china

China has been dumping tons of sand into the ocean for 12 years. And now we are seeing islands emerging in the middle of nowhere

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It has been more than a decade since China began a striking strategy of territorial expansion: throwing tons of sand into the South China Sea. This is not unique to China and, in fact, Japan thus built an airport that soon it will be an underwater airportbut China is doing it massively and with one objective: to claim what is its own. And seeing how they raise these artificial islands is… hypnotic. Context. The end of 2013 marked a turning point in China: the country started to massively fill in seven of the reefs of the Nansha and Xisha archipelagos (Spratly and Paracels, respectively). In record time between December of that year and June 2015, China carried out the first phase of the operation: the filling phase. From 2015 onwards, they have dedicated themselves to consolidate that territory through the construction of infrastructure such as landing strips, hangars, ports, radars and support structures. According to the US-China Economic and Security Review Commission, between December 2015 and October 2015, China had built artificially about 12 km² of land on the Nansha reefs. While the United States said it with concern, the Chinese media confirmed the information with pride. Before and then How they do it. They did not use overly complex methods to do so. On the one hand, they cut the coral bottom and pumped sediments to shallow areas. The earth was deposited as fill to later build dikes and retaining walls around the reef. The next step was to deposit more fill and, finally, large steamrollers and shovels were compacting that earth to give consistency to the whole. The last thing was to create paving, landing strips, roads and other infrastructure. The result is more than 12 km², and put in context they represent “17 times more land claimed in 20 months than all the other international claimants have achieved during the last 40 years.” In action. Seeing the satellite photos that show the before and after, something easy to do using the history function of Google Earth, is interesting, but seeing a timelapse of how one of these new territories has been built is, as I said, something hypnotic. An example, the following video ‘tweet‘ (if you can’t see it, click on it): Narrative. What motivation does China have for such a deployment of resources and money? It depends who you ask. On the one hand, the Chinese government has defended that the creation of these islands serves the support in rescue missions on the high seasalso to fishing, scientific research, navigation support points thanks to these radars and the collection of data for its meteorological service. Finally, it also serves for defense if necessary. The neighbors are not convinced by the explanation and, in fact, think that it is a strategy that responds to a single interest: claiming territories that China considers its property. The Ministry of Defense of Japan assures that these infrastructures allow a permanent Chinese presence in waters that do not belong to it, with offensive capacity in practically the entire South China Sea. Military. Recent reports, such as the one from CSIS in 2025, underlines that China’s recent near-perennial activity in the South China Sea has only been possible thanks to that decade-old construction work. Western analyzes they point that the runways for aircraft are prepared for combat aircraft and land transport, as well as the presence of ports for warships, underground facilities and even missile platforms. The tension is evident because Beijing claims sovereignty over territories that its neighbors deny. Those neighbors are Vietnam, Taiwan, Japan or the Philippines. And Vietnam, in fact, is doing the same thing as China in 2013: throwing land into the sea. Their progress has also been considerable in a short time in an area that has become a real hotbed. The ecological impact. But beyond the intentions of each other, something undeniable that cannot be hidden under any narrative is the environmental damage that these artificial islands cause to their surroundings. In some articles it has been indicated that this ‘island’ desire has caused the loss of some 12 to 18 km² of reef, damaging some of the best preserved reefs in the region directly, but also affecting distant systems due to the ‘clouds’ of sediment formed during the dumping of sediments. Chinese scientific articles have also shown that these practices eliminate completely the ecosystem of the occupied area and negatively affects currents and sediment patterns, causing the aforementioned degradation of neighboring areas. However, the State Oceanic Administration of China defend that all projects were thoroughly evaluated and do not harm corals. The fault of it? Global trends such as sea acidification or climate change. Images | Ma Wukong In Xataka | China is building something that looks like an oil well. It is actually a nuclear bunker with a command center

