China Conducts Military Drills Near Scarborough Shoal

China’s military carried out joint naval and air combat patrols around the disputed Scarborough Shoal in the South China Sea today, further heightening tensions in the region.

According to China’s military, the exercises were intended to test the coordination and rapid-response capabilities of its naval and air forces. The drills came shortly after the Philippines submitted a claim to the United Nations seeking to extend its continental shelf in waters that include the disputed area.

Beijing rejected the Philippine submission, reiterating its sovereignty claims over the shoal, which China refers to as Huangyan Island. The latest operations also coincided with increased China Coast Guard patrols and the enforcement of stricter controls around a nearby marine reserve. The developments underscore the continuing territorial dispute between China and the Philippines over one of the world’s busiest maritime regions.

China Announces Lower Domestic Flight Fuel Surcharges

China will reduce fuel surcharges on domestic airline tickets beginning 5 August, according to an announcement by the country’s authorities.

The reduction is expected to lower travel costs for millions of passengers during the busy summer travel season. Airline analysts say the move reflects easing aviation fuel prices and is expected to stimulate domestic tourism and business travel.

The announcement comes as China’s aviation industry continues its recovery, with passenger traffic remaining strong during the peak holiday period.

Industrial Profits Continue to Grow

China’s industrial sector continues to show resilience, with official figures indicating that profits earned by major industrial enterprises increased by 18.7 percent during the first half of 2026 compared with the same period last year.

The growth has been supported by continued expansion in manufacturing, improving domestic demand and government measures aimed at supporting economic activity.

Economists say the figures point to steady momentum in parts of China’s industrial economy, although external trade uncertainties and slowing global demand remain challenges for exporters.

Government Holds State Council Executive Meeting

Chinese Premier Li Qiang chaired a State Council executive meeting to discuss a range of government priorities, including economic management and policy implementation.

Officials reviewed measures designed to support stable economic growth while continuing reforms across key sectors. The meeting also considered policy initiatives intended to improve public services and strengthen economic confidence.

The State Council regularly uses these meetings to coordinate national policy implementation across ministries and local governments.

PLA Marks Founding Anniversary

China today commemorated the founding anniversary of the People’s Liberation Army (PLA), an annual observance held on 1 August.

Ceremonies and commemorative activities were held across the country to recognize the history and contributions of the armed forces. State media highlighted the PLA’s modernization efforts and its role in national defence.

The anniversary comes amid increased military activity in several areas, including today’s operations in the South China Sea.

Typhoon Dolphin Continues Toward Eastern China

Meteorological agencies continue to monitor Super Typhoon Dolphin, which is tracking toward eastern China.

Forecasters warned that the powerful storm could bring heavy rainfall, strong winds and rough seas to parts of the eastern coastline in the coming days. Local governments are monitoring the storm closely and are preparing emergency response measures where necessary.

Residents in potentially affected areas have been advised to follow official weather updates and heed any evacuation or safety instructions issued by local authorities.