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Lianhe Zaobao: China’s Manufacturing PMI Continued to Contract in October

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that data released by China’s National Bureau of Statistics showed the Chinese manufacturing PMI fell to 49.0 in October from 49.8 in September, below expectations. This marks the lowest point in the past six months, and the seventh consecutive month that the manufacturing sentiment indicator has contracted.

The production sub-index fell 2.2 percentage points from the previous month to 49.7, indicating a further slowdown in manufacturing production. The new orders sub-index dropped to 48.8, the largest decline since 2023, indicating a significant decrease in market demand. Among the new orders, new export orders fell sharply by 1.9 percentage points to 45.9, reflecting a weakening of both domestic and external demand.

Experts believe that the main reason for the manufacturing PMI decline is the drop in exports, which may reflect the waning of the “rush to export” effect in the early months of 2025. Besides weak market demand dragging down production, the implementation of anti-involution measures in some industries could also constrain capacity release. Despite the trade truce agreement reached between China and the U.S., China still needs more policy support to boost domestic demand and cope with internal and external uncertainties.

Source: Lianhe Zaobao, October 31, 2025
https://www.zaobao.com.sg/finance/china/story20251031-7750511

Briefings | | |   Economy/Resources

RFI Chinese: North Korea Uses Cryptocurrency to Buy Arms, Sends Programmers Abroad to Earn and Launder Cash

Radio France Internationale (RFI) Chinese Edition recently reported that North Korea is circumventing UN sanctions by using cryptocurrencies to trade weapons and raw materials. The DPRK is also sending computer programmers abroad to launder money and earn foreign currency.

Under Kim Jong-un’s leadership, Pyongyang has seen a significant increase in initiation of cyberattacks. The Multilateral Sanctions Monitoring Team (MSMT), which oversees UN sanctions against North Korea, found that North Korean hackers stole at least US$1.65 billion between January and September 2025, of which US$1.4 billion was stolen from the cryptocurrency exchange Bybi in February alone. North Korean officials also use stablecoins (cryptocurrencies pegged to fiat currencies such as the U.S. dollar) for procurement-related transactions, including the sale and transfer of military supplies and raw materials such as copper.

In the meantime, North Korea has also circumvented UN sanctions by sending IT professionals to work in at least eight countries. Most of these individuals have been sent to China, but some have also gone to Russia, Laos, Cambodia, Equatorial Guinea, Guinea, Nigeria, and Tanzania. MSMT cited a 2024 report by the U.S. think tank 38 North, saying that some North Korean IT experts concealed their identities and successfully undertook outsourcing work for animation projects from Japanese and U.S. companies, including Amazon and HBO Max. South Korean intelligence agencies say North Korean spies are also using the social networking platform LinkedIn to impersonate recruiters and lure employees of South Korean defense companies.

Source: RFI Chinese, October 25, 2025
https://tinyurl.com/53zk8rvb

Briefings | | |   Geo-Strategic Trend

LTN: Intel’s Advanced Foundry Business Sees Hope in Cutting-Edge 14A Process

Major Taiwanese news network Liberty Times Network (LTN) recently reported that, thanks to R&D participation from potential customers, Intel’s 14A (1.4nm) process has already surpassed the performance and yield of its 18A process.

Intel CFO David Zinsner revealed an optimistic outlook for the 14A process, which is primarily targeted at external customers. With each milestone of the 14A chip, Intel’s potential customers have received samples, indicating strong industry interest in the chip. This allows customers to participate in the entire development process and collect their feedback to ensure that the final products will be converted into actual OEM orders.

Zinsner pointed out that the performance and yield of 14A are comparable to those of 18A, and the formal “risk trial production” schedule has been brought forward by nearly a year. This is a significant advancement for Intel’s chip manufacturing efforts, as the 14A product will determine whether the American chip manufacturing giant can lead the chip market. Intel’s 14A process is Intel’s direct competitor to TSMC’s next-generation processes (referred to as A14).

Source: LTN, October 25, 2025
https://ec.ltn.com.tw/article/breakingnews/5222958

Briefings | | |   Information/Technology

CNA: High Price of Brazilian Soybeans Deters Chinese Buyers Following Beijing’s Halt to Soy Purchases from U.S.

Primary Taiwanese news agency Central News Agency (CNA) recently reported that, amid the U.S.-China trade war, China has halted its soybean purchases from the U.S. and is shifting to Brazil and other countries. However, the China Soybean Industry Association (CSIA) stated that the high premium on Brazilian soybeans has deterred Chinese buyers.

CSIA stated that China purchased a large volume of Argentine soybeans at the end of September, mainly for shipment in November. China currently still needs to purchase about 8 million to 9 million tons of soybeans for shipment from December to January next year. Due to the ongoing trade tensions between China and the United States, Chinese buyers have not yet placed any orders for new U.S. beans.

Currently, Brazilian soybeans are quoted at ports at a premium of US$2.8 to US$2.9 per bushel over the November soybeans on the Chicago Board of Trade (CBOT). This is much higher than the US$1.7 premium for U.S. soybeans. For most of the second half of this year, China’s soybean crushing margins have been in negative territory, which has also made Chinese oil mills less willing to buy. Due to high prices, Chinese buyers have little incentive to purchase Brazilion soybeans for December and January next year.

Some industry insiders believe that Chinese buyers haven’t completely given up on U.S. soybean supplies. As Trump-Xi meeting is expected to take place in South Korea very soon, if the U.S. and China can reach a trade agreement, Chinese oil mills may shift to purchasing U.S. soybeans between December and January next year, since U.S. soybean prices are significantly more attractive than South American competitors’.

