Daily Buzz: 5 February 2026

Chinese President Talks with Russian, US Leaders

Chinese President Xi Jinping held a video-link meeting with Russian President Vladimir Putin and a phone call with US President Trump on Wednesday to discuss cooperation in maintaining geopolitical stability, Xinhua news agency reported. Xi told Trump that he places great importance on China-US relations but warned that US arms sales to Taiwan must be handled with prudence. Trump reportedly said he understands how Beijing feels about the Taiwan issue. A Washington read-out of the talks, the first between both leaders since November, called the conversation "very positive" and said China is considering buying more US soybeans as a goodwill gesture. Trump is expected to visit China in coming months. The Kremlin said the Xi-Putin meeting reinforced bilateral intent to be a "stabilizing factor" in a world of growing turbulence and stressed the need for multilateral frameworks.

China Calls Panama Canal Ruling 'Absurd," Fate of Ports Uncertain

China called the recent Panama court ruling nullifying CK Hutchinson's licenses to operate two ports on the Panama Canal "absurd" and warned there could be consequences. The foreign ministry said "it's clear who is trying to monopolize the canal," adding that China will "take all necessary measures to safeguard the legitimate rights and interests of Chinese companies." Hong Kong-based CK Hutchison said its Panama Ports unit has initiated international arbitration proceedings against Panama, though the case could take years to resolve, Reuters reported. The court ruling is part of a complex tug-of-war between China and the US over control of the Panama Canal, a vital shipping artery. President Donald Trump said last year the US wants to reclaim full control over the canal and end Chinese influence there. CK Hutchinson included the two ports – located at either end of the canal – in a mega-deal to sell its interests in 43 global ports to US private equity firm BlackRock and Italy's Mediterranean Shipping Co for US$23 billion. Beijing, which must approve the deal, insisted its state-owned shipping company Cosco be a stakeholder in the deal. Who will operate the ports now is uncertain.

US-Iranian Talks on Track Despite Heightened Tensions

US President Donald Trump ramped up pressure on Iran ahead of nuclear talks scheduled on Friday in Oman, warning that Supreme Leader Ayatollah Ali Khamenei "should be very worried" about the consequences if no deal is struck. Iran is a significant oil producer. Global oil prices rose. Benchmark Brent crude was 2 percent in late New York trading. Trump has moved a military strike force near Iranian shores and threatened to strike if Iran doesn't agree to a deal ending its nuclear weapons development. Tehran denies its nuclear program is for military purposes. Middle Eastern mediators stepped in quickly on Wednesday to keep the Friday talks on track after a US carrier shot down an Iranian drone in the Arabian Sea, Iranian gunboats threatened a US merchant vessel in the Strait of Hormuz and a dispute arose over the location of the Friday negotiations.

AI Concerns Cause Further Retreat in Share Prices

Technology shares suffered a second day of losses in New York on Wednesday, with the tech-heavy Nasdaq down 1.5 percent after a 1.4 percent drop a day earlier. Bitcoin, considered a bellwether of investor sentiment on AI development, lost nearly 4 percent. Software stocks have come under pressure as investors worry about the huge demand that artificial intelligence large language models place on chip makers. A shortage of memory chips is already hitting smartphone production hard. Concerns have also resurfaced about the astronomical sums of money, often borrowed, are being plowed into AI development, with near-term returns uncertain.

The MSCI global software and services index has dropped 13 percent in five days. "We are not yet at the point where AI agents will destroy software companies," Ben Barringer, head of technology research at Quilter Cheviot, told Reuters. "But during times of volatility, people often shoot first and ask questions later."

Top Business

China Wind Turbine Maker Goldwind Under EU Probe

Chinese wind turbine maker Goldwind Science & Technology is under an EU investigation amid claims it may have received government subsidies, giving it an unfair advantage in Europe. China's foreign ministry said the move sends "a protectionist signal." The EU's "frequent use of unilateral trade and economic tools" damages its image and undermines Chinese businesses' investment confidence, said Lin Jian, a spokesperson for China's foreign ministry. The China Chamber of Commerce in the EU also expressed concerns about a disproportionate number of EU regulatory actions against Chinese companies. European turbine makers have urged the EU competition regulators to look into what they call a flood of cheaper Chinese imports.

Separately, Italian regulators have blocked an advertising campaign by Chinese electric carmaker BYD following a complaint from rival Stellantis. The ads offered generous bonuses to consumers who trade in cars with "oil bath" timing belts, which are used in Stellantis Peugeot and Citroen brands.

China Aircraft Giant Lifts Profile at Singapore Air Show

Commercial Aircraft Corp of China (Comac) is exhibiting its domestically manufactured C900 and C919 jetliners at the current Singapore Air Show, trying to position itself as a rival to Airbus and Boeing. The plane-maker said it is "setting its sights on the Southeast Asian market" for starters.

"I think in time, Comac will be a global competitor," Willie Walsh, director-general of the International Air Transport Association, told the BBC. "Ten or 15 years from now, we'll be talking about Boeing, Airbus and Comac. Without question, they will be a considerable player."

