china

China wants Chinese people to have more children. So he’s going to put a special tax on condoms

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China wants more babies. Many more. Enough to increase their birth rate and stop the population loss which has allowed India ahead as the most populous nation on the planet. After repealing his ‘one child’ policy and display a wide range of measurements pro-natalism at a political, social and economic level, Xi Jinping’s Government has made a radical decision: make condoms more expensive and other contraceptive items. By first time in 30 yearswhoever wants to buy them will no longer enjoy a VAT exemption. In summary: sex becomes more expensive…at least the insurance. Sex with a condom? Pay more. have sex you will be more expensive in China from now on. At least if you want to do it with contraceptives. In the context of a broader tax reform that basically affects the value added tax (our VAT), Xi Jinping’s Government has decided remove exemption tax that condoms enjoyed until now. The decision is not exactly new. The law on which it is based was approved at the end of 2024, but it is now generating noise on social networks and the media for a very simple reason: its effects will begin to be felt shortly, from the January 1, 2026which is when Chinese couples will encounter rising prices on contraceptives. One figure: 13%. The change is important because this type of contraceptive items enjoyed a VAT exemption since 1993when China implemented the rate nationwide. From now on the scenario will be different and those who want to buy condoms will find themselves with a VAT of 13%. Today, precise Guardiana package of standard prophylactics costs between 40 and 60 yuan ($5.7-8.5). The contraceptive pill, available in the country without a prescription, ranges between 50 and 130 yuan, from 7.1 to 18.5 dollars. The price increase will not be exorbitant, but it has generated criticism on networks such as Weibo. “I was very angry when I saw that condoms were going to have taxes and increase in price,” he complained recently a user on RedNote. “Is it so easy to profit from us workers? I got so angry that I placed an order at night for the condoms that I like… I accidentally bought too many.” Why now? The million dollar question. The Chinese government has not simply imposed taxes on condoms. The measure is framed in a broader initiative that seeks to modernize the tax system and check the list of products and services exempt from VAT. At the end of the day, the consumption tax represents a crucial part of the tax revenues that feed the Chinese coffers. All in all, it is striking that Beijing decides to make contraceptives more expensive precisely at a time when the country loses population and look for ways to encourage their birth rate, which has led the State to act as a matchmaker, help to couples with babies or even go household by household to encourage women to have children. It has also not gone unnoticed that the same tax reform contemplates a tax reduction for childcare services. There is more at stake than Chinese demographics: there is the country’s economy, supported by its enormous domestic market, and the challenge of what to do with million pensioners. “Unlikely”. The other question is… Does the Government really expect that applying a 13% tax on condoms will result in more babies? An IndexBox report shows that in 2020, close to 5.4 billion condoms. There is who thinkslike Quian Cai, from the University of Virginia, that a price increase may “reduce access” to contraceptives, especially among the poorest population, but warns of the consequences. “It could lead to more abortions and increased health care costs,” prevents Cai. The risk? That in an attempt to increase the birth rate, China finds itself with more terminations of pregnancies and a resurgence of diseases sexually transmitted. Others are simply skeptical that making condoms more expensive is going to influence the number of pregnancies, especially if one takes into account that one of the brakes on birth rates is the high cost of parenting. “The tax itself is unlikely to have a noticeable effect on birth rates,” explains to TIME Yuan Mei, professor at the School of Economics, Singapore Management University. “Decisions about having children in China are mainly influenced by economic and lifestyle factors, such as the cost of raising a child and long working hours. These factors outweigh small changes in the price of condoms.” So what for? There is who considers that the rate has a symbolic nature and really seeks to delve into a message. “Now that China’s birth policy has shifted toward promoting birth and no longer promotes contraception, it is reasonable to tax condoms again,” reflect He Yafu, Guangdong demographer. Nor does it seem that the initiative will have a notable economic impact. Not at least if you put it in context. Lee Ding of Dezan Shira & Associated explains to Guardian that taxing condoms will add around 5 billion extra yuan a year to state coffers (about $710 million). It is a considerable figure, but very small when compared to the billions that the country collects in general. “We don’t believe that income generation is the main motivation.” Images | Fenghua (Unsplash) 1 and 2 and CDC (Unsplash) In Xataka | While the birth rate in China plummets, a region does not stop having children. Their secret: being a large family has a reward

China is launching more rockets into space than ever before. And the reason is very simple: not to depend on Starlink

