Daily Buzz: 19 January 2026

Trump Targets Europe for Greenland-Related Tariffs

US President Donald Trump zeroed in on eight fellow NATO members as the target of his new 25 percent tariff on countries that oppose his plans to take over Greenland. The tariff increase will begin with a 10 percent increase on February 1 and rise to 25 percent come June, he said, adding they will remain in effect until Greenland comes under US control. The tariffs target the UK, France, Germany, Denmark, Norway, Sweden, the Netherlands and Finland – all countries that already have US tariffs on their products. The eight nations, in a joint statement, said, "Tariff threats undermine trans-Atlantic relations and risk a dangerous downward spiral." The Dutch called the tariffs blackmail, and French President Emmanuel Macron suggested the EU could adopt US$108 billion in retaliatory tariffs against the US. Greenland is an autonomous territory under Denmark, which has said any US attack on the island would spell the end of NATO.

Separately, a US Supreme Court ruling on the legality of Trump's use of emergency powers to levy non-sector specific, general tariffs on other nations is expected any day. Trump has used the tariffs both for trade and political retaliation. The ruling would include the new tariffs on Europe as well as a range of tariffs imposed on global trading partners.

Gaza 'Board of Peace' Stirs Controversy

The transitional administration created to shove Hamas aside and oversee peace and reconstruction in Gaza is initially creating more conflicts that solving them. US President Donald Trump's first appointments to the so-called "Board of Peace," which he will chair, include US Secretary of State Marco Rubio, Trump son-in-law Jared Kushner, US special envoy Steve Witkoff, former UK prime minister Tony Blair, Turkish Foreign Minister Hakan Fidan and a minister from the United Arab Emirates. Critics noted that Trump, Kushner and Witkoff are real estate investors, recalling Trump's earlier suggestion that Palestinians be sidelined and Gaza turned into a "Riviera of the Middle East." Even staunch ally Israel said the composition of the board runs counter to government policy, without elaborating. Israel has repeatedly opposed any Turkish role in Gaza. Bloomberg News reported that expansion of board members may require nations to pay US$1 billion for a seat.

Trump Calls for Change of Iranian Leadership

US President Donald Trump on Saturday called for an end to Ayatollah Ali Khamenei's 37-year reign in Iran. "It's time to look for new leadership," the president told Politico as nationwide protests waned amid suppression by security forces. Khamenei, in a speech the same day, said thousands had been killed during the unrest, "some in an inhuman, savage manner," and blamed the US for the deaths. Trump has backed off, at least for now, on earlier threats for military intervention in Iran. The protests were triggered by the soaring cost of living in Iran.

Top Business

China Electricity Use Rises to Record High, AI a Factor

China's electricity consumption in 2025 rose to a record 10.4 trillion kilowatt-hours, more than double that of the US, China's CCTV reported, citing the National Energy Administration. The 5 percent increase from a year earlier puts China at the top of world rankings, with consumption more than the combined total of the EU, Russia, India and Japan. The record electricity use was largely down to the surge in AI data centers, which consume vast amounts of power, and to rising sales of electric vehicles. Electricity consumption by data centers and other information technology surged 17 percent, while residential use was up 6.3 percent. Factory and mining consumption grew 3.7 percent.

China Pushes Reusable Rocket Breakthrough

State-owned China Aerospace Science and Technology Corp said it will push ahead for breakthroughs in reusable rocket technology, which lowers launch costs and timelines, as part of the nation's plans to develop low-altitude satellite constellations to rival Elon Musk's Starlink. The aerospace giant also said its plans include crewed lunar exploration and deep-space missions. It will focus on three core areas: aerospace defense manufacturing, globalization of defense businesses and application of aerospace defense technologies.

Robots Return to Spring Festival Gala

China Central Television's annual Spring Festival Gala, an hours-long entertainment extravaganza, has been a staple of the Lunar New Year celebrations for decades, but its most popular contemporary performers are robots. This year's program, to be aired on February 16, will again combine the cutting edge of humanoid robot technology with artistic performances. Robots doing folk dances in last year's program stirred widespread public interest in robotics. CCTV said this year's gala will feature artificial intelligence, augmented reality and extended reality technologies that blur the line between virtual and physical space.

Economy & Markets

Nvidia Suppliers Pause Output of H200 Chip Components

Suppliers of parts for Nvidia's H200 chips have paused ramped-up production of components for the company's second-most advanced semiconductors, Reuters reported. The pause may be related to concerns that sales to China won't scale the heights predicted by Nvidia Chief Executive Jensen Huang, who earlier said he expected at least 1 million orders. The US government last week finally approved export of the chips to China, but there has been no official word from Beijing on whether the chips will be welcomed in the country striving to promote domestic chip production and end reliance on foreign semiconductors.

