AGP Executive Report

Ethnic Unity Law: China’s new “ethnic unity” law takes effect, expanding Mandarin-focused education and public-life rules that critics say accelerate assimilation and erode minority identities, with international backlash growing. Beijing Skyscraper Crash: Authorities say the pilot who crashed into CITIC Tower in Beijing acted for “personal reasons,” citing chronic insomnia and anxiety and diary notes about ending his life; the crash injured 13. Cybersecurity: The US is investigating a major breach of the Homeland Security Information Network (HSIN), a platform used by thousands of agencies and partners, after hackers targeted servers and a SharePoint system. US-Canada Trade Politics: The US says it won’t renew USMCA in its current form, using concerns about Chinese inputs routed via Canada and Mexico as a pressure point. China-EU Trade Talks: China and the EU will hold a second ministerial meeting under their trade and investment consultation mechanism this autumn, aiming to expand cooperation in AI and green transition. China-Canada Cooperation: China says it’s willing to expand its cooperation list with Canada and reduce the “problems list” to keep trade relations stable. EV Safety Push: Chery says owners of vehicles with its Rhino battery packs will get lifetime warranty coverage as China’s toughest EV battery safety standard takes effect. Overseas Chinese Heritage: Fujian’s provincial rules for protecting overseas Chinese historical and cultural heritage enter force, adding a unified framework for diaspora memory and sites. China-Myanmar-Bangladesh Corridor: China reiterates its economic corridor plan for Bangladesh and Myanmar, saying it remains open to India and others if they choose to join. Rare Earth Legal Fight: US rare-earth firms MP Materials and USA Rare Earth are locked in a legal dispute tied to technology claims, as both face China’s blacklisting. China in Thailand: A Poh Teck Tung Foundation leader highlights the charity’s century-long role as a symbol of overseas Chinese community ties to Thailand and ancestral roots.

Outbound Investment Rules: China’s new regulation on outbound investment took effect July 1, replacing a patchwork of departmental rules with a single framework for more than 50,000 overseas-operating firms and pushing clearer risk-prevention and overseas service requirements. Ethnic Unity Law: China’s “Law on the Promotion of Ethnic Unity and Progress” is now in force, with Article 63 drawing fresh international alarm over the law’s extraterritorial reach and fears of transnational repression. Economy & Consumption: Sales of big-ticket items like cars and home appliances are slipping as subsidies fade, raising pressure for second-half stimulus while exports remain a key support. Markets: China stocks opened mixed July 2 as chipmakers slid from record highs, while Hong Kong rebounded on strength in internet names; China Resources New Energy surged on its IPO debut. Tech & Industry: Chenxian Optoelectronics completed a major Series B to expand TFT-based Micro-LED capacity, while a new solar-powered desalination prototype can run for up to a year without electricity. Global Business Expansion: Home Original Chicken is entering Southeast Asia via a Singapore JV with a controlling stake, testing a more direct brand-control model for overseas fast-food growth. Culture & Society: A young woman in Xizang is modernizing pulu weaving with machinery while keeping space for veteran artisans, and summer vacation is turning rocket viewing into a mainstream tourism draw.

Ethnic Unity Law Fallout: China’s new Ethnic Unity and Progress Law took effect July 1, drawing fresh criticism over alleged forced assimilation and extraterritorial reach, with Uyghur and Tibetan groups warning it could be “weaponized” against diaspora communities. Tibet Protests: The Tibetan Youth Congress staged a strong protest in Dehradun against the law, saying it threatens Tibetan language, religion and identity. China-Japan Tensions: Beijing imposed export restrictions on 40 Japanese firms, citing Japan’s “new militarism,” while Tokyo called the move unacceptable. Outbound Investment Rules: China’s new regulation on outbound investment took effect, aiming to align with international rules and clarify rights and obligations for investors. US-China AI Race: A reported US move to restrict access to advanced AI models was later reversed, underscoring how fast the AI standoff is shifting. Military Cooperation Watch: Reuters reported covert Chinese training of Russian forces, including chemical and radiological protection, approved at high levels. Space for Disaster Response: China is working on a space-ground monitoring network for asteroid defense and natural-disaster early warning across Asia. Trade and Diplomacy: Saudi and Chinese foreign ministers met to expand strategic partnership across energy, industry and supply chains, while China urged dialogue to manage trade disputes with the EU. Business and Tech: Chinese semiconductor firms are accelerating IPOs, and DexForce Technology raised 1 billion yuan to advance physical AI and humanoid robot capabilities.

