标签: Asia

亚洲

  • BBC reports from valley devastated by Nepal flood

    BBC reports from valley devastated by Nepal flood

    One of the world’s most recognized public broadcasters, the BBC, has deployed a reporting team to deliver on-the-ground coverage from a Nepalese valley left reeling in the wake of catastrophic flash flooding. The reporting team is currently stationed in Sano Barkhu, a small mountain village positioned on a high ridge overlooking the hard-hit town of Syfrubesi. From this vantage point, the crew is capturing first-hand footage and witness accounts that lay bare the full scale of the disaster that has entirely leveled the community below.

    What was once a bustling valley town has been reduced to ruins after floodwaters surged through the region, wiping out homes, infrastructure, and critical services in their path. Local residents who survived the disaster have been left displaced, many having lost family members, personal property, and their entire livelihoods to the rushing waters. The BBC’s live reporting from the site is bringing global attention to the crisis, shining a light on the immediate humanitarian needs of affected communities and the long-term challenges of recovery in one of South Asia’s most disaster-prone regions. Early reports from the ground indicate that emergency response teams are still working to reach cut-off areas, with many remote communities like those surrounding Syfrubesi facing significant delays in receiving food, medical aid, and shelter support.

  • Sinabung volcano on Indonesia’s Sumatra island erupts without reports of casualties

    Sinabung volcano on Indonesia’s Sumatra island erupts without reports of casualties

    Indonesia’s Mount Sinabung, one of the country’s more than 120 active volcanoes, erupted on Monday, sending a massive 3,500-meter column of dark ash and thick smoke billowing into the sky above the Indonesian island of Sumatra.

    In the immediate hours after the eruption, authorities reported no fatalities, injuries, mandatory mass evacuations, or disruptions to commercial air travel in the surrounding region. Despite the lack of early harm, disaster management officials issued urgent warnings, ordering residents, casual visitors and traveling tourists to avoid all activities in nearby Karo district villages, as well as any area within a 6-kilometer radius of the volcano’s 2,460-meter summit.

    Gray volcanic ash has blanketed roads, parked vehicles, and residential and public buildings across multiple affected villages in Karo, leaving local infrastructure and communities coated in fine grit. In response, local disaster response teams have distributed free protective face masks to local residents to help prevent respiratory irritation from ash inhalation.

    Following the eruption, Indonesia’s Geological Agency raised the official volcanic activity alert level for Mount Sinabung to “Watch,” the second-highest warning tier in the country’s volcanic monitoring system. The alert upgrade also came with an expansion of the marked safe zone surrounding the peak, extending the exclusion area for civilian activity.

    In an official public statement released Monday, Lana Saria, head of the Indonesian Geological Agency, described this week’s eruption as an initial explosive event, warning that far larger, more hazardous eruptions could follow in the coming days or weeks.

    The Geological Agency first detected signs of accelerating volcanic activity at Mount Sinabung in mid-August, when monitoring equipment recorded dozens of tectonic earthquakes around the peak and observed visible changes in volcanic activity. Even before Monday’s eruption, officials had already expanded the recommended exclusion radius to restrict non-essential public access to the area.

    Over the past decade of repeated volcanic activity at Mount Sinabung, nearly 30,000 local residents have been permanently displaced from their homes surrounding the volcano, forced to resettle in safer areas outside the high-risk zone.

    Indonesia, a sprawling archipelago nation home to more than 280 million people, sits along the Pacific “Ring of Fire,” a geologically active belt of volcanoes and tectonic fault lines that wraps around the entire Pacific Basin. This location makes the country extremely prone to frequent seismic and volcanic events, with dozens of active peaks monitored constantly for signs of dangerous activity.

  • Japan to beef up its defense with drones, AI and missiles, defense budget plans show

    Japan to beef up its defense with drones, AI and missiles, defense budget plans show

    TOKYO – Japan’s Ministry of Defense has laid out its preliminary 8.9 trillion yen ($55.6 billion) defense budget request for the 2025 fiscal year, outlining a sweeping shift toward integrating cutting-edge uncrewed weapons, artificial intelligence and modern combat tactics into the country’s national defense strategy. The request represents only a minor uptick from the 8.8 trillion yen proposal for the current fiscal year, but the final total is expected to grow substantially later in 2024, after Prime Minister Sanae Takaichi’s cabinet signs off on an updated national security and defense framework focused on expanding Japan’s counterstrike capabilities.