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China has taken the lead in a disputed area: that of space sovereignty. To talk about space is to think directly about the POTbut the photo has changed in recent years. The space race It is no longer just a matter of government agencies, but also of private companies as SpaceXthe Spanish PLD Space either Blue Origin. Europe seeks its space without depending on anyone and countries like China and India are taking steps to expand your borders by looking into space. And, earlier this month, China complete four space missions. It is a clear blow to the United States. Rhythm. 2025 has marked a turning point in China’s aerospace industry. The country has broke his record of launches with more than 80 orbitals throughout the year (it was on 68 launches), adding the one with three Long March rockets taking off less than 19 hours apart. Something like this is within the reach of very few. Specifically, only within the reach of SpaceX in terms of pace. stress test. The litmus test took place at the beginning of December, when the Chinese space agency carried out a stress test on its system. Between the 5th and 9th of this month, China overloaded its entire launch chain. They used four different launch sites to test the extent to which their launch, logistics and telemetry centers could operate in good conditions. With this, the country wanted to check to what extent its different centers can operate almost in parallel, without interference and without hindering each other. This is key for routine launches of mega satellite constellations, but also for rapid responses during a crisis. It is also a trial by fire to see how optimized the process is in which the rockets can spend the shortest time possible at the launch points, without forming bottlenecks. What do they throw?. For this operation, four ports were mobilized: Hainan, Taiyuan, Xichang and Jiuquan. And what they have put in the space is… a little of everything: Mission 1: A Kuaizhou-1A rapid-deploy rocket launched from Jiuquan. In the cargo there were VDES satellites to identify ships and their purpose is dual: to monitor maritime traffic, but also to have an analytical capacity for data on the high seas. Mission 2: a Long March 8A rocket designed for a high rate of launches that started from Hainan. It carried 14 Guowang satellites, the state’s answer to Starlink. This is also the most strategicsince the Long March 8A is designed to compete directly against Starlink’s Falcon 9 in costs and launch rate. Mission 3: another Long March, 6A. It left Taiyuan without a confirmed payload, although it is a rocket that has previously been used to launch more Guowang satellites into orbit. Mission 4: a Long March 4B that took off from Jiuquan and is the most “military” of all. Launched Yaogan-47, a satellite recognition to “census lands and estimate crops.” It is still a remote sensing satellite, and we are in a very complex moment in the Pacific. CAS Space The fear of Starlink. One of China’s goals is to have its own Starlink system. This involves thousands of satellites orbiting and providing service, something that cannot be launched in one go. This intense four-day campaign puts on the table the logistical capacity of the Chinese space agency to be able to launch many launches in a short space of time without jeopardizing their reliability. It is a movement that will allow climb the launch of thousands of Guowang satellites into orbit and, when we talk about “fear” of Starlink, we mean that China wants to occupy the orbital space before it runs out of chairs. It is estimated that Starlink has more than 6,000 satellites circling and another 42,000 planned. China has 25,000 planned between Guowang and G60, but in space the law of “first come, first served” applies. The International Telecommunications Union assigns orbits and frequencies under this principle, so China does not want to fall behind the West. Specifically, against the United States. Sovereignty. In fact, there is an interesting “prick” with Musk’s satellites that has nothing to do with communication. Starlink has already demonstrated its usefulness in the war context (andn the war in Ukraine, for example), but also, in 2021 Tiangong space station had to maneuver twice to avoid satellites starlink. And we already know that Russia, China and the United States are preparing (and according to the United States, more than just preparing) for a war in space. In the end, it is a matter of spatial sovereignty. The United States is the proper name when we think about space, but China has been strengthening its position for decades and more recently has begun to occupy that space. And from the European Union it is alsoe is testing the ground for that spatial sovereignty. The goal of all agencies and governments is the same: not to depend on external technology. And this stress test by China when it comes to launching is a blow to its biggest rival. Image | CAS Space, Galactic Energy In Xataka | After many years trying to copy the Falcon 9, Elon Musk believes there is a company about to achieve it

In China you can buy an 800 HP Audi for a price of a bare A3. The only catch is that it’s not an Audi

