China Breaks Ground on the World’s Largest Hydropower Project in Tibet

 

 

 

 

On July 19, China officially launched the construction of the Yarlung Tsangpo Hydropower Project (also known as the Motuo Hydropower Station) in southern Tibet’s Nyingchi region. Premier Li Qiang attended the groundbreaking ceremony, marking the start of what is set to become the largest hydroelectric project on the planet.

 

 

 

 

 

 

 

 

The project, composed of five cascade dams, is expected to cost approximately RMB 1.2 trillion (around USD 165 billion). With a projected installed capacity of 60 to 81 million kilowatts, the dam would generate an estimated 300 billion kilowatt-hours annually—three times the output of the Three Gorges Dam, which currently holds the global record at 22.5 million kilowatts.

 

 

 

 

Primarily designed to export power to other regions of China, the project will also serve local electricity needs in Tibet. The annual output could theoretically supply 300 million people, a major step toward bolstering China’s energy security and meeting its carbon goal:carbon neutrality by 2060.

 

 

 

 

However, the mega-project has sparked environmental concerns. Experts warn that such a massive intervention on the ecologically fragile Qinghai-Tibet Plateau could have irreversible consequences. In addition, downstream countries India and Bangladesh, which rely on the Brahmaputra River (the name for the Yarlung Tsangpo beyond China), are keeping a close watch over potential transboundary impacts.

 

 

 

 

In response to these concerns, Chinese officials stated that the project will make use of advanced technologies, equipment, and materials to ensure high-quality and eco-conscious construction, pledging to safeguard the region’s environment during the build-out.

 

 

 

 

As China pushes forward with its renewable energy ambitions, the Motuo project underscores both the scale of its climate ambitions and the complex trade-offs involved in reshaping global energy landscapes.

 

 

 

 

China Lowers Luxury Car Tax Threshold, Hitting High-End Volume Brands

 

 

 

 

On July 17, China’s Ministry of Finance and the State Administration of Taxation jointly announced a new policy to adjust the consumption tax on ultra-luxury vehicles. Effective July 20, the new regulation lowers the tax threshold for all types of passenger and mid/light commercial vehicles—regardless of powertrain, including pure electric and fuel cell vehicles.

 

 

 

 

 

 

 

 

The key change: the tax will now apply to vehicles with a retail price of CNY 900,000 (excluding VAT) or more, down from the previous threshold of CNY 1.3 million. In invoicing terms, this means the new taxable range begins at an inclusive price of CNY 1.017 million, capturing a significant share of China’s high-end vehicle market that previously flew under the tax radar.

 

 

 

 

According to industry data, 37,000 vehicles priced above CNY 900,000 were sold in the first half of 2025. Among them, traditional fuel cars still dominate with 33,000 units, down 41% year-on-year. Plug-in and non-plug-in hybrid models totaled just 3,200 units, falling 69% year-on-year.

 

 

 

 

By brand, the biggest players in this segment are:

 

 

 

 

• Mercedes-Benz, with 16,000 units sold (48% market share)
• Land Rover, 8,500 units (23%)
• Porsche, 6,800 units (18%)
• Lexus, 3,000 units (8%)
• Bentley, 1,100 units (3%)

 

 

 

 

The brands most impacted by the tax change are those that blend luxury positioning with high-volume sales, such as Porsche and Mercedes-Benz. Popular models like the Porsche 911 and Panamera, Toyota Alphard, Land Rover Range Rover, and even certain trims of the Mercedes S-Class and GLS now fall into the new taxable bracket.

 

 

 

 

 

 

 

 

 

 

 

 

In response, both consumers and dealerships are rushing to close purchases before the policy takes effect. Some dealers are offering full tax subsidies on select models, such as the Maybach S-Class, while automakers like Land Rover have introduced manufacturer-sponsored tax relief programs to maintain demand.

 

 

 

 

As brands adjust their pricing and incentive structures, the move may reshape China’s high-end auto market heading into 2026.

 

 

 

 

Jensen Huang Touches Down in Beijing — With a Message

 

 

 

 

On July 15, Nvidia founder and CEO Jensen Huang made a rare and symbolic appearance at the 3rd China International Supply Chain Expo in Beijing—his first time participating in a major government-hosted event in China.

 

 

 

 

True to form, Huang didn’t just show up—he made a statement. Dressed in traditional Chinese attire, he addressed the audience partly in Mandarin, highlighting China’s critical role in the global AI race. “Fifty percent of the world’s AI researchers are in China,” he noted. “This market is massive, dynamic, and incredibly innovative. U.S. companies need to be here.”

