Chinas

Jan. 2 (UPI) — Chinese electric car maker BYD surpassed Tesla in annual sales in 2025.

BYD said it sold 2.26 million battery electric vehicles in 2025, a boost of 28% year over year, the company said in a statement Thursday. BYD’s total deliveries from BEVs and plug-in hybrids were about 4.6 million vehicles.

Tesla sold 1.64 million vehicles in 2025, which is about an 8% decline from 2024, the company announced Friday. It’s the company’s second-straight annual drop.

Tesla CEO Elon Musk once laughed at BYD cars in an interview on Bloomberg TV in 2011. He said, “I don’t think they have a great product,” CNBC reported Musk said.

Musk spent the first half of 2025 working for the federal government in the administration of President Donald Trump as the leader of the Department of Government Efficiency. He left in May amid a fight with Trump.

In November, Tesla shareholders approved a new pay package for Musk.The firm said 75% of shareholders with voting rights backed Musk’s 10-year pay deal, which could net him $1 trillion over that time by boosting his stake in Tesla by more than 423 million shares.

Though shares dropped significantly in the first quarter of 2025, they are back on track with an all-time closing high of $489.88 last month, after Musk said it had been testing driverless vehicles in Austin, Texas.

Decline in sales comes amid outrage of Elon Musk’s political forays, end in US electric vehicle tax breaks.

Tesla has lost its place as the top global seller of electric vehicles to Chinese company BYD, capping a year defined by outrage over CEO Elon Musk’s political manoeuvring and the end of United States tax breaks for customers.

The company revealed on Friday that it had sold 1.64 million vehicles in 2025, compared with BYD’s 2.26 million vehicles. The sales represented a 9 percent decline for Tesla from a year earlier.

Tesla, founded in 2003, had for years far outpaced traditional automakers in its development and sale of electric vehicles. However, the market has become increasingly crowded with competitors, with China’s electric vehicle market bounding ahead.

Musk’s embrace of US President Donald Trump in 2024 and subsequent spearheading of a controversial “government efficiency” panel (DOGE) behind widespread layoffs of federal workers has also proved polarising. The political foray prompted protests at Tesla facilities and slumps in sales.

The company’s fourth quarter sales totaled 418,227, falling short of the much-reduced 440,000 target that analysts recently polled by FactSet, an investment research firm, had expected.

Musk left DOGE in May, in what was largely viewed as an effort to reassure investors.

Tesla was also hard hit by the expiration of a $7,500 tax credit for electric vehicle purchases that was phased out by the Trump administration at the end of September. Trump’s opposition to electric vehicles has contributed to a strained relationship with Musk.

Despite the downward trends in sales, investors have generally remained optimistic about Tesla and Musk’s ambitious plans to make the company a leader in driverless robotaxi services and humanoid robots for homes.

Reflecting that optimism, Tesla stock finished 2025 up about 11 percent.

Tesla has also recently introduced two less expensive electric vehicle models, the Model Y and Model 3, meant to compete with cheaper Chinese models for sale in Europe and Asia.

Musk entered 2026 as the wealthiest person in the world.

It is widely believed that the public offering of his rocket company, SpaceX, set for later this year, could make the 54-year-old the world’s first trillionaire.

In November, Tesla’s directors awarded Musk a potentially historic pay package of nearly $1 trillion if ambitious performance targets were met.

Musk scored another huge win in December,when the Delaware Supreme Court reversed a lower court’s ruling, awarding him a $55bn pay package that had been paused since 2018.

Conversely, Tesla is at risk of temporarily losing its licence to sell cars in California after a judge there ruled it had misled customers about the safety of its driverless taxis.

Taiwan’s Lai pledges to defend national sovereignty after Beijing holds live-fire drills around island.

Chinese President Xi Jinping has pledged to achieve the “reunification” of China and Taiwan, calling Beijing’s long-held goal “unstoppable.”

In a New Year’s address delivered a day after China’s military wrapped up war games around Taiwan, Xi on Wednesday invoked the “bond of blood and kinship” between Chinese people on each side of the Taiwan Strait.