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We already explained some time ago in this house how AUDI was formed in China and in what aspects it differs from the one we all know in Europe. in China its four rings disappear to display the manufacturer’s name in capital letters on the front of their cars. But beyond the difference in their logo, it is clear that their cars are completely different. This makes sense, since the firm embarked on a stage in which wanted to adapt to local tastes taking inspiration from the brands that are already established there. Even if that means eliminating all traces of what we know about Audi to date. In China, AUDI markets an electric vehicle with 770 HP of power and that costs between 28,000 and 40,000 euros in exchange. Meanwhile, an equivalent model in Europe could easily exceed 100,000 euros. We are talking about the AUDI E5 Sportback, which was already presented in 2024, and which continues to surprise due to the contrast of the figures they manage there and here in Europe. Although we make no mistake, we know perfectly well that it is not an Audi. An Audi that is not Audi. The E5 Sportback is the result of a joint venture between Audi AG and SAIC (Shanghai Automotive Industry Corporation), the Chinese state company. Although it has German engineers behind the interior design and chassis development, the technical architecture, components and production are completely Chinese. In fact, the vehicle is based on the SAIC platform, the same one used by IM Motors, another brand of the Chinese group. German YouTuber Jean Pierre Kraemer, better known as JP Performance, has had quite a bit of traction on one of his latest videossince it has been able to show the ins and outs of this car through an imported unit. “This car has as much to do with an Audi technically as… well, many of our viewers have never seen it before,” he said. The trap of the Chinese market. 770 HP, 0-100 km/h in 3.4 seconds, 100 kWh battery, ultra-fast charging up to 424 kW and… it costs almost less than a basic Audi A3 in Spain. But hey, it’s really not the first case nor the last. This is due to cost structure in China. We are talking above all about lower wages, local production of batteries up to 15% cheaper than in Europe, according to data from Business Insider, massive state subsidies for production plants, aid for the purchase of electric vehicles, and a brutal price war between local manufacturers that forces even foreign premium brands to adjust their offerings to survive. The dilemma of German manufacturers. For brands like Audi, Volkswagen or BMW, China represents a critical market. According to account Audi, the firm sold approximately 650,000 units in China in 2024, compared to just 198,000 in Germany. That is, the Chinese market is three times larger than the German one for the Ingolstadt firm. These figures explain why Audi has surrendered to the conditions of the Asian giant: because to sell there, foreign brands are required by law to form joint ventures with local companies. The result is that Audi provides the design and part of the engineering, but SAIC provides the technology, factories and know-how for mass production at low cost. The reaction of the Chinese market. The E5 Sportback reached 10,000 units sold in its first 30 minutes since its launch. One week after the debut of the E5 Sportback, Audi presented the SUV versionand a luxury sedan on the same platform is even rumored. For Chinese consumers, the E5 competes directly with the Xiaomi SU7 and other high-end local electrics. Logically, the car will not reach our lands, and if something similar is done in terms of equipment and technology, it is clear that we will not see it at that price either. Cover image | AUDI In Xataka | In 1997, a Chinese student asked his grandmother for money to set up a stall. Today it is an emporium that surpasses McDonald’s

While cars are becoming more expensive in Europe, they are only going down in China. The Government has had to take measures

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Despite how they are sweeping brands outside of Chinain its domestic market there is voracious competition among all car manufacturers, which has led to an uncontrolled discount trend. For this reason, China’s market regulator has published a draft of guidelines to regulate prices in the automobile industry, seeking to stop the destructive price war that has shaken the sector in recent years. The country’s major manufacturers, including BYD, Xpeng, Great Wall Motors, Chery and BAIC, have publicly expressed their support for these new rules. The origin of the problem. According to data Cited by Wang Xia, chairman of the Automobile Committee of the China Council for the Promotion of International Trade, more than 200 vehicle models recorded price reductions in the domestic market during 2024. In May, the situation worsened even more when leading manufacturers applied massive discounts that exceeded 50,000 yuan (about 6,300 euros), while some vehicles were sold for as little as 30,000 yuan. This spiral of cuts has forced some small manufacturers to leave the market and has deteriorated the profitability of the sector. What the guidelines propose. The document from the State Administration for Market Regulation (SAMR), published on December 12 and open to public consultation until the 22nd of this month, establish clear requirements for both manufacturers and dealers. Manufacturers must set prices based on production costs and market conditions, respecting the price autonomy of distributors. On the other hand, according to the document, selling below the production cost with the aim of eliminating competitors or achieving a monopoly position is prohibited, as well as price-fixing agreements between manufacturers. Dealers, for their part, must show complete and transparent prices, without false price references or misleading discounts. The reaction of the industry. BYD, the world’s largest manufacturer of electric vehicles, issued an official statement committing to follow the guidelines and optimize their internal price management systems. Xpeng, Nio and other manufacturers released similar statements supporting both the pricing guidelines and other complementary regulations on financing that facilitates the change of vehicle by reducing penalties for early loan repayment. Between the lines. The word “involution” has appeared more than once and twice in China’s hectic domestic vehicle market. Therefore, the Government wants to confront this idea with this new series of price regulations. The authorities They had already tried to stop the price war in June, when they summoned the CEOs of the major electric vehicle manufacturers to warn them about the abusive cuts. However, prices continued to fall: according to account Bloomberg with data collected by China Auto Market, BYD’s average transaction price fell from 116,200 yuan in June to 108,100 yuan in October. The transition aims to be complicated, since according to Bloomberg, there is a persistent weakness in demand, especially in luxury combustion vehicles. The middle account In addition, there are already manufacturers adapting these measures, offering more equipment for the same price or selling large SUVs at the price of smaller models. And now what. Following the public consultation period, which ends on December 22, the guidelines are expected to be formalized and play a key role. November already showed signs of stabilization, with 19 models with price cuts compared to 26 the previous year, according to ChinaEVHome. It remains to be seen if these regulations end up alleviating two of the most serious problems of this industry in China: excess productive capacity and weak demand. Cover image | BYD In Xataka | When the United States handed over its entire electrical grid to Chinese devices it seemed like a good idea. Now you have a problem

