The Financial Silk Road

Kodal ships first lithium from Mali to China – Kodal Minerals has completed its first shipment of lithium from its Bougouni mine in southern Mali to China. Nearly 29,000 tonnes were loaded onto a bulk carrier bound for Hainan province, marking the start of exports from the project. The company plans to gradually ship its full 45,000-tonne stockpile via Côte d’Ivoire’s San Pedro port.

New quotas spur Chinese buying of discounted Iranian oil – China’s independent refiners are ramping up purchases of discounted Iranian crude after Beijing issued new import quotas. Supertankers holding Iranian oil have begun discharging, as floating storage reaches a multi-year high in early December. Despite deeper discounts, overall demand may remain constrained due to weak refining margins.

Macron seeks Xi’s support on Ukraine and calls for China investment – During his visit to China, French President Emmanuel Macron urged Xi Jinping to support efforts to end the war in Ukraine and expand Chinese investment in France, warning against global economic fragmentation and supply chain risks. Xi said China supports a fair peace agreement and will play a constructive role. The leaders agreed to deepen China–France cooperation and signed 12 deals spanning nuclear energy, investment, and environmental protection.

China, India import more thermal coal, but price gains may weigh – China and India both increased thermal coal imports in November following earlier price declines. China’s imports rose for a third straight month but remain well below last year’s levels, while India’s imports slightly exceeded 2024 volumes. Rising coal prices may now limit further growth in import demand.

Chinese survey vessels signal power jostle as India plans missile test – China has deployed multiple survey vessels in the Indian Ocean as India prepares for a long-range missile test. Analysts say the ships, officially classified as research vessels, can gather sensitive military and seabed data. The move highlights growing strategic rivalry and China’s expanding presence in India’s maritime sphere.

Egypt signs defence manufacturing deal with China’s Norinco – Egypt’s Arab Organisation for Industrialisation signed an agreement with China’s Norinco to localise defence manufacturing. The deal focuses on technology transfer and expanding domestic production capabilities. Egypt aims to position itself as a regional hub for defence manufacturing partnerships.

Chinese exports to Africa soar despite tariff wars – Chinese exports to Africa are on track to exceed $200 billion in 2025, driven by machinery, vehicles, and industrial equipment. Africa’s trade deficit with China has widened to nearly $60 billion, reflecting strong Chinese export growth. Bilateral trade hit a record in 2024, underscoring Africa’s rising role in China’s trade strategy.

China’s trade surplus tops $1 trillion as exports surge – China’s trade surplus surpassed $1 trillion for the first time as exports rebounded strongly in November. While shipments to the U.S. fell sharply, China expanded exports to Southeast Asia, Africa, Europe, and Latin America. A recent U.S.–China trade truce helped ease tariffs and rare-earth export tensions.

Chinese firms commit $80B to overseas clean-tech investments – Chinese companies have committed $80 billion to overseas clean-technology projects since last year, reinforcing China’s position as the world’s leading clean-energy investor. Southeast Asia leads as a manufacturing hub, Europe attracts most battery investment, and the Middle East and North Africa are the fastest-growing regions.

China’s manufacturing booms despite Trump-era tariffs – China’s factories are posting record output and trade surpluses despite U.S. tariffs, with exports redirected toward Asia, Europe, Africa, and Latin America. Manufacturing output rose 7% in the first 10 months of the year.

U.S. investors ramp up bets on Chinese AI – U.S. investors are increasing exposure to Chinese AI firms through public markets, ETFs, and venture funds despite growing political scrutiny in Washington. Chinese AI models such as DeepSeek have shown they can compete with U.S. peers, boosting investor interest. At the same time, Congress is moving to tighten restrictions on U.S. capital flows into China’s high-tech sectors.

Ford suppliers receive China’s streamlined rare-earth licences – China has issued new, streamlined rare-earth export licences to suppliers serving Ford Motor, easing shortages in the auto supply chain. The general licences allow larger shipments under year-long permits following talks between Xi Jinping and Donald Trump.

China and Brazil launch joint space laboratory – China and Brazil have begun building a joint laboratory for radio astronomy technology, deepening space cooperation despite U.S. pressure in Latin America. The partnership contrasts with stalled Chinese telescope projects elsewhere in the region amid geopolitical tensions. Beijing has accused Washington of politicising scientific collaboration.

Pakistan and China form new education and research partnership – Universities in Pakistan and China have signed agreements under the Belt and Road framework to cooperate on science, engineering, and technology research. The partnership includes faculty and student exchanges and joint studies on environmental restoration and materials science. Industrial partners from both countries are also involved.

China’s AI advantage driven by cheap electricity and massive grid – China is leveraging the world’s largest power grid and low electricity costs to gain an edge in artificial intelligence development. Massive investment in power infrastructure has enabled data centres to operate at far lower costs than in the U.S., helping offset China’s weaker domestic chips. While the strategy supports rapid AI growth, concerns are rising over overcapacity and potential market bubbles.

Saudi Arabia accelerates clean-energy push with China focus – Saudi Arabia is expanding its clean-energy ambitions through ACWA Power, which plans to invest $20 billion annually over the next five years. China is emerging as a key overseas hub, with ACWA aiming to invest $30 billion there by 2030, drawn by subsidies and mandated offtake policies. The company warns China could dominate global hydrogen markets unless other regions adopt similar frameworks.

China builds secret EUV chipmaking prototype to rival the West – Chinese engineers have developed a prototype extreme ultraviolet (EUV) lithography machine, a breakthrough long blocked by U.S. and allied export controls. Built in Shenzhen by former ASML engineers, the system marks progress toward China’s goal of semiconductor self-sufficiency. If successful, it could weaken Western dominance in advanced chip manufacturing.

Trump administration approves Nvidia AI chip sales to China – The Trump administration approved sales of Nvidia’s H200 AI chips to China, signalling a shift toward exporting U.S. technology rather than restricting it. The move reflects growing influence from tech executives who argue exports help the U.S. stay competitive. Critics warn the decision could strengthen China’s AI and military capabilities.

China-EU trade tensions intensify – China and the European Union escalated trade restrictions, with Beijing imposing tariffs on European dairy products and Brussels tightening scrutiny on Chinese imports. The moves follow an EU investigation into Chinese electric-vehicle subsidies. The dispute highlights deepening economic friction and Europe’s shrinking export role in the Chinese market.

China condemns planned U.S. tariff hike on semiconductors – China criticized Washington’s plan to raise tariffs on Chinese semiconductors starting in 2027, calling the move disruptive to global supply chains. Beijing warned it would take countermeasures to protect its interests if the tariffs proceed. The dispute adds to growing tensions over technology and industrial policy.

China sanctions U.S. defence firms over Taiwan arms sales – China imposed sanctions on 20 U.S. defence companies and 10 executives in retaliation for an $11.1 billion U.S. weapons package for Taiwan. The measures include asset freezes and ban on business activities in China. Beijing warned that further arms sales would trigger stronger responses.

China opposes Israeli recognition of Somaliland – China condemned Israel’s recognition of Somaliland, reaffirming support for Somalia’s territorial integrity. Beijing called the issue an internal Somali matter and urged foreign countries to stop interference. The stance aligns China with most African and Middle Eastern nations opposing Somaliland’s independence.

China expands Arctic undersea capabilities – Chinese research submarines travelled beneath Arctic ice for the first time, raising concerns among U.S. and NATO officials. Analysts say the missions could support both commercial shipping and military operations, including submarine positioning. China insists its Arctic activities are peaceful and lawful.