February 2026 – Chinascope

EU Tightens Checks on Chinese Baby Formula Ingredient After Contamination Confirmed

The European Union announced on Wednesday (February 25) that it is imposing stricter inspections on a baby formula ingredient imported from China, after confirming that cereulide toxin is the source of contamination in infant formula products.

Cereulide, which can cause nausea and diarrhea, was first detected in December last year in formula containing arachidonic acid oil. Following the discovery, European giants including Nestlé, Danone, and Lactalis launched recalls of infant formula products across more than 60 countries. Ireland’s Food Safety Authority has since stated that the recalls were triggered by the possible presence of cereulide in the affected products.

Arachidonic acid oil, the ingredient in which the toxin was detected, is strictly regulated in Europe and is used in some infant formulas as a source of Omega-6 fatty acids.

Since December, three infant deaths in France have been suspected to be linked to the recalled formula. French authorities are investigating, though they have emphasized that no causal relationship between the deaths and the formula has been established. Nestlé has said it will cooperate with the investigation and that there is currently “no evidence” linking its products to the deaths.

In its Wednesday statement, the European Commission said it was “necessary to strengthen controls on arachidonic acid oil imported from China” under special conditions. Shipments entering the EU from China will now require an official certificate confirming the absence of cereulide, and for the next two months, 50 percent of physical shipments will be subject to random sampling checks.

The Commission explained that investigations have shown Chinese-sourced arachidonic acid oil used in formula production “constitutes the source of contamination,” posing a potential serious risk to human health. While no company was named by the EU, Chinese firm Cabio Biotech — a major global producer of arachidonic acid oil supplying brands such as Nestlé and Danone — is reportedly under investigation for allegedly supplying the contaminated ingredient.

Source: Deutsche Welle, February 25, 2026
https://p.dw.com/p/59Onh

Briefings | | February 26, 2026 | Economy/Resources

Zimbabwe Bans Raw Lithium Exports to Force Local Processing

Zimbabwe, Africa’s largest lithium producer with reserves among the world’s highest, has announced an immediate and indefinite ban on all exports of raw ore and lithium concentrate. The ban, declared by the country’s Ministry of Mines on Wednesday, February 26, takes effect ten months ahead of the previously scheduled January 2027 deadline. Zimbabwe had already banned raw ore exports in 2022, and the new measure now extends that restriction to lithium concentrate as well.

The policy reflects a broader ambition to refine lithium domestically, increase the mineral’s added value, generate greater government revenue, and create local jobs. This approach is gaining traction across Africa, with numerous countries at February’s Mining Indaba conference in Cape Town expressing a desire to capture more economic benefit from their mineral wealth, which is critical to the global energy transition.

Several Chinese-backed companies are already responding. Prospect Lithium Zimbabwe, majority-owned by China’s Zhejiang Huayou Cobalt, is investing $400 million to build a lithium refinery expected to begin production within weeks, making it Africa’s first facility producing lithium sulfate. Zimbabwe’s state-backed Mutapa Energy Minerals plans to begin construction of a similar plant by mid-June, backed by $270 million in Chinese funding, with an annual capacity to process 600,000 tonnes of raw ore. Meanwhile, Sinomine Resources Group, owner of Zimbabwe’s largest lithium mine, Bikita Minerals, is conducting feasibility studies for a $500 million lithium sulfate plant it hopes to build in phases starting December.

Despite the optimism, critics argue the government is moving too slowly and lacks adequate oversight of Chinese-controlled mines, making it difficult to accurately track export volumes. Some economists urge Zimbabwe to build a complete value chain from mine to finished product and to follow the examples of Norway, Botswana, and Kuwait in implementing strategic, forward-looking resource policies.

Source: Radio France International, February 26, 2026
https://rfi.my/CTiE

Briefings | | February 26, 2026 | Geo-Strategic Trend

Bomb Threat at Australian Prime Minister’s Residence Linked to Shen Yun Performances

A bomb threat targeting the official residence of Australian Prime Minister Anthony Albanese was triggered by written warnings directed at Shen Yun Performing Arts, a dance and music troupe banned in China.

According to emails obtained by local Australian media and the BBC, Shen Yun performers received threats demanding they cancel their upcoming shows in Australia, or explosives would be detonated at The Lodge, the Prime Minister’s official residence in Canberra. One email, written in Chinese, claimed that large quantities of nitroglycerin had been placed around the property, warning: “If you insist on performing, The Lodge will be reduced to rubble and blood will flow like a river.”

Albanese was evacuated from the residence at 6:00 PM local time on Tuesday, February 24, and relocated for several hours. Authorities confirmed they responded to an “alleged security incident” at The Lodge but said “no suspicious items were found.” The Australian Federal Police declined to comment on the specific emails.

Shen Yun, founded by the Falun Gong spiritual movement — which has been banned in China since 1999 — said it would proceed with its Australian performances as scheduled and urged the Australian government to conduct a thorough investigation. The group also noted it had faced dozens of threats during global performances over the past two years.