    This new investment push aligns with a 2022 five-year defense roadmap that committed Japan to doubling its defense outlay to 2% of gross domestic product, a major shift that redefines the Japan Self-Defense Forces (JSDF) to take on a more robust offensive posture in response to China’s growing regional influence. Beijing has repeatedly pushed back against this military buildup, labeling it a resurgence of dangerous 20th century Japanese militarism.

    In official briefing materials accompanying the budget request, the Defense Ministry emphasized that the core goal of this proposal is to deliver a “transformative overhaul of defense capability” to drastically strengthen deterrence and response capacities, drawing direct lessons from the widespread use of drones in the ongoing war in Ukraine.

    ### Uncrewed Weapons to Cut Costs, Offset Demographic Decline
    A central pillar of the new strategy is the domestic development and mass production of low-cost uncrewed weapons systems. Defense officials argue that these tools will not only reduce operational costs and troop casualties, but also help build a far more cost-effective layered air defense network.
    Under the plan, attack drones will operate in coordinated tandem with long-range cruise missiles to amplify the effectiveness of counterstrike operations. The ministry has also requested unspecified funding to develop submarine-launched and underwater-deployed attack drones by the 2027 fiscal year. Beyond combat effectiveness, uncrewed systems are seen as a critical solution to Japan’s growing demographic crisis: a rapidly aging and shrinking population has driven a steady decline in available military personnel, a gap drones can help fill.
    Despite these ambitions, defense industry experts note a major barrier to full domestic drone production: Japan’s commercial drone market is currently dominated by Chinese imports, and building a competitive, fully homegrown supply chain will require years of targeted investment and policy support. The proposal also continues Japan’s multi-year effort to fortify its southwestern island chain near disputed regional territories, with additional funding for extended-range missiles and defensive interceptor systems, alongside new research into submarine-launched hypersonic weapons to further boost counterstrike capacity.

    ### AI Integration to Modernize Command and Control
    To match the new generation of weapons technology, the Defense Ministry is rolling out a major overhaul of its command and decision-making infrastructure through the integration of artificial intelligence. The core of this push is a planned next-generation system called the “AI orchestrator,” a unified platform that will integrate multiple independent AI tools to enable autonomous system selection and operational management. The goal is to drastically cut down decision-making time and improve accuracy across core battlefield functions, from situational assessment to target selection.
    Officials confirmed Japan is exploring multiple pathways for AI development: it may adapt proven foreign AI technologies (including systems developed by the United States), scale up indigenous AI research, or combine the two approaches to meet JSDF requirements. The ministry also plans to build a purpose-built “Defense Ministry cloud” infrastructure to enable secure transmission of highly sensitive classified data and maintain stable communications during emergencies or large-scale natural disasters. No specific cost estimates for these AI and digital infrastructure projects have been released publicly.

    ### Government Intervention to Strengthen a Stagnant Domestic Defense Industry
    To sustain long-term military modernization, Japanese officials have also identified a critical need to shore up the country’s domestic defense industrial base. For decades, the sector has struggled under multiple constraints: Japan’s post-war constitution limits military activity to self-defense only, creating an uncertain business outlook for arms manufacturers. Poor profit margins, combined with reputational risks associated with producing lethal weapons, have driven dozens of major suppliers to exit the defense sector over the past 50 years.
    While recent military expansion has lifted profits at Japan’s largest defense contractors, including Mitsubishi Heavy Industries, Kawasaki Heavy Industries and IHI Corp., the broader supply chain remains fragile and at risk of critical component shortages if existing suppliers exit the market.
    To address this risk, the Defense Ministry has requested unspecified funding to launch a new public-private production framework: the government will own key defense manufacturing facilities, while contracting out day-to-day operations to private sector firms. This model is designed to guarantee stable production and supply of critical defense equipment. The budget request also includes targeted funding to support private companies’ defense research and development, as well as corporate restructuring to improve production efficiency and competitiveness across the sector.

