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China Imposes Reciprocal Procurement Restrictions on EU Medical Devices

On July 6, China’s Ministry of Finance announced reciprocal restrictions on certain EU-imported medical devices in government procurement. Effective immediately, for medical device purchases with a budget exceeding 45 million yuan (US$ 6.3 million or 5.35 million euro), if imported products are deemed necessary, EU enterprises (excluding EU-invested firms based in China) are excluded. For non-EU enterprises participating in procurement, EU-made devices may not exceed 50 percent of the total contract value.

This move comes in response to the EU’s June 20 implementation of measures under the International Procurement Instrument (IPI), which restrict Chinese companies and products from participating in public medical procurement. China expressed strong dissatisfaction and firm opposition to the EU’s actions.

Source: Huanqiu Times, July 6, 2025
https://m.huanqiu.com/article/4NOIsZAJkfA

Briefings | | |   Economy/Resources Geo-Strategic Trend

CNA: China Rare Earth Group Faces Wave of Senior Executive Resignations

Primary Taiwanese news agency Central News Agency (CNA) recently reported that, as Beijing engages in battles with Europe and the United States over China’s rare earth ban, the management of China Rare Earth Group has seen a wave of senior executive resignations since the beginning of this year. It is rumored that many people have been poached by foreign rare earth laboratories, and some have resigned collectively.

China Rare Earth Corporation has undergone significant changes in its management this year. The general manager, one deputy general manager, and three board directors of the company resigned in June. Among them, the former general manager still serves as the company’s Communist Party secretary; the three former directors no longer work for the company after resigning.

The former vice president of China Rare Earth, Dr. Liao Chunsheng, resigned in April, and the company’s CFO and chairman of the supervisory board resigned in January. Among them, the 60-year-old Liao Chunsheng, who was a student of the “Father of China’s Rare Earths” Xu Guangxian, has attracted much attention. There were rumors that Dr. Liao and other senior executives took their rare earth technology and went to Canada to work for the Canadian Rare Earth Laboratory. China Rare Earth Group just issued an emergency statement, claiming that the relevant job position adjustments were “normal personnel movements.”

The publicly traded China Rare Earth Group controls 60 percent of the world’s rare earth supply. Its business covers the entire industrial chain from mining to deep processing. Rare earths are one of the focal points of the recent US-China trade war. Earlier, China’s Ministry of Commerce reportedly required all Chinese domestic rare earth industry companies to submit a list of employees with key professional skills to the government, and some experts were required to hand in their passports.

Sources:
(1) CNA, June 30, 2025
https://www.cna.com.tw/news/acn/202506300199.aspx
(2) STCN, June 30, 2025
https://stcn.com/article/detail/2311877.html

Briefings | | |   Economy/Resources US-China Relations

Xinhua: China’s Own Commercial C909 Aircraft Launches First International Commercial Route

On July 1, China launched its first international commercial flight of the C909 aircraft, flight CA757, from Hohhot Baita International Airport (Inner Mongolia) to Ulaanbaatar (Mongolia). The route will offer seven flights per week.

Air China introduced the C909 5 years ago. Now its C909 fleet has grown to 35 aircraft, accumulating over 110,000 hours of safe flight and transporting more than 4.13 million passengers. The fleet operates out of three major hubs: Beijing, Chengdu, and Hohhot, currently flying over 30 routes with more than 100 scheduled flights per day.

The Hohhot to Ulaanbaatar route is also a significant step in supporting Beijing’s Belt and Road Initiative (BRI). At Air China’s media briefing on June 30, it was announced that, over the 12 years since the BRI was launched, Air China has opened 68 routes along the Belt and Road, covering 29 participating countries. In the upcoming 2025 summer-autumn season, Air China plans to add new routes, including Beijing–Cairo, Beijing–Tashkent (capital city of Uzbekistan), Urumqi–Tashkent, and Beijing–Almaty (Kazakhstan).

