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May 12, 2026

Daily Briefing — 2026-05-12

China Compass Daily Briefing

 
CHINA COMPASS
Briefing · 2026-05-12 · 18 signals
Canada-China bilateral trade (March 2026)
$10.8B
Imports
$7.2B
Exports
$3.7B
📋 Today's Briefing

The EU's decision to ban funding for projects using Chinese inverters has sparked a diplomatic row, with China's Ministry of Commerce (MOFCOM) denouncing the move as baseless and discriminatory. This comes as the EU-China relationship faces increasing tensions over trade and security issues.

In other news, China has reiterated its strong opposition to U.S. arms sales to Taiwan, ahead of President Trump's state visit to China. The Chinese Foreign Ministry Spokesperson, Guo Jiakun, emphasized that Beijing's stance on this issue is consistent and clear.

Additionally, mainland China has attributed Taiwan's exclusion from the World Health Assembly (WHA) to the Democratic Progressive Party (DPP) authorities' political manipulation. A mainland spokesperson accused the DPP of using health-related issues as a guise for secessionist activities.

The bottom line: The EU's funding ban on Chinese inverters escalates tensions with China, while Taiwan's exclusion from the WHA highlights the ongoing political tensions between mainland China and Taiwan.

China Compass tracks the latest developments in Canada-China relations. Visit www.chinacompass.ca for more insights.

◆
🔔 Top Signals
📦 trade
Remarks of MOFCOM Spokesperson on the EU's Ban on Funding Projects Using Chinese Inverters
Why it matters
It is reported that some EU officials have stated that the EU will prohibit funding support for projects using inverters from "high-risk countries" such as China.
→ The forced exclusion of Chinese products by the EU violates market rules and the principles of fairness.
MOFCOM · 2026-05-11
🤝 diplomatic
China reiterates its opposition to U.S. arms sales to Taiwan
Why it matters
Beijing, May 12 (Xinhua) -- China's opposition to U.S.
→ relations and world peace and development, he said.
Xinhua · 2026-05-12
🏛️ political
Mainland says Taiwan's exclusion from Wha due to DPP authorities
Why it matters
Beijing, May 11 (Xinhua) -- Taiwan's failure to participate in the 79th World Health Assembly (Wha) was entirely the result of secessionist political manipulation by the Democratic Progressive Party (DPP) authorities under the guise of health-related issues, a mainland spokesperson said Monday.
→ However, the fact that Taiwan is an inalienable part of China's territory has never changed.
Xinhua · 2026-05-11
🛡️ military
The Other Border Problem: How Russia and China’s Lawfare Threaten the Arctic
Why it matters
The Arctic is becoming a contested region due to increased Russian and Chinese lawfare efforts.
→ and its partners must develop strategies to counter these tactics to preserve freedom of navigation and uphold international law in the Arctic, or risk losing control of this critical area.
War on the Rocks
👥 social
Regular Press Conference of Foreign Ministry Spokesperson Guo Jiakun on May 12, 2026
Why it matters
Global Times: It is reported that the President of Paraguay, Santiago Peña, visited Taiwan from May 7 to 10.
→ On May 8 in Taipei, he met with Lai Ching-te and signed several so-called "cooperation documents." President Peña claimed that Paraguay supports Taiwan's "participation in international multilateral systems," that "the international community should recognize Taiwan," and that Taiwan does not need to worry about changes in their bilateral ties.
MFA China · 2026-05-12
◆
📊 Market Snapshot
▲ Top Gainers
PetroChina HK$11.06 ▲ +3.95%
WuXi Biologics HK$33.70 ▲ +1.94%
NetEase HK$185.90 ▲ +1.81%
▼ Top Losers
ANTA Sports HK$77.90 ▼ -0.76%
Baidu HK$139.70 ▼ -0.85%
Tencent Holdings HK$457.20 ▼ -1.55%
💱 Currency Rates
USD/CNY 6.79 ▼ -0.14%
CAD/CNY 4.95 ▼ -0.31%
USD/CAD 1.37 ▲ +0.20%
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