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U.S. Advances “Lobito Corridor” to Counter China’s Expanding Influence in Africa

The United States and its Western partners are accelerating development of the “Lobito Corridor,” a major railway and logistics route linking Angola’s Atlantic port of Lobito with the copper and cobalt mining regions of the Democratic Republic of Congo and Zambia. According to South Africa’s Daily Maverick, the corridor bypasses South Africa’s traditional port network and offers a shorter, more reliable export route for strategic minerals to Atlantic markets. Analysts view the initiative as part of a Western effort to reshape African supply chains and reduce China’s dominance over critical minerals and Belt and Road infrastructure across the continent.

Africa holds roughly 30 percent of the world’s mineral reserves, including major shares of cobalt, chromium, manganese, gold, and platinum-group metals. China has long expanded its influence through infrastructure-for-resources agreements, financing railways and ports in exchange for mining access. Chinese firms are also increasingly investing in local refining and processing facilities, shifting from simple resource extraction toward vertically integrated mineral supply chains.

Since 2023, the United States and the European Union have backed the Lobito Corridor with more than $2.7 billion in investment, aiming to establish alternative supply chains for critical minerals and challenge China’s dominant position in Africa’s mining logistics network.

Source: Epoch Times, May 27, 2026
https://www.epochtimes.com/gb/26/5/26/n14774871.htm

China Establishes China–ASEAN AI Enterprise Alliance to Expand Regional Cooperation

On May 26, the China–ASEAN Artificial Intelligence Application Cooperation Center Enterprise Alliance was officially launched in Nanning, Guangxi Zhuang Autonomous Region, underscoring China’s effort to position Guangxi as a gateway for AI cooperation with ASEAN countries.

Chinese authorities are promoting an AI development framework described as “R&D in Beijing, Shanghai, and Guangzhou; integration in Guangxi; connectivity through Hong Kong; and applications in ASEAN.” The strategy aims to leverage Guangxi’s geographic and policy advantages to strengthen China’s role in regional AI cooperation with Southeast Asia.

The alliance was jointly established by several Chinese technology and innovation organizations, including Moore Threads, AgiBot (Zhiyuan Innovation), ZTE, and the Guangxi Guoyan ASEAN Innovation-Driven Development Center. Its initial 55 member organizations span key sectors of the AI industry chain, including computing infrastructure, AI models, data resources, terminal devices, application scenarios, and industrial investment funds.

The alliance plans to use platforms such as the China–ASEAN AI Ministers’ Roundtable and the China–ASEAN Expo to expand cooperation in AI applications, industrial coordination, standards recognition, and compliance collaboration.

Source: People’s Daily, May 27, 2026
http://gx.people.com.cn/n2/2026/0527/c179464-41592156.html

EU–China Forum Turned into a “Battlefield,” Exposing Rising Trade Tensions

At the “Second EU–China Relations Forum,” hosted by the Delegation of the European Union to China on May 12, European and Chinese participants openly clashed over trade imbalances, market access, and “protectionism,” highlighting the increasingly strained state of EU–China economic relations.

During a panel discussion on EU–China trade ties, Jens Eskelund, President of the European Union Chamber of Commerce in China, criticized China for heavily exporting goods to Europe while simultaneously accusing the EU of protectionism. He described the relationship as “a 400-meter-long container ship” arriving in Europe fully loaded but returning “almost empty,” underscoring European concerns over unequal trade flows and limited reciprocity.

Jian Junbo of the Fudan University Center for China-Europe Relations responded that EU “decoupling” policies were regrettable and called on both sides to jointly oppose protectionism.

Tensions escalated further when Jorge Toledo, the European Union’s Ambassador to China, stated that the EU’s proposed Industrial Acceleration Act had faced widespread criticism from Chinese media and officials. A Chinese participant then accused Toledo of “bullying.” Spanish economist Alicia Garcia-Herrero defended the ambassador, arguing that it was inappropriate to accuse the EU envoy of bullying at a conference organized by the EU itself.

Source: Epoch Times, May 20, 2026
https://www.epochtimes.com/gb/26/5/19/n14768745.htm

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

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

Chinese Automakers’ Share of Europe’s EV Market Surpasses 15 Percent

According to a report cited by Bloomberg, Chinese electric vehicle brands accounted for more than 15 percent of Europe’s EV market in April for the first time, underscoring their growing competitiveness and expanding presence in the region’s new-energy vehicle sector.