Óscar Puente wants to connect Madrid and Barcelona in less than two hours. The fastest solution goes through China

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Last month we learned that the Ministry of Transport tendered for 2.3 million euros two studies that analyzed the possibility of increasing the speed in the Madrid-Barcelona corridor to 350 km/h. Minister Óscar Puente’s promise was to reduce the travel time between both cities to less than two hours. However, to achieve this it is not enough to improve the infrastructure. Rolling stock capable of running at those speeds is needed, and that is where the capacity of China’s trains comes into play. The problem is in the deadlines and prices. In Spain and Europe we have a large railway industry, although delivery times are reducing the local choice compared to other alternatives such as China. Deliveries are around 60 months and the prices offered by European manufacturers are higher. “Chinese manufacturers deliver trains at half the price within six months to two years,” counted Bridge to the SER Chain. Renfe urgently needs to renew its fleet, especially after the Avlo disaster in the Madrid-Barcelona corridor, and China seems the only viable alternative according to the searched criteria. China dominates global high speed. With 48,000 kilometers of high-speed roads compared to 4,000 in Spain, the Asian country leads the sector by far. Its star manufacturer, CRRC Changchun Railway Vehicles, produces the Fuxing platform and has developed the CR450 prototype, capable of reaching 400 km/h. These trains already circulate in China at 450 km/h, although they would need adaptations to operate on the Spanish network. The minister and the president of Renfe, Álvaro Fernández Heredia, recently made a visit to the facilities of the Chinese giant to learn first-hand about its production capabilities. Europe looks askance the entry of china. The European Commission investigate CRRC for alleged state subsidies that would allow it to compete with artificially low prices, a case similar to that of Chinese electric vehicles. Bulgaria already tried to buy 20 trains from the Asian company for more than 600 million euros, but the investigation by the European organization forced the manufacturer to withdraw from the contest. Spain, however, is pressing to facilitate the entry of these trains or, failing that, to create an “Airbus model” that improves the competitiveness of the European railway industry. European alternatives are on the table. In addition to CRRC, Renfe is considering options such as Siemens’ Velaro Novo trains, which can reach 400 km/h but have yet to demonstrate mass production. There is also Hitachiwhose ETR-1000 is used by Iryo in Spain, although underused because the network does not allow speeds to exceed 300 km/h. Alstom, CAF and Talgo complete the list of candidates for the tenders that the public operator will launch at the beginning of 2026. It is estimated that each unit will cost around 27 million euros and that Spain will go to the European Investment Bank to finance the purchase. The infrastructure also needs changes. The studies They include new variants of access to Madrid and Barcelona, ​​a high-speed station in Parla with connection to Cercanías, another in El Prat de Llobregat linked to Rodalies, and a direct Lleida-Barcelona section that avoids passing through Camp de Tarragona. The current route is already designed to withstand 350 km/h, according to the Ministry, and Spanish Aerotraviesa technology will be used to allow these speeds without increasing maintenance costs. The renewal of the line will begin when the Madrid-Seville line ends. It remains to be seen whether Europe will allow it. Puente’s institutional trip to China has served to strengthen commercial ties and explore cooperation with the manufacturer. The Ministry of Transport defend that the country is “at a time of enormous expansion” of its railway network and needs quick solutions. And right now China is possibly the only country that can offer the material in the desired times. Cover image | Miguel In Xataka | In the race for autonomous driving, China is ready to literally take the next leap: L3

Europe has left a crack open to using combustion engines in 2035. It is a goal pass to China

