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.
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.
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.
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.
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.
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.
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.
Beijing Zhongwei Sail Technology Co., Ltd. (ZW-Sail) has successfully completed the tape-out of its first Micro LED process verification chip, marking a significant advancement in semiconductor micro-display systems. The company's innovative solutions, including the world's first DRSP chip architecture, are poised for their international unveiling at the 19th AES Consumer Electronics Show in Dubai, UAE, this December.
India has eased business visa procedures for Chinese professionals, cutting approval times to under four weeks. This move aims to enhance bilateral economic engagement and mend relations strained since the 2020 border clash, with China welcoming the development.
China has officially implemented anti-dumping tariffs on pork and pig by-products from the European Union, effective Wednesday, December 17, 2025. The duties range from 4.9% to 19.8% and will be in place for five years, following an 18-month investigation by China's Ministry of Commerce. This move is widely seen as a response to EU tariffs on Chinese electric vehicles.
President Xi Jinping declared at the recent Central Economic Work Conference in Beijing that efforts to 'choke' China would fail, underscoring the nation's economic resilience and steadfast development course. The conference outlined key priorities for 2026, focusing on domestic demand, proactive fiscal policies, and innovation-driven growth.
China has expressed strong disapproval over an international conference held in Tawang, India, focusing on the 6th Dalai Lama. Beijing views the event, which took place in a region it claims as 'South Tibet,' as an infringement on its sovereignty and an 'absurd farce.' The conference, held from December 3-6, 2025, highlighted Tawang's historical ties to Tibetan Buddhism.
China's top securities regulator, the CSRC, has launched a new round of special actions aimed at strengthening the governance of listed companies and deepening capital market reforms. The initiative seeks to cultivate high-quality firms, promote increased dividend payouts, and enhance investor protection through a series of updated regulations and oversight measures.
China's industrial output growth slowed to a 15-month low of 4.8% in November 2025, missing forecasts. Retail sales also saw a sharp deceleration, growing by only 1.3%, marking their weakest performance since December 2022, following the end of 'zero-COVID' curbs. The data highlights challenges in domestic demand and prompts calls for further economic stimulus.
China has imposed sanctions on Shigeru Iwasaki, Japan's former chief of the joint staff of the Self-Defense Forces, effective December 15, 2025. Beijing accuses Iwasaki of 'colluding with Taiwan independence separatist forces,' citing his appointment as an adviser to Taiwan's Cabinet. The sanctions include asset freezes, transaction prohibitions, and a travel ban to China, Hong Kong, and Macao.
China continues to strengthen its leading position in the global battery market, driven by substantial investments and rapid technological advancements. Chinese manufacturers now control a significant majority of the world's EV battery installations and production capacity, while also dominating the critical raw materials supply chain.
China announced plans to fully cover childbirth costs for all citizens by 2026, aiming to combat its declining birth rate and population crisis. The policy will eliminate out-of-pocket expenses for standard delivery services, expanding maternity insurance eligibility to more workers.