Source: CNA, October 25, 2025
https://www.cna.com.tw/news/acn/202510250157.aspx

Briefings | | |   US-China Relations

Micron Withdrawing from China’s Data Center Server Chip Business

Shanghai-based Chinese online news site Guancha recently reported that U.S. memory chip giant Micron Technology plans to exit its data center server chip business in China. Sources familiar with the matter said Micron will stop supplying server chips to Chinese data centers. In the future, Micron will continue to sell chips to customers in the automotive and smartphone fields in the Chinese market.

Micron responded in a statement saying, “We have a strong operating base and customer network in China, and China remains an important market for Micron and the entire semiconductor industry.” Micron also mentioned in the statement that its Chinese data center business unit was affected by the review from relevant Chinese authorities, but it claimed that the company always complies with applicable laws and regulations in the regions where it conducts business.

According to the financial report previously released by Micron Technology, its revenue for fiscal year 2025 reached US$37.378 billion. HBM (High Bandwidth Memory), used for AI data processing, is one of Micron’s most profitable products. Micron’s Cloud Storage Business Unit (CMBU), which focuses on serving global hyperscale cloud computing customers and includes HBM for data center customers, generated US$4.543 billion in revenue, a 213.5 percent year-over-year increase. The same financial report also showed that, mainland China’s share in Micron’s revenue was 14.03 percent in 2023, falling to 12.1 percent in 2024 (far lower than 52.4 percent from the United States and 18.7 percent from Taiwan), and will continue to fall to 7.1 percent in 2025.

It is worth noting that, in August Micron had launched a new round of layoffs in China, involving more than 300 R&D, testing and support positions. Micron is not the first multinational technology company to adjust its business in China. This year, many well-known technology companies such as IBM, Microsoft, and Amazon have adjusted their business in China.

Source: Guancha, October 14, 2025
https://www.guancha.cn/economy/2025_10_17_793684.shtml

Briefings | | |   Information/Technology US-China Relations

CNA: EU Considers Forcing Chinese Firms to Transfer Technology

Taiwan’s Central News Agency (CNA) reports that the European Union (EU) is weighing new measures that could require Chinese companies to transfer technology to European firms as a condition for operating within the EU. The proposed policy aims to bolster the bloc’s industrial competitiveness and reduce dependence on foreign technology.

The measures would target companies entering key EU digital and manufacturing sectors, including automotive and battery industries. They may mandate the use of a certain proportion of EU-made components or labor, and require value-added production within Europe. The EU is also considering compulsory joint ventures between European and non-European companies. Although the rules would technically apply to all foreign firms, officials acknowledge that the initiative is primarily aimed at curbing the dominance of Chinese manufacturers.

The proposal, expected to be unveiled in November, reflects growing anxiety within Europe about China’s expanding presence in strategic industries. It also signals a potential shift toward a more protectionist approach in EU industrial policy.

Analysts warn, however, that mirroring Beijing’s own protectionist practices could trigger retaliation from China and strain the crucial trade ties between the two economies.

Source: CNA, October 14, 2025
https://www.cna.com.tw/news/aopl/202510143005.aspx

Briefings | | |   Geo-Strategic Trend

Lianhe Zaobao: U.S. Reportedly Weighs Possible Trump–Kim Summit

Singapore’s leading Chinese-language newspaper Lianhe Zaobao reported that, according to sources familiar with the matter, U.S. officials are privately discussing the possibility of a meeting between President Donald Trump and North Korean leader Kim Jong Un during Trump’s upcoming visit to Asia. The discussions remain preliminary, with no formal contact yet established with Pyongyang. Earlier this year, North Korea reportedly rejected Trump’s outreach efforts.

After meeting South Korean President Lee Jae-myung at the White House in August, Trump expressed interest in meeting Kim once again. North Korean state media later reported that Kim Jong Un had also voiced willingness to meet Trump during a recent address to the North Korean Supreme People’s Assembly. In that speech, Kim said, “I personally still have a good impression of President Trump… If the United States abandons its empty obsession with denuclearization and is willing to coexist peacefully with North Korea based on a realistic understanding, we have no reason to refuse dialogue.”

However, South Korea’s Ministry of Unification stated that there has been no communication between the two Koreas regarding a potential U.S.–North Korea summit. Meanwhile, the White House declined to comment on the report.

Source: Lianhe Zaobao, October 18, 2025
https://www.zaobao.com.sg/realtime/world/story20251018-7685070?ref=global-top-news-7

Briefings | | |   Geo-Strategic Trend

Lianhe Zaobao: BMW Lowers Full-Year Earnings Forecast as China Sales Continue to Slump

Singapore’s leading Chinese-language newspaper Lianhe Zaobao recently reported that German automaker BMW AG has cut its full-year earnings forecast amid continued weakness in the Chinese market, higher subsidies for local dealers, and rising tariff-related costs.

BMW now expects its group pre-tax profit to decline slightly this year compared with 2024, having previously projected it would remain unchanged. The automaker also revised its automotive segment’s operating profit margin to between 5 percent and 6 percent. In addition, BMW lowered its free cash flow forecast for the year to about €2.5 billion, down from an earlier projection of up to €5 billion. The company attributed the revision primarily to increased payments to dealers, particularly in China.

German luxury carmakers such as Mercedes-Benz and BMW are facing mounting headwinds in China. Mercedes-Benz’s deliveries in the country plunged 27 percent in the third quarter, while its retail sales in July dropped more than 40 percent month-on-month — marking the first time in nearly five years that its monthly sales fell below 27,000 vehicles.

Source: Lianhe Zaobao, October 8, 2025
https://www.zaobao.com.sg/realtime/china/story20251008-7632427

Briefings | | |   Economy/Resources Geo-Strategic Trend