Amid heightened tensions over the sovereignty of the island, Taipei's Defense Ministry said the Shandong aircraft carrier's movements were being "monitored."

The US took steps to mitigate any collection efforts of the suspected spy balloon, the Pentagon has said. According to press reports, the device used US technology.

"We seek to diversify, not to decouple. A decoupling of the world's two largest economies would be destabilising for the global economy," Yellen told a meeting with representatives of US businesses at a session hosted by the American Chamber of Commerce in Beijing. "And it would be virtually impossible to undertake."

China's exports to Russia saw significant growth as Chinese automakers filled the void left by Western companies leaving Russia.

Taiwan held drills at its main international airport in Taipei amid concerns over Chinese aggression towards the island. Taiwan's president said the exercises are necessary in order to protect critical infrastructure.

High costs, lower demand, fiercer competition — the German automotive industry is coming under pressure. The lucrative Chinese market, in particular, is proving difficult as Chinese consumers choose national brands.

Beijing has alleged that a Chinese man signed a contract with the United States spy agency and received training to conduct espionage activities.

The air and sea drills close to Taiwan are seen as a response to a visit of its Vice President William Lai to the US. China has derided Lai as a "troublemaker" who backs "Taiwanese independence" separatists.

Tokyo has summoned the Chinese ambassador over hundreds of crank calls believed to originate from China. Japan has begun to release treated water from the Fukushima nuclear power plant, which Beijing says is not safe.

China's largest property developer, Country Garden, warned that it is on the brink of default as it reported a staggering loss of almost $7 billion for the first half of the year, deepening a real estate crisis that threatens to unravel the country's already fragile economy.

After a mass in Mongolia attended by some groups of Chinese Catholics, the pope told them to be "good Christians and good citizens."

With more than 41 percent of exhibitors at the Munich IAA mobility show headquartered in Asia, analysts say European carmakers will need to prove their ability to compete with China in the electric vehicle age.