Business Brief (Sept. 2): Xi Calls for Establishment of SCO Development Bank

Chinese President Xi Jinping, at the Shanghai Cooperation Organisation (SCO) summit in Tianjin, emphasized the need to accelerate the creation of an SCO development bank to bolster economic cooperation among member states. He also called for establishing centers addressing security threats and drug trafficking, aiming to strengthen regional security frameworks[para. 2]. In a related “SCO+” meeting, President Xi proposed a joint artificial intelligence (AI) application cooperation center with partner countries, promoted the use of the BeiDou Navigation Satellite System, and encouraged qualified nations to join efforts for an international lunar research station[para. 3].

BYD, a leading Chinese electric vehicle manufacturer, reported essentially flat new-energy vehicle (NEV) sales for August at 373,626 units, closely matching last year’s August sales of 373,083, underscoring stagnant growth in the sector[para. 4]. Meanwhile, China’s top 100 property developers faced continued sales slumps, with August sales hitting record lows. Data showed a 13.1% year-on-year decline in sales for the first eight months of 2025, a deeper drop than the previous period, despite recent easing of homebuying restrictions in key cities[para. 6].

China is advancing regulatory measures in both credit and AI sectors. The National Development and Reform Commission (NDRC) has published draft rules for credit repair, categorizing breaches and stipulating varying periods for public disclosure, after which rectified records will be automatically expunged[para. 5]. Additionally, the NDRC will soon introduce detailed implementation rules for its “AI+” initiative, targeting six major industries and aiming to standardize protocols for data, models, and agents to accelerate sectoral AI adoption[para. 7].

On the international front, gold prices soared to a new all-time high on September 1, with COMEX gold futures peaking at $3,552.4 per ounce, driving up related stocks in China’s A-share market[para. 6]. JD.com, one of China’s e-commerce giants, has made a €2.2 billion ($2.4 billion) bid to acquire the European electronics retailer CECONOMY AG, signaling ongoing Chinese expansion in overseas retail markets[para. 12].

The growing competition in advanced technology sectors was highlighted by Elon Musk’s lawsuit against a former xAI employee who allegedly defected to competitor OpenAI. The case underscores Silicon Valley’s intensifying battle for AI talent, with the defendant being a Chinese citizen and Canadian permanent resident[para. 10]. Chinese AI firm DeepSeek has instituted mandatory watermarks on all AI-generated content and warns users against tampering, reinforcing efforts to control the spread of fake or infringing material[para. 11]. UBTech Robotics, a pioneering Chinese mainland humanoid robot manufacturer, has secured a $1 billion credit line from Infini Capital, which also plans to invest in global expansion, a new Middle East venture, and a robotics super factory. UBTech has raised over HK$4 billion ($514 million) since going public in December 2023, reflecting the sector’s surge in investment and public offerings[para. 13].

In other domestic news, China implemented an interest subsidy policy for consumer loans from September 1 (excluding cash advances and credit card spending)[para. 14]. Summer travel by air and rail set new volume records, although growth did not meet expectations, and the summer box office results were disappointing[para. 15][para. 16].

Internationally, European Commission President Ursula von der Leyen revealed that Europe has detailed plans to send troops to Ukraine, with stated support from the United States, indicating deepening international involvement in the ongoing conflict[para. 20]. Deadly protests in Indonesia have led the government to revoke certain lawmaker benefits, though demonstrations may continue; the unrest has caused eight deaths so far[para. 9]. In Chinese corporate news, Industrial Bank reported renewed net profit growth, while Meituan released and open-sourced a large 560-billion-parameter AI model[para. 17][para. 18].