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The European Commission has spoken. Now it is up to the rest of the European organizations to buy the proposal. Everything indicates that this will be the case and that we will have a relaxation in emissions standards in 2035. One that points to very expensive combustion engines and highly electrified options. Options in which China leads. The approved. First, we must start with what has been approved. It is the proposal of the European Commission regarding the emissions targets that manufacturers must meet in 2035. This points to a slight reduction. With the 100% reduction in carbon emissions that was approved, the combustion engine was almost doomed. Why does an electric car have less autonomy than advertised? And it is that only those moved by efuel they could work if they were carbon neutral. With the changes, the average emissions of the manufacturers’ fleet must move in 11 gr/km of CO2. These are figures almost impossible to achieve for any car that is not purely electric. Therefore, most options involve selling the vast majority of electric vehicles and a touch of combustion. Expensive and exceptional. Combustion cars “will become the Swiss luxury watches of the automotive industry.” The words are by Matthias Schmidta market analyst who points out that the rule is nothing more than a “Porsche amendment.” This explains the exceptional nature of the combustion cars that will be sold on the street. And the use of “green steel” and synthetic fuel, produced in Europe, will be key to receiving emissions bonuses that increase the average CO2 allowed to each manufacturer. Requirements that, presumably, will make the cost of the car even more expensivewhich will have to be passed on to the end customer. That leads to two paths. One, as we say, is to offer a few very expensive combustion cars as a status symbol. The second aims to sell exclusively electric cars. Or, if necessary, a type of plug-in hybrid called extended range electric. A type in which, again, China has the lead. The extended range. The extended range electric car is a type of car designed by and to be used as an electric car. The objective is for it to be supported by a combustion engine but only to be used as an emergency measure. Mazda sold us the MX-30 R-EV using this name but the cars of 2035 will have to go one step further. And it is that the SUV electric Mazda plug-in hybrid It already approves 21 gr/km of CO2, a figure that will skyrocket when the new approval criteria come in. The alternative for those looking for a car with a combustion engine for peace of mind or because their needs demand it will have to go for a type of extended range electric vehicle forgotten in Europe. This extended range is what was already proposed with the BMW i3 REX. The BMW electric car, ahead of its time, did have a combustion engine but it barely had 38 HP and was supported by a 9-liter tank. Because the fundamental idea is that the engine would act as an electrical generator in emergency conditions, when the battery had run out and there was no outlet nearby. China, always China. This type of car is one of the few with combustion engines that aspire to be relatively affordable. Right now, in the Spanish market, the best example is the Leapmotor C10 REEV. This car, as in the case of Mazda, has a 50-liter tank for an 88 HP engine, but its usage pattern has allowed it to approve 0.4 l/100 km of consumption and 10 g/km of CO2, a real rarity in the market. Given this expected increase in the approved emissions figures, this type of car will have no choice but to expand the battery (in the Leapmotor it is only 28.4 kWh) and reduce the gasoline tank. While maintaining its operation as a pure electric vehicle and, if necessary, as a series hybrid. This technology is used by many cars in China. In this list you have the most purchasedamong which are cars of all price ranges. We find cars like himLi Auto L6 EREV with 212 kilometers of electric autonomy but that extends over a thousand thanks to its combustion engines or the Aito M9powered by Huawei. BYD with its YangWang U8 It shows that there is a market for all types of options. The series hybrid. If the Leapmotor manages to reduce its consumption and emissions to such low figures with a 50-liter tank, it is largely because of how it uses its technology. China has specialized in serial hybrids, a small rarity in Europe. Toyota, for example, combines the technology with the parallel hybrid, where the combustion engine can drive the wheels at the same time as the electric motor but separately. In a series hybridthe gasoline engine works as an electrical generator that provides electricity to the battery. The electric motors draw power from this. And the hybrids that are coming to us from China, both plug-in and the Omoda 9 SHSas non-pluggable, as the Omoda 5 SHS-Happly this system to try to improve their efficiency. What they achieve is that the combustion engine operates at a speed range that is considered optimal, where they deliver the greatest power with the lowest possible consumption. When more power is needed, the car can deliver it and increase the engine revolutions but they try by all means to prevent this from happening. The driver, for his part, has the feel of an electric car, with less noise and vibrations, which is a plus in comfort. One more time. As we say, these cars will have to increase their electric range and reduce their gasoline tanks to operate very punctually with this system and reduce emissions, but again China is one step ahead of Europe in this technology. Leaving the door open for this configuration to be an interesting alternative to have a minimum safety net with … Read more

China gives the green light to the first level 3 autonomous cars. Their goal: to be leaders in 2035

