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Russian drones strike Zaporizhzhia following Ukraine's 1,000-drone barrage
Russian drones blasted the southern Ukrainian city of Zaporizhzhia late Sunday, wounding five people and striking apartment blocks, a university and a shopping mall, officials said Monday.
The bombardment, which also hit nine other Ukrainian regions, came a day after Ukraine launched over 1,000 drones at Russia during its parliamentary election.
Ukraine's air force reported shooting down or suppressing 148 Russian drones overnight, while Russia's Defense Ministry stated its air defenses downed 244 Ukrainian drones and that its forces targeted Ukrainian ports, logistics hubs and warehouses.
With no diplomatic progress after four years of war, Ukrainian President Volodymyr Zelenskyy warned that Moscow is escalating the conflict ahead of the U.N. General Assembly in New York, where he expects to meet U.S. President Donald Trump.
Meanwhile, neighboring Moldova temporarily closed part of its northern airspace overnight after detecting an unidentified aerial object, amid growing drone incursions across Eastern Europe.
1 month ago
Three South Korean officers injured in explosion near North Korea border
An explosion in South Korea’s heavily fortified border area with North Korea injured three military officers on Monday, the country’s Defense Ministry said.
The blast occurred during an unspecified operation inside the Demilitarized Zone (DMZ), the buffer area separating the two Koreas. The ministry said the cause of the explosion was not immediately known.
Officials did not say whether the blast may have been caused by a land mine planted by North Korea. The North has increased border fortifications in recent months, including mines and anti-tank barriers, as tensions between the two countries have worsened.
Two of the injured officers were airlifted from the area by helicopter, while the third was taken out by land before being flown to a hospital, according to the ministry. All three are receiving treatment at a military hospital near Seoul.
The DMZ stretches about 248 kilometres and is 4 kilometres wide, making it one of the world’s most heavily armed borders. An estimated 2 million land mines are scattered in and around the area, which is also protected by barbed-wire fences, tank traps and troops from both sides.
The zone was established as part of the 1953 armistice that ended the 1950-53 Korean War. The two countries, however, have never signed a peace treaty.
Concerns have grown in South Korea over increased activity by North Korean troops near the Military Demarcation Line as Pyongyang strengthens its border defenses.
South Korea’s military has not officially confirmed media reports that North Korean troops crossed the demarcation line more than 20 times during front-line operations in August.
In April 2025, South Korean troops fired warning shots after about 10 North Korean soldiers crossed the line in the eastern section of the DMZ. The North Korean troops withdrew after South Korea issued audio warnings and fired the shots, with no clashes reported. In June 2024, North Korean troops crossed the border three times, prompting similar warning shots.
North Korean leader Kim Jong Un has in recent years suspended nearly all cooperation and diplomacy with South Korea and called Seoul his country’s most hostile enemy amid a broader deadlock in nuclear negotiations with the United States.
North Korean land mines have also previously been washed into South Korea by swollen rivers, killing or injuring civilians. In August 2015, land mine explosions seriously injured two South Korean soldiers, further raising tensions between the two Koreas.
1 month ago
US, China compete for AI dominance amid shared safety concerns
US President Donald Trump and Chinese President Xi Jinping are expected to meet this week as their countries compete for leadership in artificial intelligence while also facing growing concerns about the technology’s potential risks.
The two nations are seeking an advantage in AI, but both have raised concerns about how the technology could be used by the other side. As China continues to narrow the gap with the United States, hopes for cooperation on global AI safety remain complicated by broader tensions between Washington and Beijing.
“The U.S.-China conversation in AI is getting caught in the ups and downs in the broader U.S.-China relationship,” said Scott Singer, co-director of the China AI Initiative at the Carnegie Endowment for International Peace.
US Treasury Secretary Scott Bessent said Sunday that Washington and Beijing had discussed creating a mechanism for AI dialogue during talks in New York with Chinese Vice Premier He Lifeng. The US also proposed a “notification mechanism” for AI-related incidents that could affect national security.
AI emergencies could offer room for cooperationThe two sides could discuss risks such as AI-powered cyberattacks, biological misuse, major failures of AI systems and situations in which humans lose control over advanced AI, said Sun Chenghao, a senior fellow at Tsinghua University’s Center for International Security and Strategy.