Tesla, Xiaomi Turn to Cheaper Car Loans to Rev Up Sales

Electric carmakers Tesla and China's Xiaomi are going head to head in offering cheaper car loans as they jockey for top spot in mainland sales, the South China Morning Post reported. US-based Tesla, which operates a car-making factory in Shanghai, is offering loans with annual interest of 1.35 percent and extended terms of seven years. In turn, Xiaomi, which overtook Tesla last year as the top pure electric carmaker in terms of sales, announced seven-year loans at 1 percent a year. Other rivals are following suit. "All electric vehicle makers are facing a dilemma this year as rising raw-material costs eat into profit margins and prevent them from offering steep price cuts," Chen Jinzhu of consultancy Mingliang Auto Service told the newspaper. "Overall market demand has turned weak." Between January 1-18, sales of pure electric and plug-in hybrid vehicles fell 28 percent, due in part to the government's halving of its tax exemption on new energy vehicles.

Musk Teams Scout China's Solar Energy Chain

Teams from Elon Musk's Tesla and SpaceX businesses have recently been scouting China's solar power supply chain, with SpaceX placing orders with a leading Chinese equipment maker, Cailian Press reported, citing people familiar with the matter. SpaceX has reached agreement with the supplier to deliver production lines for so-called heterojunction solar cells, a hybrid that improves conversion efficiency. Only a small number of Chinese manufacturers are currently able to supply complete production lines of the cells at scale. The deal hasn't been publicly disclosed because of commercial confidentiality. Tesla, meanwhile, is still at an inspection stage, visiting multiple companies across China's solar energy industry to assess manufacturing capabilities and compliance standards, the sources said. No purchase agreements have been confirmed so far. China dominates global solar-cell manufacturing and equipment supply.

Economy & Markets

Chinese Airlines Handling Rush of Holiday Travelers

Chinese airlines handled more than 2 million passenger trips during the first day of the 40-day Chinese New Year holiday travel period, with 19,080 flights transporting 2 million trips. Southeast Asia was a preferred destination for outbound travelers. Umetrip, a flight tracker, said the

number of domestic flight bookings on the first day of the travel season exceeded 1.9 million, with domestic travelers largely seeking warmer destinations in the south and some gains in trips to winter sports areas in the north. The Lunar New Year, called Spring Festival in China, is traditionally a big travel season.

Tianqi to Begin Selling Down Chilean SQM Stake

Chengdu-based Tianqi Lithium plans to sell up to 1.25 percent of its 22 percent stake in Chilean lithium giant SQM amid board approval to dispose of the entire holding, Bloomberg News reported, citing a filing with the Hong Kong stock exchange. Tianqi initially plans to sell up to 3.57 million shares valued at about US$206 million but has board authorization for the sale of 62.6 million shares, effectively paving the way for a full exit. Tianqi was frustrated by an adverse court ruling in its efforts to have a stronger voice in a partnership between SQM and state-owned Chilean miner Codelco. It acquired the stake in SQM in 2018.

Surge of New Trading Accounts for Shanghai Stocks

The Shanghai Stock Exchange reported that new trading accounts opened in January jumped 89 percent from December to almost 5 million. That was more than a tripling from a year earlier. Investors are piling into stocks after strong rallies last year are continuing in 2026, particularly in the technology sector. Regulators have taken steps to try to keep market development orderly.

Corporate

China's CPE, Burger King Form New Venture

Chinese private equity firm CPE and Burger King owner Restaurants Brands International formally set up a Burger King China venture, with CPE taking an 83 percent stake following a US$350 million investment. The US-based chain is following the path of other foreign fast-food chains seeking partnerships with Chinese companies as competition from domestic rivals intensifies. The new Burger King ventures aims to expand Burger King's outlet network in China from about 1,250 today to more than 4,000 by 2035.

Separately in the same sector, Yum China announced that its customer loyalty programs across KFC and Pizza Hut fast-food outlets surged to 590 million members. Yum China owns or franchises 18,000 outlets on the mainland, claiming to be the largest restaurant chain in the country.

Tencent Faces Spring Festival Discord in Its Own Backyard

Tencent's battle with Alibaba and Baidu to woo consumers to their AI apps with big cash giveaways for the Chinese Lunar New Year holiday period hit a snag when two of its own subsidiaries got into a battle of their own. Tencent announced it was splashing out 1 billion yuan (US$144 million) in digital "red packets" of cash through its AI chatbot Yuanbao and the rewards could be boosted if shared on its WeChat social media platform. But the heavy ad tactics and online traffic riled some WeChat users, causing the platform to announce that it's restricting the direct digital link from Yuanbao.

Usain Bolt Namesake Sets Robotic Running Record

Shanghai-based robotics company JingShi Technology and Zhejiang University announced the launch of Bolt, a full-size humanoid named after legendary sprinter and eight-time Olympic gold medal winner Usain Bolt. His namesake robot has reached a peak running speed of 10 meters per second, which the developer say makes it the fastest full-size running robot in the world. Bolt is 175 centimeters tall and weighs 75 kilograms.

Hehe Launches Cross-Platform AI Agent Chaterm

Shanghai-based Hehe Information, a technology service provider, has upgraded its AI Agent Chaterm with a mobile version and new voice-command feature, designed to address long-standing hurdles in cloud-based AI services. It meets the need for 24/7 uptime services, especially during holidays like the coming Spring Festival or during commutes. The voice-command recognition system can accurately identify and translate highly specialized technical terms and operational slang into precise server commands, minimizing the risk of "fat-finger" errors.

Renault Will Tap Shanghai Parts for New Engine

French automaker Renault will use Shanghai parts in the development of a new electric engine for small cars at its Cleon plant in France, Reuters reported, citing L'Argus automotive news. Renault said the parts will be supplied by Shanghai Edrive in a bid to reduce costs. Renault already imports small electric engines from the company for its low-cost, Twingo electric town-car. Production of the new engine is expected to begin early next year.