Daily Buzz: 13 January 2026

China, EU Announce Steps to Resolve Car-Tariff Dispute

China and the EU announced steps to resolve a longstanding dispute over European import tariffs on China-made electric cars. According to a jointly released "guidance document," the agreement essentially would allow Chinese carmakers to avoid EU tariffs as high as 35 percent by committing to minimum prices for every model earmarked for sale in Europe. Tariff relief would also take into account Chinese auto investments on the continent. Brussels imposed the tariffs in October 2024 to protect the EU auto industry from lower-cost Chinese imports that it said were subsidized by Beijing. Despite tariffs, Chinese automakers captured a record 13 percent of Europe's electric-vehicle market in November, according to researcher Dataforce. The Chinese Ministry of Commerce, which has long called the tariffs unjustified and disproportionate, hailed the agreement with the EU as an important step forward, reflecting "the spirit of dialogue and a willingness to resolve differences through consultation."

Trump Slaps 25 Percent Tariff on Countries Trading With Iran

President Donald Trump announced any country doing business with Iran will face a 25 percent tariff on "any and all business" done with the US, effective immediately. His comments came amid rising tensions with Iran, with Trump threatening to intervene military on behalf of protesters who have staged two weeks of demonstrations triggered by the nation's soaring cost of living. China is among many nations that trade with Iran.

Iran said it is open for talks with the Trump administration but "prepared for war." Iran's foreign minister said he has been in contact with Trump special envoy Steve Witkoff in recent days but didn't disclose the nature of the discussions.

Fed Chair Under Federal Criminal Probe

US Federal Reserve Chairman Jerome Powell said he is under federal criminal investigation related to testimony he gave last June to the Senate Banking Committee. He said the legal action is payback from President Donald Trump for his opposition to deeper interest-rate cuts and he won't be intimidated by political pressure. The testimony in question related to information on the Fed's US$2.5 billion project to renovate the historic Fed headquarters building, Powell said. Trump has previously accused Powell of mismanaging the project, which the president described as too costly and ostentatious. Powell's term as Fed chairman expires in May, but his tenure on the Fed board of governors doesn't lapse until the end of 2026. Ironically, it was Trump who appointed Powell as Fed chair in 2019. The S&P 500 stock index in New York shrugged off the news to close at a new record high, but US Treasury bond yields rose on concerns about risk to the Fed's independence, with 10-year debt up 0.01 percentage point at 4.187 percent.

Top Business

Investors Bet on End to China Food-Delivery War

Hong Kong shares of the three big rivals in China's fast food-delivery sector – Alibaba, Meituan and JD.com -- rose after Beijing announced yet another attempt to rein in a price war that has eaten into profits. Although the three companies in the past have said they will comply with directives to cool their intense battle for customers, none has seemed willing to be the first to change its practices. The State Administration for Market Regulation on Friday said it is launching a probe into competition practices in the sector, which have included costly discounting, promotions and merchant incentives. Meituan, the market leader in promising delivery of food within an hour of ordering, admitted last year that "irrational competition" in its fast-food delivery battle led to its first quarterly loss in three years. Its shares in Hong Kong rose 6.6 percent on Tuesday as investors bet that the new clampdown will raise margins. Alibaba gained 5.3 percent, and JD gained 2 percent.

China Conducts First Space Test of Brain Tech

China has conducted the world's first human brain-computer interface experiment in space, according to Tianjin University's Haihe Laboratory of Brain-Computer Interaction. The laboratory developed an in-orbit system for China's space station that enables real-time monitoring of astronauts' functional and emotional states during missions. Brain-computer interface is an advanced technology that links the brain's electrical activity and an external device. Global interest in the technology has intensified since Elon Musk's Neuralink introduced digital brain implants. China has been stepping up research in the field, led by companies such as Innovative Medical Management, Sanbo Hospital Management and Mehow Innovative Ltd.

Honor to Launch Pop Mart 'Toy' Smartphone

Chinese smartphone maker Honor said that its 500 series will feature collaboration with Chinese toy maker Pop Mart, positioning the device as the industry's first "designer toy" smartphone. The new model is scheduled for release next week. A Pop Mart representative said the company has no plans to develop smartphones independently but will continue to work with leading handset brands. Honor's 500 series went on sale in November, with prices starting at 2,699 yuan (US$387).