“There is still meaningful room for cooperation,” Sun said, adding that China is also paying increasing attention to AI-related risks, including cyber threats, malicious use and loss of control.
Bessent said the proposed notification system would allow the two countries to alert each other about AI incidents that reach the level of a national security threat.
“We want a shared vision of common goals and common threats,” he told reporters.
Michael Kratsios, Trump’s science and technology adviser, also said discussions with China were important, particularly to reduce risks that could affect both countries.
Both governments are concerned about AI being used against critical infrastructure. Chinese AI governance documents identify finance, electricity, telecommunications and transportation as sectors that could face risks from advanced AI, Sun said.
Samm Sacks, a senior fellow at Johns Hopkins University, said China has shown interest in discussing issues such as sharing information about AI and cyber incidents with US experts.
If Washington and Beijing can agree on how to report and communicate during an AI emergency, it could gradually build technical confidence between the two countries, said Xiao Qian, vice dean of Tsinghua University’s Institute for AI International Governance.
US chip restrictions remain a major issueTrump has repeatedly said that “whoever wins AI, wins” and has stressed the need for the US to maintain its technological lead over China. Beijing has accused Washington of seeking an AI monopoly by restricting China’s access to advanced technologies, including high-end computer chips.
Any major easing of US export controls on advanced AI-related technology is unlikely to be discussed at the meeting, said Alfredo Montufar-Helu of consultancy Ankura.
With Washington and Beijing competing across multiple areas, the scope for cooperation on AI remains “quite narrow,” he said.
Despite US restrictions, Chinese AI models have increasingly challenged leading American systems. Models developed by companies including Moonshot AI and DeepSeek have shown capabilities comparable in some areas to systems from US companies such as Anthropic and OpenAI, often at lower costs.
“Export controls have not stopped China from developing frontier-competitive models, but they slow its rate of expansion by limiting the compute it can use to serve users,” said Will Cong, a professor at Nanyang Technological University in Singapore.
Chinese chip developers have also been making progress, while domestic companies are increasingly using locally produced chips. This has strengthened Beijing’s position in talks with Washington, said George Chen of The Asia Group.
Dispute over AI technology sharingAnother source of tension is US accusations that Chinese companies are improperly using technology from American AI developers.
The US government and AI companies have accused Chinese firms of “distillation,” a process in which capabilities from advanced AI models are extracted and used to improve other systems. Chinese officials have rejected the allegations.
Anthropic has accused Chinese AI companies DeepSeek and Moonshot of sending some user requests to its Claude AI models. Rebecca Arcesati of the Mercator Institute for China Studies said Chinese companies may be seeking to benefit from the infrastructure developed by their US competitors as American restrictions limit China’s computing capacity.
Chinese officials and some technology analysts, however, argue that distillation is common across the AI industry and does not fully explain the progress of Chinese AI models.
Beijing has also expressed concern about the potential impact of American AI on China’s critical infrastructure, including risks linked to Anthropic’s Claude system. It has further raised concerns about AI being used to spread political misinformation and potentially challenge its governance.
“We cannot expect meaningful cooperation on AI safety if one side increasingly treats the other side’s technological progress as a national security threat,” Xiao said.
She added that disagreements between the two countries make dialogue on AI safety even more important.
1 month ago
Russian strikes put Ukraine’s publishing industry at risk
Seconds before a Russian drone struck, Viktor Kruglov was thinking about textbooks tens of thousands of them and how to deliver them to Ukrainian schools more quickly.
Minutes later, a second explosive-laden Shahed drone hit the main warehouse of his publishing company, Ranok, in northeastern Kharkiv.
“Steel was blazing and burning,” Kruglov said, describing the Aug. 1 attack. The huge warehouse’s reinforced concrete melted and its roof collapsed.
The fire continued for nearly a week, destroying millions of books.
Ukraine’s publishing industry is now facing its most serious crisis, with Russian attacks damaging publishing houses, printing facilities and bookstores. The attacks are part of wider damage to the country’s cultural sector. Nearly 5,000 cathedrals, churches, museums, theaters and other cultural sites have been destroyed or damaged, while about 35,000 art objects have been looted, according to Ukrainian authorities.
