Your Daily China Briefing

Beijing Threatens EU Trade Probes Amid Stalled Factory Growth and Successful Space Mission

• Beijing has threatened to initiate trade probes against the European Union if the bloc proceeds with proposals to curb imports of heavily subsidized foreign products, a move widely seen as targeting Chinese industrial exports like electric vehicles and steel. Chinese authorities, citing unnamed sources, indicated they could launch anti-discrimination and supply-chain security investigations into the EU's "overcapacity instrument," promising immediate and comprehensive countermeasures if the tool advances.

  MorningstarThewirechina

• China's Shenzhou-21 crew successfully returned to Earth on May 29, 2026, after approximately six months aboard the Tiangong space station. The three taikonauts, Commander Zhang Lu, flight engineer Wu Fei, and payload specialist Zhang Hongzhang, landed safely in the Shenzhou-22 spacecraft, which was launched uncrewed in November 2025 as an emergency replacement for the damaged Shenzhou-20.

  SpacepolicyonlineScmp

• China's factory activity likely remained flat in May, with the official manufacturing purchasing managers' index (PMI) expected to drop to 50 from 50.3 in April, hitting the threshold separating growth from contraction. This stagnation indicates that weak domestic demand and cost pressures, partly stemming from the U.S.-Israeli war on Iran, may be weighing on the manufacturing sector despite a global artificial intelligence boom fueling demand for China-made electronics.

  Whtc

• In a strategic geopolitical move, China recently implemented a "zero-tariff" policy for 53 countries in Africa, removing import taxes on raw materials and resources. This initiative aims to provide African nations with hard currency and lower input costs for Chinese manufacturers, positioning Beijing as a stable trading partner and generating goodwill amidst global trade tensions.

  Washington Post