“The reunification of our motherland, a trend of the times, is unstoppable,” Xi said.

Xi also hailed the institution in 2025 of an annual “Taiwan Recovery Day”, marking the end of imperial Japan’s rule of the island at the end of World War II.

Xi’s speech came on the heels of two days of live-fire drills simulating a blockade of the island, in what officials called a “stern warning” against “separatist” and “external interference” forces.

The drills were the largest ever held around Taiwan in terms of geographical area.

The war games, codenamed “Justice Mission 2025”, came just days after the United States approved its largest-ever arms package to Taiwan, valued at $11.1bn.

China views self-governing Taiwan as part of its territory and has long pledged to bring the island under its control, using force if necessary.

Taiwan’s ruling Democratic Progressive Party maintains that the island is a de facto independent country, though it has not formally declared independence.

In his New Year’s Day address on Thursday, Taiwanese President William Lai Ching-te pledged to “firmly” uphold national sovereignty and boost the island’s defences.

“In the face of China’s escalating expansionist ambitions, the international community is closely watching whether the people of Taiwan have the determination to defend themselves,” Lai said.

While Taiwan elects its leaders and has its own military, passport and currency, the island is officially recognised by just 11 countries and Vatican City.

China insists that countries do not officially recognise Taipei in order to maintain diplomatic ties with Beijing.

Although the US does not officially recognise Taiwan, Washington is committed to helping the island to defend itself under the Taiwan Relations Act of 1979.

While Washington is Taipei’s principal supplier of arms, the law does not stipulate any obligation to directly intervene militarily in the event of a Chinese blockade or invasion.

Opinion polls suggest a large majority of Taiwanese favour the status quo, with much smaller proportions supporting imminent moves towards formal independence or unification.

In his speech on Wednesday, Xi also hailed China’s innovation in industries including artificial intelligence and space.

“We sought to energise high-quality development through innovation. We integrated science and technology deeply with industries, and made a stream of new innovations,” he said.

“Many large AI models have been competing in a race to the top, and breakthroughs have been achieved in the research and development of our own chips. All this has turned China into one of the economies with the fastest-growing innovation capabilities.”

Dec. 30 (UPI) — China continued its live-fire drill called “Justice Mission 2025,” on Tuesday creating a blockade around Taiwan and disrupting flights, but President Donald Trump said he’s not worried.

Reporters asked Trump about the drills Monday, and he said he has a “great relationship with President Xi [Jinping], and he hasn’t told me anything about it.”

“I certainly have seen it … I don’t believe he is going to be doing it,” Trump said. He didn’t elaborate on what he meant that Xi could do. “Nothing worries me.”

“They’ve been doing naval exercises for 20 years in that area,” he told reporters.

Trump is expected to make a formal visit to Beijing next year.

Though Taiwan is a self-governing democracy, China claims it is a Chinese province. China has been pushing for a “peaceful reunification” with Taiwan. But it hasn’t ruled out taking the island nation by force.

On Friday, China sanctioned U.S. companies and their leadership after the United States announced an $11.1 billion arms deal with Taiwan on Dec. 18.

Taiwan’s Ministry of National Defense said it detected 130 Chinese military aircraft and 22 naval and coast guard vessels in the past 24 hours up to 6 a.m. Tuesday.

“China ignores the expectations of the international community for peace and persists in destroying regional stability with military threat, which is a blatant provocation to regional security and international order, and I would like to express my strongest condemnation,” President Lai Ching-te said Tuesday in a Facebook post.

Lai also said the drills were disrupting trade and air traffic.

“China’s military provocations along the First Island Chain severely disrupt global maritime trade, air traffic and regional peace. #Taiwan continues to act responsibly, neither escalating tensions nor yielding to threats – we will steadfastly defend our freedom against coercion,” he said on X.

Taiwan Defense Minister Wellington Koo said the drills disregarded international norms and “clearly aim to achieve cognitive warfare and deplete Taiwan’s combat capabilities … and to create division and conflict within Taiwanese society,” The Guardian reported.