It is the back door through which China avoids US tariffs

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The Bac Luan 2 Bridge is the border that connects China to Vietnam. According to one Nikkei Asia researchit is also the back door through which China is sneaking its goods to continue selling in the US without being affected by tariffs. what’s happening. Chinese trucks form huge queues at the border town of Mong Cai every morning; They bring merchandise that will end up arriving in the United States, but first all traces of ‘Made in China’ are erased and the certificates of origin are changed so that it continues its journey as Vietnamese merchandise. The trick allows them to continue selling products while avoiding the high tariffs imposed by the Trump administration, always according to Nikkei. Why is it important. It highlights that the trade war is full of cracks. We have seen other similar “tricks” such as dropshipping of chips and also Chinese companies that have gained access to banned NVIDIA chips via Indonesia. What on paper seem like insurmountable walls are not so insurmountable in practice; Chinese companies respond by redesigning new supply chains to keep prices low and continue selling in the US. Re-export. It is the strategy that many Chinese companies are adopting, some even offer it as a service to their clients. Nikkei has had access to a document from a Chinese company in which they literally say “re-exporting through a third country is effective in avoiding high tariffs.” Another company urges its customers not to include Chinese characters on the packaging nor of course any reference to ‘Made in China’. Volume. Of course the process of changing the country of origin is done clandestinely and China evidently does not recognize this practice, but the volume of containers that have passed through the border in Mong Cai continues to increase. As of July 2025, this volume was 840,000 tons, 43% more than the same period last year. At the same time, exports between Vietnam and the US are also increasing. In addition, Nikkei has analyzed satellite images and found that the Mong Cai border has changed a lot recently; It is filling up with logistics centers and urbanizations with a strong presence of Chinese businesses. White and in bottle. Washington raises his eyebrow. Trump reached an agreement with Vietnam, but warned that would raise tariffs to 40% if it is proven that they are acting as a platform to divert exports. Vietnam is trying to calm the waters by pursuing these fraudulent export practices and in July of this year alone they uncovered 900 cases. The question is how many more are still sneaking in and not just in Vietnam, routes are also being diverted through Malaysia, Indonesia and others. Image | Daniel Fikri in Unsplash In Xataka | China already has an army of 5.8 million engineers. His new plan involves accelerating doctorates

Satellite images have revealed that China has gathered its most important aircraft carriers. And that can only mean one thing

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The simultaneous appearance of the two ends of the Chinese aircraft carrier fleet, the Liaoning veteran and the newly incorporated Fujiandocked at the same naval base does not seem to be a logistical coincidence, but rather a carefully eloquent image. One that can only mean one thing: it is training naval “one plus one.” Two aircraft carriers, one message. Satellite images show both ships moored in Qingdaoa port historically linked to the development of Chinese naval aviation and now expanding to accommodate a new phase of maritime ambition. Together, they represent the past learned and the future being rehearsed: the transition from a regional navy to a force of waters blues capable of operating in a sustained manner far from their shores. From symbol to real capacity. China already has the largest navy in the world by number of hulls, but the qualitative leap is marked by embarked aviation. Entry into service from Fujianthe first Chinese aircraft carrier designed from scratch with electromagnetic catapults introduces a capability that until now was only dominated by the United States. In front of him, Liaoning brings more than a decade of operational experience. The coexistence of both on the same dock points to something more than maintenance: it suggests doctrinal integrationknowledge transfer and the practical initiation of group operations with multiple aircraft carriers, a threshold that separates regional navies from truly global ones. Qingdao as a laboratory. Side by side mooring It’s unusual and deliberate.. It coincides with the declaration of restricted maritime zones in the Bohai Strait and the northern Yellow Sea, a classic indication of imminent exercises. Everything points to joint training in which aircraft departure rates, deck security, logistics, command and control, and coordination between air wings will be compared. The objective is not only for Fujian to learn from Liaoning, but to see how two platforms with different capabilities can operate. as a single systemmultiplying its effectiveness. In naval terms, it is not about adding ships, but about creating operational synergies. Beyond the Strait. The Fujian’s movement northward, crossing the Taiwan Strait without aircraft on deck, has been closely followed through Tokyo and Taipei. Precisely this detail reinforces the reading that it is not a combat mission, but rather a training one. The background, however, seems unequivocal: Beijing wants to break the logic of the First Island Chain (the arc that goes from Japan to the Philippines via Taiwan) and demonstrate that it can project power beyond it. Operating two aircraft carriers in a coordinated manner is key to sustain presenceprotect distant sea lines and provide credible deterrence against US aircraft carrier groups. Implicit response to Washington. The Pentagon assumes that the People’s Liberation Army Navy is in the early stages of operating a multinaval force with aircraft carrierprogressively expanding its radius of action. The continued presence of US aircraft carriers in the Indo-Pacific, under the logic of containment and defense of allies, acts as a catalyst for this process. If you will, China somehow seems to say that it does not need to announce a doctrine for the message to get through: the image of two aircraft carriers together in Qingdao communicates that accelerated learning has begun and that the operational gap is closing. The power of tomorrow. There is no doubt, the analysts match in that these movements do not indicate an imminent conflict. But they do reveal patient and methodical preparation. Crew integration, procedure comparison and dual command testing are essential steps for a navy that aspires to operate autonomously in the Western Pacific and beyond. Japan watches it with special attention because you have already seen Chinese aircraft carriers cross its defensive perimeter in recent exercises. Each deployment, each joint training, normalizes what a decade ago would have seemed exceptional. The threshold that China wants to cross. In short, the true meaning of Qingdao is not in the number of tons or the technological novelty of Fujian, but in the sign of maturity. Going from an experimental aircraft carrier to a couple training together is crossing a strategic threshold. It is not the prelude to war, but to status. China rehearses today the choreography that will need tomorrow to hold your global maritime ambition. And in that essay, the message to allies and rivals is clear: the era of the lone Chinese aircraft carrier is behind us, and that of the carrier group has just begun. Image | Copernicus In Xataka | The Fujian is officially China’s largest power catapult: Beijing already has a button to challenge the US Navy In Xataka | China’s first aircraft carrier hunted from space by a US satellite