Trump Rounds on Exxon Over Venezuela Remark

US President Donald Trump, who has said he will decide which US oil companies can invest in rebuilding Venezuela's oil industry, said Exxon Mobile may be excluded after its chief executive called the country currently "uninvestable." Darren Woods was among more than a dozen oil industry executives invited to the White House last week to discuss Trump's claim that they will invest US$100 billion to revive an industry plagued by decaying infrastructure and mismanagement. Exxon, ConocoPhillips and Chevron were major players in Venezuela's oil industry until it was nationalized in the 1990s and weren't fully reimbursed for loss of assets. US oil companies are known to be wary about investing in a Venezuela, but their misgivings haven't captured headlines like Woods' remark. "I didn't like Exxon's response," Trump told reporters. "I'll probably be inclined to keep Exxon out. They're playing too cute."

Economy & Markets

OmniVision Shares Rise in HK Trading Debut

Shares in China's OmniVision Integrated Circuits rose 16 percent in their Hong Kong trading debut this week after an initial public offering that raised HK$4.8 billion (US$616 million). The company, already listed in Shanghai, said it will use the proceeds for expansion of research and development. Formerly known as Will Semiconductor, the company provides image sensors that turn incoming light into electrical signals for industries such as smartphones, automobiles and smart glasses.

TSMC Forecast to Post 27 Percent Profit Surge

Taiwan Semiconductor Manufacturing, the world's largest contract chip maker, is expected to post a 27 percent rise in net profit to NT$475.2 billion (US$15 billion) when it releases fourth-quarter results this week, Reuters reported, citing a poll of 19 analysts by LSEG SmartEstimate. The company, a major supplier to Nvidia and Apple, last week reported that fourth-quarter revenue rose 20.5 percent to NT$1.05 trillion on the global surge in demand for artificial intelligence chips. TSMC is scheduled to report earnings on January 15.

Pacific Asset Management Buys Shanghai Airport Stake

Pacific Asset Management, the investment arm of China Pacific Insurance, increased its stake in Shanghai International Airport Co to 5 percent, after acquiring a large block of shares at a discount, Caixin reported. The purchase involved 72 million shares valued at about 2 billion yuan (US$305 million).

Artificial Intelligence: Read All About It!

Artificial intelligence isn't only a talking point nowadays. People are also keen to read about the new technology and how it will change the world and affect daily life. At the current 2026 Beijing Book Fair, the focus is on titles highlighting AI and also its repercussions for digital publishing. The fair features 400,000 book titles and more than 2,700 display booths.

Corporate

Musk to Open Source X Algorithm

Tesla owner Elon Musk said he will open source the new algorithm of his X social media platform next week. The move will include code for what Musk called "organic and advertising post" recommendations, adding that updates will be issued every four weeks. The move comes after the EU last month fined the platform US$140 million for breaching digital transparency rules.

X Square Robot Secures More Financing

China's X Square Robot completed a 1 billion yuan (US$143 million) round of financing, becoming the only domestic embodied AI company to be backed all three tech giants ByteDance, Meituan, and Alibaba. The Shenzhen-based humanoid robot developer has completed nine fundraising rounds totaling 3 billion yuan since it was founded in 2023.

BYD Unveils Models for Fleet Sales

BYD, the world's biggest electric vehicle manufacturer, released a new line of models under the Linghui brand aimed at fleet sales. Three of the vehicles are pure electric; the fourth is hybrid multi-purpose vehicle, the Ministry of Industry and Information Technology announced. BYD sold over 4.6 million new energy vehicles in 2025, up 7.7 percent from the previous year.

Harmony Intelligent Plans Launch of Multi-Purpose Vehicle

The Harmony Intelligent Mobility Alliance's first multi-purpose vehicle, the Luxeed V9, is expected to be launched in a few months. It features Huawei's Snow Owl range-extender system and the next-generation Qiankun driver-assisted hardware. The model is expected to be priced at about 500,000 yuan (US$71,600). The alliance, established in 2023, includes Seres, Chery Auto, BAIC, JAC and SAIC Motor units.

Geely Considering Expansion Into US

Chinese carmaker Geely is looking at expansion into the US within three years, focusing on its Zeekr and Lynk brands, a spokesman for the company said. Geely already has made inroads into European markets after its 2010 acquisition of Sweden's Volvo Cars and interests it holds in Germany's Mercedes-Benz and France's Renault.