This exercise is the sixth of its kind since 2022, though it’s the largest. In 2022, the drills were in retaliation for then-Speaker of the House Nancy Pelosi‘s visit. But this is the first time since then that China has created “maritime exclusion zones.” Planes and boats were not allowed to pass during the drills.

China has held two-day military drills – Justice Mission 2025 – around Taiwan, marking the sixth round of large-scale war games since 2022, when then-Speaker of the United States House of Representatives Nancy Pelosi visited the island.

The exercise included 10 hours of live fire drills on Tuesday as Chinese forces practised encircling Taiwan and blockading its major ports.

What happened during the Justice Mission 2025?

The war games began on Monday in the waters and airspace to the north, southwest, southeast and east of Taiwan’s main island, according to China’s Eastern Theatre Command spokesperson Shi Yi.

The exercises saw China deploy its naval destroyers, frigates, fighter planes, bombers, drones, and long-range missiles to simulate seizing control of Taiwan’s airspace, blockading its ports, and striking critical infrastructure, “mobile ground targets” and maritime targets, Shi said.

The exercises also simulated a blockade of Taiwan and its main ports, Keelung and Kaohsiung.

Tuesday’s live-fire drills were held in five zones around Taiwan between 8am and 6pm local time (00:00 GMT and 10:00 GMT), according to the Eastern Theatre Command. Chinese forces fired long-range rockets into the waters around the island, according to a video released by the military on social media.

Taiwan’s coastguard said seven rockets were fired into two drill zones around the main island.

Taiwan’s Ministry of Defence said it had tracked 130 air sorties by Chinese aircraft, 14 naval ships and eight “official ships” between 6am on Monday and 6am on Tuesday.

Ninety of the air sorties crossed into Taiwan’s air defence identification zone (ADIZ), an area of land and sea monitored by Taipei, during the 24 hours, in the second-largest incursion of its kind since 2022.

How were the exercises different from last time?

Justice Mission 2025 was the largest war game since 2022 in terms of the area covered, according to Jaime Ocon, a research fellow at Taiwan Security Monitor.

“These zones are very, very big, especially the southern and southeast zones around Taiwan, which actually breached territorial waters,” he told Al Jazeera, referring to the region within 12 nautical miles (22km) of Taiwan’s coast. “That’s a big escalation from previous exercises.”

They also focused explicitly on blockading Taiwan, unlike past iterations, sending a strong message to Taipei and its unofficial allies, particularly the US and Japan.

“This is a clear demonstration of China’s capability to conduct A2/AD – anti-access aerial denial – making sure that Taiwan can be cut off from the world and that other actors like Japan, the Philippines, or the United States cannot directly intervene,” Ocon said.

A blockade would impact not only the delivery of weapons systems but also critical imports, such as natural gas and coal, that Taiwan relies on to meet nearly all its energy needs. It would also disrupt vital global shipping routes through the Taiwan Strait.

Alexander Huang, director-general of Taiwan’s Council on Strategic and Wargaming Studies, told Al Jazeera the drills were similar to those held after Pelosi’s visit in August 2022.

“For this drill, it actually interfered with international civil aviation routes and also maritime shipping routes. In previous drills, they tried to avoid that, but this time they actually disrupted the air and maritime traffic,” he said.

The drills also put pressure on Taiwan’s maritime and transport links to Kinmen and Matsu islands, which are closer to the Chinese mainland.

Why did China stage the exercises now?

China has a history of holding military exercises to express its anger with Taiwan and its allies, but large-scale exercises have become more frequent since Pelosi’s Taiwan visit.

Beijing claims Taiwan as a province and has accused the US of interfering in its internal affairs by continuing to sell weapons to Taipei and supporting its “separatist” government led by President William Lai Ching-te.

Washington does not officially recognise Taiwan, whose formal name is the Republic of China, but it has pledged to help Taipei defend itself under the 1979 Taiwan Relations Act and the 1982 Six Assurances.

The Justice Mission 2025 came just days after Washington approved a record-breaking $11.1bn arms sale to Taiwan.

