China is significantly boosting its domestic semiconductor industry, launching a massive new investment fund and achieving technological milestones, in direct response to escalating U.S. export restrictions on advanced microchips and manufacturing equipment. The push aims for greater self-sufficiency in critical technologies.
Industry experts, including the China National Petroleum Corp (CNPC) and Sinopec, forecast China's oil demand will peak by 2030, with some predicting an earlier peak by 2027. This significant shift is primarily driven by the rapid adoption of electric vehicles and substantial investments in new energy sources, aligning with the nation's 15th Five-Year Plan.
The Bank of Japan has increased its benchmark interest rate by 25 basis points to 0.75 percent, marking its highest level since September 1995. This unanimous decision, following a two-day monetary policy meeting, signals a continued shift away from ultra-loose monetary policy amid persistent inflation and expectations of sustained wage growth.
Germany has approved a significant expansion of its Arrow 3 defense system contract with Israel, increasing the total value to approximately $6.5 billion. This landmark deal, approved by the German Bundestag, represents Israel's largest defense export in history and aims to bolster Germany's air and missile defense capabilities amidst evolving geopolitical tensions.
China's Hainan Free Trade Port officially commenced island-wide special customs operations on December 18, 2025. This landmark move significantly expands zero-tariff coverage to 74% of goods, introduces a 'two-line' customs system, and offers tax incentives, marking a crucial step in China's high-standard opening-up policy.
Bipartisan U.S. senators have introduced a resolution expressing strong support for Japan and condemning China's economic and military pressure. The measure, led by Senators Pete Ricketts and Christopher Coons, reaffirms the U.S.-Japan alliance and the application of Article 5 to the Senkaku Islands, particularly in light of recent tensions over Taiwan.
China will end a 30-year tax exemption on condoms and other contraceptives, enacting a 13% value-added tax (VAT) starting January 1, 2026. This policy shift aims to boost the nation's declining birth rate and address its demographic challenges, marking a reversal from previous family planning policies.
Indonesia and Belarus are strengthening bilateral ties, focusing on food security, agricultural development, and technological capacity. Recent high-level talks in Jakarta involved Indonesian Coordinating Minister Airlangga Hartarto and Belarusian Deputy Prime Minister Viktor Karankevich, discussing modern agricultural machinery, fertilizer supplies, and investment opportunities to bolster food resilience.
His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum has directed the establishment of the Dubai RDI Ecosystem, a unified platform under the Dubai Future Foundation. This initiative aims to accelerate research, development, and innovation, integrating existing programs and fostering collaboration to position Dubai as a global hub for future economies.
China has lauded Thailand's successful efforts in cracking down on online scam operations based in Myanmar, leading to the repatriation of over 6,600 Chinese suspects. This cooperation highlights a concerted regional push against cross-border cyber fraud and human trafficking.
Guan Heng, a 38-year-old Chinese national who secretly filmed alleged detention camps in Xinjiang, faces possible deportation from the U.S. to Uganda. Human rights advocates and his lawyer express grave concerns that he could subsequently be transferred to China, where he would face severe persecution for his actions.
China is testing a prototype extreme ultraviolet (EUV) lithography system in a high-security Shenzhen lab, marking a significant step in its quest for semiconductor self-sufficiency. Completed in early 2025, the system generates EUV light but has yet to produce working chips, with targets set for 2028-2030. The project, dubbed the 'Chinese Manhattan Project,' involves former ASML engineers and aims to bypass Western export controls.
A Chinese government travel advisory, citing diplomatic tensions and security concerns, has significantly impacted the growth of Chinese visitors to Japan. This has led to hotel cancellations, reduced retail sales, and concerns among Japanese tourism businesses, despite an overall record year for inbound tourism.
Japan's last two giant pandas, Xiao Xiao and Lei Lei, are set to return to China in late January 2026, approximately a month earlier than initially scheduled. Their departure from Tokyo's Ueno Zoo marks the first time Japan will be without pandas since 1972 and comes amidst heightened diplomatic strain between the two nations, particularly following recent comments by Japanese Prime Minister Sanae Takaichi regarding Taiwan.
India's Lok Sabha has passed the landmark Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025. This legislation ends the state's decades-long monopoly, allowing private Indian and international firms to invest in, build, and operate civil nuclear power plants, aiming to boost energy capacity and meet climate goals. The bill also overhauls the nuclear liability framework.
Japan is set to host its first-ever summit with five Central Asian nations in Tokyo on December 19-20, 2025. The meeting aims to expand collaboration, strengthen supply chains, foster sustainable development, and reinforce a rule-based international order, with discussions on economic security and AI.
President Donald Trump's tariffs on Chinese goods have led to significant disruptions in global shipping, causing fluctuating freight rates, increased port congestion, and a notable shift in supply chain strategies. Concerns about potential shortages and rising costs persist as companies re-evaluate their reliance on Chinese imports.
The United States has put its £31 billion 'Tech Prosperity Deal' with the United Kingdom on hold. The decision stems from unresolved trade disputes, including the UK's digital services tax and food safety regulations, impacting significant technology investments from US giants like Microsoft and Google.
President Donald Trump ordered a 'total and complete blockade' on all sanctioned oil tankers entering or departing Venezuela on Tuesday, December 16, 2025. The move escalates pressure on President Nicolás Maduro's administration, citing drug trafficking and other crimes, and follows a recent US seizure of a Venezuelan oil tanker. Venezuela condemned the action as a violation of international law.
President Xi Jinping met with Hong Kong Chief Executive John Lee in Beijing on December 13, 2024, during Lee's annual duty visit. Xi affirmed the HKSAR government's work, particularly in safeguarding national security and economic development, and reiterated Beijing's full support for the 'one country, two systems' policy and Hong Kong's future growth.