More than 13 million books about one-third of Ukraine’s annual print production — were destroyed during two months this summer, causing at least $39.3 million, or 1.75 billion hryvnias, in damage, the Culture Ministry said.
Kremlin spokesman Dmitry Peskov did not respond to an Associated Press request for comment on the attacks against Ukraine’s publishing infrastructure.
The destruction comes as demand for Ukrainian-language books has increased since Russia’s 2022 invasion. But publishers say the losses threaten the future of the industry beyond the financial damage.
Publishers may have less money to invest in new writers, while small independent companies could reduce production or shut down. Larger publishers may also become more dependent on established bestsellers.
“This is a deliberate policy of Russia because they understand that culture is what makes us feel resilient, what makes us feel the owners of our land, of our destiny,” Ukraine’s Culture Minister Tetiana Berezhna said.
At least 40 other publishing houses and several bookstores have also been damaged in recent weeks.
“This is a huge blow to the industry, and if we don't move quickly to put strategic support measures in place the industry could collapse entirely,” Kruglov said, describing publishing as an important part of Ukraine’s national security.
The Ranok warehouse, which opened in 2013, was an automated logistics center capable of processing tens of thousands of books daily. The strike destroyed about 8 million books, including 620,000 textbooks supplied to almost all Ukrainian schools.
Kruglov said Ranok has backup warehouses and keeps its files in cloud storage, allowing the company to reprint books and continue operating.=
Berezhna said the attacks were part of what she described as Russia’s systematic destruction of Ukrainian heritage. She noted that Russia had previously restricted Ukrainian-language publishing and public speaking during the 19th century, when much of present-day Ukraine was part of the Russian Empire.
“But still, the Ukrainian language exists. Ukrainian literature exists,” she said, adding that Ukraine’s history offered hope that its culture would survive.
New writers face growing risks
The attacks have also weakened publishers’ ability to take financial risks on new authors, Berezhna said.
Publishing debut writers is generally more expensive and less predictable than producing books by established authors or translated bestsellers. She warned that young writers who could eventually become important Ukrainian literary voices may receive less support.
The Culture Ministry is preparing a financial support package that could include government purchases of Ukrainian books for school libraries, grants for small publishers, rent assistance for bookstores and war-risk insurance for print runs.
However, publishers say more help is needed.
At the Konvi printing plant, which was hit by a Russian missile in July, burned pages from fourth-grade English textbooks remained on the floor months after the attack. Paper was also trapped inside a damaged printing machine.
The plant previously printed millions of books each year, including fiction, educational and scientific works. Commercial director Viktoriia Haidai said replacing the damaged printing press would cost 1.2 million euros ($1.37 million), while restoring full production capacity could take four to five years.
She said textbook printing that previously took three to four months could now take six to seven months, putting future delivery deadlines at risk.
“It's not just the large printing houses that are suffering,” Haidai said. “Many small printers, who don't make themselves known publicly, have also been destroyed.”
Industry seeks foreign and government support
Iryna Baturevych, co-founder of Chytomo, a leading Ukrainian platform covering books and publishing, said the recent losses were unprecedented in the country’s independent history.
She warned that small independent publishers were particularly vulnerable, potentially reducing the diversity of books available, especially in niche and experimental genres.
Children’s publishing is also facing difficulties, she said. With many Ukrainian children living abroad, publishers are shifting toward other genres, while some authors are leaving the profession.
Baturevych said the government would probably find money to keep textbooks in production, but support for the wider publishing industry was less certain.
Ukraine’s financial resources are limited because much of the government’s spending is focused on the war. Roksolana Pidlasa, head of the Ukrainian Parliament’s budget committee, said that as of September, one day of the war costs Ukraine about $190 million.
Baturevych said foreign support would therefore be important for rebuilding the publishing sector.
Kruglov said publishers need three main forms of government assistance: affordable loans and insurance similar to those available to other industries, investment to rebuild warehouses and printing facilities, and measures to increase demand for books and reading.
Publishers currently struggle to obtain such loans because much of their value is tied to intellectual property rather than physical assets that can be used as collateral.
“I hope the state will help, because there can be no independent Ukraine without independent publishing,” Kruglov said.
“The Ukrainian book is the one product that cannot be imported.”