The incident follows a similar threat in the United States before, which led to the evacuation of the Kennedy Center in Washington D.C., also reportedly targeting a Shen Yun performance.

On Wednesday morning, Albanese posted on social media thanking police and well-wishers, sharing a photo of his dog Toto at the door, writing: “Toto is on guard, but all is well.”

Source: BBC Chinese, February 26, 2026
https://www.bbc.com/zhongwen/articles/c8egxg8p5g6o/simp

Briefings | | February 26, 2026 | Geo-Strategic Trend

A Call for a “Coalition of the Willing” to Salvage the Global Trading System

French international trade expert and president of export promotion think tank Alain Bentéjac published a signed column in Le Monde on Friday, calling for a “coalition of the willing” to defend the international trading system against the twin pressures of American unilateralism and Chinese dominance.

Bentéjac draws on Canadian Prime Minister Carney’s speech at Davos this year, where Carney proposed a coalition of middle powers as the only viable counterweight to great-power hegemony — an idea modeled on the coalition supporting Ukraine against Russian aggression. Bentéjac argues that international trade urgently needs the same approach.

In his view, the current trade crisis stems from the fact that the two dominant players in the global system — the United States and China — have each, in their own way, stepped outside the multilateral framework. The U.S. has long undermined the WTO’s dispute settlement mechanism, and under President Trump, tariffs have become a pure instrument of coercion, used to threaten allies who oppose his positions on Greenland or peace initiatives, and even Canada if it reaches any agreement with China. Bentéjac finds this strategically contradictory: if China is America’s chief systemic rival, why alienate potential allies like the EU rather than building a united front?

China, meanwhile, benefits from Western divisions. While publicly professing respect for WTO rules, Chinese exports continue to flood global markets. In 2025, China’s trade surplus hit a record $1.2 trillion. Its share of global exports has grown from 4 percent when it joined the WTO in 2001 to roughly 20 percent today. In 2024, China filed 1.8 million patent applications, compared to 501,000 for the United States and just 135,000 for Germany — a sign that China’s industrial rise now reflects genuine innovation, not merely subsidies and dumping.

Bentéjac concludes that conventional trade defense tools are no longer sufficient. The EU, as the world’s largest trading power, must take the lead in forming a coalition of countries still committed to shared rules, and work to rewrite the framework for a new era of globalization.

Source: Radio France International, February 21, 2026
https://rfi.my/CSkg

Briefings | | February 23, 2026 | Geo-Strategic Trend

South Korea Falls Further Behind China in Core Technology Race

South Korea’s technological gap with China has widened across key strategic sectors, according to a new government assessment, with Beijing now surpassing Seoul even in the one field where South Korea had previously held a clear advantage.

The findings come from a 2024 Technology Level Assessment report submitted by South Korea’s Ministry of Science and ICT to the National Science and Technology Advisory Council. The evaluation covered 136 core technologies across 11 fields, drawing on quantitative analysis of papers and patents from the U.S., EU, China, Japan, and South Korea, as well as qualitative surveys from 1,180 experts.

Using the United States as the global benchmark at 100 percent, the overall technology levels were ranked as follows: the EU at 93.8 percent, China at 86.8 percent, Japan at 86.2 percent, and South Korea at 82.8 percent. In terms of the time gap with the U.S., South Korea trails by 2.8 years and China by 2.1 years — meaning China now leads South Korea by 0.7 years, up from a 0.2-year gap when China first overtook South Korea in 2022.

The divergence is even sharper in the 50 national strategic technologies. South Korea’s gap with the U.S. narrowed by 0.4 years since 2022 to 2.6 years, but China closed its gap by a faster 0.8 years, now trailing the U.S. by just 1.4 years.

Perhaps most striking is the reversal in secondary batteries — rechargeable cells used in electric vehicles and electronics. South Korea had led China by 0.9 years in 2022, but by 2024, China has taken first place, with South Korea now falling 0.2 years behind. In semiconductors and displays, another South Korean stronghold, China has also edged ahead, with a technology level of 91.5 percent versus South Korea’s 91.2 percent.

Source: Yonhap News Agency, February 22, 2026
https://cn.yna.co.kr/view/ACK20260222000300881

Briefings | | February 23, 2026 | Geo-Strategic Trend

China’s Commercial Street Rents Continue to Slide in 2025

Rents on China’s major commercial streets fell for another year in 2025, with declines accelerating compared to the previous year, according to new data released by the China Index Academy.

The report, which tracked 100 major commercial streets across 15 key cities, showed rents dropped 0.81 percent year-on-year in 2025 — a steeper decline than the 0.42 percent fall recorded in 2024, widening the gap by 0.39 percentage points. In the second half of 2025 alone, average rents on these streets stood at RMB 24.05 yuan per square meter per day (approximately USD $3.29), down 0.47 percent from the first half of the year, with the pace of decline also quickening.

