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Monthly Archives: May 2026 - 4. page

China’s Hidden Non-Performing Loans May Reach US$3 Trillion

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, as non-performing loans continue to accumulate in China’s banking system, more and more loans are being delayed when processed. Analysts estimate that the true non-performing loan ratio of Chinese banks is far higher than the officially announced 1.5 percent, possibly reaching 10 percent, which means that approximately US$3 trillion of debt that should have been classified as non-performing loans has not been included in the statistics. If calculated at 10 percent, it is equivalent to approximately 17 percent of China’s Gross Domestic Product (GDP).

A plastics business owner surnamed Hu defaulted on a US$730,000 bank loan, but the bank did not demand immediate repayment, instead allowing him to postpone payment. This allowed him to continue operating while preventing the bank from adding another overdue loan to its books. Similar situations are unfolding across China.

Under current Chinese banking regulations, loans overdue for more than 90 days and unable to be repaid in full should be classified as non-performing loans. However, economists estimate that approximately 40 percent of loans in China have entered into or meet some form of grace period, meaning banks are instructed not to pursue collection or recognize losses. The main reason for the surge in bad debts is that a large amount of loans have flowed to companies whose revenue is insufficient to pay interest.

Source: Lianhe Zaobao, May 13, 2026
https://www.zaobao.com.sg/finance/china/story20260513-9040886

Briefings | | |   Economy/Resources

“Patriotic” Chinese Citizen Calls Beijing Police to Request Arrest of Trump

A report describes an incident in which a man from Inner Mongolia, during Trump’s visit to China, called a Beijing police hotline to “report a case,” requesting the arrest of the U.S. president. According to the account, the caller appeared serious and presented a list of reasons, including “selling arms to Taiwan that endangered China’s national security, launching trade and tariff war that harmed China’s economy, and imposing technology restrictions that hindered China’s development.”

The report notes that the caller did not appear intoxicated and delivered his claims in a structured manner, outlining what he described as legal grounds, which align with common themes in Chinese Communist Party’s state narratives about the United States.

The response from the Beijing police operator was also highlighted. The operator reportedly maintained a calm and professional tone, replying: “Received. Recorded. Will dispatch police right away.”

Source: Aboluo, May 19, 2026
https://www.aboluowang.com/2026/0519/2385311.html

Briefings | | |   @CS US-China Relations

UDN: China’s Domestic Auto Market Declined for the Seventh Consecutive Month in April

United Daily News (UDN), one of the primary Taiwanese news groups, recently reported that, Domestic car demand in China remains weak. According to data released by the China Passenger Car Association (CPCA), domestic car sales in China fell by 21.6 percent year-over-year in April, dropping to 1.4 million vehicles, marking the seventh consecutive month of decline.

Sales of gasoline-powered vehicles fell short of expectations due to high oil prices, and demand for plug-in hybrid electric vehicles was also weak. Data shows that electric vehicles and plug-in hybrid electric vehicles account for 60.6 percent of total domestic vehicle sales in mainland China, but sales fell by 6.8 percent year-over-year, and the downward trend has continued for the fourth consecutive month.

In contrast, China’s automobile exports have performed strongly. The Iran war has driven up global fuel prices and boosted demand for electric vehicles in overseas markets. This is particularly evident in BYD, the world’s largest electric vehicle manufacturer. Despite continued strong overseas shipments, BYD’s global sales decline in April marked the eighth consecutive month.

Source: UDN, May 11, 2026
https://money.udn.com/money/story/5603/9495112

Briefings | | |   Economy/Resources

Pulitzer-Winning AP Investigation Raises Questions Over U.S. Tech Firms’ Role in China’s Surveillance and Persecution

On May 4, the 2026 Pulitzer Prize for International Reporting was awarded to a team from the Associated Press for a seven-part investigative series examining the global expansion of surveillance technologies linked to China. The three-year investigation spanned three continents and drew on extensive sources, including leaked emails and databases, extensive corporate and government documents, procurement records, public filings, and interviews with over 100 individuals.

