Dear Reader,

So many, so quickly and for so long. People in mainland China watched in shock this week as a fire tore through a Hong Kong neighbourhood, claiming dozens of lives, engulfing entire tower blocks and defying desperate efforts to extinguish it. Almost 15 years ago to the day, another high-rise blaze in Shanghai killed 58 people after welders accidentally set fire to scaffolding. It was with heartbreaking disbelief that mainlanders saw such horror visited on Hong Kong.

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

Long winter 
The diplomatic dust-up between Japan and China rumbles on with no sign of abating. 

• Why it matters: the row has rippled out beyond the region, drawing in US President Donald Trump
• But, has Trump really pressed Japanese Prime Minister Sanae Takaichi to dial back the rhetoric on Taiwan?
• And, why is Beijing unlikely to ease up on Japan this time?
• Also, what is China’s demand and could the row harden Takaichi’s grip on power?

With more than 100 comments and counting, our readers are clearly engaged in a lively debate about the shifting power dynamics in East Asia with our story Trump talks to Japanese PM hours after his overnight call with China’s Xi.

Westwind Z “China gov. has put Japan PM's talk on Taiwan as a clear signal for Japan's deliberately changing the result of their failure on WWII... that's the whole meaning of this Xi-Trump talk...”

Our response: You have pinpointed exactly why this diplomatic row has escalated so quickly. By characterising a Taiwan contingency as a “survival-threatening situation”, Takaichi touches a raw nerve regarding the post-WWII order and Japan's historical role. For Beijing, this isn't just about current security; it is viewed as a blunt challenge to its sovereignty and an attempt to undo the historical “liberation” of the island. This perception explains the severity of the countermeasures, from seafood bans to travel warnings.

You've still got a couple of days to join the conversation!

Up and away
China launches itself into reusable rocket technology and wants private capital to come along for the ride.

• Why it matters: China is trying to advance commercial space flights to compete with the US
• Meanwhile, an emergency replacement spacecraft arrives at the Tiangong space station
• And, a private Chinese aerospace company produces a low-cost hypersonic missile  

Wins and Fails

Comac debuts its C909 “flying hospital”

Hu Yaobang is remembered for his pursuit of reform and idealism

Big Numbers

128 – the death toll from a high-rise fire in Hong Kong as of Friday

US$40 billion – the additional defence spending proposed by Taiwanese leader William Lai Ching-te for the next eight years

11 – the death toll from a train accident in southwest China

Direct Quote 

“China is still growing, for the next three to five years, at least twice as fast as the United States. So I am of the view that convergence – that is, China approaching the US’ level of total output – is continuing.”

US economist Nicholas Lardy discusses China’s economic prospects.