China’s Ministry of Foreign Affairs said on Monday that the drills were a “punitive and deterrent action against separatist forces who seek ‘Taiwan independence’ through military build-up, and a necessary move to safeguard China’s national sovereignty and territorial integrity”. Beijing sanctioned 30 US firms and individuals over the arms sale.

Experts also say the exercises were linked to a separate but related diplomatic row between China and Japan.

Beijing was angered in November by remarks from Japanese Prime Minister Sanae Takaichi that an attack on Taiwan would be a “survival-threatening situation” for Japan. Such a scenario would legally permit Japan to exercise its “right of collective self-defence” and deploy its military, she said.

How is Taiwan responding to the drills?

Taiwan cancelled more than 80 domestic flights on Tuesday and warned that more than 300 international flights could be delayed due to flight rerouting during the live-fire drills.

Taiwan’s Defence Ministry said the coastguard monitored the exercises near the outlying islands and that an undisclosed number of naval vessels had also been deployed nearby. Taipei also monitored all incursions into its ADIZ, including the Taiwan Strait, sections of coastal China, and waters around Taiwan.

In a statement on Tuesday, Defence Minister Wellington Koo said, “[Beijing’s] highly provocative actions severely undermine regional peace and stability [and] also pose a significant security risk and disruption to transport ships, trade activities, and flight routes.”

Koo described the exercises as a form of “cognitive warfare” that aimed to “deplete Taiwan’s combat capabilities through a combination of military and non-military means, and to create division and conflict within Taiwanese society through a strategy of sowing discord”.

How did the US respond to the drills?

US President Donald Trump has so far remained quiet about the military drills, telling reporters on Monday that he was “not worried”.

“I have a great relationship with President Xi, and he hasn’t told me anything about it,” Trump said when asked about the exercises during a news conference, according to Reuters. “I don’t believe he’s going to be doing it,” he added, seemingly referring to the prospect of actual military action targeting Taiwan.

William Yang, a senior analyst for Northeast Asia at the International Crisis Group, told Al Jazeera that Trump might avoid saying much about the Justice Mission 2025 exercises as he hopes to meet President Xi Jinping in April to discuss a US-China trade deal. “It’s a diplomatic strategy to make sure the US response is not going to immediately upset the temporary trade truce between the US and China,” Yang said.

“I think it’s quite consistent with how he personally and his administration have been handling the issue of Taiwan by trying to de-prioritise making public statements,” he said.

New imagery of Chinese catapult-capable low-observable combat drones, or possibly mockups thereof, together with some unusual trucks, may point to plans to launch them from the ground, as well as ships. A modular, truck-mounted electromagnetic catapult system would offer a valuable additional way to launch larger drones, especially in areas with limited access to traditional runways. General Atomics in the United States has proposed a roughly similar concept in the past, leveraging technology developed for the U.S. Navy’s Ford class aircraft carriers.

Pictures of the drones sitting dockside at Hudong-Zhonghua shipyard in Shanghai first began circulating online late last week. The presence of the super-sized Type 076 amphibious assault ship Sichuan in drydock nearby still raises the possibility of plans for trials aboard that ship, which features a single electromagnetic catapult, as was discussed in TWZ‘s initial reporting here. A medium-sized cargo ship loaded with containerized vertical launchers, as well as sensors and close-in defense systems, which emerged last week, has also been moored at this yard recently.

Though the drones are still under wraps in the new images, we do now have a better look at their overall design. This includes nose landing gear with bars that clearly show the design is intended for catapult launch. There is also a notable outline of a fairing under the nose, though no further details about that feature can be discerned at present.

It is interesting to note that a mockup of a drone called the FH-97, shown at China’s Zhuhai Airshow in 2021, was depicted with an electro-optical sensor in a stealthy gold-plated windowed enclosure installed under its nose. The overall design of the FH-97, which is at least heavily inspired by the XQ-58A Valkyrie from U.S. drone maker Kratos, is similar in many other respects, at least in broad strokes, to what has now been seen at the Hudong-Zhonghua shipyard. The XQ-58 and FH-97 are both notably smaller designs. There are also similarities to two Chinese ‘loyal wingman’ type drone designs, commonly referred to presently as the Type C and Type E, which emerged around a huge military parade in Beijing back in September.