  • ‘Moonies’ church leader jailed for two years over bribery offences

    ‘Moonies’ church leader jailed for two years over bribery offences

    In a landmark ruling that has sent shockwaves through South Korean political and religious circles, 83-year-old Han Hak-ja, the current leader of the highly controversial Unification Church, has been sentenced to two years behind bars over charges of bribing former South Korean first lady Kim Keon Hee and committing multiple violations of political funding regulations. The Seoul Central District Court delivered the sentence on Monday during a public sentencing hearing that Han attended in person, marking the culmination of a high-profile probe into opaque ties between the religious group and national political elites.

    The court found clear evidence that the Unification Church, led by Han, provided Kim Keon Hee — wife of ousted South Korean president Yoon Suk Yeol — with luxury gifts valued at a total of 80 million won (equivalent to approximately $57,900 and £42,500): two high-end Chanel handbags and a diamond necklace. This conviction follows an earlier ruling from earlier this year, where Kim Keon Hee herself was sentenced to 20 months in prison after being found guilty of accepting the improper bribes from the religious organization.

    Han, who is the widow of Unification Church founder Sun Myung Moon, has maintained a consistent stance of denying all allegations against her throughout the investigation and trial, dismissing the charges as entirely fabricated. A special independent counsel team assembled specifically to investigate this case outlined that the luxury gifts were transferred to Kim between April and July 2022, in exchange for promised business advantages and political favors for the church and its affiliated entities.

    Prosecutors emphasized that this investigation marks the first time South Korean law enforcement authorities have formally verified and documented the Unification Church’s deliberate efforts to purchase political influence within the country. As part of the probe, investigators also uncovered $19 million (£14 million) in cash stored inside a personal safe owned by Han, photos of which have been released to the public.

    Kim has publicly acknowledged receiving the Chanel handbags, but has claimed that she returned the items before ever using them. When called in for questioning last August, Kim issued a public apology to the South Korean public, stating, “I am truly sorry that a nobody like me has caused concern to the people.”

    The Unification Church, officially registered under the name The Family Federation for World Peace and Unification, was established in South Korea in the 1950s by Sun Myung Moon, who publicly claimed to be the messiah. The group gained global attention primarily for its large-scale mass wedding ceremonies, where thousands of couples were blessed and married by Han and Moon in massive stadium venues. For decades, critics have labeled the organization as cult-like, with legal representatives of former members alleging that it coerces followers — colloquially referred to by critics as “Moonies,” a term most church members reject as offensive — into making exorbitant monetary donations to the group.

    The Unification Church was thrust into the global spotlight in 2022 following the assassination of former Japanese prime minister Shinzo Abe. The suspect who assassinated Abe publicly blamed the organization for ruining his family’s finances, and held Abe responsible for his alleged public support of the group. The church has long claimed to have extensive political connections across multiple world capitals, including Seoul, Tokyo, and Washington D.C. In 2021, a range of high-profile global political figures sent pre-recorded video messages to congratulate the launch of the church’s new policy think tank; the list included former U.S. President Donald Trump, former U.S. Vice President Mike Pence, Shinzo Abe, and the mayors of South Korea’s two largest cities, Seoul and Busan.

    Currently, the group is banned entirely in multiple jurisdictions around the world, including Singapore. Last year, Japanese courts ordered the Unification Church to be formally dissolved in the country, following years of public outcry over predatory fundraising practices.

  • Rescue efforts continue on both sides of Nepal-Tibet border

    Rescue efforts continue on both sides of Nepal-Tibet border

    In the wake of devastating flash floods that have swept across the shared border region between Nepal and China’s Tibet Autonomous Region, coordinated rescue operations are accelerating on both sides, as emergency responders race against time to locate missing people trapped by the disaster.

    On the Tibetan side of the border, specially trained search-and-rescue canines have been deployed to comb through waterlogged terrain, mudslides, and debris-strewn areas in a persistent hunt for flood victims. The challenging topography of the Himalayan border region, combined with lingering flood-related hazards, has complicated search efforts, but teams have continued operations around the clock to maximize the chance of finding survivors.

    Meanwhile, in Nepal, emergency management officials and response teams have worked nonstop through the night at a hydropower plant located near the border, where official counts indicate hundreds of people remain unaccounted for following the flood surge. The disaster, which struck without much warning, swept through infrastructure and residential areas along the border, leaving widespread disruption and a trail of missing persons that has stretched local response capacity.