Source: Xinhua, July 1, 2025
http://www.xinhuanet.com/digital/20250701/345f71eb40404805b7b69b7c5caf83cb/c.html

Briefings | | |   Economy/Resources Geo-Strategic Trend

China Implements New Anti-Money Laundering Rules for Precious Metals and Gems

The People’s Bank of China (PBOC) has announced new regulations requiring businesses to report cash transactions involving gold, diamonds, and other precious metals and gems when they reach or exceed 100,000 yuan ($14,000) per transaction or daily cumulative amount. The new anti-money laundering measures will take effect starting August 1.

The central bank released the “Administrative Measures for Anti-Money Laundering and Counter-Terrorism Financing for Precious Metals and Gems Industry Institutions” on July 2, aimed at preventing and deterring money laundering and related criminal activities.

Under the new framework, industry institutions must fulfill anti-money laundering obligations and conduct proper customer due diligence when handling cash transactions of 100,000 yuan ($14,000) or equivalent foreign currency for precious metals and gems. This includes adhering to “Know Your Customer” principles based on client characteristics, transaction nature, and money laundering risk assessments.

The regulations mandate that Chinese industry institutions submit large transaction reports to China’s Anti-Money Laundering Monitoring and Analysis Center within five working days of the transaction date. Customer identity information and transaction records must be preserved for at least 10 years.

Additionally, any suspicious transactions must be reported immediately regardless of transaction amount, ensuring comprehensive monitoring of potential money laundering activities in the precious metals and gems sector.

These measures represent China’s continued efforts to strengthen financial oversight and combat illicit financial flows through enhanced reporting requirements for high-value commodity transactions.

Source: Central News Agency (Taiwan), July 2, 2025
https://www.cna.com.tw/news/acn/202507020239.aspx

Briefings | | |   Economy/Resources

General Motors Ranked Most Exposed U.S. Company to China Market Risks

Nikkei News reported that strategic risk consultancy Strategy Risks released its latest risk index, showing that General Motors (GM) is the most exposed U.S. company to risks from the Chinese market, amid escalating U.S.-China trade tensions.

The New York-based firm assessed 250 publicly listed American companies to evaluate their China-related risks. GM ranked first with a risk score of 69.8 out of 100, primarily due to its extensive partnerships with Chinese state-owned enterprises. According to GM’s website, the company operates 10 joint ventures in China, including major collaborations with state-owned SAIC Motor. GM also faces significant financial exposure and is among the most reliant on the Chinese market.

Cummins, an engine equipment manufacturer, ranked second, followed by aerospace company Honeywell, with risk scores of 62.9 and 60.7, respectively. Cummins’ ranking rose after the company established a natural gas vehicle assembly line in Xinjiang, where China has been accused of human rights abuses against Uyghur Muslims.

Other companies highly vulnerable to U.S.-China tensions include Colgate-Palmolive, Philip Morris, and Tesla, due to their heavy reliance on Chinese exports of electric toothbrushes and lithium-ion batteries. Rounding out the top ten are retailer TJX Companies, Intel, FedEx, and Procter & Gamble.

Source: Epoch Times, June 24, 2025
https://www.epochtimes.com/gb/25/6/24/n14537834.htm

Briefings | | |   Economy/Resources US-China Relations

STCN: China’s June Manufacturing PMI Remains in Contraction Territory

China Security Times (STCN) recently reported that, according to China’s National Bureau of Statistics, China’s June manufacturing purchasing managers’ index (PMI) was 49.7 percent, still below the 50 percent line in the contraction territory. This index has fallen into the contraction range for the third consecutive month.

The New Export Orders sub-index was 47.7 percent; the Raw Materials Purchasing Price sub-index was 48.4 percent; the Factory Price sub-index was 46.2 percent; and the Employment sub-index was 47.9 percent. The manufacturing PMI of large enterprises was 51.2 percent, staying in the expansion range; the PMI of medium-sized enterprises was 48.6 percent; and the PMI of small enterprises was 47.3 percent.