More interestingly, the new pictures from Hudong-Zhonghua shipyard show at least three eight-wheeled trucks that look designed to lock together seamlessly in a chain. Doing so also appears to form a continuous flat surface across the top. One of the drones is seen loaded at the rear of one of the trucks with its nose gear bar locked into what looks to be a catapult shuttle.

Besides the cabs in front, the sides of the trucks are largely open, showing elaborate electrical systems and large amounts of heavy exposed wiring. There is a cylindrical drum above each wheel, which could be part of an independent articulating suspension system capable of self-leveling. They might also serve another purpose, which we will come back to later on.

A satellite image taken yesterday, which TWZ obtained from Planet Labs, shows what looks to be at least four of the trucks parked close together in a line along one of the piers at Hudong-Zhonghua shipyard. Despite the low resolution, a drone is plainly seen loaded on one of the trucks. Another one of the ‘loyal wingman’ drones is visible immediately behind the row of trucks, in line with what is seen in the pictures taken at ground level. Four more of the swept-wing drones are also visible further down the pier. A Wing Loong-type drone, similar to the Q-1/Q-9 Predator/Reaper series, is also present.

Altogether, there is the potential that these trucks could be part of a mobile ground-based electromagnetic catapult system. The cylinders and wiring seen on the trucks might be electromagnets and/or other supporting components. Any such system would also need to be self-leveling to help ensure a clean launch.

At the same time, they could still just be transporters, though the design looks far more elaborate than would be required for that purpose alone. The trucks could possibly be designed to serve both functions.

There is the additional question of why, if this is indeed a ground-based electromagnetic catapult system, it has been brought down to Hudong-Zhonghua shipyard at all. This is not the environment in which one would expect such a system to be employed, and there are no clear signs as of yet that it is there as part of a larger display.

Regardless, the basic idea of employing an aircraft carrier-type catapult launch system on land is not new. China itself, as well as the United States, has built steam and electromagnetic-powered catapults at land-based test sites for test, evaluation, and training purposes. The U.S. Marine Corps actually employed an ‘aircraft carrier on land’ with catapults and arresting gear, called the Short Airfield for Tactical Support (SATS) system, operationally during the Vietnam War, which you can read more about here.

CE-2 TRACKLESS AIRCRAFT LAUNCHER 1966 MARINE CORPS SHORT AIRFIELD FOR TACTICAL SUPPORT FILM 81190

At least one company in China, Tiantao Technology, has been openly talking about plans for a ground-based electromagnetic catapult system made up of modular wheeled segments since at least August of this year. Renderings have shown 10-wheeled sections that do have some broad similarities to, but that also are distinctly different from the eight-wheeled trucks seen at Hudong-Zhonghua shipyard. The eight-wheeled trucks, if they are part of a mobile electromagnetic catapult system, could also reflect an early developmental iteration.

Tiantao Technology has also reportedly said the system will be capable of launching uncrewed aircraft weighing up to around 2.2 tons (two metric tons). This is lighter than the expected takeoff weights of ‘loyal wingman’ type drones China has shown to date, based on the known specifications of comparably-sized Western designs. For example, the stated maximum launch weight of the XQ-58 is three tons, according to Kratos. As another point of comparison, the Chinese GJ-11, a larger flying-wing uncrewed combat air vehicle (UCAV), a catapult-capable version of which is now in development, reportedly has a payload capacity of around two tons. China’s J-15 family of crewed carrier-based fighters, derived from the Su-33 Flanker, each weighs around 19 tons (17.5 metric tons) empty without any fuel or ordnance, as well.

It is possible that the modular design of Tiantao Technology’s ground-based catapult system could allow for configurations capable of launching heavier designs. A core benefit of electromagnetic catapults over steam-powered ones, in general, is their ability to be more fine-tuned in terms of the forces they exert on any aircraft during launch. The capabilities of a modular system would also be dependent on its exact configuration, including how long the catapult track is overall. Tiantao Technology has said the total length of its system could be scaled between roughly 65 and 196 feet (20 and 60 meters). What limitations there might be on simply adding more segments to increase launch capacity are unknown.