    Cross-border communication has remained active as both sides coordinate to address the aftermath of the flood event, with additional resources being mobilized to support the ongoing search and rescue missions.

  • Seoul court sentences Unification Church leader Hak Ja Han to 2 years in prison

    Seoul court sentences Unification Church leader Hak Ja Han to 2 years in prison

    In a landmark ruling that caps a year of seismic political upheaval in South Korea, the Seoul Central District Court sentenced Hak Ja Han, the leader of the Unification Church and widow of the movement’s founder Sun Myung Moon, to two years in prison on multiple corruption charges on Monday.

    Court public affairs officials confirmed the verdict against Han, who was taken into custody last year. The charges against her span a web of graft that entangled the country’s former presidential administration: prosecutors allege Han instructed senior Unification Church officials to deliver bribes to Kim Keon Hee, wife of conservative former South Korean President Yoon Suk Yeol, and to a prominent pro-Yoon politician when Yoon held the nation’s highest office.

    Beyond the bribery scheme, Han faces convictions for two additional serious offenses: embezzlement of millions of dollars in church funds, and ordering the destruction of evidence documenting her gambling activities in the United States.

    Han’s conviction is the latest development in a sprawling corruption scandal that has already fundamentally reshaped South Korea’s political landscape. Earlier this year, the same Seoul Central District Court found Kim Keon Hee guilty in January of accepting over $100,000 in luxury gifts from the Unification Church, including a high-end Graff diamond necklace and a Chanel handbag, in exchange for political favors the church sought from the administration. The former first lady was initially handed a 20-month prison sentence, but an appeals court in April upped the sentence to four years after adding additional convictions, including that she accepted a second Chanel handbag from the church and manipulated publicly traded stock prices for personal gain.

    The scandal triggered a rapid, dramatic collapse of the Yoon administration. After Yoon attempted to impose martial law amid growing public outcry over the corruption revelations in late 2024, the South Korean National Assembly moved to impeach the president, ultimately removing him from office. The series of convictions this year marks the formal legal conclusion to a political scandal that ended the careers of both South Korea’s former head of state and his wife, while holding the leader of one of the country’s most powerful religious organizations accountable for systemic graft.

  • Rescue efforts intensify after Nepal-Tibet flooding as deaths climb past 900

    Rescue efforts intensify after Nepal-Tibet flooding as deaths climb past 900

    A catastrophic glacial collapse in the high Himalayas has triggered devastating flash floods that have claimed at least 900 lives and left more than 4,700 people unaccounted for across southern Nepal and the Tibet Autonomous Region of China, with international rescue teams joining local emergency responders in scaled-up search operations.

    Brigadier General Raja Ram Basnet, spokesperson for the Nepali Army, confirmed that search and rescue operations are ongoing across flood-stricken hill communities, riverside settlements and isolated lowland areas, where many residents and travelers remain stranded by fast-moving floodwaters.

    Among the most urgent rescue missions are operations to reach dozens of construction and maintenance workers trapped in incomplete and active hydropower plant tunnels beneath flood-damaged mountain slopes. Multiple foreign specialized rescue teams have deployed alongside local emergency crews to access the blocked, waterlogged tunnels, with officials confirming that at least 90 people remain trapped across multiple hydropower sites.

    Updated data released Monday by Nepal’s national disaster management agency puts the country’s confirmed death toll at 903, with 4,247 people still listed as missing. That missing count includes 592 foreign nationals who were in the region for trekking, work or tourism when the floods hit. On the Chinese side, official data reported Sunday recorded 1 confirmed deaths, with 546 people still unaccounted for. Chinese state media reports add that 261 of the missing in Tibet are foreign nationals, including more than 100 Nepali citizens.

    The disaster unfolded Wednesday when a massive bedrock collapse occurred beneath a high-altitude Himalayan glacier, dragging a large section of the frozen ice sheet down the mountain with it. Analysis of satellite imagery by glaciologists and geoscientists confirms the scale of the collapse was so large that it registered as a magnitude 5.2 seismic event on global monitoring networks.

    The sudden collapse released a massive surge of rock, debris and melted glacial water that rushed down into the river valleys below. The unprecedented torrent of water and debris overwhelmed riverbanks, swept away entire buildings, destroyed critical bridge infrastructure, and scoured entire settlements from valley floors as it moved through both Tibet and Nepal, leaving widespread destruction and loss of life in its path.