Economists believe it is highly probable that the manufacturing PMI will remain below 50 percent in July. Under the tariff war, China’s “export rush” to the United States and non-US markets such as ASEAN and the EU has cooled down, and the export growth rate in July is likely to decline further.

Source: STCN, June 30, 2025
https://www.stcn.com/article/detail/2311882.html

Briefings | | |   Economy/Resources

Highly Educated Chinese Scholar Turns to Food Delivery After Job Search Struggles

A viral video from WeChat account “Ding Yuanzhao Loves Studying Abroad” has sparked widespread online discussion about employment challenges facing highly educated individuals in today’s job market.

Ding Yuanzhao, born in 1985, was considered an academic star who achieved nearly perfect scores on China’s college entrance examination (gaokao) in 2004, earning admission to Tsinghua University for chemical engineering and industrial bioengineering. His educational journey continued with a master’s degree in energy and resource engineering from Peking University, followed by a PhD in biology from Singapore’s Nanyang Technological University. In 2018, he pursued a biodiversity master’s degree at Oxford University before becoming a postdoctoral researcher at the National University of Singapore.

However, when his research contract expired in March 2024, Ding faced unexpected challenges. Despite his impressive credentials, most job applications went unanswered. Unable to secure academic employment, he turned to food delivery work in Singapore, working 11-12 hours daily regardless of weather conditions. His income ranges from 50-100 Singapore dollars per day (approximately $39.2 – 78.4), with Sunday earnings reaching up to 254 Singapore dollars (approximately $200).

In his recent video addressing Chinese students who just completed the gaokao, Ding displayed his academic certificates while offering encouragement: “Regardless of exam performance, everyone should maintain a balanced mindset. Even if you don’t do well, don’t be pessimistic. Even if you do well, future jobs won’t differ much anyway.”

The video generated mixed reactions online. Some netizens commented on the “cruel reality” and questioned whether food delivery now requires doctoral qualifications, while others noted that Ding chose this work rather than being limited to it. The discussion has raised broader questions about the value of higher education in today’s competitive job market.

Source: Central News Agency (Taiwan), June 27, 2025
https://www.cna.com.tw/news/acn/202506270093.aspx

Briefings | | |   Economy/Resources

China’s Plan to Invest $400 Billion in Iran Uncertain Following Recent Iranian Military Conflict with Israel and the US

Taiwanese media outlet Liberty Times reported that China’s plan to invest $400 billion in Iran may be in jeopardy following recent developments in the Iran-Israel conflict as well as the recent U.S. Air Force strikes against sites linked to Iran’s nuclear program.

In 2021, China and Iran signed a 25-year strategic agreement, with China pledging major investments in exchange for stable, low-cost oil. However, geopolitical tensions and financial strains have already slowed progress, and recent developments in Iran mean the future of China’s infrastructure projects in the region is now uncertain.

Key Chinese investments at risk include:

  • Oil fields: Over $30 billion invested in North Azadegan, Yadavaran (49 percent Sinopec stake), and Rainbow (40 percent CNOOC stake).
  • China-Iran International Railway: Launched in May 2025, from China’s Xi’an city to Iran’s Apolin Dry Port via Central Asia.
  • Major rail projects: Tehran-Hamadan-Sanandaj, Shiraz-Bushehr, and Kermanshah-Khosravi, totaling over 13 billion RMB (US$1.8 billion).
  • Tehran North Freeway: $257 million investment, opened in 2020.
  • Tehran Imam Khomeini Airport expansion: $2.7 billion project, now stalled after Israel’s June 2025 airstrike.
  • Ports: Chinese-supported upgrades at Chabahar and Bandar Abbas.

Source: Liberty Times (Taiwan), June 23, 2025
https://ec.ltn.com.tw/article/breakingnews/5083054

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