China’s aircraft carrier electromagnetic catapult is incredibly cool — the moment the catapult comes to an instant stop looks like a space jump straight out of a sci-fi movie. pic.twitter.com/VWdLOEzgzS

— JacksonS (@shrmodelx) December 25, 2025

Tiantao Technology has also shown models and renderings of truck and trailer-mounted electromagnetic catapults for launching even smaller drones. How much progress it has made in the actual development of any of the systems to date is unclear. Other firms in China could very well be working along similar lines, too.

All this being said, a ground-based electromagnetic catapult system capable of launching even two-ton drones still opens doors to new operational possibilities. This is a capability that could be especially valuable in expeditionary scenarios or other contexts in which access to traditional runways is limited. A mobile system would also offer a new way to push at least a certain tier of airpower closer to the front lines, and help keep it in close proximity where it could be more responsive, even as the dimensions of the battlefield evolve. Less transit time would translate to more on-station endurance even for smaller, shorter-range drones.

Another general benefit of electromagnetic catapults over steam-powered types is the shorter reset time, which, by extension, increases sortie generation rates. How Tiantao Technology envisions drones being loaded on its ground-based system is unclear. It is possible that a truck preloaded with a drone could drive up, lock into the rear of the track, launch, and then detach to make way for the next one, offering additional benefits when it comes to operational tempo. Being able to break the launch system into multiple parts and disperse it when not in use would create targeting challenges for enemies and help increase survivability, as well.

As TWZ regularly notes, China’s People’s Liberation Army (PLA) has major standing requirements to be able to conduct island-hopping campaigns against various potential opponents in the Pacific, where a shore-based electromagnetic catapult system could be particularly relevant. The PLA is also postured to fight in highly remote and high-altitude areas along its disputed western border with India, where access to established runways is also often limited.

These kinds of operational scenarios are driving the pursuit of aircraft, especially uncrewed types, with reduced runway requirements or entirely runway-independent designs by many armed forces globally. This includes the U.S. military. A ground-based electromagnetic catapult is just one way of approaching this operational need. There are runway-independent drones already on the market today that are launched with the help of expendable rocket motors or pneumatic catapults. However, these methods impose their own limitations, especially when it comes to launch weight and payload capacity. Rocket-assisted takeoffs come along with the additional risks associated with using that kind of propellant, as well as the stresses that are imparted on the aircraft being launched. The rockets are also consumed on launch, requiring a steady supply of them at any operating location. Kratos has notably demonstrated a special launch trolley for its primarily rocket-launched XQ-58 that allows for traditional runway takeoffs. The company is also developing a version of that design with built-in landing gear, to offer increased flexibility.

In the context of what may now be in development in China, there is the additional question about how drones might be recovered after launch from a ground-based electromagnetic catapult. Tiantao Technology does not appear to have elaborated yet on this part of the expected concept of operations for its system. The aforementioned concept that General Atomics put forward paired an electromagnetic catapult with a separate arrested landing system, also based on technology developed for the U.S. Navy’s Ford class aircraft carriers. As noted, the Vietnam War-era SATS system also included arresting gear. The U.S. military and other armed forces globally already employ deployable arresting gear, especially to enable crewed tactical jet operations from far-flung locations with shorter runways. Drones could recover at tertiary bases, or be designed to land via parachute or some other runway-independent method, as well. The system could also be used to launch long-range one-way attack drones that would not be designed for recovery at all.

There is also a question of power and other logistical requirements. However, a ground-based electromagnetic catapult system that is not required to support all of the different types in a full carrier air wing, especially larger crewed aircraft, would inherently require far less capability.

It is also worth noting that a modular electromagnetic catapult system might be usable on ships that do not have this capability built into their design. As mentioned, the drones and trucks seen at Hudong-Zhonghua shipyard were spotted near a cargo ship loaded with various containerized weapons and other systems. A drone launch capability of some kind would be a logical addition to a vessel with that configuration. At the same time, whether or not any catapult system made up of multiple segmented components would be stable enough for use on a ship rocking back and forth at sea is unclear.