Aviation Safety & Transparency: A small plane crashed into Beijing’s CITIC Tower, killing the pilot and injuring 13, but China has released only minimal details and reportedly ordered light-aircraft operators to suspend flights while footage and related posts were scrubbed online. CPC Update: Xi Jinping urged the Communist Party to adapt to change while safeguarding gains as the CPC surpassed 101 million members ahead of its 105th anniversary, with Xi also reiterating an “unshakeable” commitment on Taiwan. China-EU Trade Talks: China and the EU launched a trade and investment consultation mechanism in Brussels, aiming to manage disputes via dialogue on export controls, IP, and WTO reform. Outbound Investment Rules: China’s new overseas investment regulation took effect, giving authorities power to respond to trade barriers and tighten controls over sensitive tech transfers, raising compliance questions for global firms. Economy & Markets: China stocks rose on stronger factory activity data and Xi’s “high-quality development” push, with tech shares leading gains. Tech & Robots: Ubtech unveiled a new humanoid emotional companion robot series priced up to about $137,200, while AgiBot said it has produced over 15,000 general-purpose humanoid robots. Space Health Tech: China completed an in-orbit test of a muscle monitor for astronauts to track real-time muscle status in future space missions. Global Policy: The World Bank plans to phase out lending to China by 2031, shifting its role toward a knowledge partner. Energy & Shipping: China launched a sea-river intermodal zero-carbon shipping route using a pure electric container vessel, cutting fuel use and emissions. Geopolitics: North Korea’s Kim reaffirmed support for Xi and called the Pyongyang summit a historic occasion deepening ties.

China-EU Cooperation: China’s foreign ministry said the EU’s problems don’t stem from China and urged deeper China-EU cooperation to tackle trade concerns, as the two sides also launched a trade and investment consultation mechanism covering trade balance, export controls, IP and WTO reform. Clean Power Push: China commissioned a ±800-kilovolt UHV DC link from Shaanxi to Anhui, aiming to move renewable electricity east at large scale. People-first Modernization: A CGTN survey and related coverage highlight how China’s modernization is framed around livelihoods—jobs, income, education, healthcare and elderly care—under the 15th Five-Year Plan. US Court Fallout: A New York court sentenced fugitive Chinese billionaire Guo Wengui to 30 years for a $1bn-plus fraud scheme, ordering major forfeiture. Trade Tensions: China imposed a 73.5% preliminary tariff on Canadian pea starch and added 20 Japanese entities to export controls, while Japan protested a Chinese drilling rig in the East China Sea. Tech and Industry: China unveiled a software platform to help run science workloads on homegrown supercomputing chips, and Meituan released its LongCat-2.0 AI model trained on domestic hardware. Culture and Society: New Zealand kicked off Chinese Language Week 2026, and China’s giant rice paddy art returned as eco-tourism draws visitors.

China Economy: China’s factory activity returned to expansion in June, with the official manufacturing PMI rising to 50.3 as AI-related chip and computer exports offset softer domestic demand and helped markets stay upbeat. Industrial Policy: A new 60-day payment cap in China’s anti-“involution” push is tightening cash-flow terms for EV and energy storage battery supply chains, aiming to curb disorderly low-price competition. Tech & Markets: China stocks climbed on the back of the stronger factory read and AI/semiconductor momentum, while Hong Kong lagged. EU-China Trade: EU officials are pressing for “tangible results” by October as Brussels and Beijing try to cool trade tensions, with currency and subsidy disputes still in the spotlight. Maritime Tensions: Japan protested after China installed a mobile offshore drilling rig in the East China Sea near the median line, renewing calls for joint development talks. Global Finance: The Arab Energy Fund plans its first onshore renminbi Panda bonds in China by year-end or early 2027. US Court: Chinese exile billionaire Guo Wengui was sentenced to 30 years in the US for a fraud scheme that prosecutors said harmed more than 1,000 people. Culture & Sports: Wimbledon opened with wins for China’s Wang Xinyu and Zhang Shuai, while Djokovic and Sinner survived tough first rounds.