The China Index Academy identified three main reasons behind the sustained downturn. First, growth in restaurant and dining revenues has slowed significantly, putting pressure on rents since the food and beverage sector has long been a cornerstone of commercial street activity. Second, large, experience-oriented shopping malls have drawn foot traffic away from traditional street-front retail areas. Third, many commercial streets have deliberately cut rents to retain tenants and maintain occupancy rates — a strategy of trading price for volume.

By comparison, major shopping malls fared somewhat better. Their average daily rent was RMB 26.99 yuan per square meter per day (approximately USD $3.70) in 2025, falling only 0.34 percent year-on-year — less than half the rate of decline seen on commercial streets — suggesting that malls are proving more resilient.

The report noted that a small number of landmark commercial streets in prime urban locations, as well as those with strong cultural or tourism appeal, have held up better, benefiting from relatively stable foot traffic and consumer spending power.

Source: Central News Agency (Taiwan), February 23, 2026
https://www.cna.com.tw/news/acn/202602230260.aspx

Briefings | | February 23, 2026 | Economy/Resources

China’s Robot Showcase at Spring Festival Gala Impresses Viewers but Highlights Industry’s Commercial Struggles

Robots took center stage at this year’s China Central Television (CCTV) Spring Festival Gala, performing martial arts, participating in comedy sketches, and dancing alongside human performers. In one standout segment “Martial Bot,” robotic masters sparred with human performers, executing backflips and nunchaku routines that demonstrated impressive balance and force control. While the spectacle thrilled audiences and buoyed investor sentiment in robot-related stocks, industry analysts say the display masked deeper structural problems facing the sector.

According to financial media outlets Caijing and Lanjing Technology, each of the four participating robotics companies — Unitree Robotics, Galaxy General, Magic Atom, and Songyan Power — invested close to 100 million yuan (approximately $13.7 million USD) for the appearance. Despite the massive national exposure, analysts argue the return on investment is nearly impossible to quantify, as humanoid robots remain largely confined to what they describe as the “laboratory” of technology, capital, and commerce.

Tech platform Huxiu noted that the gala amounted to a “high-cost attention competition,” and that the industry’s real challenges are cash flow, scalable validation, and customer trust. Research conducted at the end of last year found that most embodied AI manufacturers are already struggling with insufficient orders, with real market demand unable to absorb projected 2025 production capacity.

According to IDC data cited by the Wu Xiaobo Channel, global humanoid robot shipments stand at just 13,000 to 18,000 units. Unitree founder Wang Xingxing predicted “tens of thousands” of units could roll off production lines in 2026 — a negligible figure relative to China’s 1.4 billion potential consumers.

Analysts draw a sobering comparison to China’s electric vehicle industry, which took roughly 30 years from its 1992 designation as a national priority to achieving a 35% market penetration rate in 2023. Robots, they suggest, face a similarly long road — and are unlikely to leap from their first steps directly into a sprint.

Source: Central News Agency (Taiwan), February 19, 2026
https://www.cna.com.tw/news/acn/202602190157.aspx

Briefings | | February 22, 2026 | Economy/Resources

Japanese Firms in China Signal Waning Confidence Amid Economic Uncertainty

The Japan Chamber of Commerce and Industry in China released its 8th member enterprise survey on February 10 in Beijing, covering 1,427 Japanese-invested companies operating in China between July and December 2025 across manufacturing, services, and other sectors. The findings paint a cautious picture of Japanese business sentiment in China.

Only 1% of surveyed companies said China’s economy had “improved,” while nearly half believed it was “deteriorating or will continue to deteriorate” — a proportion largely unchanged since the first survey three years ago. Just 17% of companies planned to increase investment in China, while over 40% said they would reduce or entirely halt investment. Most firms opted to maintain existing operations while cutting costs, and some were evaluating a phased exit from the Chinese market.

Key pressures cited included falling product prices, rising labor costs, weak domestic demand, geopolitical instability, and institutional uncertainties around customs and tax enforcement. Some firms also flagged concerns about policy transparency, regulatory consistency, and personnel safety.

Industry observers noted the broader implications. A Jiangsu-based business association member said that shrinking Japanese investment would affect supply chain stability, particularly in technology cooperation and order reliability. A Zhejiang investment consultant emphasized that Japanese firms collectively maintain a presence worth hundreds of billions of dollars (~$100+ billion USD) in China, and their potential withdrawal could deprive numerous Chinese upstream and downstream firms of critical orders.

A Shenzhen-based executive pointed to deepening sector ties — in automotive, electronics, precision manufacturing, chemicals, and retail — noting that while some factories like Canon’s Zhongshan plant have closed and Sony has scaled back certain operations, these represent business-line adjustments rather than full exits.

A Shandong scholar linked the conservative investment trend to rising geopolitical friction, including Japan’s stance on Taiwan and shifting U.S.-China relations, along with a broader multinational trend of diversifying production to Southeast Asia and India. He concluded that future foreign investment flows into China will hinge on improvements in market access, policy stability, and the overall business environment.

Source: Radio Free Asia, February 20, 2026
https://www.rfa.org/mandarin/shangye/jingji/2026/02/20/china-japan-investment-withdrawal/