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China has given the green light to its first two passenger vehicles with capacity level 3 autonomous driving (L3). This will allow drivers to let go of the steering wheel in certain circumstances. The Ministry of Industry and Information Technology (MIIT) announced this Monday that Changan Automobile and BAIC have received authorization to manufacture electric cars with this technology, although with geographical and speed limitations. What level 3 really means. Most current driving assistance systems in smart cars are classified as L2 or L2+, which force the driver to keep their hands on the wheel at all times. Level 3, considered “hands-off” according to the criteria of the international organization SAE, allows the vehicle to assume all dynamic driving tasks under specific conditions. However, the driver must remain alert and prepared to intervene when necessary. To put ourselves in context, level 5 would represent total autonomy, without the need for human intervention under any circumstances. The restrictions of the approved models. The model from Changan, a state-owned manufacturer based in Chongqing, will be able to navigate autonomously through urban streets and traffic at a maximum speed of 50 km/h when its assistance system is activated. For its part, the BAIC model under its Arcfox brand (the Alpha S sedan) is authorized to travel on highways and expressways at up to 80 km/h. Both vehicles, which are pure electric, will only be able to operate in specific areas: the Changan Deepal SL03 will be able to do so in certain sections of Chongqing, while the Arcfox Alpha S in specific sections of highways in Beijing that connect with the airports. Why China is accelerating now. The country is treating autonomous driving as another strategic objective, just as it did when promoting its electric vehicle industry, which is so popular abroad. The authorities have set the goal of making the country a leader in the sector by 2035. According to Zhang Yongweigeneral secretary of China EV100, two out of every three new cars sold in China this year will have Level 2 or higher autonomous driving capability. “The approvals show that the authorities are willing to deregulate the market,” says Phate Zhang, founder of CnEVPost, who anticipates that “officials are likely to take a phased approach to distributing more manufacturing licenses to other manufacturers.” The industry was already prepared. According to SCMP, several premium manufacturers have been with models ready to comply with level 3 regulations for months. Geely’s Zeekr and Seres, backed by Huawei Technologies, have designed and developed intelligent vehicles considered semi-autonomous that would comply with L3 rules, according to previous announcements. Andrew Fan, CFO of Hesai Group, the world’s largest manufacturer of lidar sensors, declared reported last month that “preparations were well underway in the Chinese auto industry for the next generation of autonomous driving capabilities, even before Beijing cleared the regulatory path.” The cost of the advanced lidar sensors needed for Level 3 ranges from $500 to $1,000 per unit, with demand rising as major Chinese manufacturers accelerate development of autonomous vehicles. Where is China compared to the West. Mercedes-Benz seems to have the advantage in this area: its Level 3 Drive Pilot system was approved by German authorities at the beginning of the year to operate at speeds of up to 95 km/h on the motorway network, marking the fastest certified system for conditional autonomous driving in a production vehicle, according to the company. Tesla continues to update its Full Self Driving system, which operates at an advanced level 2. Meanwhile, manufacturers like BMW and BYD also have models in testing for Level 3 driver assistance in Chinese cities like Beijing. What’s coming now. The MIIT has confirmed which will work with other authorities to supervise these vehicles while promoting the development of this technology in China. The two manufacturers will use the models to carry out pilot programs in assigned locations. Although the ministry has not specified when they will hit the market, technically manufacturers can begin assembling the models once they receive the green light. In addition to these two state-owned manufacturers, several robotaxis companies such as Baidu’s Apollo Go, Pony AI and WeRide They are already leading the deployment of driverless vehicles worldwide, operating at level 4, which does not require a human driver. Cover image | Wikipedia In Xataka | For the first time in 88 years, Volkswagen has crossed a red line: closing a factory in Germany

The fighters and bombers were a warning to Japan. Now China has taken action with a devastating veto: pandas