Debt Relief for Africa: Sudan and China signed an agreement to cancel four interest-free loans worth 344.52 million yuan (about $50m), with the Central Bank of Sudan and China Development Bank handling the accounting—coming as conflict continues to crush Sudan’s economy. Trade Facilitation: Morocco and China Customs agreed to recognize each other’s Authorized Economic Operator programs, share anti-fraud information, and speed up port procedures between Casablanca and Ningbo. EU-China Trade Talks: The EU and China launched a ministerial platform to settle disputes over trade imbalances, export controls and intellectual property, with Brussels demanding “tangible results” by October and setting up joint monitoring of trade flows. Japan Row Escalates: China added 20 Japanese entities to its export control list over alleged “new militarism,” extending a widening technology and security dispute. AI and Cybersecurity: Reports say China’s Z.ai GLM-5.2 is closing the gap with top U.S. cybersecurity models, adding pressure as AI policy debates heat up. Energy and Industry: China’s gold import/export rules are set for overhaul to streamline cross-border management, while China’s solar-plus-storage push continues to draw global attention.

Japan-Related Export Controls: China expanded dual-use export restrictions on Japanese entities, adding 20 to a control list and 20 to a watch list, citing Tokyo’s “neo-militarist” push and taking effect immediately. Pacific Security Deal: Australia and Vanuatu signed the Nakamal Agreement, keeping Vanuatu from allowing foreign military bases and setting consultation rules for third-party investment in critical infrastructure. China-AI Cyber Race: China’s Z.ai says its latest open-weight model can match Anthropic’s Mythos on cybersecurity tasks, while concerns grow in the US over open-weight models being easier to misuse. Renewables in Cold Regions: Northeast China’s first solar thermal power station, the 100-megawatt Jixi project in Jilin, began generating electricity, using molten-salt storage to cut wind/solar curtailment. Energy & Markets: China’s central bank launched overnight reverse repo operations for the first time, and Dalian Commodity Exchange is set to roll out its first sulphur futures contracts in Q4. China-Europe Sports Diplomacy: A China-Europe sports festival in Beijing brought together European diplomats and Chinese sports officials for friendly matches and cultural activities.

Bangladesh-China Investment Push: Twelve Chinese firms proposed about $9.2b in Bangladesh during PM Tarique Rahman’s June 22-26 China visit, with plans spanning Mongla Port expansion, a Chattogram industrial park, a Dhaka-Chattogram highway PPP, and waste-to-energy projects. EV Market Shift: China’s NEVs hit 56.9% of new car sales in May, driven by lower costs and faster tech upgrades, with more AI features moving into the “software-defined cabin.” Tech and Security Tensions: Apple is reportedly lobbying the Trump administration to buy memory chips from CXMT despite US restrictions tied to the firm’s military-linked status, while the FCC expanded bans on Chinese telecom and surveillance equipment. Supercomputing Showcase: China reclaimed the world’s fastest supercomputer title with LineShine, aiming to offset chip limits by building around widely available CPUs. Advanced Materials Leap: CNBM started three high-performance carbon fiber production lines in Jiangsu, boosting supply for aerospace, new energy and other high-end uses. Energy and Climate: China’s “artificial sun” fusion program cleared major superconducting magnet testing milestones, and a 16-megawatt deep-sea floating wind platform set sail for commercial deployment. Regional Watch: Philippines officials again accused China of “insincerity” over the 2016 South China Sea arbitral ruling, while a China-flagged vessel was monitored near Batanes. Disaster Update: A tornado and hailstorm in east China’s Jiangsu killed at least 78 people, with Xi Jinping ordering full central support. Culture and Heritage: Exhibitions across China are ramping up for the CPC’s 105th anniversary, alongside events promoting traditional villages and buildings.

EV Boom in China: New-energy vehicles kept surging in May, hitting 56.9% of new car sales as buyers chase lower running costs and smarter, AI-powered cabins. AI Cyber Race: A Chinese-speaking APT in Southeast Asia is using a newly documented TinyRCT backdoor to hit government and critical infrastructure, showing how fast cyber tools are evolving. South China Sea Tensions: The Philippines’ defense chief accused China’s Manila embassy of “insincerity” after Beijing rejected the 2016 arbitral award, as confrontations in the West Philippine Sea continue. APEC Tourism in Macao: APEC tourism ministers met in Macao, with officials pitching the city’s hospitality and opening-up potential to global visitors. Education Milestone: China says its education system now serves 286 million students across 470,000 schools, with higher education enrollment topping 60%. China-India/Global Governance Debate: IMF economist Gita Gopinath recalled being told she was in the “wrong chair” and criticized a US-China meeting with no women. Bangladesh Investment Push: Eleven Chinese firms proposed $9.21 billion in Bangladesh, spanning energy, waste-to-energy and port-linked industrial zones. AI Hardware for Data Centers: Some Chinese chipmakers are betting on silicon carbide to ease the power strain as AI data centers expand. China-Europe Trade Link: China-Europe Railway Express traffic has surged since 2016, with cargo value reaching $67.7 billion in 2025. China’s Gold Rules: Regulators proposed easing gold import/export rules while keeping customs supervision for cross-border gold carried by individuals.