  • British Arabs urge UK government to impose binding restrictions on Israeli settlements

    British Arabs urge UK government to impose binding restrictions on Israeli settlements

    A coalition of over 40 leading figures from Britain’s Arab community has issued a high-profile call for the UK government to translate its verbal condemnation of illegal Israeli settlements into tangible, legally binding action that cuts off British economic support for continued settlement expansion.

    In an open joint letter addressed to Foreign Secretary Ed Miliband, dated August 24, 2026, the signatories argue the UK must now uphold the international legal obligations it has already publicly acknowledged. These obligations, they note, include the core duties of non-recognition of illegal settlements, non-assistance to settlement activity, and formal legal differentiation between the state of Israel and the Palestinian territories occupied by Israel since the 1967 Six-Day War.

    The letter frames the current global conversation around settlements as having moved far past the debate over whether the settlements themselves are unlawful under international law. Instead, the central question now facing Western governments like the UK is whether the current mix of voluntary industry guidance, limited tariff differentiation, and narrow targeted sanctions is actually sufficient to meet the country’s binding international legal commitments. This includes the clear obligation outlined by the International Court of Justice (ICJ) in its landmark 2024 advisory opinion to block any trade or investment activity that serves to sustain or expand illegal settlement construction.

    Signatories to the letter span multiple sectors of British civil society, including leading voices from Palestinian advocacy groups, legal associations, health worker coalitions, and grassroots solidarity movements. Notable signatories include Adnan Hmidan, chair of the Palestinian Forum in Britain; Sabah Almukhtar, president of the UK’s Arab Lawyers Association; Dr. Omar Abdel-Mannan, head of Health Workers 4 Palestine; and Feda Shahin, secretary general of the Palestine Solidarity Movement, among dozens of other prominent public figures. The letter remains open for additional public signatures from across British society.

    Among the concrete policy measures the coalition calls for are legally binding restrictions on all UK economic activity that generates profits for or supports settlement expansion, the extension of existing UK sanctions to cover both individual actors and private companies tied to settlements, mandatory full differentiation between Israel and occupied territories in all UK government procurement processes and public sector engagements, and coordinated action with international allies to prevent bad actors from circumventing restrictions via third-country corporate structures.

    The letter emphasizes that the UK already holds full domestic legal authority to implement these measures under the 2018 Sanctions and Anti-Money Laundering Act. It also anchors the demands in prior UK diplomatic commitments: the UK’s 2016 vote in support of a binding UN Security Council resolution that confirmed Israeli settlements have no legal validity, and the ICJ’s July 2024 advisory opinion that ruled Israel’s prolonged presence in the occupied Palestinian territories is unlawful and ordered an immediate end to all settlement activity.

    Beyond economic measures, the coalition is pushing the UK to work with global partners to establish a formal international protection mechanism to shield Palestinian civilians from escalating settler violence. This request draws on a 1994 UN resolution that the UK itself co-sponsored, which laid the groundwork for international protection for Palestinian communities. The proposed mechanism would include independent third-party monitoring of violence, systematic documentation of displacement and abuses, and targeted protection support for communities at highest risk of attack.

    The letter explicitly clarifies that these demands do not amount to a call for hostility toward the state of Israel or ordinary Israeli citizens, nor do they seek indiscriminate restrictions on fully legal trade with Israel within Israel’s 1948 borders. Instead, the signatories argue that Britain’s long-stated commitment to upholding international rule of law cannot only be expressed through rhetorical statements of principle—it must be demonstrated through consistent, effective policy implementation.

    The call comes as the UK government has already signaled it is preparing new action over Israel’s controversial E1 settlement plan, a proposed expansion east of Jerusalem that would cut the occupied West Bank into two disconnected parts and effectively eliminate the territorial contiguity required for a viable Palestinian state under a two-state solution. Earlier this month, Foreign Secretary Miliband publicly condemned the E1 plan, warning it poses an existential threat to the two-state solution and confirming he had formally called on Israel to halt all settlement expansion. Miliband also noted that the UK would lay out a broader package of new measures in the coming weeks, leaving space for the government to adopt some of the changes the British-Arab coalition is calling for.

