | |   Geo-Strategic Trend

China’s Deepening Deflation Crisis

French newspaper Le Monde published an article on September 19 highlighting China’s spreading deflation problem, which has created a vicious cycle affecting the world’s second-largest economy.

According to the latest report from the China-EU Chamber of Commerce released on September 17, China faces systemic challenges including entrenched deflation and persistent imbalances between supply and demand. Official data shows consumer prices fell 0.4 percent year-on-year in August, the steepest decline since February. Food prices plummeted 4.3 percent, with pork prices continuing their sharp drop, causing Chinese farmers to lose an average of 70 yuan (US$9.8) per pig.

The deflation extends beyond food to housing, where average new home prices have been falling since April 2022. First-tier cities including Beijing, Shenzhen, and Guangzhou saw prices drop 0.1 percent in August, while second-tier cities declined 0.3 percent and smaller cities fell 0.4 percent.

The deflation has created a damaging feedback loop. Companies are reducing production and hiring due to falling profits, pushing youth unemployment to 18.9 percent in August – a two-year high. Falling prices encourage consumers to delay purchases, further suppressing demand. Retail sales of consumer goods grew only 3.4 percent year-on-year in August, the slowest pace in nine months, despite government voucher programs for appliances and smartphones.

The deflation’s impact is visible in everyday life. At Tuanjiehu Park in central Beijing, electric boat rental prices have been cut to one-third of previous rates yet still struggle to attract customers. Young people are abandoning paid private gyms in favor of free public fitness equipment, traditionally used by elderly residents.

Wang Yuxun, a 62-year-old resident, philosophically noted the change: “Since this is the case, old people like me come to exercise at dawn. Young people haven’t given up on fitness because they understand that health is most important. For major health problems, reimbursement limits are low, and no one expects the state to increase healthcare investment. Now, the best approach is still to economize.”

Source: Radio France International, September 20, 2025
https://rfi.my/C1fB

Briefings | | |   Economy/Resources

China’s Youth Unemployment Hits 20-Month High

China’s youth unemployment rate has reached its highest level in 20 months, reflecting deep structural challenges in the job market that experts warn could persist for decades.

China’s National Bureau of Statistics reported that the unemployment rate for 16-24 year-olds (excluding students) reached 18.9% in August, the highest since December 2023. While officials attributed this spike to graduation season, with expectations that rates will decline as graduates find employment, underlying issues suggest a more persistent problem.

The employment crisis stems from a fundamental mismatch between supply and demand. China graduated approximately 12.22 million university students in 2024, an increase of 430,000 from the previous year. This trend of over 10 million annual graduates is expected to continue until 2040, creating sustained pressure on the job market.

Traditional sectors that historically absorbed large numbers of graduates—real estate, internet platforms, private tutoring, and finance—have yet to recover their pre-pandemic hiring levels. Government crackdowns on tutoring companies through the “double reduction” policy in July 2021 particularly devastated the education sector, which has not returned to 2021 employment levels despite some recovery in non-academic training.

Recruitment data shows a 22% year-over-year decline in corporate job postings for graduates in the first half of 2024, while job seekers increased by 8%. The hardest-hit industries include internet/e-commerce, professional services, real estate, education, and utilities.

While emerging sectors like semiconductors, artificial intelligence, new materials, and renewable energy show growth, their scale remains insufficient to offset job losses in traditional industries. As researcher Mao Yufei noted, the expansion in new sectors cannot compensate for the contraction in established ones.

This employment squeeze has led more graduates to pursue advanced degrees, with top-tier universities seeing postgraduate enrollment rates jump from 68.5% in 2022 to 77.5% in 2024, while direct employment dropped from 31.5% to 22.5%.

Source: Central News Agency (Taiwan), September 18, 2025
https://www.cna.com.tw/news/acn/202509180221.aspx

Briefings | | |   Economy/Resources