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Xi Jinping and King Tupou VI Formalize Comprehensive Strategic Partnership and Cooperation Agreements in Beijing

Nov. 27, 2025 | Geopolitics & Defense

During a state visit to Beijing, Chinese President Xi Jinping and King Tupou VI of Tonga formalized a comprehensive strategic partnership and signed multiple cooperation agreements.

**On November 25, 2025, Xi Jinping and King Tupou VI met at the Great Hall of the People, where the Tongan royal couple received a 21-gun salute, military honors, and a reviewing-stand ceremony.**
Xi and his wife, Peng Liyuan, hosted a welcoming banquet attended by Foreign Minister Wang Yi. After completing protocol formalities, both leaders witnessed the signing of several cooperation agreements and issued a Joint Statement to mark the summit’s culmination.

**Xi Jinping recalled the friendship between China and Tonga since they established diplomatic ties in 1998, emphasizing mutual respect, equality, and support for each other’s core interests.**
He pledged that China would act as a reliable partner in safeguarding Tonga’s sovereignty and independence and deepen their comprehensive strategic partnership. Drawing on strategic development plans from the Fourth Plenary Session of the 20th Central Committee, Xi proposed implementing four global initiatives and building a China–Pacific Island Countries community with a shared future.

**Both leaders identified priority sectors for collaboration: trade and investment; modernization of agriculture and fisheries; infrastructure development; clean energy projects; healthcare enhancement; tourism promotion; and climate-change response.**
Xi also called for expanded exchanges in education, sports, youth engagement, media collaboration, and subnational governance, inviting Tongan sector representatives to visit China under South–South cooperation frameworks. King Tupou VI expressed gratitude for China’s support of Tonga’s economic and social development, welcomed deeper collaboration in these fields, reaffirmed Tonga’s adherence to the one-China principle and opposition to Taiwan independence, and voiced support for China’s global initiatives on shared development, peace, and climate cooperation.

**The visit coincided with the completion of a PLA Navy hospital ship mission in Tonga, during which the Silk Road Ark provided thousands of medical treatments and surgeries.**
Observers note that this healthcare support complements broader cooperation—including grants, low-interest loans, and debt-relief measures—that analysts say contributes to Tonga’s sustainable development and counters narratives of “debt-trap” diplomacy.

**Bilateral trade reached $69.9 million in 2024, up 21.4 percent year-on-year, and over 400 Tongan students are currently studying in China.**
Experts observe a shift from project-driven infrastructure builds toward capability-driven initiatives aligned with Tonga’s national priorities, with potential collaborations in the blue economy, green transition, renewable energy capacity building, and maritime projects. This evolving partnership meets Pacific Island expectations for cooperation without political conditions and reflects the geopolitical and economic significance of Pacific Island countries in China’s global diplomatic and development strategy.

China’s New Energy Vehicle Sector Surges with Supply Chain Clusters and Export-Led Transformation

Nov. 27, 2025 | Firms

China’s new energy vehicle sector is undergoing a transformative expansion driven by market shifts, technological innovation, and strategic industrial planning.

**In October 2025, new energy vehicles accounted for 51.6 percent of China’s total new car sales, signaling their ascent as the mainstream product in the domestic automotive market.**
This shift is fueling a technological revolution and industrial upgrade that depend on an open, shared, resilient, and sustainable supply chain to support high-quality growth across the sector.

**China retains a leading role in the global automotive supply chain, particularly in batteries, chips, and software.**
From January to October 2025, it installed 578 gigawatt-hours of power battery capacity—up 42.4 percent year-on-year—keeping its global top spot. At the same time, domestic production of advanced chassis systems for NEVs still lags behind international competitors, making this a priority area for bolstering home-grown competitiveness.

**Regional governments and industry players are clustering supply chains to achieve scale economies.**
In Huainan City, a concentrated NEV supply-chain cluster is taking shape, while automakers such as NIO are nearshoring key components to cut procurement costs by 20–30 percent and secure stable supplies amid intensifying competition.

**Exports of China’s NEVs topped two million units in the first ten months of 2025, nearly doubling year-on-year.**
Manufacturers are adopting “dual-factory” models overseas to meet localization requirements and address local labor shortages. Meanwhile, Chinese firms are shifting from simple product exports to integrated system exports, offering combined vehicle platforms and supply-chain solutions that support foreign industrial development. Deep localization of NEV technologies and products abroad has become critical for sustaining export growth. At the same time, multinational automakers operating in China are leveraging domestic parts and software innovations to strengthen an integrated global supply chain.

**Cross-industry integration is accelerating as the automotive supply chain converges with emerging sectors such as robotics and unmanned shipping, expanding growth prospects.**
The sector’s future emphasis lies in intelligence and sustainability, uniting software, hardware, and artificial intelligence throughout the value chain. Industry stakeholders are calling for unified data standards and trusted data ecosystems to optimize supply-chain efficiency and promote continuous innovation.