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Hong Kong socialite Abby Choi’s ex-husband, in-laws stand trial over her killing
The murder trial of the former husband and in-laws of Hong Kong socialite Abby Choi began Monday, more than three years after the discovery of parts of her dismembered body at a house shocked the city, where violent crime is relatively rare.
Choi’s former husband, Alex Kwong, his father, Kwong Kau, and his brother, Anthony Kwong, are accused of killing her in February 2023. If convicted of murder, they face life imprisonment. They are also charged with preventing the lawful burial of a body.
Choi, 28, was a socialite known for sharing photos of her glamorous lifestyle, fashion shoots and events on Instagram. Days before her death, she posted about attending a Dior show during Paris Fashion Week.
Her killing drew widespread attention in Hong Kong, a major Asian financial hub with a low rate of violent crime. Dozens of people gathered outside the courtroom before the hearing, while a live broadcast was arranged for those unable to enter.
The three defendants wore masks and appeared calm in court. Kwong Kau wore a white T-shirt, while his two sons were dressed in suits.
Police said in 2023 that they found some of Choi’s body parts inside a house in a village in Tai Po, a suburban district of Hong Kong. Officers later searched a landfill as part of their investigation.
Choi had two children with Alex Kwong. After their divorce, she remarried and had two more children with her second husband.
Prosecutors are expected to present their opening case at a later date. The jury trial is expected to continue for about 45 days.
1 month ago
3 killed in Pakistani airstrikes in Afghanistan
At least three people were killed after the Pakistani air force carried out airstrikes early Monday in Afghanistan's eastern Kunar and Paktika provinces bordering Pakistan, Afghan media outlet Tolonews reported, citing Afghan government officials.
Najibullah Hanif, head of the Information and Culture Department of Kunar province, said an airstrike took place at around 3 a.m. local time in Nurgal district of Kunar province, killing three people and injuring several others. The strike also destroyed a building.
Local officials in Paktika province told Tolonews that two airstrikes hit at around 4 a.m. in Barmal district of Paktika province. No casualties have been reported so far.
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Houthis say they will not attack US vessels in Red Sea
Yemen’s Iran-backed Houthi rebels have assured the administration of US President Donald Trump that they will not attack US vessels in the Red Sea, a senior Houthi official said Sunday.
However, the official warned other countries against joining Saudi Arabia in Yemen’s renewed civil war.
The comments came after the Houthis fired a ballistic missile toward Saudi Arabia’s capital over the weekend.
Meanwhile, Iran’s foreign minister is set to stop in Qatar before traveling to New York for the United Nations General Assembly. CIA Director John Ratcliffe also visited Egypt and met President Abdel-Fattah el-Sissi.
In the occupied West Bank, an Israeli man was shot dead, while Israeli forces said they killed a Palestinian man who tried to ram his vehicle into soldiers.
Houthi official warns countries against joining Yemen conflict
Mohamed al-Bukhaiti, a member of the Houthis’ political bureau, told The Associated Press that Washington contacted the group after its forces advanced rapidly along Yemen’s western coast toward the Bab el-Mandeb Strait earlier this month.
He said the Houthis had assured the US that they were not targeting American vessels or ships from other countries in the strait, except those linked to Saudi Arabia.
“We confirmed that we are not targeting the United States, or any other nation, in the strait, with the sole exception of the Saudi enemy,” al-Bukhaiti said in a Zoom interview from Sanaa, which is controlled by the Houthis.
Iran’s foreign minister to stop in Qatar
Iranian Foreign Minister Abbas Araghchi will make a brief stop in Qatar before traveling to New York for the UN General Assembly, state-run IRNA reported.
Iran says it is waiting for a US response to conditions it conveyed through Qatar for ending the war.
Iran’s Supreme National Security Council chief Mohsen Rezaei told Al Jazeera that the conditions include ending the war on all fronts, releasing Iranian assets seized by the US and lifting the US naval blockade of Iranian ports.
Araghchi and President Masoud Pezeshkian are among senior Iranian officials granted US visas to attend the UN gathering.
CIA chief meets Egyptian president
CIA Director John Ratcliffe visited Egypt and met President Abdel-Fattah el-Sissi, according to the Egyptian president’s office.
