China

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China-EU Collaboration Deepens in Climate Action and Green Energy Transition

July 9, 2025 | Energy & Natural Resources

China and the European Union are working together to advance climate change mitigation, adaptation, and a green energy transition.

**During Foreign Minister Wang Yi’s visit to Europe, a Chinese foreign ministry spokesperson reaffirmed Beijing’s commitment to restructuring its energy mix and promoting green development in collaboration with the EU.**
Both sides have emphasized the United Nations Framework Convention on Climate Change and the Paris Agreement as cornerstones of international climate governance. China has positioned itself as a key advocate and contributor to multilateral climate efforts and stands ready to join the EU in pursuing shared environmental objectives.

**At the Eco Forum Global Guiyang 2025 in Guizhou Province, around 800 participants gathered in 20 sub-forums to discuss sustainable development, climate change, biodiversity, and environmental governance.**
International experts praised China’s advances in ecological protection and environmental governance. Former United Nations Under-Secretary-General Erik Solheim cited the river chief system, which assigns officials to specific river sections and holds them accountable for environmental oversight. James Thornton of ClientEarth and Oxford University pointed to dedicated environmental courts and the Yangtze River Basin’s rapid ecological restoration as evidence of effective policy implementation.

**Biodiversity conservation featured prominently at the forum.**
Gordon Watson, CEO of Loch Lomond and The Trossachs National Park, welcomed China’s commitment to the global “30 by 30” conservation target and described a partnership between his park and China’s Giant Panda National Park. He noted the use of infrared sensing and satellite monitoring to protect species such as pandas and snow leopards. Hassina Mouri of the International Union of Geological Sciences called China a leader in eco-civilization, citing substantial research investments and international collaborations that have advanced environmental stewardship.

**China and the EU celebrated 50 years of diplomatic relations with discussions aimed at deepening cooperation in trade and climate initiatives.**
As two of the world’s largest economies, they have forged a partnership amid global geopolitical volatility. While Beijing seeks closer ties with EU institutions, economic and political tensions persist, raising questions about the future direction of their collaboration within an evolving global trade landscape.

**Chinese new energy companies have become essential to Europe’s renewable energy transition, especially as the EU aims to increase renewable consumption from 32 to 42.5 percent by 2030.**
Domestic production alone cannot meet this demand, so Chinese photovoltaic manufacturers, backed by technological advancements and economies of scale, supply competitively priced solar panels and integrated system solutions for residential and industrial applications. These firms, also active in wind turbine generators, electric vehicles, and battery systems, have integrated photovoltaic modules into household appliances to address high energy prices in Europe. At the 2025 Intersolar Europe exhibition, industry leaders recognized Chinese companies for their advanced PV products and system integration, illustrating their influential role in helping Europe achieve its renewable energy targets.

### IMPACT ANALYSIS
**From this Development, various impacts could cascade through the system, to a lesser or greater extent, depending on the severity and criticality of the shocks.**