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The crisis between China and Japan has entered a deeper and symbolically harsher phase, marked by a clear transition from direct military pressure to political, cultural and emotional coercion. It all began after the statements of the Japanese Prime Minister, Sanae Takaichi, stating that a Chinese attack against Taiwan would mean an existential threat for Japan, a phrase that Beijing interpreted as the prelude to a possible Japanese military involvement in a conflict on the island. From warning to punishment. Since those words, China has raised the pulse with a calculated combination of demonstrations of force and indirect retaliation: J-15 fighters illuminating Japanese aircraft with radar from the Liaoning aircraft carrier, joint flights of strategic bombers Chinese and Russians near the Japanese archipelago and a diplomatic campaign that seeks to isolate Tokyo by remembering the Japanese imperial past and its role in World War II. Heaven as a message. The aerial maneuvers They are not isolated incidents, but carefully choreographed messages. The passage of the Liaoning south of Okinawa, the radar jams and the flights of nuclear-capable bombers over the Sea of ​​Japan and the East China Sea are part of a pattern of intimidation that seeks highlight two ideas: that China is willing to escalate and that Japan cannot count on an automatic response from the United States. Washington, focused on stabilizing its relationship with Beijing and ambiguous about its degree of involvement in a crisis over Taiwan, has left Tokyo in an uncomfortable position. Only after the Chinese-Russian flights came a joint response with American B-52 bombers and Japanese fighters, a sign of deterrence that does not clear up the underlying uncertainty and confirms that the regional balance has become more fragile. The pressure changes. But the most revealing turn in Chinese strategy comes when the confrontation has left the strictly military level and has filtered into everyday life. Beijing has urged its citizens to avoid Japan, discouraged Chinese students from enrolling in Japanese universities, cut flights and dropped organized tourism. Added to this is a waterfall of cultural cancellations: concerts suspended, screenings canceled and shows held in empty pavilions following decisions by Chinese organizers. These are not improvised gestures, but a form of selective punishment that seeks to generate visible costs for Japan without crossing military thresholds, a warning addressed both to Tokyo and other countries tempted to express similar commitments to Taiwan. Panda diplomacy. In this context it takes on all its meaning. the withdrawal of the last giant pandas in Japan. Since the normalization of relations in 1972, pandas have been one of the more refined tools of Chinese soft power: iconic animals, formally on loan, that symbolize friendship, scientific cooperation and goodwill, but whose legal ownership always remains Chinese. Over the decades, Beijing has used its transfer, renewal or withdrawal as a political thermometerrewarding fluid relationships and freezing those that come into conflict. “Panda diplomacy” is not folklore, but a carefully designed form of strategic signaling, capable of conveying closeness or disapproval without the need for official communications. Tokyo is left without pandas. The decision to return to China to Xiao Xiao and Lei Leithe last two pandas at the Ueno Zoo, leaves Japan without any for the first time in more than half a century. Although formally it is presented as the expiration of an agreement and a logistical issue, the chosen moment and Beijing’s silence regarding any possibility of renewal make the march of the pandas in a political gesture impossible to ignore. In a city where these animals are a mass phenomenon and a cultural and economic asset, their departure functions as a tangible reminder who controls the symbols of the bilateral relationship. The expectation of hundreds of thousands of visitors saying goodbye to the pandas underlines the extent to which Chinese punishment has moved beyond the strategic level. to the emotional. A calculated climb. The sequence is revealing: first, military warningsafter, diplomatic pressureand finally, sanction cultural and symbolic. China thus displays a manual of gradual coercion that combines hard and soft force to shape the behavior of its neighbors. Japan, far from giving in, maintains its position on Taiwan supported by public opinion increasingly critical of Beijing, while assuming that the bilateral relationship has entered its lowest point since the Senkaku Islands crisis in 2012. The disturbing thing about the episode is not only the removal of some pandas wave concert cancellationbut the clarity with which China has demonstrated that it has multiple levers (military, economic, cultural and symbolic) to respond to any political challenge. And she is willing to use them all, progressively, when she considers that her red lines have been crossed. Image | Alert5, kumachii, Colegota In Xataka | Everything is going great between China and Japan, they are just pointing heavy weapons at each other In Xataka | China has drawn a very clear red line to Japan: being an ally of the United States is good, supporting Taiwan is bad.

that China loses the AI ​​race, but wins the economic war by bleeding them dry

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The AI ​​race has two main players, but their bets are very different. While the United States has already spent $350 billion in AI (and plan to spend much more), China has only invested 100,000 million. Silicon Valley optimists start from the belief that AI will radically change the world and whoever masters AI will dominate the future. And if not? As they say in financial times, The United States could win this battle, but lose the economic war. USA. You have put all your eggs in the same basket. Exorbitant investments are guided by the belief that AI will change the world as we know it, that AGI will make humans finally stop working. It is an epic speech in which AI is presented to us as a kind of messiah that will save the world, one that completely ignores the alternative: that AI is a great technological leap, yes, but neither so revolutionary nor, above all, such a great business. And it’s not just a technology thing, investors are absorbed in the same obsession. China. In 2017, China announced the “Development Plan for a New Generation of Artificial Intelligence” in which they defined AI as a strategic technology. For China, AI is a national priority, but its approach is more pragmatic and much less speculative. You just have to look at their AI models, like DeepSeek, effective but very far from the very expensive ‘frontier models’ in which the US is investing. His vision for AI is not so much to transform the world, but rather to function as a tool to be even more efficient in different processes. a few months ago They announced the “AI+” planwhere they detailed the deployment of AI in six sectors: scientific and technological development, industrial applications, consumer services, public welfare, governance and security, and international collaborations. The AI ​​war. We always hear the idea of ​​this stark battle to dominate AI from the American side. In many cases, the AI ​​war, like AGI, is another point of pressure for Silicon Valley to justify the tremendous expense or achieve its objectives. We have seen it recently with Jensen Huang pushing for the government to let him sell his chips in China and his argument revolved around the idea that China will achieve technological independence and then win the AI ​​war. The paradox for the United States is that its own invention is benefiting its enemy. The AI ​​war also functions as a pressure point for China: forcing the US to mortgage its economy to the technology they consider the future, while they overtake them in everything else. The economic war. The United States is betting everything on a single winning horse, while China has not stopped investing to ensure its dominance in other key sectors, such as electric cars, batteries, robotics and, above all, renewable energy. For China there are many futures, for the US only one. The commitment to diversification is going well. In 2024 China already manufactured 76% of electric cars sold worldwide and 80% of all lithium batteries. They are also the country with more industrial robot installationswhich gives them an advantage to continue being the factory of the world. There is much more, they are also undisputed leaders in other sectors such as the manufacture of drones, solar panels, high-speed trains and graphene. China’s AI is energy. China carries years investing in clean energy. According to Carbon Brief reportIn 2024 alone, China invested $940 billion, and it is not the year it spent the most. The curious thing is that energy is key for many sectors, especially AI. The United States knows this well and has already encountered a wall: They don’t have power for so many chips. Not only is China producing more energy, it is also is subsidizing it. Jensen Huang warned about this situation, ensuring that “China is going to win the AI ​​race” thanks to the government’s energy aid. Trump, for his part, has discouraged renewable energies and the electric car industry. In the end it will turn out that, for the United States, it is AI to win or nothing to win. Image | Gemini In Xataka | China already has an army of 5.8 million engineers. His new plan involves accelerating doctorates

