Published 2h ago2026-09-18 01:35:43

US Tech Curbs Drove 72% Jump in Chinese Patent Citations, Study Finds

Chinese technology companies targeted by US trade sanctions responded by ramping up their own scientific research, increasing scientific citations in their patent applications by 72% on average, according to a study published Thursday in the journal Science.

The study shows that Chinese companies moved to conduct their own research after being placed on the US Entity List, which aims to slow China's technological progress while safeguarding American technology. The list was launched in 2018 at the height of geopolitical tensions between the US and China.

An analysis of United States Patent and Trademark Office data showed that science-linked patents granted to Chinese firms increased 13.4-fold between 2010 and 2022, compared with a 1.3-fold rise for their US counterparts.

Each of the sanctioned companies added an average of 0.988 patents citing domestic science, 0.277 citing foreign science in aggregate, 0.197 citing US science, and 0.265 citing non-US foreign science per year, the researchers wrote in the journal Science.

The analyses "reveal that US trade sanctions have generated consequences that US policy-makers may not have fully anticipated," the researchers wrote in their abstract.

Despite the rapid growth, the researchers noted that Chinese firms still lag behind in terms of the scientific depth of their studies.

"Chinese firms still remain lagging behind U.S. firms in the intensity with which they incorporate science into patenting," the researchers said.

What else is happening in US Markets?

US Markets5h ago

New Zealand Sees Sharp Rise in International Airfares in August

New Zealand saw a sharp rise in international airfares in August, primarily by higher fares to Europe and Asia amid a rise in global oil prices caused by the Middle East conflict.International airfares rose 4.3% month-on-month in August and increased 21.5% on a yearly basis, being the largest annual increase in international airfares since April 2023, Stats NZ's selected price indexes data showed."Because we collect some international airfare prices around four months in advance, price changes that occurred earlier in the year for travel in August are now being reflected," said Nicola Growden, the prices and deflators spokesperson at Stats NZ.Food prices rose 0.3% in August compared with the previous month, driven by a 1.7% increase in meat, poultry and fish prices, while non-alcoholic beverage prices fell 1.4%.Diesel prices rose 8.6% in the month and 45.8% from a year ago, while petrol rose 2% in August and 17.9% from the same time last year.ANZ said in a note that the selected prices data confirms the downside risk to its September quarter consumer price index forecast of 0.8% quarter on quarter and 3.9% year on year.While the selected prices data is still in line with the bank's non-tradable CPI forecast of 1.1% quarterly growth, the downside to its forecast comes from the tradable side of the CPI basket, which it said is likely to be looked through by the Reserve Bank of New Zealand's monetary policy committee, ANZ added.

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US Markets5h ago

Upside Inflation Risks Materialize in Australia, Weighing on Central Bank's Upcoming Rate Decision

Policymakers at Australia's central bank flagged upside risks to inflation in August, and data since then suggests that some of those risks have started to materialize despite a slowdown in the domestic economy's growth, Reserve Bank of Australia Governor Michele Bullock said.In an opening statement delivered Friday to a House of Representatives standing committee on economics, the central bank chief said global cost pressures have intensified as the Middle East conflict shows little-to-no signs of a resolution.Bullock reiterated an expectation for inflation to remain elevated for some time, noting that the artificial intelligence boom and extreme weather events are placing upward pressure on a broad range of prices from energy to agriculture.Many businesses are now passing on higher input costs as oil and related prices have surged again, and remaining capacity pressures risk exacerbating the degree of the pass-through. If inflation proves to be more persistent, it may require "a stronger policy response," the governor said.The central bank has raised borrowing costs by 75 basis points so far in the year, bringing its official cash rate to 4.35%. As the bank gears up for its next meeting later in September, a key focus will be on determining whether policy is now tight enough to return inflation to the target band, Bullock said.She added that inflation concerns are not unique to Australia, as many other central banks are reacting to the global inflation shock by increasing rates or expressing a willingness to do so if needed."I recognize that higher interest rates are difficult for Australians with mortgages who are also facing cost-of-living pressures," Bullock said. "But reducing inflation is essential."The US Federal Reserve this week increased its target range on the overnight funds rate to 3.75% to 4% from 3.5% to 3.75% in a unanimous decision, marking its first rate hike since 2023.BofA Securities expects the Reserve Bank to boost its cash rate by 25 basis points to 4.60% at the upcoming meeting in September, as underlying price growth is accelerating and inflation pressures are becoming increasingly broad-based. A watch tool that tracks the market-implied rate probability currently forecasts an 82% likelihood for a rate increase at the meeting.

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US Markets5h ago

Japan's Core Inflation Cools in August Ahead of BOJ's Closely Watched Rate Call

Japan's closely watched core inflation slowed in August, pointing to a slight easing in underlying price pressures even as headline inflation remained steady.The core consumer price index, which excludes fresh food, rose 1.7% year over year in August, down from 1.8% in July, according to data from the Statistics Bureau released Friday.The reading missed the consensus forecast of 1.8% growth tracked by Investing.com.On a seasonally adjusted basis, the core CPI increased 0.1% from the previous month.The headline CPI rose 1.9% year over year, unchanged from July, while the seasonally adjusted index was flat from the previous month.A measure excluding both fresh food and energy rose 1.9% year over year, matching July's pace, and increased 0.3% from the previous month.Food prices remained a key source of upward pressure. Prices excluding fresh food rose 3% year over year, while fresh food prices increased 7%. Fresh fish and seafood prices climbed 13.5%, while fresh vegetables rose 5.5%.Among other categories, housing-related costs increased 3.1% year over year, while furniture and household goods prices rose 1.2%. Transport and communications costs increased 3.7%.Energy prices, however, continued to weigh on headline inflation. Energy prices fell 0.7% year over year, with electricity prices down 2.4% and gasoline prices down 2.6%.Education costs provided another drag, falling 6.4% year over year, largely reflecting a 73.2% decline in private high-school tuition.The data comes ahead of the Bank of Japan's policy decision, with all BOJ watchers surveyed by Bloomberg expecting the central bank to raise its benchmark rate to 1.25% from 1% at the end of its two-day meeting.If delivered, it would mark the second rate increase in three months and the shortest interval between hikes since March 1990.

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