**Under the 14th Five-Year Plan, Chongqing positioned its intelligent connected NEV industry among national leaders and set a goal to build a world-class cluster within five years.**
The city is reinforcing leading enterprises, strengthening the full automotive industry chain, expanding “vehicle-road-cloud-network-map” applications, cultivating high-end brands, and developing an “artificial intelligence + automobile” ecosystem, alongside rolling out ultra-fast charging infrastructure and supporting growth across the entire lifecycle.

**Building on that foundation, Chongqing’s 15th Five-Year Plan aims to make the city a globally influential hub for intelligent connected NEVs.**
It targets quality upgrades in trillion-yuan industrial clusters, modernizes traditional manufacturing, and boosts capabilities through digital workshops and intelligent factories. The plan emphasizes intelligent, green, and service-oriented manufacturing, and nurtures emerging sectors—such as biomedicine, smart medical devices, intelligent sensing instruments, and the low-altitude economy—to accelerate large-scale application of new technologies and products.

**Chongqing’s broader strategy leverages science and technology innovation to establish an internationally competitive advanced manufacturing center and industrial innovation hub.**
By the end of the 15th Five-Year period, these efforts aim to underpin a modern industrial system with advanced manufacturing at its core.

### IMPACT ANALYSIS
**From this Development, various impacts could cascade through the system, to a lesser or greater extent, depending on the severity and criticality of the shocks.**

Domain	Causal Chain	Possible Outcome
Competitiveness	(NEV market share ↑ → Market-size & demand potential ↑ → Export sophistication (EXPY) delta ↑ → High-value-added export share ↑)	Rapid NEV adoption drives an upgrade in export mix, raising the share of high-value-added EV systems and integrated supply-chain solutions.
Energy & Natural Resources	(Battery production capacity ↑ → Grid-scale battery-storage fleet capacity ↑ → Renewable-generation share of electricity ↑ → CO₂-intensity of GDP change ↓)	Enhanced grid storage from expanded battery capacity boosts renewable electricity share and drives down the CO₂ intensity of GDP.
Competitiveness	(NEV exports ↑ → Trade-openness & preferential access ↑ → Real export market-share change ↑ → FDI net inflow (% GDP) ↑)	Surging NEV exports improve China’s trade openness and export market share, attracting increased FDI into auto and battery sectors.
Transportation & Logistics	(Customs-and-border clearance digitisation ↑ → Average customs-clearance time ↓ → Door-to-door export lead time ↓ → Logistics-performance index (LPI) score ↑)	Customs digitization cuts clearance and delivery times, strengthening export reliability and lifting China’s LPI score.
Firms	(Supply-chain restructuring cadence ↑ → Inventory days on hand ↓ → Capex-to-cashflow ratio ↑ → Private fixed-investment growth ↑)	Accelerated supply-chain restructuring lowers inventories and frees cash, fueling private fixed-investment growth in the NEV ecosystem.
Technology & Innovation	(Enterprise AI adoption index ↑ → AI inference cost index shift ↓ → Total-factor productivity growth from tech ↑ → Patent-to-product conversion rate ↑)	Wider enterprise AI adoption reduces inference costs, accelerating total-factor productivity gains and boosting patent-to-product conversion in NEV technologies.
Transportation & Logistics	(Nearshoring supply chains ↑ → Input-cost inflation (producer-price index) ↓ → Freight cost share of export value ↓ → Logistics carbon-neutral shipment share ↑)	Nearshoring supply chains dampens input-cost inflation and freight expenses while expanding the share of carbon-neutral logistics shipments.
Technology & Innovation	(5G standalone network coverage share ↑ → Cloud API average latency (ms) ↓ → SME digital-tool adoption index ↑ → Digital & knowledge-intensive industry share of GDP ↑)	Expanded 5G standalone coverage cuts cloud latency, spurring SME digital-tool uptake and expanding the digital and knowledge-intensive share of GDP.
Technology & Innovation	(Autonomous-vehicle regulatory readiness index ↑ → Regulatory-approval lead time (days) ↓ → Early-stage VC deal count ↑ → Unicorn creation count ↑)	Faster regulatory approval for autonomous vehicles unlocks more early-stage VC deals and increases the creation of unicorns in mobility innovation.

### BOTTOM LINE

- China’s domestic consumers have shifted decisively toward electrified mobility—new energy vehicles (NEVs) reached 51.6% of new-car sales in October 2025—which is accelerating scale economies in manufacturing and creating a larger, more sophisticated home market that will drive faster product learning cycles and higher-value export offerings.