The reporting highlighted the involvement of major global technology firms, including IBM, Dell, Hewlett-Packard, Oracle, Cisco Systems, Seagate Technology, and NVIDIA. One example cited was collaboration between a Chinese defense contractor and IBM in developing the “Golden Shield Project,” a nationwide surveillance system used for internet monitoring and social control. Other cases included Dell’s marketing of AI-enabled tools with features such as “ethnicity recognition,” and Thermo Fisher Scientific promoting DNA testing kits tailored to specific ethnic groups.

The investigation found that while companies often stated they were not responsible for how their products were used, marketing materials sometimes directly referenced law enforcement applications tied to the communist party’s social control agenda, including terms such as “stability maintenance,” “key individuals,” and projects like the Golden Shield and “Sharp Eyes” systems. The reporting also noted that cooperation extended beyond technology to include training exchanges, with some Chinese law enforcement officials infamous for suppressing human rights reportedly participating in overseas programs.

The reporting has drawn renewed attention to legal and human rights concerns, including the case known as the “Falun Gong practitioners’ lawsuit against Cisco Systems,” in which plaintiffs allege the company helped develop surveillance systems used for persecution. The case has received significant attention in U.S. legal and human rights circles, with proceedings reaching the Supreme Court of the United States. The AP investigation suggests that such involvement was not limited to a single company but reflects a broader pattern of corporate participation in surveillance- and persecution-related projects.

Source: Epoch Times, May 8, 2026
https://www.epochtimes.com/gb/26/5/7/n14759007.htm

Briefings | | |   @CS Government/Politics Information/Technology

China and Turkey Explore Local Currency Trade to Reduce Dollar Dependence

China has proposed that Turkey make greater use of local currencies — the Turkish lira and the Chinese yuan — in bilateral trade, according to a report by Turkish newspaper Yeni Akit.

The proposal emerged during a joint conference titled “Connecting Markets, Creating Opportunities: Trade and Financial Cooperation,” co-organized by the Industrial and Commercial Bank of China (ICBC) and the Aegean Exporters’ Association of Turkey. Participants discussed the broader use of local currencies as an alternative to the US dollar in trade settlements, alongside topics such as expanding Turkey-China trade volumes, developing new areas of cooperation, and improving financing access for Turkish exporters.

Muhammet Öztürk, coordinator of the Aegean Exporters’ Association, noted that the organization represents more than 8,000 member companies from the agricultural and industrial sectors. He said Turkey’s total exports are expected to reach $18.5 billion by the end of 2025.

Öztürk also highlighted strong recent momentum in Turkey-China trade: Turkish exports to China grew 35 percent in the first four months of this year, reaching $1.2 billion, while exports from Aegean region companies rose 24 percent to $209 million over the same period.

The push to settle trade in local currencies reflects a broader trend among countries seeking to reduce reliance on the US dollar in international commerce. For Turkey, whose lira has faced prolonged depreciation pressure, the practical implications of such an arrangement remain to be seen, though the talks signal a deepening of economic ties between Ankara and Beijing.

Source: Sputnik News, May 15, 2026
https://sputniknews.cn/20260515/1071297374.html

Briefings | | |   Geo-Strategic Trend

Nepal Weighs Allowing Chinese Humanoid Robot to Climb Mount Everest

Nepalese authorities are considering approving a Chinese humanoid robot, the Unitree G1, for a climb up Mount Everest, according to a report by the Kathmandu Post citing Nepal’s Tourism Department. If approved, the expedition could pave the way for using robots to clean up waste and monitor glacial conditions on the world’s highest peak.

The proposal comes from a collaboration between U.S. nonprofit Geologic Dome and Nepali company Fourteen Peaks Expedition, which have jointly applied for permission to deploy the Unitree G1 during the 2026 spring climbing season. The plan calls for a 52-day research expedition in the Everest region.