Dreame seeks to become the third largest in China along with Xiaomi and Huawei. Far away from wanting to be the new Dyson

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Dreame is a Chinese manufacturer that has crept into the European conversation based on muscle. Muscle for the home, specifically. Founded in 2015, it soon emerged as a serious rival of Dyson thanks to its numerous vacuum cleaners of all kinds and beauty devices. Now it has been filtered the Dreame E1, the company’s first mobile with which they seek to replicate the strategy of the “Apple from China”. They no longer want to be Dyson, they want to be Xiaomi. The Dreame E1. In September, Dreame dropped the bomb: robot vacuum cleaners They were going to move into the smartphone segment and electric cars. Since then, Dreame’s phone had kept a low profile, but it recently appeared in the European database EPREL with the name ‘W5110’. We have to wait for the official announcement, but it seems that it will have a AMOLED screen 6.67 inches, a 108 megapixel main camera, a 4,850 mAh battery and only 33 W charging, as well as seven years of system updates. This would aim to satisfy European regulators. Divide the world. Its features are not revolutionary and the sketches look like those of a Samsung Galaxy S25but it is a first step. No price or key details such as the processor or something so on everyone’s lips like the RAM memorybut in an internal communication, the CEO of Dreame pointed out high: they want to be one of the three tigers of consumer technology. The other two would be Huawei and Xiaomi, companies that have been shaping an ecosystem in which a multitude of home devices are controlled by a single brain: the mobile phone. In a scenario in which we can have our house full of Dreameit is a vision with all the sense in the world. 1+8+N from Huawei. Many devices, a single brain Xiaomi, the birthplace of Dreame. To understand this strategy, it is essential to understand the model that Xiaomi has been developing for more than a decade. The company began by selling its own products, but also making investment strategies in promising startups, like Dreame. These companies developed a product and gained access to Xiaomi’s distribution network, but also to its name. A rice cooker from an unknown company does not attract attention. One from that same company, but under the name Xiaomicalls much more. This way, the risks are also lower. And, precisely, Dreame manufactured vacuum cleaners that they formed part of the Xiaomi ecosystem while simultaneously operating its own catalog. It is something that explains the rapid growth of many Chinese brands, something impossible, or very difficult, if they had operated independently from the beginning. Roborock too was in that Xiaomi ecosystem. Meteoric. The rise they have achieved since their independent birth has been brutal. According to some analyses, Dreame is the third manufacturer of robot vacuum cleaners with a share of 11.3%. They only have Ecovacs ahead with 13.6% and Roborock with 19.3%. In Europe they are very well positioned, reporting great growth in revenue during the first half of this year, and the consequence is what we saw during the presentation at the IFA a few months ago. The mobile phone will be the control center, that N+1 that we have seen in companies like the aforementioned Xiaomi or Huawei, and at the German fair they announced that, along with the consolidation of their personal care range, robot vacuum cleaners, vacuum cleaners, lawnmower robots and pool cleaner, will launch in Spain in the coming months televisions, air conditioners, dishwashers and kitchen appliances. They are already at itwith small appliances, accessories and even smart lighting. In this photo the ecosystem is that of Xiaomi. It could easily be Dreame’s future. Image | Xataka Ford already said it. It is, as we said, a carbon copy of the strategy that has worked so well for Xiaomi. They entered with competitive technology at a good price to gain market share and customer loyalty, and now they want to expand the ecosystem with all types of connected devices. It is a strategy within the reach of not all companies, but it is drawing the attention even of people like Jim Farley. Farley is the CEO of Ford and, in his quest to understand why chinese cars are winning toast to Westerners, he has been driving the Xiaomi SU7. Apart from other characteristics, what impresses him most is the ecosystem: With your cell phone you control the car, and from the car you control the house. Ambition. Given this, the fact that a robot vacuum cleaner manufacturer launches a mobile phone is not a surprise and responds to a strategy in which manufacturers want us to have a house full of their devices, controlling everything from a single app. And, if possible, from your mobile. And it is not surprising if we look at the investment figures in research and development. Dreame has 5,000 employees and 60% of its staff is dedicated to R&D. They invest 7% of their annual income in this segment and it is evident that Dreame wants to stop being the Chinese Dyson. It wants to be the new Xiaomi. Images | HuaweiXataka, Dreame In Xataka | A Chinese company you don’t know makes 35% of all microwaves in the world. Probably yours too

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

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