- The rapid expansion in battery capacity—578 GWh installed from January to October 2025, up 42.4% year-on-year—directly increases grid-scale storage potential, which will smooth renewable output, raise the renewable share of electricity, and measurably reduce CO₂ intensity per unit of GDP if storage deployment and grid integration follow.

- NEV exports surpassed two million units in the first ten months of 2025, nearly doubling year-on-year, and the move to “dual-factory” overseas models plus integrated platform-and-supply-chain bundles will upgrade China’s export mix toward system-level sales and attract more foreign investment into assembly, batteries, and software R&D.

- Nearshoring and regional supply-chain clustering—illustrated by automakers cutting procurement costs by 20–30%—are shortening lead times and lowering input-price volatility, which frees working capital, lowers inventory days, and shifts saved cash into private fixed investment, digitalization, and local capacity expansion.

- The supply-chain concentration in regional clusters (e.g., Huainan, Chongqing) improves efficiency and supplier specialization but also raises single-region systemic exposure, so firms and policymakers need contingency planning (supplier diversification, redundant logistics routes, and inventory strategies) to reduce disruption risk.

- Cross-industry integration with robotics, unmanned shipping, and AI is increasing enterprise adoption of advanced automation and vehicle software, which lowers per-unit AI inference costs, accelerates total-factor productivity gains, and raises the patent-to-product conversion rate if standards and workforce skills are aligned.

- Persistent technological gaps—particularly in advanced chassis systems where domestic production still lags international competitors—are a chokepoint for moving up the value chain, so targeted R&D funding, joint ventures, and supplier upgrading programs focused on chassis and powertrain systems are practical priorities.

- Digital enablers such as expanded 5G standalone coverage and “vehicle-road-cloud-network-map” projects will reduce cloud latency and enable real-time vehicle and supplier coordination, which, if combined with unified data standards and trusted data ecosystems, will increase SME digital-tool adoption and deepen the digital, knowledge-intensive portion of the automotive value chain.

- Customs and border-digitization efforts, when scaled, will reduce average clearance times and door-to-door lead times for NEV shipments, improving reliability for overseas customers and increasing China’s logistics-performance index standing; practical steps include API-linked customs declarations, single-window trade facilitation, and harmonized cross-border data standards.

- The export-led growth and deep localization of technology raise geopolitical and regulatory considerations abroad—host-country local-content rules, industrial incentives, and political scrutiny can constrain market access—so Chinese firms should increase compliance capabilities, local partnerships, and transparent engagement with regulators to mitigate trade-policy risk.

- The surge in battery and NEV production will increase demand for critical minerals (lithium, nickel, cobalt) and for second-life and recycling systems, making upstream supply diversification, strategic reserves, domestic recycling and circular-economy investments, and supplier due-diligence on sustainability urgent and practical measures to manage cost and reputational risk.

- Faster regulatory pathways for intelligent connected vehicles under Five-Year Plan commitments can shorten approval lead times and increase venture funding into autonomous and mobility startups, but regulatory clarity and safety standards must be balanced with testing oversight to avoid setbacks from accidents or public backlash.

- For regional policy makers (e.g., Chongqing), continued emphasis on intelligent, green, and service-oriented manufacturing plus investments in digital workshops, ultra-fast charging networks, and talent pipelines will be essential to convert policy goals into a globally competitive NEV cluster within the targeted multi-year horizon.

- Monitoring metrics that will show whether this structural change is durable include export product sophistication (EXPY) shifts toward system sales, grid storage deployment rates versus battery manufacturing growth, upstream mineral sourcing diversity, chassis-system domestic content shares, customs clearance times, and private fixed-investment flows into NEV ecosystems.

Monitored Intelligence for China - Nov. 28, 2025

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Taiwan's DPP slammed for squandering money on external favor

Xinhua | English | News | Nov. 28, 2025 | Political Scandal or Corruption

A spokesperson from China's State Council Taiwan Affairs Office, Peng Qing’en, criticized Taiwan's Democratic Progressive Party (DPP) for allocating funds toward weapons purchases and courting external support instead of improving livelihoods and economic development. Peng warned that these actions would lead Taiwan toward disaster.

The remarks responded to Taiwan leader Lai Ching-te's plan to propose a special defense budget amounting to 40 billion U.S. dollars. Peng reiterated that China's reunification is inevitable and that attempts to seek independence through U.S. backing or force will fail.

Peng also condemned the perception that the U.S. uses Taiwan merely as an "ATM" or chess piece to contain China, accusing the U.S. of exploiting Taiwan. He accused the DPP of failing to protect Taiwan’s legitimate interests and instead squandering the people’s money to appease the U.S., which will eventually discard Taiwan.

