China Wakes Up To Very Bad News; US-China; Iran War & China - China Update

00:00 Introduction
00:15 China’s Economy: Industrial Profits
03:13 China Unveils World’s Longest Outdoor Escalator in Chongqing
05:58 US-China: Public Science Funding
08:29 Delivery App Price War: Beijing’s Had Enough

The following summary is AI-generated.

- Industrial rebound with caveats: China’s industrial profits surged 15.2% in early 2026, driven by tech manufacturing (especially semiconductors) and commodity-linked sectors — but this follows a low base and is now threatened by soaring global energy prices.

- Energy shock risks gains: A 90% rise in crude prices due to geopolitical tensions is squeezing downstream manufacturers’ margins, undermining the fragile recovery as input costs climb and profit margins hover near decade lows.

- Infrastructure as economic lever: China opened the world’s longest outdoor escalator in Chongqing — symbolizing continued reliance on mega-infrastructure to stimulate growth, despite debt concerns and questions about long-term ROI in less populated regions.

- R&D funding surge: China is on track to surpass the U.S. in public R&D spending by 2028, with 90% growth since 2013, though it still lags in basic research and private-sector innovation, where the U.S. maintains a lead.

- Regulatory crackdown on food delivery: Beijing is ending the subsidy-driven price war among delivery giants (Meituan, Alibaba, JD) to stabilize prices, protect restaurant profits, and curb deflationary pressure — signaling a shift from growth-at-all-costs to sustainable, efficiency-driven competition.

- Macroeconomic recalibration: The government is actively curbing destructive competition (“involution”) to align corporate behavior with broader goals of consumption recovery, employment stability, and pricing normalization.