Domain	Causal Chain	Possible Outcome
Energy & Natural Resources	(Renewable-energy incentive regime ↑ → Renewable-energy share of electricity ↑ → Carbon intensity of GDP ↓ → Remaining 1.5 °C carbon budget ↑)	More generous renewable-energy incentives will boost clean power deployment, cut carbon intensity, and extend the remaining 1.5 °C carbon budget.
Environment	(Carbon-pricing coverage share ↑ → Total CO₂-equivalent emissions ↓ → Remaining 1.5 °C carbon budget ↑ → GDP impact of extreme-weather shocks ↓)	Broader carbon pricing will reduce emissions, safeguard the 1.5 °C budget, and mitigate GDP losses from extreme-weather shocks.
Energy & Natural Resources	(Electric-grid transmission capacity & interconnection ↑ → Transmission congestion hours ↓ → Renewable curtailment rate ↓ → Renewable-generation share (power sector) ↑)	Expanded transmission and interconnection will cut congestion and curtailment, boosting renewables’ share in the power mix.
Energy & Natural Resources	(Grid-scale battery-storage fleet capacity ↑ → Renewable curtailment rate ↓ → Wholesale power price volatility index ↓ → Investment-grade corporate-spread trend ↓)	More battery storage will reduce curtailment and power-price volatility, leading to tighter corporate credit spreads.
Energy & Natural Resources	(Benchmark solar LCOE ↓ → Renewable-energy capacity-factor swing ↑ → Renewable-generation share (power sector) ↑ → Carbon intensity of GDP ↓)	Falling solar LCOE will drive higher solar output, increase renewables’ share, and lower the carbon intensity of GDP.
Energy & Natural Resources	(Critical-mineral import concentration index ↓ → Critical-tech supply-chain resilience ratio ↑ → Technology FDI inflow ↑ → High-tech export market share ↑)	Diversified critical-mineral sourcing will strengthen supply chains, attract tech FDI, and expand high-tech export market share.
Competitiveness	(Trade-openness & preferential access ↑ → FDI net inflow (% GDP) ↑ → Greenfield FDI inflow growth ↑ → Potential GDP growth revision ↑)	Enhanced trade openness and preferential access will spur FDI inflows and lead to upward revisions in potential GDP growth.
Macroeconomics & Growth	(Climate-transition capital-expenditure gap ↓ → Public-investment execution ratio ↑ → Potential-output to energy-use ratio ↑ → Potential GDP growth revision ↑)	Closing the climate-transition capex gap will improve public-investment delivery and energy efficiency, boosting potential GDP growth estimates.
Macroeconomics & Growth	(Climate-transition policy stringency ↑ → Emissions-trading allowance price spike ↑ → Corporate net-zero commitment count ↑ → Green-growth indicator ↑)	Stricter climate policies will raise allowance prices, drive more corporate net-zero pledges, and enhance green-growth indicators.
Macroeconomics & Growth	(Global value-chain reconfiguration velocity ↑ → Real-effective exchange-rate misalignment ↑ → Export competitiveness ↓ → Real export-market-share change ↓)	Rapid value-chain reconfiguration may misalign exchange rates, weakening export competitiveness and reducing market share.
Energy & Natural Resources	(Environmental-permitting lead-time ↓ → Upstream project FID count ↑ → Renewable-generation share (power sector) ↑ → Carbon intensity of GDP ↓)	Streamlined permitting will accelerate upstream FIDs, boost renewable generation share, and lower GDP carbon intensity.
Environment	(EIA rigor ↑ → Air-quality exceedance days ↓ → Premature deaths from air pollution ↓ → Morbidity-adjusted lifespan gap ↓)	Stronger EIA rigor will cut pollution exceedances, reduce premature air-pollution deaths, and narrow lifespan disparities.
Environment	(Biodiversity protection coverage ↑ → Biodiversity intactness index ↑ → Verified species extinction rate ↓ → Lost ecosystem-service value (% GDP) ↓)	Expanded biodiversity protection will improve ecosystem health, lower extinction rates, and preserve ecosystem-service value.
Non-Interstate Conflict & Security	(Cross-border sanctuary ease score ↑ → Forced displacement flow ↓ → Conflict-related commodity price premium ↓ → Social-trust composite swing ↑)	Easier cross-border sanctuaries will reduce displacement and commodity stress, supporting an increase in social trust.

### BOTTOM LINE

- The deepening China–EU climate and green-energy partnership is likely to spur more generous and harmonized renewable-energy incentive regimes, accelerating the share of wind, solar, and storage in electricity generation, reducing carbon intensity of GDP, and extending the remaining global carbon budget—thereby lowering the severity of extreme-weather losses on output.

- China’s emergence as an essential supplier for Europe’s renewable-energy targets will drive down benchmark solar and battery costs through economies of scale and technological collaboration, reducing renewable curtailment, stabilizing wholesale power price volatility, and tightening investment-grade corporate credit spreads.

- The adoption of China’s “river chief” environmental-governance model and specialized environmental courts by EU member states can shorten permitting lead-times for wind and solar projects, increase the count of upstream final investment decisions, boost the renewable-generation share of the power mix, and further cut the carbon intensity of economic output.

- Mutual reinforcement of rigorous environmental impact assessments and shared best practices on air-quality controls will lower exceedance days, reduce premature mortality from pollution, and narrow the gap in morbidity-adjusted lifespans between urban and rural populations.

- Joint commitment to the global “30 by 30” biodiversity target and tech-driven conservation partnerships—leveraging infrared sensing and satellite monitoring—will expand protected-area coverage, improve biodiversity intactness, curb species extinction rates, and safeguard ecosystem-service value that underpins agriculture and water security.

- Diversified sourcing of critical minerals through Sino-EU ventures in Africa and Latin America will enhance the resilience of clean-tech supply chains, catalyze inbound technology FDI, and boost the combined high-tech export market share of both economies.

- Negotiations on green-tech tariff reductions and a potential EU-China investment accord will raise trade openness and preferential market access, attracting stronger greenfield FDI growth, lifting potential-GDP growth revisions, and reinforcing long-term growth trajectories.

- Tighter climate-transition policies and higher carbon-pricing floors in both the EU Emissions Trading System and China’s carbon market will drive up allowance prices, encourage more corporate net-zero pledges, and elevate green-growth indicators across industries.

- Accelerated reconfiguration of global value chains around green technologies may prompt transient real-effective exchange-rate misalignments, temporarily dampening export competitiveness and non-green export-market share before equilibrium is restored.