China dominates technological industries invented by the West

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iRobot, pioneer of domestic robotics and creator of the Roomba, has gone bankrupt and ends up in the hands of Piceaa Chinese manufacturer. It is not an isolated case but rather the symbol of a devastating trend in which Western companies develop technologies for decades and China ends up appropriating entire industries. iRobot was founded in 1990 by three MIT researchers. It launched the first Roomba in 2002 and sold 50 million units. For two decades it dominated the robot vacuum cleaner market. In 2021 it was worth $3.5 billion. Today it is worth 140 million25 times less. Picea cancels its 264 million debt and keeps everything. Why is it important. It’s not just about vacuum cleaners. Chinese manufacturers – Roborock, Ecovacs, Dreame, Xiaomi – already control almost 80% of the global robot vacuum cleaner market. With Picea purchasing iRobot, that figure is close to 95%. China not only manufactures cheaper: it now owns Western innovation that it previously only copied. The pattern repeats: Volvo has been Chinese since 2010. Motorola too. Segway, the scooter that was going to revolutionize urban mobility, ended up in the hands of Ninebot. Lenovo bought IBM PC. Haier took over GE Appliances. Geely owns Lotus. Western brands survive, but only as shells with Asian engineering inside. Between the lines. Europe blocked Amazon’s purchase of iRobot in 2024 for fear that it would dominate the smart home. The result: the company was not independent, but ended up owned by its own Chinese manufacturer and creditor. European “protection of competition” resulted in iRobot falling into the hands of its foreign rivals. iRobot outsourced its production to Vietnam to avoid Chinese tariffs, but Trump’s 46% tariffs on Vietnam cost it an extra $23 million in 2025. Meanwhile, Picea was simultaneously its manufacturer, its major creditor, and its indirect competitor. It didn’t even take a hostile takeover: just financial patience. He waited for iRobot will drown in debt and collected the remains. The invisible cost of innovation. iRobot invested decades in R&D: military robotics, space robotics, domestic autonomous navigation… That research is expensive, slow and risky. Chinese manufacturers have not had to pay that cost. They just had to wait for the technology to mature, copy what worked, and improve execution. The asymmetry is total. The West imposes antitrust restrictions on itself that slow domestic consolidations while Chinese companies operate with extensive state support, protected access to a domestic market of 1.4 billion consumers and regulatory scrutiny that cannot even be compared. Europe has recently blocked other similar operations, such as that of Adobe and Figma either that of Broadcom and Qualcomm. Yes, but. It is not about approving any acquisition without scrutiny, but about recognizing that blocking the purchase of Amazon has led to an objectively worse result: pioneering American technology that ends up in Chinese property. If you are truly concerned about Chinese companies dominating strategic sectors, this was a blunder with predictable consequences. Western governments constantly talk about technological sovereignty and their willingness not to depend on China. But concrete actions are producing the opposite effect. Ultimately, the only thing the West loses is not its industry, it is ownership of its technological innovation. In Xataka | The largest food chain in the world is Chinese, surpasses McDonald’s and is unknown in Europe: Mixue Featured image | Onur Binay

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