China news today is all about a mix of geopolitical tension, severe weather conditions, economic sanctions, and trade wars. From escalating stand-offs in the South China Sea to the impact of Tropical Storm Podul, see the latest and most trending news leading global headlines.
1. China Targets Two Lithuanian Banks in Sanctions Retaliation
In a sharp escalation of diplomatic tensions, China has sanctioned two Lithuanian banks — UAB Urbo Bankas and Mano Bankas AB — in retaliation for the recent sanctions by the European Union against Chinese entities.
According to AP News, the sanctions mean that Chinese companies can no longer conduct business with the two financial institutions. Experts opine that this move may further deteriorate China–EU trade relations.
2. Tropical Storm Podul Drenches Southern China
Tropical Storm Podul has showered southern China, in Guangdong Province, with torrential rains, with the rain hitting over 70mm per hour in some places.
Local authorities have issued mass evacuations, with thousands of individuals relocated away from flood-prone areas. Emergency workers are on standby to address the situation.
Comprehensive coverage on Al Arabiya News.
3. South China Sea Standoff: China Claims to Expel U.S. Warships
South China Sea tensions escalated after China's Navy claimed it had "expelled" American destroyer USS Higgins near the disputed Scarborough Shoal. The Times UK reports this following a series of sea confrontations in the region.
The U.S. Navy deployed two warships into the disputed waters following an earlier confrontation with Chinese vessels. The ABC News confirmed the incident, raising fears of a potential military confrontation.
4. Chinese Fighter Jet Intercepts Philippine Aircraft
In a hair-raising aerial encounter, a Chinese fighter jet intercepted a Philippine Coast Guard aircraft carrying journalists over the Scarborough Shoal. The aircraft was said to have flown 200 feet close, provoking a furious U.S. condemnation of the action as reckless.
The full report is available at Reuters.
5. Trump–Nvidia AI Chip Deal Sparks Backlash in China
US President Donald Trump has approved a controversial agreement to allow Nvidia and AMD to ship downgraded AI chips to China. Nvidia's H20 and AMD's MI308 designs were involved in the agreement in exchange for a share of Chinese revenue.
But Time Magazine reports that Chinese authorities are requesting Chinese companies to go around these imports in spite of high market demand.
6. China Cracks Down on Counterfeit Labubu Toys
In a surprise intellectual property enforcement move, China has seized nearly 49,000 counterfeited "Labubu" dolls — locally branded as "Lafufu" — both in China and the U.S. market.
The crackdown, covered by Washington Post, reflects China's increasing wariness to check counterfeits in the face of criticism against IP rights protection.
China News Analysis and Global Impact
Today's China news reflects a clear trend of ratcheting geopolitical tensions, economic retaliation, and severe weather woes.
- Geopolitically, the South China Sea disputes are becoming more dangerous, with U.S., Chinese, and Philippine militaries getting involved.
- Economically, the Lithuania sanctions and AI chip trade deal reveal a cat-and-mouse game of subtle cooperation and confrontation.
- Domestically, the toy counterfeit clampdown is a sign that Beijing wishes to appear more serious about enforcing intellectual property.
China news China sanctions Lithuania South China Sea tensions Tropical Storm Podul China U.S.–China relations