Our Scans · China · Weekly Summary

• [New] China is working toward a major nuclear fusion milestone that will put it leagues ahead in the global race to unlock the 'holy grail' of clean energy. Electricity Info
• [New] In 2026, China is projected to account for a share of around 34.6%, backed by superior government intervention and local technology development. Persistence Market Research
• [New] East Asia is facing a looming demographic crisis with significant population reductions expected in countries like China and Japan. PubMed Central (PMC)
• [New] China is projected to grow at 7.2% CAGR through 2036, supported by its large tire manufacturing base, industrial rubber output, and EV component demand. FactMr
• [New] Beyond the immediate three-year timeframe, China has set a longer-term objective to achieve major breakthroughs in core technologies supporting AI-enabled communications networks by 2030. OpenGov Asia
• [New] LEO constellations are one of the most critical and cutting edge components of digital infrastructure and without immediate strategic reforms, the United States risks losing its lead to China. Center for Strategic and International Studies
• [New] China could pull ahead of the USA, with potentially enormous implications for the global order, if combined with the development of transformative AI. GOV.UK
• [New] Slower AI progress could increase the likelihood that China overtakes the US as the global AI leader. GOV.UK
• [New] OpenAI reported the disruption of two clusters of ChatGPT accounts that were allegedly used to support covert online influence activities linked to actors likely originating from China. CRC
• [New] China has already signalled that it regards some of the IAA provisions as explicitly discriminatory and has threatened countermeasures if the EU adopts the legislation. Bruegel | The Brussels-based economic think tank
• [New] The European Commission has proposed, separately from the IAA, weakening a 2035 target for phasing out new polluting cars, reducing a requirement for all newly registered cars to be zero emission to a 90% emissions reduction, because of weaker-than-expected consumer demand for EVs. / China Bruegel | The Brussels-based economic think tank
• [New] The tariffs China put on US agricultural imports created new opportunities for agriculture imports from other countries. GOV.UK
• [New] Second-quarter shipments in China are expected to drop 5.4% from a year earlier. DIGITIMES Inc.
• [New] BABA stock has declined 16.1% over the past month, erasing a significant portion of its earlier AI-driven rally as investors reassess the risks tied to the U.S.-China relations. Yahoo Finance
• [New] China: Demand for Drone Interceptors in China is projected to grow at a CAGR of 15.5%, supported by extensive investments in military modernization, a rapidly expanding defence technology ecosystem, and increasing deployment of counter-drone solutions across military and security applications. FactMr
• [New] As an element of strategic competition, in many respects seeing China launch rockets, put satellites in orbit, that could often be a lagging indicator. Center for Strategic and International Studies
• [New] Applied to the trade-capital divergence: if a Taiwan crisis, a comprehensive financial embargo, or an equivalent sorting event forced countries to choose between the dollar system and a China-centered alternative simultaneously, the financial divergence could close in years rather than decades. Perspective on Risk
• [New] The only safe assumption is that the leaders of Russia and China, both of whom prioritize regime survival above all else, will continue to adapt and challenge US interests and security. CEPA
• [New] The risk that looms high over all others is that China will, as it has done before, leverage its dominance in the critical commodities and products over which it has a near monopoly, cutting off supplies to retaliate against countries that block its products or seek to shake its dominance. The Guardian
• [New] China's space industry is narrowing the innovation gap with the US, warning that if the US does not take decisive action soon, China will claim the top spot in the global space economy. ThinkChina - Big Reads, Opinions & Columns on China
• [New] Even institutions that choose not to collaborate can face espionage and cyber threats, underscoring the need for rigorous due diligence, legal review, and cybersecurity safeguards in all space-related activities involving China. Rand Corporation
• [New] Fastest-Growing Region: Asia Pacific is anticipated to be the fastest-growing region, holding approximately 34.8% share, fueled by rapid e-commerce growth in China, India, and ASEAN, rising smartphone and digital payment penetration, and strong government support for retail digitalization. Persistence Market Research

Last updated: 20 June 2026