China Economic Review
Charting China’s changing economic terrain · Since 1990

First batch of Chinese EVs to arrive in Canada in July

June 30, 2026

Chinese EV manufacturer Geely’s Lotus brand electric vehicles ​will arrive in Canada next month under an agreement between Prime Minister Mark Carney and Chinese President Xi Jinping, reports Reuters citing China’s ambassador to Canada, Wang Di.

They will be the first Chinese-owned and manufactured vehicles for sale under an agreement that allows up to 49,000 Chinese EVs to enter Canada annually at a reduced tariff rate, as Carney tries to diversify Canada’s trade away from the US.

Wang said other Chinese brands, such as Chery and BYD are ⁠coordinating with Canadian government agencies to complete steps before they can ship to Canada. Some cars arrived earlier for the companies to test in Canadian conditions, Canadian ​officials have said previously.

US bans more Chinese tech imports

June 30, 2026

The US Federal Communications Commission (FCC) said ​it will ban the import of more equipment from a group of ‌Chinese manufacturers, reports Reuters. This is the latest move by Washington to crack down on Chinese-made electronic gear.

The move expands an FCC ban imposed in 2022 on new models of telecommunications and video surveillance ​equipment made by Huawei, ZTE, Hytera, Hikvision and Dahua, citing US national ​security risks.

The ban now includes old models of equipment used for “public safety, security of ​government facilities, physical security surveillance of critical infrastructure, and other national security ​purposes,” the FCC said.

China adds 20 Japanese entities to export control list

June 30, 2026

The Ministry of Commerce said on Monday that to deter Japan’s “remilitarization” and its attempts to “acquire nuclear weapons”, it has added 20 Japanese entities “involved in enhancing Japan’s military capabilities” to an export control list, reports the South China Morning Post. Twenty Japanese entities have also been added to a separate watch list.

The moves were made to safeguard China’s national security and interests and to fulfil international obligations such as non-proliferation, the ministry added. A ministry spokesperson said that China’s actions were in accordance with the law, were only aimed at a “small number” of Japanese entities, and only targeted dual-use items.

The entities added to the export control list include Japan’s National Institute for Defense Studies and military research institutes for ground, naval and air weapons systems.

They also include several entities under the umbrella of Mitsubishi Electric and Mitsubishi Heavy Industries, with businesses that span defence and space systems, specialised software development, precision instrument manufacturing, engineering services, logistics, maritime technology and technical support for special vehicles.

Japan’s chip exports to China rise in 2025 despite geopolitics

June 12, 2026

Japan’s integrated circuit exports to China rose nearly 48% in 2025, reports Caixin. The rise helped drive a rebound in bilateral trade even as geopolitical tensions intensified and shipments of semiconductor manufacturing equipment declined.

The Japanese Chamber of Commerce and Industry in China said in its 2026 white paper released Thursday that trade between the two countries rose 6.2% to $343.3 billion in 2025, ending three straight years of decline. 

Integrated circuits remained Japan’s largest export category to China, rising 47.9% from a year earlier to $28.7 billion and accounting for 17.4% of Japan’s total exports to the country.  By contrast, Japan’s exports of semiconductor-manufacturing equipment to China fell 2.3% to $14 billion, or 8.5% of total exports. 

China saw export growth in May driven by tech, auto demand

June 10, 2026

China’s export growth accelerated in May, buoyed by robust demand for chips, autos and other high-tech goods fuelling the global AI ​boom, reports Reuters. The growth has provided policymakers some relief as energy price shocks from the Iran conflict weigh on broader demand.

Exports expanded 19.4% from a year earlier in US dollar value terms, customs data showed on Tuesday, outpacing the 14.1% gain in April and a 15% rise tipped by economists.

“Chip price increases continue to support exports, with memory prices rising 20% month-on-month, pushing ​integrated circuit export growth to 111% for the month,” said Xing Zhaopeng, ANZ’s senior China strategist. China’s exports of automated data processing equipment soared 66.1% ⁠in value terms year-on-year, high-tech products rose 50.9% and shipments of cars jumped 39%, the data showed.