Typhoon Danas Hits Taiwan and Southeast China With Severe Weather and Disruptions

July 9, 2025 | Environment

Typhoon Danas has brought severe winds, heavy rainfall, and storm surge threats to Taiwan and the southeastern coast of China.

**Following its landfall in Chiayi County, Taiwan late on July 6, Danas moved back out to sea early on July 7 after delivering maximum sustained winds of approximately 40 meters per second (about 90 km/h) and torrential rain.**
By Monday at noon, the storm lay about 130 km north of Taipei, and by early July 8 it had tracked westward to a position roughly 105 km east-southeast of Wenling, Zhejiang, moving toward the Zhejiang-Fujian coast.

**In Taiwan, the typhoon claimed two lives and injured 334 people, while more than 660,000 households lost power.**
Authorities suspended classes and work in over ten counties and cities—including Hsinchu, Tainan, and Kaohsiung—and recorded 2,270 damage incidents, primarily uprooted trees and infrastructure failures in Tainan, Chiayi, Kaohsiung, and Yunlin. As of 10 a.m. on July 7, 176 flights had been canceled, with gradual resumptions expected later that afternoon. Southern regions continued to face heavy to torrential rain, prompting public advisories to avoid mountainous areas.

**China’s National Meteorological Center issued a yellow typhoon alert along with a yellow sea wave warning, forecasting waves up to 4.5 meters in the southwestern East China Sea.**
Coastal cities in northern Fujian received a blue storm surge warning, anticipating surges of 30–70 centimeters between Ningde and Ningbo from the morning of July 8 through the morning of July 9. On July 7, Zhejiang Province raised its flood control and typhoon response to Level III, and the national Ministry of Water Resources activated a Level IV emergency response for potential flooding in Zhejiang and Fujian.

**Forecast models predict Danas will make a second landfall along the Zhejiang-Fujian coast between Taizhou and Ningde during the afternoon or evening of July 8.**
From July 7 to 9, central and southern Zhejiang and adjacent coastal areas could see total rainfall of 60–90 mm, with local accumulations exceeding 350 mm. Heavy rain will spread into eastern coastal Fujian and parts of Jiangxi Province, driving significant rises in river levels—including the Qiantang River and its tributaries—and pushing some small to medium rivers above warning thresholds. Local authorities warn of mountain torrents and flash floods in hilly terrain.

**Zhejiang Provincial Flood Control Headquarters, having escalated its response to Level III, has activated strict early warning protocols, inspections, evacuations, and readiness measures.**
Maritime authorities deployed over 110 law enforcement vessels with nearly 1,000 personnel, suspended 65 passenger routes, and halted 207 water-related construction projects. All passenger shipping in Wenzhou and Taizhou waters has been stopped, and more than 4,200 commercial vessels have sought shelter in ports and anchorages such as Zhoushan Mazhi, Ningbo Xiangshan, Taizhou Sanmen Bay, and Wenzhou Yueqing Bay. The Fujian Maritime Safety Administration activated a Level II typhoon defense response, suspending ferry routes connecting Fuzhou, Matsu, Quanzhou, Kinmen, and Xiamen.

**In vulnerable communities such as Baifenqiang Village in Taishun County, officials are preparing evacuation centers capable of relocating over 11,600 residents.**
Tourism sites and island visitors in Taizhou have been evacuated, and flood control infrastructure—like the Xiepu sluice station in Ningbo—is under real-time monitoring. Fishing vessels in Wenzhou have undergone reinforced inspections using the BeiDou positioning system, while authorities secure ships in ports and anchorages and strengthen dykes, levees, and drainage networks.

**Agricultural authorities have launched preemptive measures to protect rice fields at critical harvesting and transplanting stages, enhancing drainage and flood prevention in paddy areas.**
Meteorological services issued multiple orange warnings for mountain flood disasters across Zhejiang, cautioning against secondary hazards such as landslides and flash floods triggered by localized heavy downpours.

Monitored Intelligence for China - July 9, 2025

News
Media
323

Government
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29

City/State
Releases
24

Embassy
Releases
1

Foreign
Service
Advisories
0

Academic/
Think
Tank
2

Podcasts
0

Videos
0

Social
Media
0

Business
Releases
1

Erudite Risk takes an all risks approach to intelligence reporting. We categorize key intelligence into one of 40 different risk intelligence categories.

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China New Growth: Strong standards strengthen safety, efficiency of China's civil drone industry

Xinhua | English | News | July 9, 2025 | Regulation

Since their implementation in June 2024, China’s national standards for civilian drones have significantly improved product safety and development efficiency, according to the State Administration for Market Regulation. These standards have reduced research, testing, and production costs, enhancing the industrialization and commercialization capabilities of China’s growing drone sector while supporting the development of the low-altitude economy.

