Dear Reader,

China’s third and most advanced aircraft carrier, the Fujian, has left its Shanghai shipyard and is steaming south in the full glare of social media expectations. The online chatterati are tracking and discussing the vessel’s every movement, betting on when it will be commissioned and where it will be based. It’s a far cry from more than two decades ago when a mysterious Chinese businessman slipped into newly post-Soviet Ukraine to sail away with what would become China’s first carrier. There were no public ambitions for a blue-water navy and few knew for sure what the real mission was. There was just cash, a cover story and closed-door conversations.

For a close look at China’s most advanced weapons, explore our multimedia project, The Red Arsenal. And dive into our series After the War on how World War II reshaped modern China. 

We welcome feedback. You can email me at globalimpact@scmp.com and if you enjoy this issue, let us know. 

   

The Big Picture

Touching base 
US and Chinese defence chiefs and foreign ministers hold talks this week, addressing some tough issues. 

• Why it matters: it is the first time Dong Jun and Pete Hegseth have spoken directly, and could signal that a summit is in the works 
• Also, a delegation from the US House of Representatives will visit China, the first in six years
• Meanwhile, the PLA Rocket Force terminates ties with nearly 200 suppliers as corruption investigations widen
• And, Nasa blocks Chinese nationals with US visas from its facilities

More tensions
China will create a nature reserve at Scarborough Shoal in a further attempt to strengthen its sovereignty claims.

• Why it matters: the shoal is the site of clashes between Chinese and Philippine vessels
• Also, why is Xi Jinping sending another message to Kim Jong-un so soon after his China trip?
• And, why is Beijing on alert for social unrest in Nepal?

Wins and Fails

LeBron James gets a byline in Communist Party mouthpiece People’s Daily

Shenzhen launches instant tourist tax refunds via overseas e-wallets 

Labubu is deployed in a plush Putin soft power play 

Shigeru Ishiba resigns, adding new uncertainties to Japan’s strained relations with China

Dior is fined in China for sending data overseas without security screening

The Response Room

Our readers have clearly engaged with the latest high-level US-China talks, with 36 comments so far. We’ve picked one comment to keep the conversation going, and today it’s Trevor who shares his thoughts.

You've still got a couple of days to join the conversation!
Don't forget to check out and participate in the comments section.

Big Numbers

-0.4% – the fall in China’s consumer price index in August

4.4% – the underperforming growth in exports in August

74.02 million ounces – the Chinese central bank’s gold reserves by the end of August

50 billion cubic metres – the estimated amount of liquefied natural gas that Russia could supply to China each year via the Power of Siberia 2 pipeline

Direct Quote 

"Globalisation is becoming more fragmented, more regional. The challenge is that it's becoming more Asian as the US wants to remove itself from it.” 

Ian Goldin, a professor at the University of Oxford, discusses the future of globalisation