El-Sissi expressed support for efforts to resolve the Iranian crisis and ensure freedom of navigation, while rejecting attacks against Arab countries.
He also called for the full implementation of the second phase of the US ceasefire plan for Gaza. Egypt has played a key role in mediating between the sides and shares a border with Gaza.
Israeli man killed in West Bank
A 30-year-old Israeli man was shot dead near the Neve Tzuf settlement north of Ramallah, hours before Yom Kippur, the holiest day in the Jewish calendar.
The Israeli military said the suspected attacker opened fire from a vehicle before fleeing on foot. Security forces later detained the suspect at a hospital, where he had gone for treatment after being wounded while fleeing.
The Samaria regional council identified the victim as Netanel Shakron, a settler who had been bathing at a spring ahead of Yom Kippur.
The United Nations said it was the second time this year that an Israeli civilian had been killed in a confrontation with a Palestinian in the West Bank.
Separately, the Israeli military said it killed a Palestinian man who attempted to ram soldiers at an intersection near Jenin in the northern West Bank. It said another man who was in the vehicle was being sought.
Prime Minister Benjamin Netanyahu condemned the attacks and instructed the military to expand its operations in the West Bank.
Tensions have risen sharply in the West Bank, where attacks by Israeli settlers against Palestinians have also increased. Earlier Sunday, Israeli troops conducted a major operation in the northern West Bank town of Al-Mughayyir. Palestinian officials said at least 28 people were detained.
Iran closes French-language center
Iranian authorities said they had closed a French-language center linked to the French Embassy in Tehran, accusing it of operating without a license and carrying out activities against national security.
Iran’s judiciary-run Mizan news agency said prosecutors ordered the closure after repeated warnings.
The agency alleged that the center used language courses as a cover for activities including identifying and building networks among Iranian elites and helping them leave the country. It did not provide evidence for the allegations.
The French Embassy did not immediately comment.
Six French nationals tried in Iraq over alleged IS links
Six French nationals have gone on trial in Iraq on suspicion of belonging to the Islamic State group, Iraqi judicial and security officials told AP.
The officials said the cases could require several legal proceedings before verdicts are issued. They spoke on condition of anonymity because they were not authorized to speak publicly.
The six are among 47 French nationals held in Iraq after being transferred from neighboring Syria earlier this year. They were among thousands of people suspected of having links to Islamic State.
1 month ago
Macron, Carney hold talks on strengthening Canada-France economic, defense ties
French President Emmanuel Macron and Canadian Prime Minister Mark Carney held talks Sunday on strengthening economic and security ties during a meeting on the remote North Atlantic archipelago of Saint-Pierre-et-Miquelon.
The meeting came days after Carney welcomed the possibility of Canada becoming the European Union's first associate member, saying stronger ties with Europe would help ensure that no country could control Canada's markets or undermine its sovereignty.
US President Donald Trump's tariffs, demands for economic concessions and repeated remarks about making Canada the 51st US state have prompted Ottawa to reduce its reliance on its southern neighbor and seek stronger economic, security and political ties with Europe.
Macron welcomed Carney at the airport on Sunday in the French territory, located off the coast of Newfoundland. The two leaders were scheduled to hold talks over a working lunch.
"This is an important moment," Macron said Saturday after arriving in Saint-Pierre-et-Miquelon, which has about 5,800 residents.
The talks "will allow us … to strengthen our bilateral economic ties and defense relationship," Macron said.
Macron said the meeting is also part of broader efforts by France to secure oil and gas supplies as the war in Iran disrupts global energy markets and raises concerns over higher prices for fuel and other essential goods.
"Canada is a country with significant resources of critical minerals and rare earths. It is also a major oil and natural gas producer," Macron said. "What we want to do is conclude agreements to secure more liquefied natural gas that can be shipped to Europe's Atlantic coast."
The leaders were also expected to discuss expanding the Canada-France partnership in strategic sectors, including aerospace, energy, critical minerals and advanced technologies such as quantum computing, satellites and supercomputing, according to a statement from Carney's office.
Sunday's meeting also followed Trump's announcement of a deal on Greenland that would expand the US military presence there while keeping the island under Danish control.
The agreement came after months of threats by Trump to seize the semiautonomous territory, which is part of a NATO ally.
