China

China's central bank launched a four-day overnight reverse-repo series beginning July 29, 2026, totaling 2.1 trillion yuan, with market sources reporting a steady rate of 1.25% that the PBOC has deliberately chosen not to publish. Deputy Governor Zou Lan has confirmed the overnight tool is intended for liquidity management only, keeping the seven-day reverse-repo rate at 1.40% as the sole official policy anchor. This separation allows the PBOC to expand its short-term liquidity toolkit while retaining the option to adjust the overnight rate independently of any future policy rate move.

Taiwan's Keelung District Prosecutors Office has detained seven people total in a probe alleging that falsified export documents were used to ship approximately 50 Super Micro servers loaded with restricted Nvidia AI chips to China, with some units routed through Japan. The July 24 detention of a suspect identified by anonymous sourcing as an Nvidia Taipei office employee has not been confirmed by prosecutors or Nvidia, and the charge on record is criminal document forgery rather than an export-control violation. The Taiwan investigation runs alongside a U.S. federal indictment alleging a $2.5 billion server diversion scheme and a Singapore asset freeze tied to the same alleged pass-through entity, Aperia Group, though prosecutors say it is too early to confirm a formal connection between the proceedings.

China's National Cybersecurity Standardization Technical Committee opened a 14-month public comment period on July 15, 2026, for a draft standard that grades AI applications across five risk levels based on use case, not underlying model. The framework covers three risk categories — physical safety, cognitive safety, and ethical safety — and applies a highest-applicable-level rule, meaning an application's overall grade defaults to its most severe individual risk finding. Though designated as a recommended rather than mandatory standard, it is expected to serve as a compliance benchmark under binding legislation once finalized.