South Korea Seeks Clarity on New US Chip Tariffs

South Korea's presidential office said the nation will seek favorable terms related to newly imposed Trump administration 25 percent tariffs on imports of chips. Earlier, South Korea's trade minister said the tariffs would have limited impact on South Korean chipmakers because the duties appear to target AI chips, mostly made by Nvidia and AMD, and not the memory chips that world leaders Samsung Electronics and SK Hynix produce. However, US Commerce Secretary Howard Lutnick warned that South Korean and Taiwan-based chipmakers that don't invest in the US could face up to 100 percent tariffs.

China's Nuclear Fusion Industry Nears Inflection Point

China's nuclear fusion industry is moving from the research lab toward the marketplace, industry experts said. At a recent nuclear fusion industry conference, industry participants said they expect multiple domestic and overseas fusion projects in the next five years will move into construction and equipment phases. Nuclear fusion, which powers the sun, is the process of forcing molecular nuclei together, producing vast amounts of clean energy that is converted into electricity. It works opposite to existing nuclear fission, which creates energy by splitting atoms, creating stockpiles of radioactive waste in its wake. Spending on the new technology in China has approached 200 billion yuan (US$29 billion). Guotai Haitong analyst Xu Qiang said investor interest in fusion rose sharply in 2025.

Jakarta Accuses Chinese, Other Steelmakers of Tax Evasion

The Indonesian Finance Ministry said it has uncovered tax evasion involving at least 40 steel companies, including Chinese firms, that failed to pay value-added tax. A probe into the issue is looking at both domestic and foreign companies, but none was named. Jakarta previously flagged similar practices involving Chinese steel companies operating in Indonesia, which allegedly set up local entities using Indonesian names to avoid tax obligations.

EU, Mercosur Sign Free-Trade Agreement

The EU and South American trading bloc Mercosur signed a free-trade agreement that took 25 years to negotiate and creates one of the world's largest duty-trade zones. The accord slashes more than 90 percent of tariffs, some phased in over time, between the two trading blocs. The lengthy negotiation process was due, in large part, to opposition from European farmers about a flood of cheap South American imports like meat and soybeans. Austria, France, Hungary, Ireland and Poland voted against the agreement among the 27-member EU. Mercosur's full members are Argentine, Bolivia, Brazil, Paraguay and Uruguay. Venezuela has been suspended since 2016. European Commission President Ursula von der Leyen, who attended the signing ceremony in Paraguay, said "the geopolitical importance of this agreement cannot be overstated."

Corporate

UBTech, Airbus Sign Robotics Deal

Chinese humanoid robotics startup UBTech Robotics announced on Sunday that it signed an agreement with European aviation giant Airbus that includes the purchase of the Shenzhen-based company's latest industrial robot, the Walker S2, for use in Airbus manufacturing facilities. No financial figures were disclosed. Last year, UBTech's received orders for humanoid robots totaling more than 1.4 billion yuan (US$200 million), ranking first globally. This year, production capacity is forecast to reach the tens of thousands.

Meituan to Offer Comparative Data on Car Sales, Services

China e-commerce giant Meituan is partnering with Passion Tech, the largest on-demand delivery service provider in China, to provide consumers with comparative information on vehicle sales, parts and services. The tie-up plans to include 30 auto brands and 10,000 dealers on the platform, Yicai Global reported. Passion Tech primarily focuses on AI applications and internet integration within the auto industry.

SF, Indonesian Firm Form Equity-Swap Partnership

Chinese express delivery firm SF Holding and Indonesia's J&T Global Express have forged a partnership through an equity swap valued at HK$8.3 billion (US$1 billion), aimed at accelerating international expansion. Under the deal, SF will take a 10 percent stake in J&T, and the Indonesian partner will buy a 4.3 percent holding in SF.

Hengli Heavy to Invest in Expanded Shipbuilding Capacity

Dalian-based shipbuilder Hengli Heavy Industry said it plans to invest 13.5 billion yuan (US$2 billion) to increase its manufacturing capacity amid growing demand. Plans include a new plant to build "intelligent" seagoing vessels.

Hisense TV Factory Wins Global Accolade

Qingdao-based Hisense, a major maker of home appliances and consumer electronics, had a TV plant in its home base designated the world's first "lighthouse factory" in the sector – a title introduced by the World Economic Forum for benchmarking facilities that lead their industries in digitalized, smart manufacturing. Hisense has rolled out a platform powered by large language models that feature AI agents assisting in coding, system integration and defect analysis.

Triangle Tyre Selects Cambodia for Its First Overseas Factory

Shandong Province-based Triangle Tyre said it will invest 3.2 billion yuan (US$462 million) to build a factory in Cambodia, its first overseas manufacturing site. Triangle said production lines there will have annual capacity of 7 million tires, with most of the products exported. In 2022, the company scrapped plans to build a factory in the US.