Macron welcomed the agreement Saturday.
"Danish sovereignty is being respected, international law is being respected," he said. "Anything that helps ease tensions is a good thing."
1 month ago
Egyptian president, CIA chief discuss regional issues
Egyptian President Abdel-Fattah al-Sisi held talks with visiting U.S. Central Intelligence Agency (CIA) Director John Ratcliffe on Sunday to discuss regional developments in Iran, Gaza and Sudan, the Egyptian presidency said in a statement.
During the meeting, Sisi reaffirmed Egypt's support for efforts toward "a comprehensive agreement that resolves the Iranian crisis," saying it would help restore regional security and stability and ensure freedom of international navigation, according to the statement.
On Gaza, Sisi called for the full implementation of the second phase of the U.S.-proposed plan to consolidate the ceasefire, ensuring protection of civilians and adequate, unhindered humanitarian aid access to the enclave.
The Egyptian leader also urged efforts to create conditions to resume the political process toward "a fair and comprehensive settlement of the Palestinian issue" based on international resolutions and the two-state solution.
Regarding Sudan, Sisi reiterated Egypt's support for the country's unity, stability and national institutions, calling Sudan's sovereignty, unity, and territorial integrity "non-negotiable principles."
The two sides also discussed developments in Somalia and the Horn of Africa, with Sisi reaffirming Egypt's support for Somalia's security and stability and rejecting any infringement on its sovereignty or territorial integrity.
Ratcliffe, for his part, praised Egypt's "pivotal role" in reaching the Gaza ceasefire agreement and its continued efforts to support the peace process and promote regional stability.
The CIA chief stressed continued bilateral coordination on regional security issues, including Sudan, Somalia, the Horn of Africa and international maritime security, according to the statement.
The meeting also addressed cooperation between the CIA and Egypt's General Intelligence Service in security, intelligence, counterterrorism, and efforts to combat organized and transnational crime.
1 month ago
Fast Food: Where China and the U.S. meet
China and the United States are divided on many issues, from tariffs and technology to Taiwan. But there is one thing tying them together: fast food.
American restaurant and beverage chains are expanding rapidly in China, drawn by the potential customer pool in a country with four times the U.S. population. China's languishing economy and cutthroat industry competition, meanwhile, have Chinese chains trying their luck in the U.S., turning crumbs and straws into a two-way cultural bridge between the two superpowers.
The bilateral trade in burgers and bubble tea is business- and consumer-led gastrodiplomacy in action, said Yaling Jiang, the founder of ApertureChina, a market research company with headquarters in Shanghai and London. In China, recent American arrivals like Popeyes and Five Guys are seen as a guilty pleasure, she said, while the increasingly international palates of Americans have created space for Chinese brands to serve as their nation's unofficial ambassadors.
“Consumerism builds a safe, introductory channel for contemporary Chinese culture and can be a great way to elevate China’s soft power,” Jiang said.
The White House has not revealed the menu for the state dinner that U.S. President Donald Trump is hosting for Chinese President Xi Jinping on Thursday. But a taste for a cheap, crowd-pleasing meal may be something the two leaders share.
In 2013, Xi made a rare public visit to a steamed-bun restaurant in Beijing. He waited in line and ordered a 21-yuan ($3) meal featuring six pork-and-scallion buns, vegetables, and a bowl of stewed pork liver and intestines. Trump’s love of fast food is legendary; he even manned a fry station at a Pennsylvania McDonald’s during his 2024 campaign.
American fast-food companies are expanding their presence in China
Last month, Chinese customers lined up in the rain for the opening of the first Church’s Texas Chicken in Shanghai. Church’s plans at least 600 more across China. Wendy’s says it anticipates opening 1,000 restaurants there over the next decade.
Established players are deepening their reach as well. McDonald’s plans 1,000 new Chinese restaurants this year and 10,000 total by 2028. Burger King, which arrived in China in 2005, says it expects to triple its store count to 4,000 by 2035.
“Despite political tensions between the U.S. and China, Chinese actually still go crazy for American brands,” said Shaun Rein, founder and managing director of the Shanghai-based China Market Research Group.
