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The U.S. announced escalating tariffs on imports from eight European countries to pressure Denmark over Greenland, prompting a united European rebuke and a pledge of coordinated response. The dispute risks triggering trade retaliation, straining NATO ties and accelerating European moves toward greater strategic autonomy.

China’s December 2025 energy data showed a small decline in coal production, stable crude output, faster refinery throughput, steady growth in natural gas production, and marginally higher power generation. The composition of power output—declining thermal generation alongside rising but decelerating renewables—highlights both seasonal effects and ongoing grid integration challenges.

China’s fixed‑asset investment fell 3.8% in 2025 to RMB 485,186 billion, driven by a steep decline in services spending and weak private and foreign investment. Targeted gains in energy and logistics projects offset broader weakness, leaving policy‑makers to balance short‑term stimulus with medium‑term fiscal risks.

China’s 2025 property statistics show a broad contraction: development investment fell 17.2%, new housing starts dropped over 20%, and developer financing shrank 13.4%. The results reflect persistent demand weakness and tighter credit, posing risks to growth, employment and local government finances while leaving policymakers with limited but targeted easing options.

China's industrial value added for large firms rose 5.2% year on year in December and 5.9% for 2025, with manufacturing and high‑tech sectors outperforming traditional heavy industries. Strong gains in electronics, transport equipment and new energy vehicles contrast with declines in steel and cement, reflecting an ongoing rebalancing of domestic demand and industrial structure.

December 2025 data from China’s National Bureau of Statistics show nationwide declines in both new and second‑hand residential prices across most cities, with year‑on‑year falls widening. Shanghai is an outlier with rising new-home prices, while Beijing, Guangzhou and Shenzhen registered notable drops, especially in the resale market.

China’s retail sales expanded modestly in 2025, with full‑year growth of 3.7% and December up 0.9%. A weak auto market held back headline figures even as e‑commerce — particularly online groceries — and convenience formats drove better performance.

An explosion at a Baogang steel plate mill in Baotou on January 18 killed two people, left eight missing and injured 84. Authorities have stabilised patients, launched an investigation and taken measures against corporate personnel while promising strict accountability. The incident highlights persistent safety risks in heavy industry, potential local economic disruption and a likely tightening of enforcement and managerial oversight if negligence is found.

A US threat to impose steep tariffs on eight European countries tied to a demand over Greenland has prompted the EU to prepare a roughly €93 billion retaliatory package and consider invoking its anti‑coercion law. The dispute signals a deeper shift: trade is being used as a foreign‑policy blunt instrument, testing NATO trust and accelerating the EU’s drive for strategic autonomy.

In January 2026 China staged an intensive diplomatic opening, hosting leaders from neighbouring states as well as visitors from Europe and North America while continuing long‑standing outreach to Africa. The visits produced new cooperation agreements and reiterated Beijing’s opposition to the use of force in international disputes, signaling a push for stability, influence and economic partnership as global growth slows.

In the first month of 2026 China staged a sustained diplomatic push, prioritising neighbouring states while courting partners in Europe, North America and Africa. High-level visits, a revived China–Africa cultural year and public opposition to unilateral coercion together project Beijing’s desire to shape the international agenda and deepen economic ties amid global uncertainty.

China's securities regulator and stock exchanges have tightened market controls after a rapid A‑share rally, executing more than 800 supervisory actions in a week and raising the minimum margin requirement for new financing contracts from 80% to 100%. The moves aim to curb speculative leverage and steer the market toward longer‑term institutional investors while preserving orderly trading.

Several Chinese small and rural banks have raised deposit rates selectively — by up to about 20 basis points — using time-limited or high-minimum products to attract funding at the start of 2026. The moves reflect year-beginning funding drives and competitive pressures on institutions with weaker deposit franchises, not a broad reversal of the downtrend in deposit pricing.

China’s electric-vehicle market reached mass adoption in 2025, with penetration approaching 60% and charging and swap networks expanding rapidly. As purchase-tax subsidies are rolled back in 2026, competition will pivot from stimulus-fuelled growth to a fight over technology, cost efficiency, user experience and global expansion.

In the first month after Hainan implemented an island‑wide sealed‑port customs regime, duty‑free retail and tourism surged: RMB 4.86 billion in sales, sharp rises in hotel and flight bookings, and shortages in popular items such as gold jewellery and iPhones. Policy changes — expanded zero‑tariff lists, visa easing for Russian tourists, and consumer vouchers — have driven a rapid reorientation of demand, while customs digitalisation eased throughput and regulators warned of resale and fraud risks.

European governments are reportedly considering retaliatory tariffs on about €93 billion of US goods and market restrictions in response to President Trump’s announcement of tariffs on eight European countries to pressure them into selling Greenland. The dispute risks triggering a new transatlantic trade confrontation and further straining NATO cohesion amid rising strategic competition in the Arctic.

Xibei chairman Jia Guolong has defended the restaurant chain’s use of frozen organic broccoli, saying it is a premium, export‑grade product that costs 80–120% more than ordinary broccoli and is rapidly rotated in stores. He rejected claims that restaurants serve “two‑year‑old” broccoli, noting typical use within weeks and emphasizing quick‑freeze, preservative‑free production and full cold‑chain logistics.

China reported the successful landing of the Shenzhou-20 return capsule at the Dongfeng recovery site, marking the end of a mission phase and demonstrating the operational maturity of its crewed-space infrastructure. The touchdown underscores Beijing’s move toward routine human spaceflight operations and strengthens both the technical and political foundations of its programme.

AI-driven demand for high-performance memory has tightened global supplies, pushing DDR5 RDIMM and enterprise SSD prices sharply higher. China is accelerating domestic capacity expansion and technology upgrades, creating opportunities for local chipmakers and investors while leaving device makers and cloud users to manage higher costs.

A public feud between Xibei founder Jia Guolong and influencer Luo Yonghao has coincided with a sharp operational retrenchment at Xibei, which plans to shutter 102 stores after reporting a 50% drop in January sales. The episode highlights how reputational attacks over alleged use of pre‑prepared ingredients can amplify real economic fragility in China’s full‑service restaurant sector.