AI in Medicine: ASCO Breakthrough 2026 put AI and molecular response assessment in the spotlight, with experts arguing AI can move from decision support to an “intelligent collaborator” across cancer care. Diplomacy Upgrade: Bangladesh’s PM Tarique Rahman’s China visit lifted ties to a “China-Bangladesh Community with a Shared Future,” with plans for foreign-minister strategic dialogue, a “2+2” mechanism, and faster port and industrial-zone projects. EV Trade to Canada: Geely’s Lotus EVs are set to arrive in Canada next month under the Carney-Xi deal allowing up to 49,000 Chinese EVs annually at reduced tariffs. Tech Supply Chain Tension: Apple is lobbying the US to buy memory chips from CXMT, a Chinese supplier on a Pentagon-linked blacklist, as the global memory crunch squeezes prices. Regional Connectivity: A Chinese consortium broke ground on Montenegro’s Matesevo-Andrijevica highway section, aimed at boosting north-south transport links. Energy Milestone: China’s “artificial sun” program says two key superconducting fusion magnets passed full-parameter testing with 100% domestic production. Cross-Strait Culture: A panda-themed art exhibition opened in Kaohsiung, featuring gifts exchanged between mainland and Taiwan artists. Aviation Shock in Beijing: A small plane crash into CITIC Tower (China Zun) left one pilot dead and 13 injured, with authorities still tight-lipped on cause.

US-China Tech Friction: The FCC expanded its ban on Chinese telecom and video surveillance gear, now blocking older models from Huawei, Hytera, Hikvision and Dahua for sensitive uses, while stressing existing devices can still be used. AI Race, China’s Angle: China’s AI giants are pivoting from user-acquisition “traffic” to real capability-building as paid tiers and consolidation signal a shift in economics; DeepSeek also plans to double staff after a major funding round. Military Anti-Corruption: China removed six senior PLA officers and other top officials from posts in the National People’s Congress, underscoring Xi’s ongoing anti-corruption drive. Venezuela Quakes: China confirmed at least seven Chinese nationals dead and urged citizens and firms to strengthen safety precautions as the quake toll rose to 920. China’s Industrial Pulse: Profits of major industrial firms rose 18.8% in Jan-May, with May up 21.1%, showing resilience despite weak domestic demand. Global Trade & Cars: UK data shows record interest in Chinese vehicles, while China-Eurasia trade events highlight “green and smart” cooperation. Local Governance Watch: China’s audit found 56 county-level governments diverted about 27.9 billion yuan from rural funds to repay debt and cover other spending.

LGBTQ+ Acceptance in Asia: A new study using World Values Survey data says the Philippines ranks third among nine Asian economies for acceptance of homosexuality, with China at 8.4% and South Korea at 7.5%, underlining that wealth alone doesn’t predict social change. Rural Revitalization Model: In Shandong, Dezhou’s “Dexuan Cluster” is dissolving village-by-village barriers by pooling land, talent and industry, turning separate farms into shared agritourism, processing and e-commerce hubs. Community Drug Rehab in Beijing: Beijing is expanding grassroots drug rehabilitation guidance stations, with police-led follow-up support aimed at preventing relapse as recovering users complete community supervision. AI Power and Data Centers: China is pushing “computing-power synergy,” including an underwater data center in Shanghai powered by offshore wind, as power demand from AI clusters keeps rising. China-Bangladesh Ties: PM Tarique Rahman’s China visit produced a 15-point declaration, including support for Teesta river restoration and plans for deeper trade, connectivity and defense dialogue. Regional Connectivity Plan: Beijing proposed a China-Myanmar-Bangladesh economic corridor to boost connectivity, with talks focused on high-quality Belt and Road cooperation. Housing Finance Push: Guangzhou raised housing provident fund loan limits by increasing the loan multiplier from 8 to 10 times, aiming to spur home sales amid a sluggish property market. Global Trade Friction: Europe is preparing anti-subsidy tariffs on Chinese plug-in hybrids even as Chinese brands keep gaining market share, while India has launched an anti-dumping probe into cheap steel imports from China, Japan and Russia. Business Pressure on Automakers: Volkswagen is considering closing four German plants and cutting up to 100,000 jobs as Chinese competition and tariff pressure bite. Yuan’s Growing Role: Brazil has started steps for “panda bond” issuance in China to diversify funding and attract new Asian investors. US-China Tech Tensions: US lawmakers warned of a Chinese “epic campaign” to influence local US governance, citing a case involving a former California mayor.

