China News Bytes | 9th May 2026
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- China’s April exports surge 14.1%: China’s exports jumped 14.1% year-on-year in April, sharply outpacing March’s 2.5% gain, while imports rose 25.3%. The strong rebound, partly driven by front-loading ahead of the Trump-Xi summit, widened the trade surplus and kept Beijing on track for a third consecutive year of near-trillion-dollar surpluses.
- 📈 Trade records set amid high energy costs: Both exports and imports hit record highs in April, with the surplus with the United States expanding despite the Iran war pushing up energy prices. China’s first four-month foreign trade reached 16.23 trillion yuan ($2.39 trillion), up 14.9% year-on-year, customs data showed.
- 📈 Yuan firms against the dollar: The USD/CNY exchange rate fell to 6.7963, down 0.18% session-on-session, with the yuan strengthening 0.47% over the past month. Analysts say a sustained break below 6.8000 could end the consolidation phase and signal renewed appreciation pressure ahead of the Beijing summit.
- 📈 Theproperty sector remains under pressure: new home prices continue to weaken, with values down over 30% from their peak. S&P forecasts primary property sales will fall 10–14% in 2026 amid persistent oversupply, weighing on local government finances and household consumption despite Beijing’s easing measures.
- 📈 “China Shock 2.0” rebuttal from Beijing: Foreign Ministry spokesperson Lin Jian rejected Western “China Shock 2.0” narratives, arguing Chinese exports of EVs, batteries, solar panels, robots, AI and innovative drugs lower global living costs and aid energy transition rather than destabilising markets, blaming protectionism for genuine global disruption.
- 🏛️ Brunei Crown Prince to visit China: At Vice President Han Zheng’s invitation, Crown Prince Haji Al-Muhtadee Billah of Brunei will pay an official visit to China from 11–15 May, underscoring Beijing’s continued ASEAN diplomatic outreach in the days immediately preceding the high-profile Trump visit.
- 🏛️ Tokyo Trials archives published in Chinese: Beijing marked the publication of the first complete Chinese translation of the International Military Tribunal for the Far East transcripts, alongside newly uncovered diaries of US prosecutor David Nelson Sutton, with the Foreign Ministry rebuking Japanese right-wing attempts to whitewash wartime aggression.
- 🏛️ EU Cybersecurity Act draws Beijing protest: A China Chamber of Commerce/KPMG report warned the EU’s revised Cybersecurity Act could bar Chinese firms from key infrastructure and force replacement of hardware costing over €367.8 billion. Beijing has formally submitted concerns and threatened “resolute measures” if discriminatory provisions advance.
- 🔬 Three Chinese firms in TIME’s top AI list: TIME magazine’s 2026 list of the 10 most influential AI companies includes three Chinese firms. Beijing cited the recognition as proof of progress in large-scale AI deployment, full-stack architecture and open-source ecosystems, attributing success to its policy of self-reliant innovation.
- 🔬 EV “feature war” pivots to AI: China’s electric vehicle price war is morphing into an AI cockpit competition, with ByteDance’s Doubao chatbot now embedded in 145 car models. Alibaba’s Volcano Engine and rival platforms are racing to differentiate vehicles through generative AI features rather than further price cuts.
- 🔬 Huawei poised to lead AI chips: Reports indicate Huawei is on track to overtake Nvidia as China’s top AI chip supplier in 2026, as US export controls and customs delays continue to constrain Nvidia H200 shipments. Beijing also targets 70% domestic use of advanced silicon wafers by year-end.
- 🔬 Space programme accelerates: China is targeting roughly 140 orbital launches in 2026, a sharp acceleration driven by surging commercial space activity. The country has already completed its 23rd mission of the year, including its first sea-based satellite launch under the Long March programme, according to industry executives.
- 🌍 Trump-Xi summit confirmed for 14–15 May: President Trump’s Beijing visit will proceed as planned, with trade, AI, Taiwan and the Iran war on the agenda. Foreign Ministry spokesperson Lin Jian said channels remain open but offered no further details, while analysts urged tempered expectations of concrete deliverables.
- 🌍 Iranian FM Araghchi visits Beijing: Foreign Minister Abbas Araghchi met Chinese counterparts amid the seventh week of the Iran war. Lin Jian said China is also maintaining high-level communication with Israel, supporting political resolution under President Xi’s “four propositions” for Middle East peace and de-escalation.
- 🌍 UK spy verdict triggers Beijing protest: After two British Hong Kong nationals were convicted at the Old Bailey of working for Chinese intelligence, Beijing rejected the case as a “political stunt” with no factual basis, lodged formal protests, and urged London to halt actions emboldening anti-China forces.
- 🌍 Honduras reviewing China deals: Honduras’s new president signalled a review of agreements with China, including Huawei equipment, with talks underway with the US on Cisco alternatives. Beijing dismissed the report as sensationalist and reiterated that the one-China principle remains the prerequisite for bilateral cooperation.
- 🌍 Paraguay president visits Taiwan: Beijing condemned Paraguay’s president receiving a red-carpet welcome in Taipei and meeting Taiwan’s leader, urging Asunción to “come to the right side of history” by recognising the one-China principle and severing ties with Taiwan, citing 183 nations now diplomatically aligned with Beijing.
- 🌍 China holds UNSC presidency for May: Having assumed the rotating UN Security Council presidency on 1 May under Ambassador Fu Cong, China is steering the May programme amid the Iran war, the Strait of Hormuz crisis and UNIFIL renewal discussions, giving Beijing additional diplomatic leverage during the Trump visit.
- 🛡️ Chinese-crewed tanker attacked near Hormuz: Beijing confirmed a Marshall Islands-flagged tanker with Chinese crew was struck near the Strait of Hormuz earlier this week, the first such incident involving a Chinese-linked vessel. No casualties were reported; China called for urgent steps to restore safe passage and de-escalate the conflict.
- 🛡️ Taiwan’s $25bn defence bill falls short: Taiwan’s opposition-controlled parliament approved an extra defence package worth roughly US$25 billion, about two-thirds of President Lai Ching-te’s US$40 billion request. The US State Department called the cut a “concession” to Beijing, while analysts warned it weakens cross-strait deterrence signalling.