As a general note, major new military capabilities often emerge in China during the time between Christmas and New Year’s. This is also something that happens with the clear acquiescence of authorities in Beijing if they are not outright announced through official channels. Hudong-Zhonghua shipyard is an obvious area of interest for observers, and Chinese authorities do not appear to have taken any special steps to conceal the recent appearance of the drone mockups or the trucks.

More details about the trucks, and their exact function, as well as the drones, may now begin to emerge.

Contact the author: joe@twz.com

Dec. 28 (Asia Today) — Hanyang University business professor Lee Woong-hee said South Korean companies face structural disadvantages versus fast-rising Chinese rivals, citing China’s lack of inheritance and gift taxes and fewer work stoppages tied to strikes.

In a column, Lee said many in South Korea view China as a socialist system with low economic freedom, but argued Beijing has increasingly tolerated business autonomy since its “reform and opening-up” era. He pointed to China’s 2004 constitutional recognition of private property rights as an example of what he described as a bold shift, even though the state retains land ownership.

Lee argued China has absorbed Western institutions such as private property rights and joint-stock companies into its system, rebranding them as “new socialism,” and said Chinese scholars have promoted theoretical justifications for that approach.

Lee said China holds advantages that South Korean firms do not, starting with taxation. He wrote that China does not currently levy inheritance, estate or gift taxes, unlike South Korea, where high inheritance and gift tax burdens can pressure founders to sell companies rather than pass them on to heirs.

He also said China faces fewer production disruptions from strikes. Lee noted China removed the right to strike from its 1982 constitution and allows only the All-China Federation of Trade Unions as a legal union structure, limiting independent organizing.

While acknowledging an increase in labor disputes, Lee cited reports estimating 1,509 labor incidents in 2024 and argued they remained relatively small-scale and dispersed, with authorities preventing wider escalation.

Beyond taxes and labor, Lee said China benefits from deeper pools of engineering talent and stronger industrial support. He also argued South Korea’s industrial electricity rates are significantly higher than China’s, and said Beijing offers broad policy backing for strategic industries.

Lee wrote that China’s startup momentum appears stronger, citing surveys suggesting higher startup rates among Chinese graduates and pointing to global rankings that placed Beijing among leading startup cities. He said China ranks second globally in the number of unicorn companies after the United States.

Lee concluded that China’s older socialist traits appear to be fading and that its entrepreneurial culture is reasserting itself, arguing it may only be a matter of time before China becomes more business-friendly than South Korea.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Caption:Professor Lee Woong-hee of Hanyang University’s business school. /Asia Today

An image has emerged that appears to show, for the first time, one of China’s growing series of low-observable combat drones aboard the country’s super-sized Type 076 amphibious assault ship, the Sichuan. The development is in line with previous predictions that this vessel will be capable of supporting high-end aerial drone operations as well as traditional amphibious assaults.

The image in question began to circulate recently online and shows the rear portion of the drone on the deck of the Sichuan, partly obscured by one of the vessel’s twin island superstructures. The characteristic twin, outward-canted tailfins of the drone suggest that this is a navalized version of the design that has been informally dubbed Type C by Chinese aerospace observers. It is part of a collection of aircraft that are considered to be broad Chinese equivalents of the U.S. Air Force’s Collaborative Combat Aircraft (CCA).

While the image appears to be genuine, it should be considered at least possible that the drone in question is a mockup. China makes considerable use of aircraft mockups, on land and at sea, to assist with the development and subsequent service introduction of aircraft carriers and assault ships.

The so-called Type C is a subsonic CCA or “loyal wingman”-type drone. Its key features include a swept lambda wing planform, the aforementioned canted tail fins, an internal stores bay, and a single jet engine fed by a dorsal intake. Overall, in terms of configuration, it has some similarities with the U.S.-made XQ-58A Valkyrie, but it is much larger. According to unconfirmed reports, it is said to be optimized for air-to-ground missions, although intelligence, surveillance, and reconnaissance (ISR) and electronic warfare would also be likely roles. The Type C is one of at least four new CCA-type drones that were publicly unveiled at the parade celebrating 80 years since the defeat of Japan in World War II, held in Beijing on September 3, 2025.

