☕️ Good morning, friends,

Alert: The global matcha obsession is putting Japan’s tea farmers under pressure. The world can’t get enough of Japanese green tea.

At the same time, sales are booming for Toto, Japan’s largest smart toilet maker. Coincidence? We don’t think so…

🚀 Benchmarks

🔢 Facts & Figures

270 USD

This is the average amount by which Toyota will raise its vehicle list prices in the US starting in July. Reason: The 25% import tariffs are forcing Japan’s automakers to pass costs on to customers.

139.6 billion USD

This is the fresh funding secured by Chinese AI startup Sunrise. The goal: to bring its first AI chip into mass production and to develop the next, more powerful generation.

2.2%

This was South Korea’s inflation rate in June, the highest level since January.

Top Bit: 🇨🇳 Agricultural Drone Rescues Flood Victim from Rooftop

In Guangxi, a farmer used a heavy-lift agricultural drone to airlift a man trapped on a rooftop from rising floodwaters. The spontaneous maneuver was captured on video and went viral on social media.

Details

🌧️ Extreme Rainfall in the South: Days of heavy rain flooded villages; roads became impassable, blocking conventional rescue routes.

🚁 Rescue by Agricultural Drone: Drone pilot Lai attached a harness to his 100-kg heavy-lift drone and flew the man to safety in under two minutes.

📦 Drones in Relief Operations: UAVs simultaneously delivered food, medicine, and disinfectants to cut-off areas.

📈 Booming Low-Altitude Economy: China has over 2,200,000 registered civilian drones and is promoting delivery and passenger drones as a new growth sector.

🛫 First Air Taxis Approved: Guangzhou and Hefei will begin ticketed flights in 2025 using autonomous eVTOL drones for short-distance passenger transport.

Why it matters

• Drones save lives and bridge rescue gaps during climate extremes.
  

• The billion-dollar "low-altitude economy" could revolutionize logistics, agriculture, and mobility.
  

• China’s regulatory lead is setting international standards and shifting market share in aviation technology.

Background

China controls around 70% of the global civilian drone market, with industry leader DJI based in Shenzhen.
The government has identified drones as a key industry and is easing airspace restrictions in pilot cities. In addition to agricultural and delivery drones, Beijing is heavily investing in heavy-lift cargo UAVs and autonomous passenger drones to build a ¥2 trillion (≈ $280 billion) industry by 2030.

📊 All Details & Data: NYT, Reuters, India Times

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Head Of The Day

Dr. YoungHoon Kim

💡 Record Genius: With an officially confirmed IQ record of 276, the South Korean is considered the “smartest person in the world” and, as a founder, connects Nobel laureates, thinkers, and tech icons.

👉 Lesson learned: Genius only becomes truly valuable when it is shared and multiplied through strong networks.

Market Bit: 💾 AI Chip Startups Target Record IPOs

Details

💸 ¥8 billion for Moore Threads, ¥3.9 billion for MetaX: Both GPU designers, founded in 2020, aim to debut on the Shanghai stock exchange within 2025.

🚫 US export ban fuels demand: The latest US restrictions on Nvidia hardware have made domestic GPUs a sought-after alternative, pushing Chinese customers to switch.

🔬 Cash-burning R&D: Both firms, founded by ex-Nvidia and ex-AMD managers, are still consuming large sums for research, with the new capital aimed at financing next-generation chip development.

Why it matters

• Momentum for China's chip autonomy: A successful IPO would strengthen funding channels for strategic semiconductor projects.
  

• Sanctions become business opportunities: US restrictions are transforming into tangible market openings for domestic designers.
  

• STAR Market as Nasdaq alternative: If these dual listings succeed, Shanghai's tech exchange could attract even more deep-tech firms.

👉🏻 Full Story: Reuters, Economic Times

Top Reads

🚗 Ford CEO Warns of Chinese EV Supremacy: Jim Farley describes Xiaomi’s SU7 and similar models as “technologically and qualitatively far superior” and states that “Ford has no future” without a counterstrategy. Full Story.

🇯🇵 Trump threatens rice tariffs against Japan: Claiming that Tokyo is too slow in importing US rice, the president announces he will impose new tariffs on Japan before the current grace period expires on July 9. Full story.

🇹🇭 Thailand’s Constitutional Court suspends PM Paetongtarn: Due to a leaked phone call with Cambodia’s former PM Hun Sen, the prime minister is required to step down pending an ethics ruling. Transport Minister Suriya will serve as acting PM. Full story.

Optional Reads

China: Foreign firms will be allowed to deduct up to 10% of profits reinvested in China from corporate tax between 2025–28. The goal is to boost direct investment. More on this.

USA: A federal judge has allowed the indictment against Huawei for technology theft, bank fraud, and dealings with Iran to proceed; the trial is set to begin in May 2026. More on this.

Japan: Tokyo plans to modernize shipyards with a government program worth around ¥1 trillion to enable maintenance of US Navy vessels. More on this.

🥠 Fortune Cookie

🐉 Buddha Meets Ultraman: In Sichuan, a DIY craftsman carved a 2.8-meter-tall Buddha statue into a rock in just two months – but with Ultraman’s head.

As the saying goes, art is subjective, and Chinese netizens are indeed debating it. Now, the cultural authorities are investigating, and the artist plans to quickly replace the superhero head with something “more Chinese.”

Feel free to send us your suggestions 👇🏻

See you tomorrow,

Thomas, Michael & the Team of asiabits.

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