  • AI and robotics drive an IPO boom in China as Shein lists in Hong Kong

    AI and robotics drive an IPO boom in China as Shein lists in Hong Kong

    A growing wave of initial public offerings (IPOs) is surging through China’s major financial hubs of Shanghai and Hong Kong, fueled by ravenous investor demand for artificial intelligence and advanced technology stocks, alongside a shifting preference for domestic listings over overseas exchanges. The trend is reshaping global capital markets, positioning China’s two leading exchanges as major global players in new share issuance this year.

    The latest high-profile offering to hit the market is fast fashion and e-commerce giant Shein, a China-founded brand that is set to make its trading debut Tuesday on the Hong Kong Stock Exchange. The blockbuster IPO is projected to raise $1.7 billion, ranking among the city’s largest new share sales of 2026. Shein’s decision to list in Hong Kong came after it weighed options in New York and London, reflecting a broader industry shift toward domestic venues for Chinese firms.

    This year’s IPO boom has already been marked by a string of massive technology offerings. In July, CXMT, China’s top domestic memory chip manufacturer, secured more than $8.6 billion through an IPO on Shanghai’s Nasdaq-style STAR Market, marking the second-largest offering in the bourse’s history and the second-biggest IPO on mainland China this year. CXMT’s shares exploded 466% higher on their first day of trading, riding a wave of demand for AI-capable semiconductor manufacturing. Just one month later, leading Chinese humanoid robot developer Unitree followed suit with its own Shanghai debut, where shares soared 460% on opening day.

    Industry analysts note that investor enthusiasm for AI and next-generation technology is the core engine driving the current market momentum. “The current IPO boom is powered by investor appetite for AI and robotics,” explained Ruiying Zhao, senior research analyst at S&P Global Market Intelligence, adding that retail investor activity makes up a large portion of trading volume on Shanghai’s exchange.

    Perris Lee, head of APAC equity capital markets for ION Analytics, noted that CXMT’s landmark offering carries broader strategic implications for China’s technology ecosystem. CXMT, founded in 2016, saw revenue surge more than 700% year-over-year to 50.8 billion yuan (approximately $7.5 billion) in the first quarter of 2026, driven by skyrocketing demand for AI-grade memory chips. Lee said the successful IPO “placed China in a strategically significant position in tech manufacturing related to AI” and serves as clear evidence of the country’s progress toward its goal of technological self-sufficiency.

    Data from financial data platform LSEG confirms the scale of this year’s IPO boom. Total proceeds from IPOs and secondary listings on the Shanghai and Hong Kong exchanges have already surpassed $54 billion so far in 2026, outstripping 2025’s full-year total of more than $46 billion. Combined, the two Chinese exchanges account for roughly 21% of global IPO proceeds this year, ranking second globally only behind the U.S.-based Nasdaq, which holds a 55% global share. Nasdaq’s leading position was boosted by SpaceX’s $75 billion mega-IPO in June, which cemented the U.S. exchange as the world’s largest IPO market for 2026. To access international capital while adhering to China’s restrictions on foreign investment in mainland exchanges, many Chinese firms pursue parallel listings in Hong Kong that are open to global investors.

    A key factor driving the shift toward domestic listings is tightening regulatory scrutiny on both sides of the U.S.-China relationship in recent years. Chinese firms operating in strategically critical sectors such as advanced technology now face far higher barriers to listing on U.S. exchanges, pushing many to pursue offerings closer to home. Beyond regulatory hurdles, domestic IPOs also offer a faster path to going public, noted Howie Farn, capital markets partner at international law firm Freshfields.

    Beyond semiconductors and robotics, other high-tech Chinese firms have also seen strong investor demand for their Hong Kong IPOs this year, including Apple supplier Luxshare Precision Industry and Zhongji Innolight, a leading manufacturer of optical transceivers for AI data centers. The pipeline of future offerings remains robust, with two more major Chinese robotics firms, AGIBOT and Deep Robotics, already planning IPOs in Shanghai or Hong Kong in the coming months.

    Despite the widespread market enthusiasm, some industry observers warn of growing risks, including the potential for an AI investment bubble that has already shown early signs of correction. After record oversubscriptions and massive first-day gains, a number of newly listed tech firms have seen their share prices retreat sharply from debut-day peaks. As of last Friday, Unitree’s share price had dropped more than 40% from its all-time high set on opening day.