Himal Gautam, director of Nepal’s Tourism Department, confirmed that the proposal is under review. “After receiving the proposal, we consulted with the Ministry of Tourism,” he said. “The ministry has asked relevant departments to draft a framework covering risks, fee structures, and related matters. Permits will be issued once the main guidelines are established.”

The project’s broader goal is to explore whether humanoid robots can eventually assist with garbage removal on Everest, track glacial changes, and support operations in high-risk mountaineering scenarios. However, a significant hurdle remains: Nepal currently has no legal framework governing non-human climbers. As a result, even if a permit is eventually granted, the earliest the expedition could realistically proceed is the fall or winter of 2026.

No specific costs or fees were mentioned in the original report, so no currency conversion is needed this time.

Source: Sputnik News, May 17, 2026
https://sputniknews.cn/20260517/1071346016.html

Briefings | | |   Geo-Strategic Trend

Trump-Xi Summit in Beijing: Limited Thaw, Lasting Rivalry

U.S. President Donald Trump departed Beijing on Friday following a high-profile summit with Chinese President Xi Jinping, with French newspapers Le Figaro and Libération both marking the meeting as a significant moment in recent U.S.-China relations — though from notably different angles.

On the surface, the summit projected optimism. Trump declared the two sides had reached “fantastic” and “dream-like” commercial deals beneficial to both nations, while Xi described the visit in more measured diplomatic terms as “historically significant,” emphasizing a “constructive and stable” bilateral relationship.

A key topic was the escalating Middle East crisis. Trump claimed Xi personally assured him that China would not supply military equipment to Iran and would help ease tensions around the Strait of Hormuz — a concession Trump framed as a major diplomatic win. However, Beijing simultaneously signaled that the conflict “should not have happened,” implying shared blame on the U.S. and Israel. China’s posture — limited cooperation without full alignment with Washington — reflects its realist approach to the region, where its own energy security depends heavily on Gulf shipping routes.

On trade, Trump announced Chinese commitments to purchase 200 large Boeing aircraft and increase imports of American oil and agricultural products. Le Figaro viewed these deals relatively favorably, highlighting their potential to ease bilateral trade tensions. Libération was more skeptical, characterizing the announcements as largely symbolic, with deep structural competition in technology, semiconductors, artificial intelligence, and rare earths remaining unresolved.

Taiwan remained the most sensitive flashpoint. Xi had previously warned against stronger U.S. support for Taiwan, while Secretary of State Rubio reaffirmed that American policy had not changed.

Both papers ultimately read the summit as a “limited de-escalation” rather than genuine reconciliation — a mutual, temporary effort to stabilize relations without addressing the underlying rivalry.

Source: Radio France International, May 15, 2026
https://rfi.my/Chde

Briefings | | |   US-China Relations

CNA: Apple Started Price War in Chinese Mobile Phone Market

Primary Taiwanese news agency Central News Agency (CNA) recently reported that, amid soaring global memory prices and a declining mobile phone market in China this year due to price hikes by several manufacturers, Apple China just bucked the trend by lowering prices on its iPhone 17 series, reducing all models by RMB 1,000 (approximately US$147). Huawei quickly followed suit, lowering prices on its high-end phones. This move puts even greater pressure on other brands.

According to International Data Corporation (IDC), smartphone shipments in China reached 69.01 million units in the first quarter of this year, a year-over-year decrease of 3.3 percent. Huawei and Apple have not raised prices this year, while other Chinese brands have successively raised prices to reflect the higher cost of memory chips.

Memory chip prices have surged dramatically this year. According to Counterpoint Research, prices jumped 50 percent to 55 percent in the first quarter compared to the previous quarter. The increase is expected to rise further by 80 percent to 85 percent in the second quarter.

Source: CNA, May 16, 2026
https://www.cna.com.tw/news/acn/202605160158.aspx

Briefings | | |   Economy/Resources Information/Technology