 

 

 

 

 

 

 

 

When asked about Huawei’s progress, Huang issued a candid warning to skeptics: “Anyone who discounts Huawei—or China’s manufacturing capabilities—is deeply naive.” With 30 years in semiconductors under his belt, Huang said he’s been impressed by how quickly Huawei has closed the gap.

 

 

 

 

As for business, Huang confirmed that Nvidia is reapplying for licenses to sell its H20 GPUs in China. The U.S. government has signaled that approvals are likely, and Nvidia is hopeful shipments can begin soon.

 

 

 

 

Still, the road ahead is uncertain. Huang admitted he has yet to meet with Chinese clients since the announcement, and it’s unclear when orders might resume—or if demand has shifted. “We don’t yet know how long it’ll take to get the supply chain moving again,” he said, suggesting that investors hoping for a quick revenue boost might need to sit tight.

 

 

 

 

In Beijing, the message from Huang was clear: Nvidia isn’t stepping back from China. But just how fast it can step forward remains a question of timing, policy—and patience.

 

 

 

 

Sam’s Club Faces Backlash for Going “Too Mainstream”

 

 

 

 

Sam’s Club, long celebrated for its “strictly curated” product selection, is facing heat from its most loyal supporters—its members. The recent appearance of mass-market brands like Orion, Weilong, and Xu Fushi—typically found in neighborhood supermarkets—has sparked discontent among customers who feel the retailer is straying from its premium promise.

 

 

 

 

“Why are we paying 260 or even 680 yuan a year in membership fees for the same items we can grab downstairs?” questioned members across social media. The backlash was sharp enough that on July 15, Sam’s issued a formal response, saying it would incorporate member feedback into future product strategies. Notably, the low-sugar Orion Pie—at the center of the controversy—was quietly removed from the Sam’s Club app.

 

 

 

 

At its core, the frustration highlights a deeper issue: Sam’s Club isn’t just selling groceries—it’s selling aspiration. Members expect differentiation, exclusivity, and a curated lifestyle. The value proposition isn’t merely “bulk savings,” but the sense of elevated taste. If the aisles start looking too familiar, that lifestyle narrative crumbles.

 

 

 

 

To be fair, Sam’s is performing well on paper. Walmart China’s sales rose nearly 20% last year, largely driven by Sam’s Club. Membership has surpassed 5 million. But competition is intensifying. Costco continues to draw opening-day crowds, and Hema’s X Member Store is rapidly expanding its reach into the middle-class bracket.

 

 

 

 

Yes, Sam’s has every right to broaden its appeal and adjust its inventory mix. But its true moat was never “first to launch” or “cheapest on the shelf.” It was the loyalty of a discerning, middle-class consumer base that willingly paid a premium for the promise of something better. If that promise fades, so too might the renewals that built its business in the first place.

 

 

 

 

China’s High-Speed Rail Sparks Debate Over Eating Instant Noodles-a tradition for decades

 

 

 

 

On July 19, the hashtag #12306 Responds to Reminders Against Eating Instant Noodles on High-Speed Trains, which has been a decades-long tradition, surged to the top of China’s trending topics, igniting a surprisingly heated discussion over travel etiquette—and meal choices.

 

 

 

 

The stir began when a traveler posted a notice from a high-speed rail service advising passengers to avoid consuming strongly-scented foods such as durian and instant noodles, citing the discomfort it might cause in tightly enclosed train carriages.

 

 

 

 

According to official guidance from China’s national railway booking platform 12306, “As train carriages are enclosed spaces, passengers are kindly advised not to consume foods with strong odors such as durian or instant noodles, to maintain a pleasant and fresh environment for all.”

 

 

 

 

For clarity, reporters reached out to 12306’s customer service hotline. The response? Instant noodles are not banned—as long as they’re the regular kind without self-heating mechanisms. However, the agent offered a gentle nudge toward courtesy: “We recommend passengers choose milder-smelling foods to avoid affecting others.”

 

 

 

 

The agent also noted that most high-speed trains do not sell instant noodles on board, though availability may vary by service. For passengers who find themselves overwhelmed by a neighbor’s lunch, the solution is straightforward: “You may report any strong food odors causing discomfort to train staff for coordination.”

 

 

 

 

In a country where more than 3 billion high-speed rail trips were recorded in 2023, this noodle-fueled debate highlights how even small lifestyle choices can stir larger conversations about shared space, personal comfort, and public norms.

 

 

 

 

Next time you board China’s bullet train, maybe hold the spice—and consider the noses in the next row.