KFC became the first major American fast-food chain to enter mainland China when it opened a Beijing restaurant in 1987. At the time, it was viewed as a premium destination worth taking a date to, Rein said. McDonald's and Pizza Hut arrived in 1990.
“McDonald’s and KFC were a beacon of health and hygiene compared to what you had in the rest of the market,” Rein said.
China is now KFC’s largest market by far. The Kentucky-born fried chicken chain counts about 13,000 restaurants in China, compared with around 3,750 in the U.S. American brands see room for further growth.
Much of China’s population lives in the smaller, inland cities where brands like McDonald’s and Starbucks are rolling out stores, said Sory Park, a project manager at China-focused market research and strategy firm Daxue Consulting.
That doesn't make China a cakewalk for foreign restaurant companies. Most American chains now rely on Chinese partners to find locations and share the financial risk. Earlier this year, a Chinese investment firm acquired a 60% stake in Starbucks' China operation after several years of falling store traffic.
American chains trade on their brand names and signature products, but many tailor their menus to appeal to Chinese customers. KFC restaurants in China, for example, serve french fries and Original Recipe chicken alongside custardy egg tarts and congee, a savory rice porridge.
“They need to operate like a Chinese company but deliver American menus that incorporate Chinese values, eating habits, and tastes,” Park said.
Chinese fast-food chains seek new opportunities in the US
Mixue, one of the world’s largest fast-food chains with more than 53,000 locations, opened its first three U.S. stores in December. Mirroring the Shanghai crowd outside Church's Texas Chicken, New York customers waited in the cold to sample soft-serve ice cream, fruit teas and milk tea with toppings like coconut jelly and taro balls at a store in Herald Square.
Mixue has announced at least two dozen more planned locations across four states. At least nine other mainland Chinese chains have made their U.S. debuts since 2023, all but one specializing primarily in drinks and snacks. They include Heytea, with 40 U.S. locations, and Luckin Coffee, which overtook Starbucks as China’s biggest coffee brand and has 20 stores in New York.
Wallace, a chain founded in 2000, grew to more than 20,000 restaurants by selling American-style chicken and hamburgers in China. In California, where the second U.S. Wallace opened last month, the company tweaked its chicken sandwich recipe to appeal to American diners.
Before entering the U.S., many major Chinese food-and-beverage chains expanded in Southeast Asia. A real estate slump and weak consumer spending made growth harder to find at home. The average life span of China's 16 million restaurants and chains was expected to fall to 15 months last year, according to a U.S. government report.
The American restaurant industry is considerably smaller, with 1 million locations, according to the National Restaurant Association. Jiang, of ApertureChina, sees another advantage for Chinese brands: a social media trend called “Chinamaxxing,” in which Westerners adopt Chinese lifestyle habits or wellness practices.
Not every brand makes its origins clear. Wallace's U.S. website and social media pages do not mention the brand's Chinese ownership or headquarters in southeastern China’s Fujian province. The company didn’t respond to an email from The Associated Press.
The U.S. carries both potential rewards and risks for Chinese chains
American and Chinese chains alike have an appetite for opportunities across the Pacific. But Chinese brands remain largely unproven stateside. Even chains with thousands of locations elsewhere are testing whether novelty can translate into loyalty.
The U.S. is too lucrative a market to ignore, said Aaron Allen, founder of restaurant consulting firm Aaron Allen and Associates. It accounts for one-third of global restaurant revenue despite having only around 4% of the world’s population, he said.
“The grass is always greener somewhere else in the world,” Allen said.
While American brands can carry a premium image in China, many Chinese brands compete heavily on price. At a Mixue in Hollywood this week, a medium matcha latte cost $6.83; a nearby Starbucks sold the same drink for almost $1 more. Wallace sells three full-size chicken sandwiches for $10.
“The Chinese can build stuff cheaper and faster. Why would that not apply to food?” Allen said.
But Allen said Chinese brands could face customer backlash or higher tariffs if they undercut U.S. rivals with low-cost Chinese imports. Like other Chinese companies, restaurant brands also could face U.S. scrutiny over their collection and use of customer data, he said.
Luckin Coffee co-founder and CEO Jinyi Guo told investors in February that the U.S. “represents one of our important long-term opportunities” and the company was proceeding “with great patience and discipline.”
1 month ago