It would make a good deal of sense for the drone to now be evaluated by the People’s Liberation Army Navy (PLAN) onboard the Sichuan. As you can read about here, the first of the Type 076 assault ship left port for its first sea trials last month.

Thanks to its electromagnetically-powered catapult, the 44,000-ton Type 076 is unlike any other big deck amphibious warship in terms of the kind of air wing that it can accommodate, which is expected to be dominated by uncrewed types.

Previously, Type 076’s air wing was expected to include naval versions of the GJ-11 stealthy flying-wing uncrewed combat air vehicle (UCAV), sometimes known as the GJ-21. This theory was supported by apparent GJ-11 mockups that appeared at a test and/or training site right on Changxing Island in Shanghai, very close to where the Type 076 was being built. This may well still be the case, but it now looks like a navalized Type C drone will at least supplement it.

The navalized GJ-11 is expected to operate primarily from China’s true aircraft carriers, including the catapult-equipped Fujian, which was commissioned last month. This carrier is expected to be followed by six more by 2035, according to a Pentagon report, which would provide the PLAN with a total of nine. Recent imagery indicates that China is now progressing with work on its fourth flattop, which is expected to introduce nuclear propulsion.

Returning to the Sichuan, in addition to drones, the warship will accommodate various helicopters, and very likely also a crewed tiltrotor aircraft, which is now in flight testing.

While we don’t yet know whether the Type C has been launched from the Sichuan, there have already been signs of preparations for flight trials. Shortly before the vessel left port for the first time, full markings had been painted on its flight deck, as part of its final fitting out.

Furthermore, as seen in the social media post below, evidence emerged at the end of October showing what looked to be a red-colored catapult test ‘truck’ on Sichuan’s deck. This, in turn, pointed to the start of testing of the ship’s lone catapult.

Again, as we have discussed before, as well as the catapult, the layout of the Type 076 design is heavily focused on sustained flight operations. These features include its unusually wide flight deck and the ship’s two islands. As such, fixed-wing drones can be launched by the catapult at the bow end and recovered via some form of arresting gear.

As TWZ previously wrote about the overall significance of the Sichuan:

“The potential value to the PLAN of having a fleet of very large deck amphibious assault ships that are highly capable of large-scale drone operations as well as traditional amphibious assaults is clear. These ships could be used to launch and recover UCAVs like the GJ-11 and other types of drones to perform a host of missions from maritime strike to intelligence, surveillance, and reconnaissance (ISR). They could be used to provide additional ‘mass’ in support of the operations of larger carrier strike groups and help to free the air wings of flattops like Fujian up for tasks they might be better suited for. In addition, they could provide a lower tier of naval aviation support that could be employed independently.”

…

“Simply having more naval aviation capacity overall would give the PLAN added flexibility for various operations closer to the mainland, including a potential military intervention against Taiwan or defending its expansive and largely unrecognized territorial claims in places like the South China Sea. Type 076s could also help project naval and air power further from China’s shores, something that has also been a driving factor behind the country’s broader carrier ambitions.”

Chinese PLA Navy’s First Type 076 Amphibious Assault Ship “Sichuan” Conducts First Sea Trial

It remains to be seen if the PLAN’s current ambitions include introducing the navalized Type C as part of the regular air wing for the Type 076, or whether it is currently being used as part of an evaluation that may lead to a different type of uncrewed aircraft going aboard the warship. By the same token, we don’t yet know if China currently plans to acquire more Type 076s, or if this design is also initially intended more to prove out the concept of super-sized assault ships.

For now, however, the appearance of the Type C, or a mockup thereof, aboard the Sichuan, underscores China’s broader goal of deploying a host of different uncrewed types aboard aviation-capable warships of various kinds.

Contact the author: thomas@thewarzone.com