Bangladesh-China diplomacy: Prime Minister Tarique Rahman met China’s top leaders in Beijing after paying tribute at Tiananmen Square, with Xi Jinping talks focused on trade, investment, jobs and major projects. South Africa-China trade regulation: South Africa’s trade ministry will host China’s market regulator for talks that could lead to new regulatory MoUs, building on CADEPA and China’s May 1 zero-tariff push for 20 African countries. US-China tech friction: The US blocked Polestar’s connected-vehicle sales from 2027, while Nvidia’s CEO warned that national security will trump business and rejected “smuggled” chip workarounds. AI governance and finance: China issued new AI rules for insurance and banking, pushing institutions to keep systems compliant and well managed. Energy and industry momentum: Deye plans a second phase of energy storage investment in Zhejiang, while China’s power demand is forecast to keep climbing by about 600 billion kWh annually in 2026-2030. Taiwan security: Taiwan reported fresh Chinese aircraft and naval activity around the island amid concerns over Beijing’s new ethnic unity law. Hong Kong capital crackdown: Reports say Beijing’s tighter controls on offshore wealth are starting to hit Hong Kong’s brokerages and finance flows. Green power scale: China’s installed power capacity has crossed 4,000 GW, with non-fossil sources now the majority.

China-US Trade Talks: China and the US agreed to set up a trade council to discuss reciprocal tariff cuts and other cooperation, with MOFCOM saying teams will keep consulting on aircraft and agricultural trade. Taiwan Maritime Row: China urged the US, UK, France and Germany to respect its sovereignty and maritime rights after they raised concerns over patrols east of Taiwan, rejecting “confusing right and wrong.” Bangladesh-China Deal Push: Bangladesh PM Tarique Rahman invited Chinese firms to expand value chains and signed 13 MoUs in Beijing, including on investment, green development, health and education. Auto Demand Shift: China’s commerce authorities rolled out pilot cities and measures to boost “vehicle circulation” and lifecycle services, signaling a move beyond relying only on new car sales. EV Charging Buildout: China’s EV charging connectors hit 22.497 million by end-May, with private chargers growing faster than public ones. Archaeology & Culture: New sea-salt discoveries push China’s coastal salt history back 4,500–4,800 years, while Hami in Xinjiang is using film and tourism to spotlight local heritage. Innovation Spotlight: Summer Davos in Dalian wrapped up with “China opportunity 2.0” framing innovation at scale as a global growth engine. Tech & Business: UBS estimates iPhone sell-ins in China fell about 19% in May as Huawei gains share; Polestar said it will stop selling in the US after a connected-vehicle software ban.

Summer Davos in Dalian: Premier Li Qiang wrapped the 2026 “Innovating at Scale” New Champions forum, warning that AI’s speed must be matched with governance and urging “China Opportunity 2.0” to spread innovation benefits through cooperation. Wildlife Protection: China is building dedicated wildlife crossings over the Pinglu Canal in Guangxi, using vegetation and animal-friendly design to reconnect habitats and cut biodiversity loss. Tech & Finance: The PBOC said it will debut overnight reverse-repos on June 29-30 to better manage short-term liquidity, while banks including ICBC are tightening agency precious-metals trading due to gold-price swings. Cybersecurity: ShadowPad, once tied to APT41, is now being shared across multiple threat groups, expanding its use for espionage and long-term intrusions. Global Business & Culture: Bangladesh’s PM Tarique Rahman is set to meet Li Qiang in Beijing to discuss deeper industrial cooperation; meanwhile China’s film “Dear You” premiered in New Zealand, drawing overseas Chinese audiences. Science Breakthrough: Chinese researchers unveiled a first-of-its-kind human embryo-disc model to generate organ-seed cells in vitro, supporting future regenerative medicine.