Data cited in the report showed that Chinese automakers sold 38,281 electric vehicles in Europe during April, representing a year-on-year doubling in sales. Brands such as BYD and Chery were among the strongest performers. Chinese automotive brands’ overall share of the European vehicle market is also reportedly approaching 10 percent. In the plug-in hybrid segment, Chinese brands accounted for nearly 29 percent of the market in April.

Chinese automakers are also accelerating localization efforts in Europe. Companies including BYD have begun establishing factories within the European Union, while several firms are reducing market entry costs by taking over or sharing underutilized production capacity from European manufacturers. Stellantis, the parent company of Peugeot and Fiat, has also established partnerships with Chinese automakers such as Leapmotor and Dongfeng Motor, including factory-sharing arrangements.

Source: Huanqiu Times, May 22, 2026
https://tech.huanqiu.com/article/4Rg6OyuwPuc

China’s Shipbuilders Dominate Global Tanker Market

China’s shipbuilding industry has been on a remarkable winning streak this year, securing over 90 percent of new orders for very large crude carriers (VLCCs) worldwide and cementing its dominance in the global market.

On May 20, a 115,000-ton oil tanker built by CSSC Dalian Shipbuilding’s Shanship Heavy Industries was formally delivered to its client — more than 160 days ahead of the contracted delivery date. The same shipyard currently has two 300,000-ton VLCCs under simultaneous construction. These massive vessels can carry over two million barrels of crude oil in a single voyage, with per-barrel transportation costs more than 40 percent lower than those of small- to mid-sized tankers, making them highly attractive to global buyers.

Marketing staff at the company told reporters that tankers have become the dominant category in new orders across many Chinese shipyards this year, not just their own.

Peng Guisheng, Head of Marketing at CSSC Dalian Shipbuilding, noted that the tanker segment has seen a concentrated surge in demand. So far this year, newly signed and effective tanker orders have reached over six million deadweight tons, with 42 vessels scheduled to begin construction before year’s end. He attributed the influx of global orders to China’s world-leading capabilities in tanker design and construction, as well as its clear competitive edge in build quality, delivery timelines, and pricing.

The trend reflects a broader shift in the global shipping industry, as shipowners increasingly turn to Chinese yards to meet growing demand for large-capacity, cost-efficient crude oil transportation.

Source: Sputnik News, May 21, 2026
https://sputniknews.cn/20260521/1071444201.html

China’s Credit Contraction Signals a Structural Economic Shift

China’s credit data has weakened across the board, with total social financing in April 2026 hitting a two-year low of just 620 billion yuan (US$ 85.5 billion) — a year-on-year drop of 540 billion yuan (US$ 74.4 billion), or 47 percent. Even more striking, new yuan-denominated loans saw a net contraction of 10 billion yuan (US$ 1.38 billion) in April, only the second time this has happened since July last year.

The pullback is broad-based. Household leverage ratios have declined from 62.3 percent in Q1 2024 to 59.0 percent in Q1 2026, as ordinary citizens shift toward paying down mortgages and reducing consumer debt rather than taking on new borrowing. On the corporate side, business loans rose by only 390 billion yuan (US$ 53.8 billion), down over 220 billion yuan (US$ 30.3 billion) from the same period last year. Medium- and long-term corporate loans — traditionally a bellwether for investment appetite — fell by 410 billion yuan (US$ 56.5 billion), signaling that companies are cutting costs and reducing debt rather than expanding.

For roughly two decades, China’s growth engine ran on leverage: households borrowed to buy homes, corporations borrowed to expand, and local governments borrowed to build infrastructure. Now, analysts say, all three of those gears have stopped turning simultaneously.

In their place, bond financing is rising. In the first four months of 2026, corporate bond net financing reached 1.5 trillion yuan (US$ 206.8 billion), up 739.3 billion yuan (US$ 101.9 billion) year-on-year. Sectors like technology are increasingly relying on equity financing, bonds, and retained earnings rather than bank credit.

China’s central bank, meanwhile, removed language about potential reserve requirement or interest rate cuts from its Q1 monetary policy report for the first time — a sign of restraint as commercial bank net interest margins hit a fresh low of just 1.40 percent.

The broader picture is of an economy navigating a difficult transition: the old credit-driven model is fading, but the new financing structure has yet to fully take hold.

Source: Central News Agency (Taiwan), May 22, 2026
https://www.cna.com.tw/news/acn/202605220125.aspx