Stricter testing conditions under the drone reliability standard have led to a 25 percent increase in mean time between failures and halved failure rates in complex urban environments. Standards for medium and large fixed-wing drones have decreased test flight accidents by 40 percent and increased testing efficiency by 25 percent, contributing to a 15 percent year-on-year decline in accident rates and shortening test flight durations by 20 percent. Development costs have also fallen by 18 percent.

A collision safety standard for lightweight drones (0.25 to 25 kg) has reduced potential injury risks by 40 to 60 percent in collision tests and boosted compliant product sales by 115 percent year on year. China remains the world’s largest civilian drone exporter, holding about 70 percent of global patent applications in the sector and leading drone technology development.

Legislative efforts are advancing to accelerate the low-altitude economy, which includes drone delivery and aerial tourism industries operating below 1,000 meters. A draft revision to China’s Civil Aviation Law now recognizes the low-altitude economy as a strategic emerging industry. Since 2024, the sector has rapidly expanded, with its market size projected to reach 1.5 trillion yuan (approximately 210 billion U.S. dollars) by 2025.

以旧换新带动手机市场变革

Trade-in Drives Transformation of the Mobile Phone Market

Guangming Daily | Local Language | News | July 9, 2025 | UndeterminedBizdev-Partnering

As of May 31, 2025, trade-in programs have attracted over 53.5 million consumers in China, resulting in the purchase of more than 56 million digital products, with domestic mobile phone shipments rising 3.5% year-on-year in the first four months. The market is experiencing a structural shift, with mid-to-high-end models expanding their share while low-end products decline, signaling a strategic move toward higher-value offerings during a crucial manufacturing transformation period.

For the first time, mobile phones were included in government subsidy programs, receiving up to 500 yuan for models under 6,000 yuan. These targeted subsidies aim to encourage innovation and channel resources into technologically advanced, mid-to-high-end products, supporting the industry’s upgrade. Subsidy funds specifically favor devices featuring edge-side large models, cutting-edge AI capabilities, and folding screen technology, reinforcing market-driven innovation and industry development.

Technological innovation is driving a quiet AI revolution in the mobile phone sector, with features such as real-time translation and intelligent image editing becoming mainstream. The integration of AI and breakthroughs in form factors like folding screens are transforming smartphones from communication tools into central hubs for intelligent living. This wave of innovation reflects collective efforts within China’s manufacturing sector and highlights the country's commitment to intelligent manufacturing.

Domestic Chinese manufacturers like Huawei, OPPO, and vivo are closing the gap with international leaders such as Apple through continuous improvements in battery life, imaging technology, and folding screen development. These advances are reshaping the global high-end mobile phone market and showcasing the rise of Chinese brands.

At the industrial chain level, the return of domestic phones with locally developed high-end chips and flexible screen technology is fostering a high-value industry led by local innovation. The mobile phone sector is moving beyond scale to emphasize both scale and value, making progress in key areas like core components, operating systems, and AI frameworks. Enhanced vertical integration capabilities are positioning Chinese manufacturers to ascend the global value chain.

Trade-in programs are not only stimulating consumption but also serving as catalysts for upgrading the mobile phone industry toward high-quality development. Coordinated policy support, innovation-driven growth, and industrial collaboration are collectively shaping a more resilient, dynamic, and value-rich mobile phone ecosystem in China as it navigates an era of technological iteration and structural upgrade.

Advances in 5G transforming biz

China Daily | English | News | July 9, 2025 | UndeterminedTech Development/Adoption

China Unicom's 5G network has significantly improved operations at a European appliance manufacturer's zero-carbon smart factory, achieving a 30% reduction in product defects, a 12% increase in production output, and over $100,000 in annual operational savings. Similar advancements are taking place globally, including a Southeast Asian mine where one operator remotely controls six heavy machines, and smart ports in China enhancing efficiency.

At the Mobile World Congress Shanghai 2025, China Unicom launched the U PLUS SMART system, which integrates artificial intelligence deeply into connectivity, communications, computing, and digital applications. This system aims to boost product capabilities, accelerate innovation, and expand applications across multiple scenarios, providing smarter, more efficient, and secure services.

China Unicom’s strategy includes three pillars: building hyper-connected infrastructures by merging terrestrial networks with satellite and marine cables, empowering global industrial transformation via the Internet of Things and connected vehicles, and advancing smart living and mobility products. The company is focusing on internationalization as a growth driver and fostering open cooperation to enhance global network accessibility and intelligent computing resources.

In support of this global expansion, China Unicom recently opened a regional call center in Bucharest, Romania, to enhance European service capabilities, following its 2024 launch in Dubai. Industry leaders note that China Unicom, along with other major Chinese telecom firms, plays a key role in helping Chinese companies expand internationally, using hubs like Hong Kong for cross-border digital efforts. The company’s blend of advanced connectivity and AI applications is seen as a model for operational excellence in the evolving digital landscape.

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