Finally, Peng expressed strong opposition to U.S. senators’ proposals to legalize the "Six Assurances to Taiwan Act," labeling the assurances as illegal, invalid, and contradictory to the one-China principle, the three China-U.S. joint communiques, and international laws.

中国新质生产力撞上澳洲产业风口：6家深市龙头圈粉海外长期资本

China's Emerging New Productive Forces Meet Australia's Industrial Boom: 6 Leading Shenzhen Enterprises Attract Overseas Long-Term Capital

STCN | Local Language | News | Nov. 28, 2025 | UndeterminedBizdev-Partnering

On November 26, 2025, the Shenzhen Stock Exchange organized a roadshow in Sydney featuring six leading Shenzhen-listed companies—Tianqi Lithium, Goldwind Technology, Sunwoda, Megmeet, Shenghong Technology, and Luxshare Precision. These companies operate in sectors aligned with emerging productive forces such as green low-carbon technologies and high-end manufacturing. The event aimed to highlight China's high-quality economic development during the 15th Five-Year period, showcase Shenzhen's capital markets, and attract long-term overseas investment. Nearly 70 representatives from Australian pension funds, asset management firms, and investment institutions attended to explore investment opportunities and understand China's industrial upgrading and innovation.

The participating Chinese companies complement Australia's industrial strengths, particularly in new energy mineral resources and clean energy transition. Tianqi Lithium benefits from its global lithium mineral resources in Australia, Goldwind Technology supports Australia's renewable energy goals with its wind power technology, while Megmeet and Shenghong Technology provide advanced electrical automation and high-end circuit products tailored to local industry needs. Australian investors appreciated these firms' technological leadership, integration with local industries, and global strategic positioning, viewing them as promising investment targets amid China's technological innovation and move toward higher-value markets.

The companies emphasized their research and development capabilities and demonstrated strong ESG (environmental, social, and governance) practices, which attracted considerable interest from long-term overseas investors. For example, Tianqi Lithium highlighted its R&D focus on new lithium extraction technologies, while Sunwoda reported over 9,100 patent applications and engagement in industry standards development. ESG efforts among these firms range from Goldwind's sustainable wind turbine lifecycle management to Sunwoda's digital battery passport initiative and Shenghong Technology’s zero-carbon goals. These sustainable business practices have elevated their appeal to Australian pension funds and asset managers seeking long-term value investments.

Investment representatives expressed optimism about the companies’ long-term prospects, highlighting enhanced international competitiveness through innovation, strategic expansion, and improved governance. The roadshow reinforced foreign investors’ confidence in China's market, noting the country’s industrial transformation from scale to quality growth. The Shenzhen Stock Exchange plans to continue fostering overseas investor engagement and expand institutional openness, aiming to enhance matchmaking quality between Chinese listed companies and global capital while supporting China’s “dual carbon” strategic goals and international investment environment development.

Hillhouse in $7b fundraising as Asia private equity revives

Deal Street Asia | English | News | Nov. 28, 2025 | UndeterminedBizdev-Partnering

Hillhouse Investment has initiated fundraising for its next private equity fund with a target of $7 billion, marking a significant test of investor interest as deal activity in Asia picks up. Founded in 2005 by Zhang Lei, Hillhouse is continuing its global expansion with teams across key markets, following its record $18 billion fundraising in 2021, which was Asia’s largest at the time. The 2021 capital was allocated across buyout, growth, and venture investment vehicles.

Private equity fundraising in the Asia Pacific region has slowed, with $25.2 billion raised this year to date compared to $66.7 billion in 2024 and a peak of $241.2 billion in 2016. Hillhouse’s new fundraising will indicate the level of investor confidence in its global growth plans amid a shift where investors prioritize capital returns over new capital deployment. Renewed momentum comes from warming capital markets that facilitate exits and increasing attractiveness of assets in Japan and India.

Global private equity players are actively raising Asia-focused funds, highlighted by KKR’s recent launch of a $15 billion fund and Blackstone’s $10 billion-plus raised for its third Asia fund capped at $12.9 billion. EQT also expects to close a $14.5 billion Asia buyout fund in 2026. M&A activity targeting Asian firms by private equity has reached $130 billion this year, already surpassing prior annual totals.

Hillhouse is known for early investments in Chinese tech giants and recent global buyout deals including Philips’ domestic appliances, Australian medical researcher George Clinic, and Japan’s Samty Holdings. The latest fundraising coincides with renewed investor interest in China, prompted by lower valuations and a global capital market shift away from the U.S. towards Europe and Asia. This resurgence is critical as investing in China remains central to large Asia-focused funds.

While specifics of Hillhouse’s sixth fund have not been disclosed, the firm maintains a focus on technology, business services, healthcare, and consumer sectors. It plans to increase investment activity and staffing in Japan, which is a key market driver in Asia’s private equity landscape.

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