☕️ Good morning, friends,

What could be better than starting the day with a cup of freshly brewed coffee? As you know, here in China we don’t settle for boring coffee.

Today’s menu: ginger coffee with whole slices or onion coffee with whole pieces. The pictures definitely look promising…

🤝 This week we’re partnering with GENUINE ASIA. They’re also the number-one contact for TikTok Shop in Germany.

BENCHMARKS

NUMBERS

1 billion USD

That’s the value of the record order for electric air taxis from China. 350 aircrafts will go to the Emirati company Autocraft.

30%

That’s how much KFC Japan’s store network will grow by 2030 to satisfy the rising appetite for fried chicken.

8 billion USD

That’s the planned investment magnitude for the expansion of the iconic Marina Bay Sands resort in Singapore.

TOP BIT

💥 US Eases Export Curbs: Nvidia Ships H20 to China

US President Donald Trump has signed the HALT Fentanyl Act into law and, surprisingly, praised China for taking “big steps” in the fight against opioids. Beijing has brought additional precursor chemicals under control but is calling on Washington for more substantial concessions. Both sides are simultaneously negotiating an even larger trade and drug package.

The Details

💊 New US Law: All fentanyl analogues are now permanently classified as Schedule I substances, and minimum sentences for traffickers have been significantly increased.

📦 Tariff Leverage Remains: The 20 percent duties on Chinese imports stay in effect, as they are explicitly tied to the fentanyl dossier.

🔬 China’s Controls: Beijing has banned two more precursor chemicals as well as nitazenes, reporting the seizure of 1,400 tonnes of related substances.

💰 Diplomatic Currency: China’s leadership expects a tariff reduction in exchange, while Washington demands stricter enforcement in every province.

⚖️ Death Penalty Signal: Trump claims that China will in future execute producers who funnel fentanyl into the US.

Why It Matters

• Overdoses: Approximately 80,000 people still die each year from fentanyl in the US. Every diplomatic breakthrough could save thousands of lives.
  

• Trade Leverage: Using tariffs as pressure shows tangible results and could set a precedent for Washington to enforce public-health agendas via economic policy.
  

• Geopolitical Balance: Progress on the drug issue could defuse tensions between the two superpowers and pave the way for follow-up talks.

Background

Fentanyl is an opioid fifty times more potent than heroin. In 2019, China first classified the entire spectrum of related substances as controlled, prompting traffickers to switch to precursor chemicals. Since then, US authorities have recorded fewer pure fentanyl shipments from China but more deliveries via Mexican cartels.

Washington now insists on closing gaps in China’s chemical oversight, while Beijing calls for a reduction in US demand.

📊 All Data & Details: Al Jazeera, CNN, SCMP

OUR PARTNER
💡 Your Powerhouse for E-Commerce in China

China is complex. China moves fast. China forgives no mistakes. Yet some brands seem to thrive there with ease.

GENUINE is your full-service partner for conquering the Chinese market:

• Local know-how: 100 + specialists across Shanghai, Berlin, Hong Kong and more.

• Proven track record: 50 + international brands successfully positioned in China—including Zwilling, Cosnova and Electrolux.

• Full transparency: real-time reporting and direct communication.

• Complete toolkit: E-commerce, social media, offline retail and TikTok-shop optimization.

In short: GENUINE delivers where others merely promise.

👉 Book your call here and take your China business to the next level.

HEAD OF THE DAY
🇹🇼 Tsai Eng-meng

🍘 From canned-fish legacy to snack empire: He turned his family business Want Want China into a $6.8 billion powerhouse with rice crackers and beverages that have won Asia’s taste buds. Now Taiwan’s 8th richest, he also wields influence in media and finance.

👉 Lesson learned: Blending heritage with smart innovation builds a business that stands the test of time.

MARKET BIT
💵 Dollar Funds Flood China’s VC Scene

Details

💼 Fresh Capital: After two lean years, Chinese venture-capital managers are once again raising US dollar funds—BAI Capital is targeting $800 million, and Future Capital has already closed $210 million.

🚀 IPO Tailwind: Hong Kong’s exchange is expected to lead New York in issuance volume in 2025; that boosts exit hopes and makes dollar investments more attractive.

🤖 AI Magnet: Start-ups like DeepSeek prove that China can compete in generative AI—exactly where these new funds want to deploy their capital.

📈 Sentiment Shift: The Hang Seng Index is up over 20 percent year-to-date; at the same time, Beijing’s recent measures signal greater openness to private and foreign investors.

Why It Matters

• Source of Innovation Funding: Without fresh dollars, high-tech founders quickly hit financing limits; the return of global LPs secures research and growth.
  

• Diversification for Investors: International large-scale investors gain access to China’s AI, green-tech, and advanced-manufacturing boom—a chance to hedge geopolitical risks.
  

• Signal Effect for the Market: New dollar funds act like a seal of approval and could lead to broader opening of China’s capital markets.

👉🏻 Full story: SCMP, CNBC

TOP READS

🧮 Open-Source AI Boost From China: Moonshot AI launches Kimi K2, an open-source AI model with 1 trillion parameters and a special core for maths and coding. MoE architecture cuts computing costs, Kimi is free for developers. Two versions for research and everyday use, available as an app. Full story.

🪖 Kim Jong Un Sends More Troops to Russia: North Korea is ramping up its troop deployment in Ukraine to as many as 30,000 soldiers. The alliance guarantees Moscow access to weapons, oil, and technology, while Pyongyang receives economic deals in return. Full story.

🚗 Japan’s Nidec Goes All-in on China Motor: 99 % of the components for Toyota’s new electric-axle motor come from China. That cuts costs and helped drive sales of 20,000 SUVs since March. Supplier Nidec is investing $100 million in a new plant in Qingdao and is ramping up efficiency. Full story.

OPTIONAL READS

Cambodia: Over 1,000 people were arrested in targeted raids against cyber fraud on PM Hun Manet’s directive. More on this.

South Korea: LG unveils Exaone 4.0, a hybrid AI that combines language understanding with logical reasoning. More on this.

Singapore: The economy grew 4.3% YoY in Q2 driven by manufacturing and construction gains. More on this.

FORTUNE COOKIE

🎶 Minor-key disputes, major-key reconciliations: In China’s Guizhou province, courtroom pleas are sometimes sung instead of read aloud.

This was the traditional dispute-resolution method in villages of the Shui ethnic group. Many ethnic traditions are sadly dying out, but this one has even made it into modern courtrooms.

Our plea: More country music in American courtrooms!

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Spotted something funny, interesting, or noteworthy in or about Asia? Send it to [email protected] and we’ll feature it right here!

FEEDBACK

See you tomorrow in your inbox, 

Thomas, Michael & the Team of asiabits