    Zhao from S&P Global notes that the same valuation questions worrying U.S. AI investors are now taking hold in China. “The critical question remains: is the AI sentiment enough?” she said. “For a durable market cycle, investors will demand sustainable revenue, visible profit margins, and realistic valuations.”

    The global AI investment frenzy has also diverted risk appetite away from non-tech IPOs like Shein. Jacob Cooke, CEO of WPIC Marketing + Technologies, explained that “the AI investment cycle is absorbing much of the risk appetite that would have otherwise flowed to a company like Shein.” Shein’s IPO values the company at roughly $27 billion, only a fraction of its peak valuation several years ago. That drop in valuation also partially stems from new trade restrictions imposed by the U.S. and EU that eliminate de minimis tax exemptions for small imported packages, cutting into Shein’s core cross-border business model.

  • China’s factory activity contracts in August despite an uptick in export demand

    China’s factory activity contracts in August despite an uptick in export demand

    HONG KONG, Aug. 31 (Xinhua) — After five consecutive months of contraction, China’s manufacturing sector saw a notable incremental improvement in August, with key indicators coming in better than market forecasts, lifted by unexpectedly strong global demand for Chinese exports, official data released Monday shows.

    According to the National Bureau of Statistics (NBS), China’s official manufacturing Purchasing Managers’ Index (PMI) — a closely watched gauge of factory activity — edged up to 49.8 in August from July’s reading of 49.2. While the figure remains below the 50-point threshold that separates expansion from contraction, it outperformed the median expectation of 49.3 from a survey of economists by major financial news outlets.

    The monthly PMI survey tracks a broad range of manufacturing metrics, and several key sub-indexes moved back into expansion territory in August, signaling broad-based improvement across the sector. The production sub-index rose to 50.4 from 49.1 in July, while the overall new orders sub-index climbed to 50.6 from 48.5. Most notably, the new export orders sub-index improved to 50.1 from July’s 49.6, crossing into expansion for the first time in three months and confirming solid global demand for Chinese goods.

    “Manufacturing activity rebounded thanks to strong export demand,” Nguyen Hoang Nam, a China economist at London-based independent research firm Capital Economics, wrote in a Monday research note. Huo Lihui, chief statistician at the NBS, also noted in an official statement that the August PMI results reflect broad incremental improvement across China’s overall economy.

    This latest uptick in factory activity aligns with recent export data that shows Chinese shipments have maintained double-digit growth through the first half of the year. Chinese exports surged nearly 24% year-on-year in July, following an 18% overall expansion across the first seven months of 2025. Multiple drivers are behind this strong export performance, economists say.

    First, the global boom in artificial intelligence development has spurred massive demand for high-tech Chinese exports, particularly semiconductors and related manufacturing components. Second, sustained elevated global energy prices stemming from ongoing geopolitical tensions in the Middle East, including the Iran conflict, have accelerated global adoption of electric vehicles, and Chinese EV manufacturers have captured a growing share of the growing global market. Third, demand for other green technology products, including solar panels and wind turbine components, has continued to accelerate this year after strong growth in 2024, adding further momentum to export gains.

    “Demand for green technologies was already accelerating last year and has continued to strengthen, providing an important additional boost to Chinese exports so far this year,” said Max Zenglein, senior economist for Asia Pacific at business research organization The Conference Board.

    Trade flows have also shifted in recent months, following the return of former U.S. President Donald Trump to the White House last year and the reimposition of broad punitive tariffs on Chinese goods. U.S.-China trade has declined as a result, but Chinese exporters have expanded market share in other regions, particularly the European Union and Southeast Asia, offsetting much of the lost sales to the U.S.

    Trade tensions between the two world’s largest economies are expected to be a top agenda item when Trump meets Chinese President Xi Jinping for high-level talks scheduled for late September, according to officials from both sides.

    Despite the bright spot of strong export growth, China’s economy still faces significant headwinds that are holding back broader expansion. Persistently sluggish domestic demand, driven largely by a years-long protracted slump in the country’s property sector, continues to weigh on overall economic growth. In the second quarter of 2025, China’s annual GDP growth came in at 4.3%, the slowest pace recorded in more than three years.