SCMP China·Wednesday, January 7, 2026

SCMP China - Wednesday, January 7, 2026

10 stories~15 min

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Stories Covered

BYD’s win, Tesla’s defeat, Ford’s pivot: the widening gap in US-China EV markets

After years of competing head-to-head with China in electric vehicles, the United States is now widely seen as falling behind – a reality increasingly acknowledged even within Detroit. When asked about the topic recently on a podcast, US carmaker Ford’s own CEO said: “There’s no real competition from Tesla, GM or Ford with what we’ve seen from China. It is completely dominating the EV landscape globally and more outside China.” For much of the past decade, the global electric vehicle market was.

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US won’t rule out pressuring Venezuela to curb China, Russia ties

The White House on Wednesday stopped short of denying reports that the United States has urged Venezuela to cut ties with adversaries such as China, Russia and Iran, but emphasised Washington’s determination to maintain “American dominance” in the western hemisphere and all decisions made by Caracas will be “dictated” by the US. During a media briefing, Press Secretary Karoline Leavitt cited frequent leaks coming out of classified briefings and stated she would “not confirm or deny or get into”.

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Will Donald Trump’s threats to Greenland help bring China and Europe closer together?

Donald Trump’s renewed threats to take over Greenland could pose a direct challenge to China’s ambitions in the Arctic, but some observers say it may also open the door to increased cooperation with Europe. Following the abduction of Venezuela’s former leader Nicolas Maduro, the White House swiftly turned its attention towards the self-governing Danish territory, adding that “of course, utilising the US military is always an option at the commander-in-chief’s disposal”. On Sunday, the US...

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China blasts US for ‘blatant interference’ after Donald Trump claims Venezuela’s oil

China has denounced the United States for its “blatant interference” in Venezuela, accusing it of violating international law and infringing upon the country’s sovereignty following Donald Trump’s statement that America would take its oil. On Wednesday, Chinese foreign ministry spokeswoman Mao Ning described the US’ actions in the South American country as breaching international norms. “Venezuela is a sovereign state and has full permanent sovereignty over all its natural resources and economic

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China’s top lithography bet shifts gears: SMEE sells subsidiary in strategic pivot

China’s state-backed lithography champion Shanghai Micro Electronics Equipment (SMEE) has reshuffled its business, divesting a manufacturing arm as it sharpens its focus on research in Beijing’s push for chip self-sufficiency. SMEE – widely seen as China’s best chance of closing the gap with Dutch lithography giant ASML – had transferred 100 per cent of its subsidiary Shanghai Weiyao Industrial to AMIES Technology, according to updates on corporate database Qichacha. The deal was priced at 228.5

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China discourages trend-chasing among officials, warning of ‘involution’

As the period covered by China’s next five-year plan begins, the official newspaper of the country’s ruling Communist Party urged local governments to curb the herd behaviour that could fuel “involution” – the fierce competition that has driven down prices and undermined sustainable growth within several industries. “China has a vast territory, and the imbalances between regions and between urban and rural areas remain significant. There is no one-size-fits-all solution for high-quality...

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The US, Venezuela and why China is even less keen on talk of a G2

When Donald Trump alluded to the Group of Two before meeting Chinese President Xi Jinping in South Korea in October, his choice of phrase was widely seen as Washington’s acceptance of Beijing as its peer. Diplomatic observers said the US leader’s terminology at the time was ill-suited for Beijing’s strategic calculus. And following America’s military operation in Venezuela, China would appear more likely to reject any talk of a G2, they added. Analysts also said Beijing would seize on the...

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Why China may want to avoid direct confrontation with US after Venezuela raid

China is expected to avoid direct confrontation with the United States following the assault on Venezuela, but analysts said Beijing might try to capitalise on the unease created among Latin American countries to deepen economic and diplomatic ties. Beijing had already been expanding its influence in the region through investments and trade, but these interests now face a direct challenge from Washington’s increasing assertiveness, with President Donald Trump saying the US is now “in charge” of.

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Furniture retailer Ikea to close 7 stores in China amid property market slump

Ikea will close seven stores in mainland China, as the multinational furniture retailer grapples with the country’s weak property market and sluggish consumer spending, which have dampened demand for its goods. Following a comprehensive review, Ikea China said the seven stores would cease operations from February 2. These are located in Shanghai’s suburban Baoshan district, Guangzhou, Tianjin, Nantong and Xuzhou in eastern Jiangsu province, Ningbo in eastern Zhejiang province and Harbin in...

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China initiates anti-dumping probe against Japan over key semiconductor chemical

China has launched an anti-dumping investigation against Japan over a crucial chemical for chipmaking, marking a new escalation in tensions between Beijing and Tokyo. The investigation, set to run for one year with a possible extension of six months, targets dichlorosilane – a chemical that is primarily used in thin-film-deposition processes in semiconductor manufacturing and which plays a key role in the production of various types of chips, according to a notice from the Ministry of Commerce..

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